Day 5: Create a Master Directory
Degree of difficulty: Easy
"OK, now that's depressing." That was how one of my single friends responded when I suggested that she document all of her financial accounts in case something should happen to her. But the fact is, singletons aren't the only ones who should be documenting their financial assets. And compiling a master directory with essential account information is apt to be just as valuable for you to rely on while you're alive as well as it would be to your loved ones should something to happen to you.
If you've recently completed a net worth statement (Day 4), you've gone through the process of sorting through your various accounts and are in a perfect position to create a master directory. But even if you haven't, creating a straight-forward document of your financial accounts shouldn't take long at all.
Your master directory can be either electronic or paper. In it, include financial assets such as bank, fund, and brokerage accounts; company-retirement plan and pension fund details; real estate holdings, and business interests. Alongside or beneath each account name, include account numbers, URLs, passwords, key contacts, and phone numbers. Include similar details for debts you owe and insurance policies.
Given the amount of valuable personal information it includes, your master directory would obviously be manna for identity thieves. So once you've created such a document, it's essential that you take steps to keep it safe. If it's a physical document, keep it under lock and key in your house. If you've created an electronic file, password-protect it using a hard-to-guess password. Then alert a trusted loved one of this document's existence as well as details about how to gain access to it in a pinch.
Plan to keep your document up to date, ideally as part of an annual financial check-up.
Return to the article: "The 30-Day Financial Fitness Plan".
