Where Is Your Vital Information?

Life Happens! Are You Prepared?

One of the best things you can do for yourself, EVER, is to be prepared.  Emergency situations, personal crises, health issues, are life in real-time.  The crisies can range from a newly diagnosed terminal illness death, disaster and lots in between. What can you do to prepare yourself and your loved ones to confidently walk through these times and to enjoy peace of mind?

According to the Merriam-Webster dictionary on line a crisis is defined as:

• "An emotionally significant event or radical change of status in a person's life" 
•    "An unstable or crucial time or state of affairs in which a decisive change is impending; especially : one with the distinct possibility of a highly undesirable outcome"

Emergency Preparedness at Home

An important first step is to accept that bad things do happen to good people. Fully prepare what you need to have and  do in every life event.  Remember, preparing doesn’t just include planning an escape route or the physical things you get together when you create a disaster preparedness kit. Emergency preparedness should also include collecting and organizing all of your vital documents and personal information i.e. medical information.  

Your Vital Documents

When you have the information in one place it is ready to grab and go when you need it. Some of the vital personal information you can gather for yourself and your loved ones includes:

• Personal data about yourself, your spouse, your children
• A list of assets, account numbers, bank contacts
• Debt information such as credit card and mortgage information
• A photo or video home inventory 
• Insurance policy numbers including vehicle, home, medical, etc.
• Estate plan information such as a living will and revocable living trust 

It is also helpful to document information that might be needed if someone were to step into your shoes for a time.  This could include the name of your plumber and electrician, where your water and gas shut offs are, and the name and telephone number for your veterinary.  Remembering or deciding what is vital these days can be overwhelming. If you want some help, the Life at Hand® Handbook, included with the Life at Hand® system, offers handy checklists about which documents to collect and store in one place.

Unfortunately,  life happens when we are least prepared or expecting it.  I vividly remember receiving word of my 24 year-old son's tragic death and the challenge of settling his estate from a community 1500 miles away. It took months in the midst of grieving his transition.   In fact, the Life at Hand® products were largely inspired by this experience.  I can't encourage you enough to take the time to ensure that the very foundation of your life will withstand the quake of crisis.  You'll be glad you did!  

Safe Deposit Boxes, A Tool to Get Organized?

Safe deposit boxes are available at many banks for a fee.  They help you protect important documents, small valuables and keepsakes, but they also have a downside.  Are they worth it?  Here are some facts!

Advantages

Safe deposit boxes generally are secure.  Most safe deposit boxes have two keys, one you keep, and one the bank retains.   Both keys are required to unlock the box.  Foreignborn.com has a great article that notes if you want to grant another access to your box, that individual will have to become a joint renter or a deputy/agent.  This is different from a power of attorney which will not allow access to a safe deposit box.

Safe deposit boxes are more protected from natural disasters.  Although nothing is 100% protected, safe deposit boxes are often constructed to withstand a lot of abuse.  This includes natural disasters and fires.  Some recommend that you put your valuables within a water resistant container so if there is a flood, hopefully, your vital information won’t!

You may get a perk from your bank.  According to Personal Finance HQ banks sometimes offer special rates for safe deposit boxes if you have already established accounts with them.  

Disadvantages

Additional responsibilities for you.   Even though you may get a perk from your bank, you are still paying money to rent the box.  With the additional rent, you also have a new key to keep track of.  If you lose your key it is often not replaceable, instead you are responsible for paying a fee to have the lock drilled out and a new one put in.

Access is restricted.   Guess what, you may not be able to get what you want when you want or need it.   Safe deposit box is only available to you during the banks normal business hours.   It is advisable not to store anything you might need in the event of an emergency or unplanned travel. Sound Money Tips suggests, contrary to popular opinion and practice, you not keep original documents, like legal documents in the box. The reasoning behind this is if someone dies there is usually a period of time that the box cannot be accessed.  Foreignborn.com argues that originals of important documents such as birth certificates etc. can be stored in your deposit box, but that you ought to have your original power of attorney, passport and medical care directives stored elsewhere so they can be retrieved on a moment's notice, day or night, seven days a week. 

Worse case scenario.   ABC News reported that safe deposit boxes may be "not-so-safe-deposit boxes".  The article says that content’s are sometimes seized by various states to help them pay for budget deficits.  When property in a box goes unclaimed (i.e. the owner died without telling anyone the box existed) the property goes to the state to help balance their budgets.  There have been instances when states have seized boxes "active" boxes belonging to identifiable individuals.  Documents have been shredded and assets sold for far less than appraised value. Some states are working to improve their processes so this doesn’t happen, but it is still a consideration.

So what is the verdict?  Do you go with a box or don’t you?  What is your experience? 

Financial Document Management: How Long Should You Keep That Paper?

Paper happens.  No matter what we do and how electronic we are, if you are like me you still get swamped in paper, all of which seems financially important and vital.  But do we need to save everything?  What should we save, for how long, and what can we shred? 

Document Management

The list  below is from Bankrate.com and gives a clear idea of what to keep and what can be destroyed. 

• Taxes and associated tax paperwork – Seven years.  The IRS has six years to challenge your return. 
• IRA Contributions – Permanent so you can prove your contributions at the time of withdraw
• Retirement Savings Annual Statements – Permanent (quarterly statements should be kept to be compared to the annual statement then shredded).
• Bank Records – Permanent if they relate to your tax records
• Brokerage Statements – Keep until you sell the securities
• Bills – Most can be shredded after the payment hits your account.  Large purchases should be kept to prove value in case of loss (Think home inventory)
• Credit Card Bills – Save your receipts until you can compare them with your statement, then shred.  Remember, if the bill is something dealing with your taxes, it stays for seven years.
• Paycheck Stubs – One year and match it to your W2.  After that it is good to go.
• House Records – Keep permanently include all the home improvement costs you make too.  If you decide to sell, this may help increase your home’s worth.

Other Sources for Financial Document Organization

Oprah’s O Magazine also has a great checklist on how long you should save your documents and allows you to write down where you store them.  Another good article on tax records comes from Sandra Block’s article in USA today.  Ms. Block talks about why you need to keep the documents and for how long and has a handy list of document to keep per the IRS.

It is always good to err on the side of caution with your documents.  You want to make sure you are covered in case you are audited.  Your documents should be kept organized not only for your own peace of mind, but in case of audit.  Filing things as you get them will save you a lot of time rather than trying to put together several years of data in a few weeks.  The IRS will accept electronic documentation and even encourages it as backup in case of a disaster.  This can save a lot of space, but remember to back it up! 

Not all organizations will save your electronic information.  Banks will go back only a specific date range after which time you may not be able to access your electronic statements with them, or if you are able, it may take a fee to retrieve them.

What do you do to keep your financial information organized?  What documents do you keep or shred?  I would love to get more feedback on this.

Vital Personal Information: Replacing Personal Identification

There are certain documents that are key to helping you prove your identity.  These include your driver's license, passport, birth certificate and social security card. 

So what if they get lost or misplaced?  It happens to all of us. Many of us have these vital documents in more than one place, scattered around the house.  Below you will find help to replace four of the identifiers.

Organizing Your Life

You know me by now, I’m an organizer at heart and my first bit of advice to you is to gather all those important pieces of paper in one place and put them in an order that you can understand for ease of use and peace of mind.  Our Life at Hand® organizing system is a terrific product that helps you collect, organize and secure your vital information easily and thoroughly. However, even a folder will work, as long as you know where it is and you can access it when you need it.

Replacing Vital Documents

All right, what is the next step?  As you are gathering these vital documents replace anything missing right now!  Here is a list of some of the must-haves and how to get a copy if you cannot find your original.

Social Security Card – A social security number acts as an identifier for you and is a requirement if you work within the US.  To get a replacement card go to the Social Security Administration’s website.  There is not a fee to replace your lost card and you are allowed up to 10 replacements during your lifetime.

Driver's License – A driver's license can be replaced relatively quickly by going to your nearest Motor Vehicle Division.  Remember you will most likely need proof of identity, most likely the original birth certificate and Social Security card to get a replacement.  It is safest to check your particular state Division of Motor Vehicles to find out what is required.  For a list of the DVM’s in your state go to onlineDMV.com.

Birth Certificate – According to Erik Jackson's article in Real Simple, a birth certificate is generally required when “enrolling in schools, the military; to obtain a passport; to get a drivers or marriage license and to apply for government and private benefits.” A birth certificate can take a while to replace. The National Center for Health Statistics can give you contact information about whom to contact in your state.

Passport – I wrote about this before in our travel blog but it is worth repeating.  A passport acts as your identifier abroad, not only to support who you are, but also to support where you are from.  To replace your Passport go to U.S. Department of State to obtain the required form for replacing lost or stolen Passports or visit the Life at Hand® resources page. The replacement process could take a month or two, so if you are planning travel, allow yourself at least this amount of time to ensure that your new passport is in hand.

All right then, let’s recap. Be sure to have original or notarized copies of your birth certificate, social security card, driver's license and passport if you travel. Keep them in a secure place where you can locate  them on a moment's notice.  If you don’t have them, get them!  

I suggest you keep a photo copy of your driver's license in your glove box, photo copy of your passport in the lining of your luggage or another secure location separate from your travel documents.  While copies rarely suffice, you may find the information on the copies helpful in a pinch.  

Are you prepared?  

Identity Theft and Your Personal Information

A friend of mine had her identity stolen.  One day she had some money in the bank, the next day she began to get bounced check notices.  When reviewing her account she found that within a day’s time, someone had made several purchases for automobile sound systems using her checking account.  She froze the account immediately, but damage had been done. 

Although her bank did not insist she pay for the fraudulent charges, she could not access her money for several weeks.  The automotive stores from which the items were purchased reported several thousand dollars lost.  How did this happen?

Identity theft is rampant in today’s culture.  SpamLaws’ article on Identity Theft Statistics state that as many as 10 million Americans are affected by identity theft each year, and that it takes anywhere from 3 to 5,840 hours (the average being 330) to repair the damage caused by identity theft.  Information is currency.  Social Security numbers, medical records, pins.  All the information that comprises the foundation of your life can serve to destroy it.

Protect Your Identity

So what do you do?  Here are some basic steps to help you protect yourself.

Shred documents - If you have documents that you don’t need, i.e. old credit card bills, canceled checks, etc., shred them.   Documents can be removed from the trash and numbers can be stolen.  Also look at your receipts.  Some companies only list the last four digits of the credit card used, but some still have the whole number present.  Those receipts, once recorded, should go in the shredder as well.

Keep passwords safe - Having a password written down in an environment where anyone can see it is dangerous.  Likewise, leaving a computer open when you walk away from your work area in a public place can leave you open.  Protect your screen by having a password protected screensaver pop up, or even better, log off before going to lunch.  This will keep your information safe.

Mail it at a post office -  My friend wrote a check for an electric bill and put it in her mailbox on the  street.  Someone came along and took it out of her mailbox and used it to make counterfeit checks with her account number.  The safest thing to do is drop your mail at the post office or mail it in a US Postal Service mailbox before the latest pick-up time.

Check your credit report - Each year you are allowed one free credit report from each of the three major credit bureaus, TransUnion, Experian and Equifax.  You can request one at the annual credit report website.  Review the information these sites provides carefully and if there are problems, then write a letter to dispute these claims. 

It pays to be cautious with your information and to stay on top of your credit reports.  Having your information stolen can greatly inconvenience you and may have lasting repercussions on your credit scores.  Be safe and keep tabs on your information.

Crucial Information: About Electronic Health Records and PHI

In this day and age, with EHR, PHI, and HIPAA, we have a lot more to learn.  First, what the heck do all those acronyms mean, secondly, why are they important to you, and lastly, what do you need to do to take care of yourself in this electronic age?

Emergency Medical Information

First off, EHR stands for Electronic Health Records (also sometimes referred to as Electronic Patient Records) are a way many hospitals are using to keep track of peoples medical charts.  With the electronic age, doctors can now record health information electronically which not only saves huge amount of time and paper, but allows continuity of care as the record can go where you are, rather than having a paper file that needs to be mailed from place to place.

PHI stands for Protected Health Information.  This is the private health information that is carefully protected.  Your information is private, the HIPAA (Health Insurance Portability Protection Act) was created to protect your information.  Protected Health Information prevents you from having your information available to all.  What is wrong with you, stays with you and your doctor. 

Now, this is important, why?  Well imagine you had something you didn’t want to share with others.  A past medical diagnosis of a disease or problem that could affect how people would treat you or the job you held.  You would likely want to have this information kept private, as is your right.  This is where HIPAA comes in to play.  HIPAA, created in 1996, requires that health information be protected.  It even goes so far as to making sure that any information that is email should be encrypted and that doctors don't share your personal information in a public location.  HIPAA covers all health records, not just electronic, and individuals working in medical centers and hospitals are trained to keep the information confidential, and to understand how to protect the need-to-know information they have.

Getting Organized

Electronic health records are a great new technology but they have a downside.  They are new.  Not all locations have the ability to access them.  I live in a small town and many doctors don’t have access to the information from the larger hospitals.  So what can you do to help yourself? 

• First of all, download our Emergency Information Card.  This will give people immediate information they may need about you in case of an emergency.  
• Keep a list of your current medications.  Medications, although beneficial, need to be analyzed carefully by your physician.  Certain combinations don’t mix.  If you physician has access to an up-to-date list of the medicines you are taking, he can prescribe the right medications with the minimum amount of problems.
• Order a copy of your medical chart from the hospitals you have been in.  Hopefully you will never need it, but if you are applying for health insurance, or scheduling a procedure in a small hospital that needs your records, it is handy to have.

The Life at Hand® system can help you with this (see our Sample Forms).  Our system allows you to record your information, and keep it handy.  You can keep it completely private, or if you wish, you can share it with family or a care giver.

Taking these simple steps can make life a little easier for you.  Until electronic health records become mainstream, do what you can to help yourself and your doctor take care of you.

Organize it! Boxes and Bags and Containers Oh My!

In the last blog I discussed how to downsize and simplify the items in your house. This time I want to talk a little bit more about containers. As a consummate organizer, I must say I love containers! Boxes, jars, bags, bottles, crates, you name it!  Containers allow us to organize and manage all the stuff in our lives in a way that is easy to access when needed.

Whether you want to organize your kitchen, closet, or garage containers are a must! Containers can be chosen for their size and shape, what they hold, and/or how they look. A ceramic jar can act as a decorative way to hold coffee grounds and a square basket can be a great makeshift drawer on a closet shelf.

 

Container Quandaries

There are several things to think about when finding containers the items you own. Ask yourself:

• What am I going to put in the container (clothes, paper, knick knacks)?
• Does the container need to be nice to look at? Will it be in my closet or on a bookshelf in the living room?
• Will the container fit where I want to put it? (It helps to bring a measuring tape into play at this point. There is nothing worse than buying a container for the closet and finding out the door won't close properly with it in there).
• What does the container need to be made of? (I wouldn't want to use an open weave basket to store sugar or flour and I wouldn't want to store something heavy in a fragile glass box).
• Is this container something that I want to have stationary or do I want something portable and easy to handle?

By asking yourself these questions, you can find just the right container for what every you want to hold. Let's look at an example, the Life at Hand® organizer. The Organizer is housed in a container created just for paper, vital documents, and personal information. This container is rectangular, large enough to hold all the important information you need, and portable, ready to grab and go when you need it. The container is water and fire resistant to protect what is inside, and lockable to keep it safe. The container is also appealing, but inconspicuous. It doesn't call attention to itself, yet I experience so much peace of mind knowing the very foundation of my life is all in it!

Let's look at another. The pottery jar by the kitchen sink in which store my ground coffee takes up little room, is beautiful, and enhances the decor of my kitchen. It is easy to clean because it is pottery and just the right size to hold a pound of ground.  I don't need to transport the jar, so it's all right being fragile.

Containers are a lot of fun and can help you organize and simplify your life. Whether they are for show or for storage, they can serve a purpose to help keep your life organized and your house clean and safe.

Tell me, what is your favorite container and why?

Downsize, Simplify, and Organize Yourself

 

 

Downsizing and organizing in life can be a BIG task! We all have items and things we love, that have sentimental value, or we just believe we need. Whether you are moving to a smaller home, helping an elder move to an assisted living facility, or simplifying your life, downsizing is the key.

There are people who can help you.  You may wish to use the National Association of Professional Organizers (NAPO)  to locate a reputable professional in your area. Ultimately, however, the decision of what to keep and what stays is yours. 

Planning Where Should It All Go?

Before you start think about where you want the items you choose to part with to go. There are several charities such as Goodwill, ARC, or the Salvation Army, as well as local churches and thrift stores who benefit from gently used clothing, furniture and electronics. Many of these charities even offer a tax deduction for donations.  Consignment stores, Craigslist, and the classifieds are good sources if you are hoping to regain a portion of your original investment.

Ask Yourself, Do I Use This?

Begin going though each room in your house. If you have time, you might take one room a week. As you go through each room, have packing box(s), tape, a marker and packing material ready.  Ask yourself, "Do I use this item? Do I need it, love it, or will someone else love it more?" Diane Schmidt has a great list of questions you can ask yourself in her About.com article on moving. As you go through each room, find the items you can get rid of, package them carefully and label the box destined for charity or consignment.

Organize!

Another step in simplifying your home is to box, (the contents clearly labeled and dated) the items you want to keep that you are not using. Paper files are a prime example. If paperwork is gathered, labeled and boxed together in an organized fashion, it takes up half the space and creates a calmer and safer environment. 

The Emotional Aspects

It is hard to dispose of things we have formed an emotional attachment to. It is even more difficult when you are trying to help someone else do it. The process can be both frustrating and traumatic.

A friend of mine spent some time helping her best friend (a self-described hoarder) clean up her house. This process took several months and during that time there were arguments over what needed to be kept and why. My friend later told me she had to learn that what didn't seem important or necessary to her was indeed very important to the friend she was trying to help. In the end they cleaned the house.  They donated the things her friend could finally let go of and stored the things she needed to keep but was not using on a daily basis. 

Remember, downsizing and simplifying is not an easy process. It is hard on you, and if you are helping a friend or relative, it is likely difficult for them them. We tend to get attached to things that we associate memories with. Be patient and understand that sometimes, even though logically you know it should go, if your heart says it stays then that is okay too.

How do you manage all the "stuff"?   

Do You Have a Home Inventory?

How do you prove you own something after it has been destroyed? Last week we talked about hurricanes and some tips to be prepared if disaster hits. This week I would like to delve a little deeper into how to support your insurance claims when your assets are destroyed.

Home Inventory

One of the first things you can do to protect yourself is to do a home inventory. What you will need is the following:

• A Camera or Video Recorder
• A Notebook
• Receipts and appraisals for big ticket items

Start in one room and move through each room in your house. Take photos of each area and items of value.  If any items have been appraised, store the appraisals and/or sales receipts with your notes in one place. The Life at Hand organizing system is well-suited for this purpose.  It isn't necessary have to list every single thing. For example, if you have a large DVD or CD collection, photograph the entire area in which they are stored.  Then count the CD/DVD's and record that number.

Make sure you go through everything. Open drawers and closets. Document what is stored in the garage, attic, or storage shed. All of your things have monetary value and if they are gone you will want to be able to prove you owned them. State Farm has a great Home Inventory List to help you make sure you don't leave anything out.

The Insurance Information Institute has a free Home Inventory software called Know Your Stuff®. This software allows you to document the items you have photographed and to store the entire inventory securely online. If something happens to your home or its contents, you can still access all the necessary documents.

The nice thing about a home inventory is that it can help you survive more than a disaster. It can help you complete  a police report if a theft occured, settle an estate, or when purchasing insurance so you know the value of your assets.

The home inventory process can be a big task.  I would suggest doing it in small pieces, room by room.  As well, take time to savor the memories and stories that the things in your home evoke.  You'll be glad you did! 

Prepare Yourself in the Event of a Disaster

Summer is here, and with it comes hurricane season. "Katrina killed more than 1,600 people ... destroyed 200,000 Gulf Coast homes ... displaced about 1 million people. News reports place insured property damage at $25.3 billion in 1.7 million insurance claims." (Hurricane Katrina - Livability Statistics). You cannot live in fear, but you do need to do what you can to help yourself.

Disaster Preparedness

One of the best things you can do is prepare yourself.  The Federal Emergency Management Agency, FEMA, has a great list of the most important things to consider before a disaster hits. They provide a wonderful checklist that will help you to assemble what you need.

Vital Documents and Personal Information

According to the River Oaks Examiner's article on Emergency Preparedness most people have the emergency items they need, but many do not think of their financial records in time of crisis. Yikes! It is these vital documents that not only show who you are, but what you own. Insurance claims can only go so far if you don't document what you have.  You must have your original drivers license, social security card and birth certificate to prove identity in many circumstances. It is helpful to have credit card numbers, security codes and expiration dates as well as medical information, including your prescription numbers and pharmacy telephone.  The River Oaks Examiner noted that these documents should be kept in a waterproof and fire resistant container. The container should be portable and easy to grab and go.

You may not live in disaster prone areas.  However, any and all preparation for the unexpected, when life just happens, will surely increase your peace of mind and that of your loved ones.  

How have you prepared?  Are your vital documents all in one place, up-to-date and secure?