This might sound like a less exciting episode, but please bear with us. We can promise you that taking some time to put together a sound record-keeping system for your financial life will pay off down the track.
In this episode, Kate & Owen cover record keeping, tax time, Dividend Reinvestment Plans (DRPs) and paperwork.
Let’s talk about some of the areas of your finances where you might want to keep records:
- Copies/photos of key ID documents
- Will & POAs
- Insurance documents (travel, life, TPD, income protection, health, pet, home & contents etc.)
- Super fund details
- Bank accounts, debit cards, credit cards
- Details for any investments, e.g. managed fund, micro-investing app, brokerage accounts, crowdfunding —> transaction history & income details, tax statements
- Property details & details for service providers, agents, loans.
- List of any outstanding debts
- Contact details for your accountant/adviser/broker who might be able to assist with details if you lose track of them.
✅ Action point: Create an investment plan. Doing this is a great way to declutter your financial affairs. As an investor, there are two documents you should have: a simple investment plan (incl. goals, how you plan to invest, how you’ll manage tax and brokerage, etc.) and a statement of account (where your money is, log in details, instructions to your next of kin, etc.)
Ways to keep track of these records
So that’s a lot of different financial records to keep track of – what’s the best way to do it (and minimise the paperwork and admin time in your life)?
- Dedicated folders set up in Google Drive, Dropbox or iCloud (essentially any service you can access remotely from someone else’s device)
- Email folders set up in your inbox
- Sharesight is a helpful tool for investors keeping track of their portfolio
- Monthly person admin meeting with yourself blocked into your calendar
- Wills and legal docs kept in a safe (someone apart from you should know the code) or with your lawyer
- Printed asset list (including digital assets) —> Give a copy to a trusted family member, friend, lawyer or financial professional
