Section 9.4

Organizing Your Records

Why keep records?For identification—some forms of

identification are good to keep safe at home, and do not need to be carried with you.

For legal proof—You may need to prove ownership or that you have made a payment.

For loan applications—all assets and income need to be established before a loan can be received.

For tax purposes—keep a record of all needed information to file for the next year, as well as records from the last 7 years.

Why keep recordsFor budgeting purposes—know what you

spent in the past can help in the present.To verify transactions—For reference—as you move toward more

legally complicated transactions record will come in handy.

For medical reasons—A record of past treatment, allergies, etc.

How long to keep documentsDocument How long to keep.

Bank statements and cancel statement

6 years

ATM receipts Until verified with bank statement

Credit card statements 3 years

Credit card receipts Until verified with statement

Utility bills 3 months

Repair records and warranties Until you get rid of the item

Pay stubs Until verified with W-2

Tax returns and documents 7 years

Real estate and property taxes 1 year past last transacton

Options for keep records safeSafety deposit boxHome safe or lock boxHome filing systemElectronic storageWallet

Section 9.5

Professional Advice

What help do you need?Financial professionals can help you plan

and manage your finances in exchange for a fee:Assistance with tax returnsGive advice about investingCheck over contracts.

Who is qualified?Qualified financial professionals have

credentials (licenses, certifications, or degrees that indicate that a person is qualified to perform a certain service). 1. Certified Financial Planner (CFP)

Completed specialize trainingPassed a rigorous examMust take additional training every year.Three years of financial work experience.

Who is qualified?2. Chartered Financial Consultant (ChFC)

CFP’s who complete additional course work in financial planning.

•3. Certified Public Accountant (CPA)•Licensed in the state in which they practice•Give tax advice, investment advice and financial planning

Who is qualified?4. Insurance agent

Specializes in the insurance aspect of financial planning

Licensed by the state in which they practice.5. Attorney

Prepares a willReviews documents connected with a home

purchasesEnforces contractsHandles complicated tax situations

Who is qualified?6. Stockbroker

Specializes in buying and selling stockMust be licensed by the state where they

practice.

Fees and Commissions:Some financial professionals are paid a set fee

for their services, others earn a commission and some are paid by a combination of fees and commission.

WHEN CHOOSING A PROFESSIONAL, ASK FOR INFORMATION ABOUT CREDENTIALS, SERVICES AND FEES IN ADVANCE!!!!