5 Tips To Organize Your Finances in Retirement
Written by
T. Woods
Edited by
Amber Barkley
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Keeping tracking of finances can be complicated, especially as you get older and your portfolio grows more complex. Further, when retirement comes, the last thing any retiree wants is confusion and disorganization regarding their cash flow — almost as important as having a retirement income is the ability to keep that income organized. Not having control of your retirement income can lead to chaos and financial loss.
Luckily, financial services company Ameriprise Financial has put together a number ways retirees can organize their retirement income — every retiree should be able to enjoy their golden years, and keeping their finances organized is the best way to do it.
File and Protect Your Important Retirement Paperwork
It may seem obvious, but the first step is to create a filing system for any hard copy retirement documents you may have.
Ameriprise recommended designating a special binder to hold all bills and paper statements, and to keep all “legal documents, tax information and permanent records” in a fireproof safe in your home, or to utilize a safety deposit box.
It’s a good idea to keep digital copies, too — and keep them organized in a digital filing system.
Keep It Paperless When Possible
Ameriprise also recommended retirees minimize the document clutter by registering for online access to their retirement accounts. Moreover, they suggested creating “a consolidated source of information” — there are apps and programs that can gather and itemize your various accounts into a single consolidated statement.
Keep It Automated When Possible, Too
Retirees can, as Ameriprise noted, sign up for their paychecks, tax refunds and Social Security payments to all be automatically deposited into their bank accounts.
You can also sign up for autopay for your regular bills to make sure you don’t miss any payments — just make sure there’s always enough money in your account to cover the payment so you don’t overdraft.
List Your Accounts and Key Documents
Also recommended is to catalog and keep track of the most important information that you keep locked away in your safe or your safety deposit box.
Know what you have locked away, and share it with your most trusted family and friends as a backup. Additionally — and rather importantly — be sure to keep a list of all account numbers, passwords and PINs in your safety deposit box or safe in case you forget them.
And if you followed the common advice to make up false answers to the security questions you set up — in case you do get locked out of an account — make note of those, too.
Always Plan Ahead
Retirement is the final chapter of anyone’s life. It helps to be prepared at the beginning of that chapter rather than near the end.
Ameriprise recommended designating a power of attorney, as well as considering a living will and/or a health care directive, in case the worse happens. Take care to write down contact information of the people most important to your finances — your attorney, your accountant and your financial advisor — and be sure your heirs know who they are.
Allow only your most trusted loved ones access to your safety deposit box or safe. Finally, always discuss your legal documents with your financial advisor so that they can assist you with your goals and needs.
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