We take a lot of selfies and other photos these days.
But when did you last take a snapshot of your financial situation - how much you own and owe - including your "steps to take after death" list?I try to do this at the start of each year around RRSP-income tax time. But I often don't get around to it until shortly before I take off on a major trip. . . to update the information for my use - and also for my family just in case I don't return.
Depending on your personality (and time available), you can do an approximate or a detailed list of assets and liabilities, perhaps also income and outgo, and after-death instructions.
On the plus side, most people will have headings like bank (trust company, credit union, life insurance) accounts (GICs, term deposits), mutual fund and stock market instruments, pension plan, a home, investment real estate, perhaps valuable collectibles.
On the minus side: mortgage and other debt - including any money owed to individuals.
Income is simple: employment, investment. Outgo takes more time but hopefully will be less than (after-tax) income.
The list of what to do after death provides a handy record of your advisors for you, but will prove invaluable for those dealing with your affairs after you die.
Most important are names and contact details of banker, broker, accountant, lawyer, perhaps funeral home and so on. Also helpful will be your insights about dealing with both these advisers and also your finances, including specific steps to take.
Make sure somebody - for example, the executor of your will (you do have an up-to-date will, don't you?) - knows where to find all this information.
Speaking of record-keeping, make sure you also have a current video or series of photos of your personal possessions in case you ever have a home/ possessions insurance claim.
This record not only helps you remember what you might have lost in a fire or theft but also shows the insurance company the quality of the item(s).
Finally, update all these records every year. You will be surprised how much changes from one year to the next.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally. Email [email protected]
