Don't Mess With Taxes

The watchwords in real estate are location, location, location. The personal financial world has its own triplicate mantra: details, details, details.

Sure, you were meticulous in making your year-end tax, investing, retirement and giving moves. But there's still some financial housekeeping left.

Get organized
You have all your financial documents, but are they easily accessible? I'll admit that I too often tend to let things stack up in my email inbox or, when they're in paper form, on the floor next to my filing cabinet.

That means I have to sort through the stack when I need a document or search my email box. But eventually I get in gear and put the material in appropriate folders, either on my computer or in my filing cabinets.

Since I'm sure you're already much more organized, you're ready for the next step: culling, deleting and archiving. USAA has compiled the handy table below on what documents to keep for how long:

Again, it's your choice of paper or digital. Either is fine as long as it's a record keeping system you're comfortable with and will keep it up to date.

If you go electronic, periodically copy your documents to a flash drive or CD and then put it in a safe deposit box or other secure place.

Create a financial cheat sheet
Now that you have your financial documents in order, it's time to create an overview document. Or as I like to call it, cheat sheet.

This is a one-pager of your and your family's critical fiscal data. It includes not only the details you know about each other -- birth dates, Social Security numbers, extended family contact info, employment data -- but also other important info, such as driver's license numbers and credit card account numbers (some card companies issue each account holder a slightly different set of digits).

Your financial cheat sheet also should include:

• Location of wills, trusts, dates completed, attorney, executors, birth certificate information and location 
  
• All checking, savings, money market accounts, etc.  
  
• Safety deposit box information  
  
• Annuities, dividends, interest earned, part time jobs, business, etc. 
  
• Brokerage accounts, 401(k), SEP/Keogh, stocks, IRAs, bonds, etc.  
  
• Vehicle registration, licensing and maintenance data
• Deeds to your residence and other real property; note balances owed, loan company information and account numbers  
  
• Insurance policies on your residence, vacation property; include account numbers, addresses, amount of coverage, agent's name and address, etc.  
  
• Other insurance, e.g., life, health, auto, long-term care, umbrella policies; include account numbers, addresses, amount of coverage, agent's name and address, etc.  
  
• Creditor data, including the companies and the account numbers, e.g., personal loans, credit card accounts, balances owed, etc.

Again, duplication is important. Make a copy for safe keeping and another to give to your attorney and/or financial adviser.

Don't forget passwords
This information should be on your cheat sheet. Or if you want to keep it separate, that's fine, too. But one way or another, you need to list all your password data.

Account passwords are especially important if something happens to you and you're the one who handles finances for your family. Your partner then will be able to take care of things until you're able to get back to your normal routine.

For that reason, also be sure to include share your computer account passwords, as well as your security Q&As.

Tend to your estate
The federal estate tax is set through 2012, but who knows what Congress will do as the law nears expiration again.

The best anyone with enough assets to be affected can do is prepare. If that's you, talk with an estate tax attorney and look at options to reduce any potential IRS bite.

And regardless of how much you own, you still need the basics, such as a will. You want to decide who gets what, not leave that to some judge.

You can, and should, revise your estate documents and will as your situation (and estate tax laws) change. But you need to have something in place now.

Budget, budget, budget
This post started with a three-part admonition and it closes with one. Budget, budget, budget.

When you make your annual New Year's Resolutions in a few weeks, put making a budget at the top of your list.

To many people, the word budget is just another way of saying "you can't have that." But a budget actually is a way to get what you want, as long as you understand that financial choices must be made and you make those decisions wisely. 

You can find an overview of budgeting in my Austin Woman magazine story. And Kiplinger has a good, basic budget worksheet.

I know this seems like a lot to tend to in just a few weeks. Don't let the scope deter you.

You can take care of these tasks year-round. But at least note now which key financial details you need to attend to when you have more time.

You also might find these items of interest:

• Financial advice from holiday experts
• What mom should be paid
• Taxation of personal, business debt gets closer Congressional look