The Foreign Service Journal, June 2012

14 F O R E I G N S E R V I C E J O U R N A L / J U N E 2 0 1 2 S pecialized online tools have re- moved the need to travel with a briefcase crammed with impor- tant financial, estate planning and other documents. Still, maintaining key re- cords can pose a real challenge for For- eign Service personnel when they transfer to new posts, as many Journal readers will do this summer. Dependable access to financial documents, always important, be- comes even more critical in situations like robbery, death, incapacity or ill- ness. I still recall what ensued after a well-known FSO of my acquaintance passed away unexpectedly one even- ing almost a decade ago, leaving no fi- nancial records whatsoever for his for- eign-born spouse. Making matters worse, he had never even discussed money matters with her. Because his financial accounts were scattered all over the United States, it took several of us more than a year of digging to locate all his life insurance policies, investments and bank ac- counts. We ultimately found that he had provided well for his widow and young children. However, in the in- terim she suffered greatly, fearing the worst. In this column, I first identify some of the key documents that establish the foundation of the financial plan- ning framework for your future. I then review options for maintaining those records in a secure environment where they are not only accessible, but also easy to update. Types of Records to Keep Situations like the one the Foreign Service widow experienced can be avoided with appropriate planning and a small investment of time and money. The first step is to determine which documents are important and, then, how long they should be held. The possible list is long and includes such obvious things as annual tax records, numbers of bank and financial accounts, insurance documents, wills, powers of attorney, etc. Fortunately, several guides are avail- able to help separate the essential from what should be shredded and tossed. These include IRS Publication 552: Recordkeeping for Individuals and the USAA Educational Foundation’s Man- aging Your Personal Records . Alter- natively, consult with your financial planner and ask for help in reviewing your records from time to time. Each person’s situation is different, but key documents to retain are the fol- lowing: Estate planning documents. These include wills, trusts, powers of attorney and medical directives. If you do not have them, get them. If you do have them, ensure they are up to date and still relevant to your situ- ation. Financial accounts. Maintain a list with the name of the firm, contact information and account number. Do not rely on your memory alone. In- clude banks, credit unions, investment firms, financial planners, retirement plans, and insurance (life, long-term care, medical, auto and property). For- tunately, most financial institutions maintain online statements that are easily accessible, obviating the need to keep paper records. Final instructions. No one likes to think about their own death and the subsequent arrangements. But leaving guidance for surviving family members or colleagues will save them a great amount of stress. The instructions should also include a list of people to contact in the event of one’s death. Legal documents. Consider what is important in your situation and in- clude it in your records. You should keep birth certificates, property deeds and titles, death certificates, driver’s li- Personal Record-Keeping in the Foreign Service B Y S TEPHEN H. T HOMPSON FS K NOW -H OW Peace of mind comes from keeping financial documents up to date, storing them securely and letting someone know where they are.