For Seniors: Quick Tips for Protecting Your Finances—Part 4
Getting Organized
Make it easier to manage your money and pay the bills. If you've accumulated multiple bank and investment accounts and credit cards over the years, consider whether you can close some you no longer use or need. This can reduce the number of accounts you have to manage.
Also, for payments you are due to receive, including money from pensions or tax refunds, there are benefits to having them automatically deposited into a low-cost or no-cost checking or savings account using direct deposit. If you manage that account well and avoid fees, it's likely to be less expensive and offer you more features than alternatives. You can also have automatic withdrawals from your bank account to routinely put a certain amount of money into a savings account or a U.S. savings bond.
Consider additional ways to save time and money. Your bank and the companies you do business with will also likely provide alternatives for you to pay your bills electronically. These options can include online bill paying or having payments automatically transferred from your account. These can save you time and money by avoiding unnecessary trips to pay bills. And, making scheduled payments automatically can help avoid late charges or service interruptions.
Your bank and other financial services providers may also offer incentives if you receive your statements electronically instead of in the mail. It's important, though, that you keep the antivirus and security software on your computer updated, promptly review each bill for accuracy, and monitor your account balance to avoid the risk of overdrawing your account.
“Be cautious about going paperless if you aren't tech savvy or comfortable going online to review your statements when they arrive,” warnes Luke W. Reynolds, Chief of the FDIC's Outreach and Program Development Section. “The law is clear: if an error or a fraudulent item appears on your statement and you promptly report it to the bank, your liability is limited. Likewise, the bank may send you important notices that tell you about changes it plans to make to your account, such as with respect to fees. You need to decide for yourself what will be the best way for you to review these key communications in a timely manner.”
Organize and protect your important documents. Items to keep at home, in a secure place that's easy for you to get to, may include your bank and brokerage statements, insurance policies, Social Security and company pension records, and other personal and financial papers you or your family might need on short notice. If caregivers or others regularly visit you, make sure that your checkbooks, credit cards, and other financial records are protected.
A safe deposit box is best for storing documents or valuables that could be difficult or impossible to replace, and that you probably won't need access to on a night, weekend, or holiday. Good candidates include originals of birth certificates, property deeds, and car titles. Think twice before using a safe deposit box for an original of a will or power of attorney, because it may not be possible for your loved ones to access them quickly if you become incapacitated or pass away. For guidance on where to store these documents, check with an attorney about what is required or recommended based on state law.
Regardless of where you keep important documents, seal them in airtight and waterproof plastic bags or containers to prevent water damage. In case of a natural disaster or a fire, you may want to prepare one or more emergency evacuation bags with essential financial items and documents, such as some cash and checks, copies of your credit cards and identification cards, and a key to your safe deposit box.
U.S. Federal Deposit Insurance Corporation. (Updated 2014, February 14). For seniors: 15 quick tips for protecting your finances. Retrieved November 8, 2016, from http://www.fdic.gov/