Financial Matters

Spring Cleaning: Financial Matters

At Schultz Financial Group (SFG), we view wealth differently through our Four Capital approach. Our team works with you to build your wealth across Four Capitals – Financial Matters, Physical Well-being, Intellectual Engagement, and Psychological Space. This Financial Matters article focuses on Spring Cleaning

Spring cleaning is an age-old ritual that has roots in Jewish, Christian, and Persian traditions. In the 1800s, spring brought about warmer weather which meant that the soot and grime from lamp, coal and wood heating used during the winter could be thoroughly cleaned out of the house. Spring cleaning is a ritual that has evolved with time and provides us with an opportunity to say goodbye to winter and prepare ourselves and our space for what is to come.

While spring in the northern hemisphere only lasts from March 20 to June 20, this cleaning and organization process for your Financial Matters can be applied year-round. 

1. Capture. Before you begin cleaning out old files and organizing your financial accounts, gather all documents and to-do items into a single location. This may include tax documents, statements, transaction confirmations or receipts, account login details, and your financial goals for the year. Having all these items gathered in a single location will help you maintain focus, develop an effective system, and ensure that you address all items.

2. Organize. Now that you have captured all items relating to your Financial Matters, it is time to organize. It may be helpful to begin by asking yourself “what is it?” and “is it actionable?”. By organizing items into categories such as ‘action items’ and ‘important documents’ you will be able to better sort through and spring clean these items.

If the item is not actionable but is important, you may need to store the record. You should develop either an electronic or a paper filing system for documents such as tax returns, investment reports, or account statements. An electronic filing system can be advantageous as it will save you physical space and will require less printing in the future. 

Organize your action items by the level of resources (time, energy, and materials) to complete the item. For example, if an item is time-intensive or is a multi-step project, you may need to address the action item during dedicated project time. Whereas, a simple to-do item, such as electronically signing a document, can be done whenever you have time and have access to the action item.

In this digital age, it may also be helpful to organize your login information for financial accounts. Consider using a password management tool to store your login credentials. 

3. Clean. Now that items relating to your Financial Matters have been organized, you can begin cleaning. 

The IRS recommends that tax records be maintained for three to seven years. Older documents can be shredded or deleted.

To reduce the quantity of investment reports and account statements, you may consider saving the annual report or statement and shredding or deleting the monthly, quarterly, or semi-annual reports and statements. A year-end report or statement most likely contains the same information that the periodical reports include for the year.

When updating your password management tool with financial account logins, consider changing your passwords. Changing your passwords every so often can help improve cybersecurity.

You may also consider setting up autopay for your recurring bills. This way, you can rely on monthly account statements to verify transactions, but you can reduce the amount of paper bills you receive, and you can rest assured that a bill will be paid if you are on vacation or otherwise unavailable.

In addition to physically cleaning your estate plan by dusting off the file, you should read through the documents to ensure that the provisions in place still apply and are accurate. Personally reviewing your estate plan ensures that there are no changes to your wishes. You should also consult with your estate planning attorney for a periodical review as estate laws and taxes are ever-changing.

 

Alyssa Yocom is an Associate Wealth Manager with Schultz Financial Group Inc.

Schultz Financial Group Inc. (SFG) is a wealth management firm located in Reno, NV. Our approach to wealth management is different from many other wealth managers, financial advisors, and financial planners. Our team of fee-only fiduciaries strives to help our clients build their wealth across four capitals: Financial Matters, Physical Well-being, Psychological Space, and Intellectual Engagement. We provide family office and wealth management services to clients located in Nevada, California, and other states. If you’d like more information, please check out our website or reach out to us via our contact page.

  • Important Disclosure Information: The information contained within this blog is for informational purposes only and is not intended to provide specific advice or recommendations.  If third party products or services are referenced in the above blog post, then Schultz Financial Group is providing that information for informational purposes only and is not recommending or endorsing any third party products or services. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Schultz Financial Group Incorporated), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Schultz Financial Group Incorporated. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Schultz Financial Group Incorporated is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Schultz Financial Group Incorporated’s current written disclosure statement discussing our advisory services and fees is available for review upon request. Please Note: Schultz Financial Group Incorporated does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Schultz Financial Group Incorporated’s web site or incorporated herein, and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.