Paper or electrons?

More than ever, people are being encouraged to transition to paperless transactions for everything from banking to insurance claims to medical record keeping.

 While there are many advantages to going electronic with your accounts, hardcopy records showing the existence of these accounts is crucial.

Many people now routinely handle banking and other financial transactions via computer or smartphone. Paperless transactions are quick and convenient, and new applications and services can greatly simplify financial record keeping. You can set up notification alerts to remind you when payment is due or set up a disbursement schedule so that payments are made automatically. By doing this, you eliminate the need to receive and file statements and other notifications. Sounds good so far ... but are there pitfalls?

Yes, but happily, nothing that cannot be addressed. Not having paperwork that needs to be handled has a flip side: the lack of tangible evidence that your accounts exist. If you are the person who regularly handles your family's business and financial matters, what happens if you are unable to perform that task? How would anyone know that the account even existed, let alone access it? In the old days, family members could rummage through file cabinets and retrieve information about a relative's life insurance policy or pension plan or debt obligations. Today, this is much less possible.

It is critical to have hardcopy evidence somewhere in your files of all of your financial and business accounts. An easy way to collect and organize these documents is by using the Go-To Guide with its document folders, binder, and Good To Know guide. Learn more here.