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Investment: Cash Accounts

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Investments: Cash AccountsAs I write this post, my desk is piled with paperwork. Though all the documents are in piles, I don’t feel organized. Sometimes I feel like the paperwork battle is a loss, but then I get everything filed and all is good again.

If you feel this way with your important documents, then press on in your process. My document organization journey took months to complete. Though I am currently maintaining my filing system, the process takes time and energy.

Thus far in the process, I have covered File Box 1 and File Box 2. In File Box 3, we have looked at Social Security documents and retirement plan documents. Last week, we began the investment documents with U.S. Treasury Savings Bonds. Today, we move on to cash accounts.

Investments: Cash AccountsCash Accounts

In the fourth file opening of my accordion filing system, I place my cash accounts asset list. Keeping all the information in one place makes contacting the company and finding the account numbers simple.

Needing one source, I created the following free printable to record our family’s accounts. You are welcome to download and use it for your investment information as well.

Cash Accounts – pdf

Cash Accounts – WORD document

To share these resources with others, please forward the link to this post rather than sending the files directly. Thank you for protecting Using Time Wisely’s copyright.

For each account I document the following information:

Name of Institution

With multiple accounts in different financial institutions, I record all our accounts from one institution and then our accounts from another bank or credit union.

Branch and Address

Should I need to send written correspondence, I like to have the address information available without needing to look it up.

Phone Number

Any contact information, including a person’s name and extension, is helpful should an issue arise.

Website Address

Keeping this information with the other information makes checking rates, setting up bill pay, and verifying deposits a snap.

Type of Account

Noting a checking or savings or both types of accounts helps document all your accounts.

Account Numbers

This information is especially helpful for someone who may need access to your accounts should you become disabled or unavailable. If something should happen to me, Paul will have access to our information via this listing.

Names on Account(s)

All of our accounts have multiple authorizing owners and joint owners. By having joint owners, I know that someone can gain access to our funds should something happen to both Paul and I.

In documenting our cash accounts, I have the above-mentioned information recorded for each of our accounts filling up 2 sheets. These documents are placed within the fourth filing opening under the investment document category.

Weekly Project: Record all your cash accounts in one document.

As you continue organizing your important documents, gather the information for all your cash accounts including your children’s accounts. Having all of these account numbers and contact information together frees you to work on other matters. Happy organizing!

Question: Do you keep all your cash account information in one place?

Investment: U.S. Treasury Savings Bonds

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U.S. Treasury Savings BondsIn using time wisely to organize important documents, I find this process rewarding. When I am confused or not sure of how a document or process works, I spend time wondering if I will miss a deadline or an opportunity to benefit my family.

I am a thorough researcher. Finding the answers to my questions is like a puzzle. Some of the pieces join neatly while others need to be flipped and turned to fit into the unified whole. As I discover nuggets of answers, the big picture comes into focus with a clarity and understanding of the subject.

This research process led me to understand a portion of U.S. Treasury Savings Bonds. Though I am far from an expert, I can suggest resources to guide you to a deeper explanation of these investment vehicles.

Obtaining my U.S. Treasury Savings Bond

When my grandfather passed away over 20 years ago, my grandmother gifted each grandchild a $100 U.S. Savings Bond issued from the Treasury department. This bond was issued from a local bank in my maiden name using my social security number and address at the time of issuance.

My series EE bond earns 4% interest and increases in value every 6 months since it was issued prior to 1997. It will reach maturity at 30 years at which time I will redeem it.

Valuing my U.S. Treasury Savings Bond

As my bond is still earning interest, I found this Savings Bond calculator helpful. By plugging in the information, I can check the current rate and value.

Redeeming my U.S. Treasury Savings Bond

In the month of issuance at the 30th year, I will cash in my series EE U.S. Savings Bond. If I cannot find a local financial institute to help, I will contact the Federal Reserve.

Additional U.S. Treasury Savings Bond Resources

Limiting this post to the Series EE U.S. Treasury Savings Bond, I realize that there are other types of government investments. As I have not researched those options, I offer the following resources to help you find the answers you need regarding purchasing, redeeming, and learning.

With my U.S. Savings Bond still earning interest, I keep it tucked inside its original sleeve and housed within the fourth file opening under the investment category of File Box 3. When my bond reaches its maturity date, I can easily access it from this file to redeem it.

Weekly Project: Place all government bonds within your investment category.

In using time wisely, keep your documents together. If you find a valuable website or specific information key to your investment, then note that information and file it with your bonds. I keep a sticky note with the issuance date and maturity date on top of the envelope.

Keep organizing. Go at your own pace and enjoy the benefits of an organizational system that works for you. Happy organizing!

Question: Do you have any government bond investments?  

Investment Documents Overview

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Overview of File Box 3With almost a 2-month break from our document organization, I hope your progress has not diminished. My desk, piled with paperwork, receipts, and bills, needs attention. However, all the documents are organized into sections making the process smooth for me. The rest of the filing has been completed, so I am on schedule with our document organization.

If you are just joining us or forgot where we left off, then let’s review from the top. We have organized our important documents in File Box 1 and File Box 2. In File Box 3, our system has 5 categories.

We have completed the first two categories, social security documents and retirement plan documents. Today, we continue in this series with the third category: Investment Documents.

Investment Documents

  • Treasuries: series I, series EE, and notes
  • Stock certificates*
  • CDs*
  • Annuity contracts*
  • Stock option agreements*
  • Asset List
  • Copies of all investment account applications and agreements

*These items are not included in my file. However, if you have any of these items, add them to your file opening(s) for this category.

Though I will share the choices Paul and I have made, these decisions may not work for you. I am not a financial planner and am not giving you financial advice, but I will share what I have learned along the way. If you have specific financial planning questions, please contact a financial planner or research your options.

In using time wisely to get a handle on paper clutter, we need a system that works for us. I share what works for our family as an example for your own system.

Getting the paperwork out of piles and into an organizational file, either electronically (via scanning) or manually, saves energy and time when you need that document.

Weekly Project: Find your file, and bring it up to date.

Beginning next week, I will breakdown the types of paperwork stored in the investment documents category of File Box 3. In the meantime, locate your system, file any remaining documents, and touch base next week regarding Treasuries. Happy organizing!

Question: Have you missed the posts from this series? 

Retirement: Investing in Multiple Plans

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Overview of File Box 3

With the increase in contribution limits for 2012, consumers have more options as they plan for retirement.

In working through our important documents, I took the time during this retirement category to explain the options through an overview, the types of accounts, allocating your money, designating your beneficiaries, and transferring your accounts.

In completing this category, I will share how to invest in multiple plans and list the retirement documents held within my File Box 3.

Investing in Multiple Plans

If you have money to invest for retirement, then you will want to get the most from your contributions. Remember, you will need to part with your money and not touch it until retirement.

If you think you will need that money before retirement, then consider a money market fund – which acts like a savings account with a higher return for your investment.

When you determine that you can put this money aside without touching it until retirement, then invest as follows:

1. Employer-sponsored Plan – the maximum one can contribute in 2012 is the lesser of one’s entire income or up to $50,000 which includes any matching by the employer. For 401(k) and 403(b) plans, employee contribution limits are $17,000.

2. IRA or Roth IRA – the maximum is $5,000 per person. You may split your contribution between your Traditional IRA and Roth IRA, but the total cannot exceed $5,000 in your individual retirement accounts.

3. Annuities – if you have invested in the prior two options or a self-employment option and still need a retirement account, then invest in annuities. Remember, annuities are not tax-free, so choose wisely.

Filing Retirement Documents

Within File Box 3, I have filed our social security documents in the first file opening. In the second and third slots, I have our retirement documents. The second slot holds Paul’s retirement documents while the third file opening holds my retirement documents.

Paul’s Retirement Documents

1. His employer-sponsored retirement plan documents include the summary description, quarterly statements, and beneficiary designations which are paper clipped together. If he had any withdrawals, then copies would also be kept within this bundle.

2. For his Roth IRA, the summary page, conversion documentation, quarterly statements, and beneficiary designations stay paper clipped together within this opening.

3. The final set of documents are copies of the check and account statement from the initial transfer from an employer-sponsored plan to a Traditional IRA.

These three sets of documents are housed in the second file opening of our File Box 3.

Tracy’s Retirement Documents

Behind the summary pages, I keep one set of documents for my Roth IRA. These documents include copies of the check from my employer-sponsored 401(k) plan when I rolled it over to a Traditional IRA, the quarterly statements, and beneficiary notifications.

This bundle also includes the transfer paperwork from a Traditional IRA to a Roth IRA and all the quarterly statements since the conversion. These documents remain paper clipped and housed in the third file opening of File Box 3.

Other documents you might have are correspondence, withdrawal slips, and merger documentation when one company combines with another.

Weekly Project: Separate your retirement documents by person and file them.

In using time wisely to organize your important documents, find a system that works for you. I share my documents as an example to follow. Adjust these recommendations to meet your needs.

In finishing up 2012, we have completed the second of five categories in File Box 3. Beginning in 2013, we will continue organizing the third category – our investment documents. Continue plugging along while using time wisely.

Question: What additional retirement documents do you have within your filing system?

Retirement: Transferring Accounts

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Overview of File Box 3

If you established your retirement accounts when you were in your 20s, then you may need to adjust your retirement choices as you draw closer to retirement.

This category of retirement plan documents began with an overview, the types of accounts, allocating your money, and designating your beneficiaries.

In continuing this retirement category, remember these tips and tricks when transferring retirement accounts.

Transferring Retirement Accounts

Employer-sponsored plans to a Traditional IRA

If you get laid-off or leave an employer where you have a retirement account, you can choose to leave your retirement account with that employer or transfer it.

When Paul and I left Pennsylvania, we both had employer-sponsored plans. Paul had a 403(b), and I had a 401(k). We both chose to transfer our funds to a Traditional IRA.

NOTE: When transferring from an employer-sponsored plan to an individual plan, you must choose a traditional IRA. You can later convert your Traditional IRA to a Roth IRA, but you cannot transfer from an employer-sponsored plan directly to a Roth IRA. The main reasons are tax changes and moving types of plans.

Since Paul and I had to open up a Traditional IRA each for these funds, we contacted our provider – Vanguard – for the process they suggested we follow. To avoid tax penalties, we completed a custodian to custodian transfer on each account.

The employer-sponsored plans wrote checks directly to our Vanguard fund, but sent us the check. We then filled out the appropriate paperwork and sent the checks with the paperwork to Vanguard.

Our accounts were setup, and we did not incur any tax penalties since we did not take possession of the money. If we had had a Traditional IRA already setup, we still would have opened another account to keep the monies separate.

Traditional IRA to Roth IRA

Since Paul and I know not what our tax bracket will be when we retire, we wanted to convert to a Roth IRA, but the taxes on the conversion are due for that tax year. Without the money set aside for that tax bill, we waited.

Fortunately, there was a loophole in the tax system for 2010. Due to a bill passed in 2005 called the Tax Increase Prevention and Reconciliation Act (TIPRA), a Roth conversion in 2010 did not incur the taxes until 2011 and 2012. With the tax spread over 3 tax years, we jumped at the opportunity and converted both of our Traditional IRAs to Roth IRAs.

To make the conversion, we contacted Vanguard, and they handled the transfer over the phone. It was very easy as we were keeping the same allocation of our contributions. We paid half of the tax from these conversions in 2011 and will pay the remainder when we file our 2012 taxes. Then when we need the money in retirement, the taxes will have been paid.

If you transfer your individual accounts between companies, then contact the company you are transferring to for their recommendation. Sometimes, they can handle most of the conversion for you.

In using time wisely to transfer your retirement accounts contact the company who will hold your money. They can save you money, energy, and time by giving you instructions.

When you transfer, do not take possession of the money. Do a custodian to custodian transfer to prevent tax penalties. Then keep copies of all correspondence regarding the transfer.

Weekly Project: Gather all documentation resulting from transfers of your retirement accounts.

Keep working on getting your documents organized. Next week, I will share the documents I keep within this retirement category of my file box 3. Until then . . . keep organizing!

Question: If you have transferred accounts, what tips can you share to save money, energy, and time?