Seniors: It's Time to Organize Your Financial Affairs

Do your loved ones know what to do with your money should you die or if you become unable to handle your financial affairs for a time? Money is a touchy subject, but if you're a senior, now is the time to make sure your loved ones know where your accounts are located and what bills need to be paid.

Here's a organizational system that will work for both you and your loved ones:

Keep your records together in one place, and separate items by function, preferably in file folders. Office Depot and Staples sell carry cases that hold file folders so you can have an "all in a glance" financial spot. Within the holder, add color-coded file folders: one color for bills, one for investments, one for credit cards, one for legal, one for other. The idea is to make it easy for someone to step in and take care of your affairs if you can't.

On the front of the file folders, list account numbers, phone numbers, contacts. You want it to be something that is self explanatory.

The Master Sheet: In that carry all, keep a master sheet of information that includes account numbers, contacts, current amounts of money involved, etc. When you debate something, you lead with an opening argument, then you give them the pertinent information. Finally, you tell them what you told them. It's the same principle when you discuss your financial wants and needs with your children.

Financial Accounts: Keep a master list of your stock accounts, bank accounts, annuities and the like. List account numbers, a contact (such as a broker with a phone number and address), as well as beneficiaries for those accounts.

Tax Returns: Where are they located physically. No one needs to be scrambling to find past tax returns to get information if you are ill or needing care. Your children will be emotional if you are ill. Don't add to it by making them piece together your tax information at a time when they are not emotionally equipped to deal with it.

Life insurance: The file folder should hold the binder, contact information and beneficiaries.

Credit Cards: On the front of the file folder list the account number, credit limit, current balance (put a line through the past amount each month or just attach a Post It Note to the front on the current amount and the date it was paid) and the general date the minimum is due. Also list the EXACT name that is listed on the card, as well as the security code on the back. The idea is to get the financial snapshot in one glance.

Bills: On the front of the file folder, list the account number, phone number for customer service, last payment date and a general date of when the bill is due. You don't want your health insurance or car insurance to lapse.

Even if you have a will or power of attorney, explain your financial system to those who will be left to deal with it. Don't leave your loved one with surprises. Should you become ill or die, they'll be grieving and in shock. They won't be thinking clearly. Act ahead of time to take care of all of the tedious details to take as much pressure off of your loved ones as you can.