What are the 7 documents I should always keep?

[00:00:00] Ralph Estep, Jr.: Have you ever wondered what essential documents you should always keep on hand? Imagine this. You're in the middle of a financial emergency, frantically searching for that one important document you need, but where did you put it? Was it in that shoe box under the bed? Maybe it's buried in that pile of papers on your desk?

[00:00:20] Ralph Estep, Jr.: Don't let this scenario become your reality. Today, we're going to arm you with the knowledge you need to keep your essential documents organized and secure. Stay tuned today to find out 7 crucial documents you need to safeguard and how to probably store them.

[00:00:41] Ralph Estep, Jr.: Before we get going, let me quickly remind you about yesterday's show where we discussed the top financial tips for those of you transitioning into retirement. If you missed it or any of our previous episodes, you can find them all at askralph.com.

[00:01:03] Ralph Estep, Jr.: Well now, let's get to today's topic. I received an interesting message from Allison.

[00:01:08] Ralph Estep, Jr.: I just love her British accent.

[00:01:09] Alison: "Ralph, I've been listening to your show for a few months now and it's really opened my eyes to the importance of financial organization. I guess I've realized that there are many things I just don't know and I'm trying to gain more financial knowledge. Recently, my grandmother passed away, and my family struggled to locate her important documents.

[00:01:32] Alison: Her house looked like one of those episodes of hoarders with papers and junk everywhere. It was a stressful situation on top of our grief. I don't want my family to go through the same thing when I'm gone. What documents should I make sure to keep, and how should I store them? Should I share this information with anyone?

[00:01:52] Alison: Thank you for your guidance, Ralph, and God bless you and your show. You're really helping people like me get through some of these tough financial issues."

[00:02:00] Ralph Estep, Jr.: Allison, thank you so much for your message and for being a loyal listener. I'm sorry to hear about your grandmother's passing. And I completely understand the added stress of trying to locate important documents during such a difficult time. Your question is an excellent one, and it's something that many people overlook until it's too late. I can remember having to do the same drill when my grandfather passed away a few years ago. But fortunate for us,

[00:02:24] Ralph Estep, Jr.: he had all his stuff in order and located in a locked drawer in his house. It certainly took away our stress. But I hear about those horror stories every day so let's dive into this important topic. Welcome to The Ask Ralph Show where we're mastering your finances from a Christian perspective. I'm your host, Ralph Estep, Jr., and I'm here to help you navigate the complex world of personal finance while staying true to your faith.

[00:02:50] Ralph Estep, Jr.: Before we get into the main content, I'd like to share a relevant Bible verse. This comes from the book of Ecclesiastes chapter 11, verse 2 and it says this. "Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land." While this verse is often interpreted as advice for diversifying investments, today we can apply it to the importance of being prepared and organized in all of our financial lives, including having our essential documents in order.

[00:03:23] Ralph Estep, Jr.: Now Allison, let me address your question about the 7 essential documents you should always keep, how to store them, and whether you should share this information with anyone. I get it. Nobody really enjoys discussing this stuff or planning for these situations. But as my family attorney said a few months ago, when I had him on the show, you can't generally decide on how you're going to die, but you can plan for how you want things to play out after you pass. I thought that was some pretty sage advice.

[00:03:49] Ralph Estep, Jr.: Let me be clear before we get started. I'm not an attorney and I will not provide any legal advice. But this guidance could come in handy so I wanted to share it. So let's talk about 7 documents you should always keep.

[00:04:00] Ralph Estep, Jr.: The first document on our list is your last Will and Testament. This legal document outlines how you want your assets distributed after your death. It is crucial for ensuring your financial wishes are carried out and can truly prevent some family disputes. I was meeting with a client the other day and he was telling me about the craziness that ensued when his uncle passed without a will. He told me about the family disagreements that followed and how they were heart-wrenching and could've all been avoided if he had taken the time to create this important document. Unfortunately, this is all too common in many families and like I was telling a client the other day, to me, it seems that death always brings out the ugly in people. I hope you're not going through that yourself, Allison.

[00:04:43] Ralph Estep, Jr.: Next up is the power of attorney form. This document allows someone you trust to make financial and legal decisions on your behalf if you become incapacitated. Now listen, there are different types of power of attorney so make sure you understand which one suits your needs best. Again, this is a great point to discuss with an attorney so they can advise you on what will work best for your particular circumstances.

[00:05:04] Ralph Estep, Jr.: This third essential document is your healthcare proxy or living will. And this outlines your wishes for medical treatment if you're unable to communicate them yourself. It can be a great comfort to your loved ones, knowing that they're following the wishes you had during a difficult time. We've all seen these stories in the news and how people were kept on life support for year after year because they never took the time to set this critical document up. I'll also add, this is one of those uncomfortable discussions to have with your loved ones. But you really need to do it. As many, you know, we lost my mom back in March of 2023 with a glioblastoma tumor. And while she originally wanted the surgeon to try to remove it, when the surgery was not a success, my sister and I were able to fall back on mom's wishes and let her pass on her terms. Listen, it wasn't easy. But it certainly was less stressful because we were able to honor my mom's wishes because she had that document.

[00:05:59] Ralph Estep, Jr.: Let's move on to the fourth document. Fourth on our list is your birth certificate. You'll need this for various legal and administrative tasks throughout your life, whether it be for getting a passport or claiming social security benefits. And listen, if you don't have a copy of birth certificate, I am going to encourage you to get one. Generally you can contact the state where you live and find out how to get a copy. I know in Delaware it's like the office of vital statistics.

[00:06:23] Ralph Estep, Jr.: If you're married, your marriage certificate is the fifth essential document to keep. This proves your marital status and can be necessary for things like filing taxes jointly or making medical decisions for your spouse. Like I said, you want to keep divorce certificates as well. I don't mean to be negative, but it's a fact of life these days.

[00:06:42] Ralph Estep, Jr.: The sixth document is your social security card. This small but mighty piece of paper is crucial for employment. It's crucial for opening bank accounts and it's crucial for receiving government benefits. Again, if you don't have a copy, contact the social security administration to get a replacement copy. You can find them at ssa.gov. And I'll put that website link in the show notes.

[00:07:03] Ralph Estep, Jr.: And number 7. Insurance policies. A lot of people don't think about this. This includes things like life insurance, health insurance, homeowners or renter's insurance, and any other policies you might have. I'm going to recommend you keep these as long as they are active. Don't rely on your insurance agent. Keep these important documents for yourself.

[00:07:24] Ralph Estep, Jr.: Allison, now that we've covered the 7 essential documents, let's talk about how to store them safely. That was one of the things you asked me about. The best approach, in my opinion, is to use a combination of physical as well as digital storage. So let's start with physical storage. Keep original documents in a fireproof, waterproof safe at home or in a safe deposit box at the bank. Make sure your trusted family members knows where to find them. That was, and I did a show a few weeks ago about safe deposit boxes. If you missed it, you might want to go back and check that out on our website. I also recommend using digital storage. This is a time to scan all of your documents and store them in a secure encrypted, that's important, cloud storage service. This ensures you have backups if anything happens to the physical copies. With cloud storage being relatively cheap, this is something you can do to ensure you'll have those documents you need.

[00:08:13] Ralph Estep, Jr.: Well, let's talk about the other thing you asked about Allison, and that sharing this information. It is absolutely crucial to let at least one trusted family member or friend know where these documents are stored and how to access them in case of an emergency. However, be cautious about sharing too widely to protect your personal information. I'm hoping you have one of those people in your life.

[00:08:34] Ralph Estep, Jr.: I'll also add that you should really have all these documents for your children, for your spouse, and for your parents as they age. It's really important to discuss all these issues with your loved ones. I know it's not an easy conversation, but trust me, Allison, it will be a much easier path moving forward if you're clear on your loved one's wishes. It truly moves the guesswork and will take the stress level down a bit when these unforeseen things happen. We all know that life happens.

[00:09:03] Ralph Estep, Jr.: So to recap, the 7 essential documents you should always keep are number 1. Last Will and Testament. Number 2. Power of Attorney. Number 3. Healthcare Proxy or what they call Living Will. Number 4. Your birth certificate. Number 5. Your marriage certificate is that, or like I talked about, your divorce certificate. Number 6. Your Social Security card. And last but not least, number 7. All of your Insurance policies.

[00:09:28] Ralph Estep, Jr.: As I said, store these documents both in a physically secure location and digitally in encrypted, and that's important. Make sure it's encrypted cloud storage. And then share the location and access information with a trusted individuals.

[00:09:42] Ralph Estep, Jr.: Well, if you found this information helpful, I encourage you to visit our website. That's at askralph.com. That's where you can join our community and share this episode with others who might benefit from this knowledge. While it's on top of your mind, I want you to do it today. Remember when you join our community, you'll receive a free copy of my book, Mastering your Finances. It's a $10 value on Amazon, but it's yours absolutely free when you join our email list.

[00:10:05] Ralph Estep, Jr.: And listen, if you need personalized advice or help managing your financial life, don't hesitate to schedule an appointment with me. You can do that by visiting askralphpodcast.com/store. When it comes to your financial life, I can help you find personal success. You just need to reach out to me and let's talk about your specific situation.

[00:10:25] Ralph Estep, Jr.: Now, let me give you some actionable steps to take based on today's topic. And I think Allison, these are the things that you can use right away. Number 1. Set aside time this week to gather all 7 of these essential documents for yourself. And like I talked about, you might want to find them for your children, for your spouse and for your parents if they're getting older. Number 2. If you're missing any of these documents, make a plan to obtain them as soon as possible. The third thing I encourage you to do is purchase a fireproof, waterproof safe for your home if you don't already have one. I think those are great things to have in general. Number 4. Research some secure cloud store options and choose one that fits your needs. They're not expensive. Just make sure they're encrypted and make sure you share that information with somebody that you trust. Number 5. Have a conversation with a trusted family member about where these documents are stored and how to access them in an emergency. Number 6. This one is not easy, but discuss these difficult issues with your loved ones right away before it's too late. You will never regret asking these questions and getting the answers.

[00:11:27] Ralph Estep, Jr.: Now tomorrow's show, we're going to tackle another important question. I'm going to talk about how do I discern God's will for my life? It's a topic that ties closely with our financial decisions so you don't want to miss it. Remember this. Your questions drive my show. If you've got a financial query you'd like answered, send it to me. My email address is ralph@askralph.com or you can visit our website. Again, that's at askralph.com and click on the microphone icon at the bottom of the page and you can record your message right there. If you're thinking of a question right now, do me a huge favor. Go to the website now or send that email right away. I want to answer your question on the show. Remember this. My passion is to help you achieve financial success. I want you to live out your dreams and grow in your faith. Together, we can master your finances from a Christian perspective. Well stay financially savvy, and God bless you abundantly.