Tax & Business Alert – September 2023
Abstract: Every adult has a variety of
critical documents that should be protected. This brief article discusses the
importance of having a dependable safe or bank safe deposit box in which to store
key documents, and even cash, in case of a major disaster.
Safeguarding your critical documents
So
many of the documents we all use in our personal lives these days are digital.
However, there are still many that you should retain as hard copies. These
include birth, marriage and death certificates; Social Security cards; tax
returns; passports; and estate planning documents, such as deeds and wills.
Be
sure to safeguard these records from physical harm — literally. If you’re going
to keep them at home, invest in a safe that’s both fireproof and waterproof. Better
yet, consider storing them or copies of them in a safe deposit box at a
reputable bank.
You
can keep digital documents in a safe or safe deposit box as well. Save them on a
password-protected device such as a flash drive or external hard drive and add
them to your protected paper files. Of course, you can store digitized
documents in the cloud, but it’s a good idea to have “redundant backups” in
case the cloud service fails or gets hacked.
If you do invest in a fireproof, waterproof
safe, consider stashing some cash in it as well. In the event of a major
disaster, ATMs may not work, and banks could close for an extended period.
Exactly how much you should set aside depends on your risk level and your need
for basics such as food, lodging, medical supplies, gasoline
and groceries.
© 2023