Why “The Red File”?
Imagine that, at this very moment, an incident has occurred that prevents you from accessing your home, your office, your bank, your cell phone, and normal life comes to an abrupt “stop”! Hard to imagine? Those of you who lived in the Northeast during the blackout of 2004, remember very well what that was like. That event was unexpected. Other “unexpected” events like fires and earthquakes occur more often than we would expect, especially if you live in areas where such events are part of the local landscape. When hurricanes and storms strike, they are largely “expected.” We have advance warning of their arrival. We now add the big “T” to our list of possible events. Terrorism is both “expected” and “unexpected” in that we are aware that terrorist attacks can happen at any time (expected), but the timing is, for the most part, unknown (unexpected). So, let us return to “this moment” when an event has occurred that prevents you from operating your normal life. If it is an unexpected event, you probably only have those things with you that you took when you left your home to go to work, school, shopping, etc. That probably includes your wallet, cell phone, PDA or pager, keys, pocket book or attaché case. Now think about who and what you are responsible for over the next few hours, or day, or several days, or week. Who relies on you for the functioning of their lives? Are you responsible for family members, either adults or children? Are you responsible for the well-being of co-workers?
There are many sources of information and advice as to how to prepare for such events. Much of that advice focuses on physical preparedness, such as having a “go kit” and an alternate means of communication. Mike Emmerman addresses these physical preparedness issues in his lectures. The purpose of The Red File® is to look at the issues of financial preparedness.
Michael N Emmerman’s suggested list for what you might need in your personal “Red File®”
The Red File® includes copies of everything that is necessary for you or your family to rebuild your financial and operational life in the aftermath of an event that either limits your access to your home and/or office, or destroys your home and/or office. What you need to do with The Red File®is discussed in other handouts, and at www.theredfile.com. The following is a “suggested” list of items to be included in the file and should be used only as a starting point for your personal situation. You will need to adjust the list to cover all aspects of your life.
Copies of:
- Birth certificates for everyone in your household
- Social Security Cards for everyone in your household
- Marriage certificate (hopefully, there is only one!)
- Religious certificates (e.g., Baptism, Ketubah, etc.)
- Adoption papers (if applicable)
- Drivers licenses for everyone in your household (color copies)
- Passports for everyone in your household (color copies)
- Deed to your residence (first few pages containing the municipality ID numbers for the location of the property)
- Mortgage documents and other loan documents
- Title for cars owned by everyone in your household
- Insurance policies and agent/agency contact information
- Health insurance, prescription and/or other benefit cards
- Credit/Debit/ATM cards (color copies, both sides)
- Inventory list of household items, and personal items at office
- Photographic inventory of household and office items
- Tax returns for a minimum of three years
- Wills, Living Wills, Health Care Proxies, Letters of Instruction, and Powers of Attorney
- Trusts for which you are a trustee, or in which you have a beneficial interest
- Location of safe deposit boxes with the names of authorized signatories (and the location of the keys to the boxes)
- List of contact information for all advisors, executors, trustees and guardians
- Recent bank statements and brokerage statements
- Several blank checks from each checking account (not copies)
- ID cards issued by your banks
- Documents that prove ownership of private placements and alternative investments
- List of all User IDs and Passwords for access to all electronic based information formats
- A complete list of assets and liabilities, with a footnote for each item (containing details of ownership and the contact information for all persons and entities relevant to the ongoing status of that asset or liability)
- Photographs of everyone in the household and all others for whom you are responsible
- Photographs and health records for household pets.
Make two copies of everything you place in The Red File®. You will need to keep one file in your possession and you will send the other file to a trusted family member, friend or fiduciary.
If you choose to use an electronic format to store this information, you should include the storage device (e.g., CD, floppy disk, flash drive, etc.) in The Red File® as an addition to the physical paper copies.
Please remember that the above list is not “all inclusive.” Some of us have very simple lives, and some of us have extremely complicated lives. Some of us will be able to use an envelope or small box to complete our file and some will need a large trunk! Review all aspects of your life and determine what paperwork would be crucial to the ongoing financial health and operational needs of you and your family.
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helpful links
Source:
The Red File: Protect Your Information