Organizing Your Finances: Do You Have A Nominee Assigned For Each of Your Financial Assets?

by Vinaya HS on June 14, 2010

in Finance

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Each Monday morning, I plan to post my thoughts on Organizing Your Finances. Through this series, I hope to share a tip or two that address a common problem that many of us face in our daily lives — that of organizing our finances. I’d love to hear your thoughts on this initiative and would love it more if you could share a tip of your own. And, as always, do spread the word if you find this useful.

One of the most common mistakes that we make is to not assign a nominee for each of our financial assets especially when this facility is readily available to us. We know the value of assigning a nomination but somehow procrastinate from doing so. And at times, we do assign a nominee for new financial assets that we acquire but forget to do the same for the older ones (I’m a good example).

Given the critical importance of nomination in managing your finances, here’s what you should do today:

  1. Make a list with three columns. Use the headings: Financial Asset, Current Nomination, and New Nomination.
  2. Under Financial Asset, list each of your financial assets (bank accounts, brokerage/trading/investment accounts, certificates of deposit, mutual funds, life insurance, etc.).
  3. Under Current Nomination, against each Financial Asset, write “YES — [Nominee 's Name] if that asset already has a nomination registered or “NO — N/A” if it doesn’t.
  4. Under New Nomination, against each Financial Asset,
    • If Current Nomination has a “YES,” either retain the nominee or change the nominee.
    • If Current Nomination has a “NO,” add a nominee.
  5. Highlight the Financial Asset for each change or addition done in Step 4.

An example:

GEO_Nomination

For each highlighted Financial Asset, obtain the necessary nomination forms, fill them up, and submit them. A couple of days later, verify that the nomination has been successfully registered.

What do you think? Do you have all your nominations in place?




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

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