5 Ways to Maximize and Protect Your Assets |
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5. Stash Your Valuables for Safekeeping
Do you know what one of the best--and cheapest--investments you can make is? A safe-deposit box.
For just a few dollars a month, a safe-deposit box is a great place to protect documents or valuables from all catastrophes (such as fire or flood) that could befall them.
What Goes In--And What Doesn't
First of all, anything that cannot be replaced easily--or at all--that you wouldn't need access to outside of bankers' hours should be kept in the box. This could include the original title to your house (which can be replaced with a lot of hassle), an heirloom photograph album, or precious jewelry.
You should not keep items like passports, medical care directives, living wills, or funeral instructions in the box. It's essential to store the latter two items in safe, secure places where other trusted individuals would be able to access them in an emergency.
Secondly, don't keep a large amount of cash in your box. Not only is keeping a lot of cash an unwise investment, but if the Internal Revenue Service finds out about it, you could face the unpleasant task of explaining to the government how you accumulated all that loot in the first place. In the same vein, keep in mind that the IRS or any creditor who gets a judgment against you can "freeze" the box if you get involved in a dispute over a debt.
Third, be careful about where you keep the keys to your box. Typically, you'll get two keys, which should be separated and kept in safe places.
Finally, keep in mind what will happen to the contents of the box after your death. "In most states, the bank will seal a safety deposit box after its renter dies, so that someone can do an official inventory for tax purposes," says Jeff Fleming, ThirdAge's Money Insider. "Even if you hold your box jointly with your spouse, this will still happen--and if he or she gets caught tampering with the box before the bank finds out about the death, you could be looking at some serious legal trouble."
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