Tip on Financial Documents To Keep – And What To Toss
Posted on Mar 6th, 2007
It’s a paperless world, right? Hah. We think we’re good at keeping our records clean, but we’re still up to our ears in paper. The wife won’t let anything go, even check stubs from the previous century. But don’t despair. You can trim down your overweight paper without getting into trouble. Here, courtesy of a public service website from the Texas Society of Certified Public Accountants is a list of financial documents you must keep (and what you don’t have to):
Keepers:
Your will, living will and durable power of attorney. Life insurance policies, including policies with your employer. Insurance, and any death benefits that are due you as a veteran of the armed services. Retirement plan documents from your pension, profit sharing, 401(k), and IRAs, along with annual statements. Records of nondeductible contributions made to your employer-sponsored retirement savings plan or IRA. Separation and divorce documents. Real estate deeds, titles and property surveys. Military records. Tax returns and supporting data for at least the last seven years after the original return is filed. For investments, keep buy/sell trade confirmations to show when each security was bought and sold, the price you paid and commission charged. Dividend reinvesting statements (for seven years after you file your tax return showing a gain or loss( Receipts for major purchases like jewelry, furniture, etc. Receipts for items under warranty until the warranty expires. Pay stubs – until the end of the year when you compare the year end totals with the amounts shown on the W2 form you get from your employer. Tossers:
Receipts of bank deposits and ATM transactions – once you receive your bank statement and verify that the transactions were properly posted to your account. Canceled checks – save only those needed as support for tax purposes. Bills – once you’ve paid them and verified that the checks have been cashed. Monthly or quarterly brokerage statements – if your annual yearend statement summarizes all transactions made during the year. Credit checks on employees (even housekeepers and nannies) – in accordance with Fair and Accurate Credit Transactions Act. The accountants’ final tip: Always shred financial documents when they’re no longer needed, along with destroying pre-approved credit card offers. The best price we found on a home document shredder was $14.99, but office-quality machines can top $4,000, so shop around, and don’t buy what you don’t need.
Source: Tip on Financial Documents To Keep – And What To Toss – SeekingAlpha
