Financial Data: What to Shred, What to Stash
Drowning in financial data and statements? You're not alone -- in fact one of the most frequently-asked questions I field is "how long do I have to keep (fill in the blank)?"
In honor of the back-to-school season, where organization takes center-stage, grab that shredder and get ready for the big purge!
WHAT TO TOSS AND WHEN
- Bank Statements: 1 year (toss the ATM statements after you make sure that the transaction is accounted for on the bank statement)
- Credit Card bills: Shred after payment, unless you need for taxes
- Retirement Accounts (401(k), 403 (b), 457, IRA, Roth, etc): Shred as new ones arrive
- Brokerage and Mutual Fund Accounts: Shred as new ones arrive, but since these are TAXABLE accounts, you should keep annual statements until the sale of each asset within the accounts
- Investment purchase confirmations/1099s: keep until you sell, then keep for subsequent 7 years
- Tax Returns/Supporting Documents: Keep for 7 years
- Appliance Warranties
- Vehicle Titles
- Vehicle Loan Documents
- Auto Insurance Policy
- House Deeds
- Mortgage Documents
- Homeowners Insurance Policy
- Disability Insurance Policies (keep as long as in-force)
KEEP FOREVER (IN A VERY SAFE PLACE!)
- Birth/Death certificates & Social Security cards
- Marriage Licenses and Divorce Decrees
- Pension plan documents
- Safe-deposit box inventory
- Life Insurance policies
- Copies of wills, trusts, health care proxies/living wills and powers of attorney (attorney/executor should have copies)
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