To save or not to save, that is the question a good financial recorder should ask with every document. Read these great 9 tips:
- Receipts for minor purchases can be tossed after you have checked them against your monthly account statement. Receipts for major purchases should be saved as long as you have the items. Receipts for tax-deductible items should be saved with your tax return.
- Utility, credit card, checking, and savings account statements should be saved for a year.
- Monthly and quarterly investment account statements should be saved until the year-end statement is received. Year-end statements should be kept until the investment is sold.
- Paystubs should be held until you receive your W-2.
- Loan documents and statements should be saved until the loan is paid off. The last statement that shows the loan was paid should be saved permanently.
- Tax returns, W-2s, 1099s, and other tax-related documents should be saved for seven years.
- Insurance policies and estate-planning documents should be saved as long as they are in effect.
- Titles to property should be kept as long as you own the property.
- Your birth certificate, medical records, Social Security card, and marriage certificate should be saved permanently.