How To Deal With Important Financial Papers
As detailed below, you can safely keep most documents in an out-of-the-way locked file cabinet in your home, including documents related to investment purchases, loans, and other items that are past due or sold. Other documents should be stored in an off-site safe, so below we've listed the items to keep there as well.
To help reduce some of the clutter in your home, from time to time, fire up your shredder to get rid of documents that you no longer need. For suggestions on getting rid of other household items, read "How to Get Rid of Almost Everything."
|
Documents |
Where to store them |
When to toss them |
|
Bank-deposit slips |
At home. |
After you reconcile your statements. |
|
Banking statements |
At home. |
After a calendar year; store with tax returns if they will be used to prove deductions. |
|
Birth and death certificates |
Safe-deposit box. |
Never. |
|
Brokerage, 401(k), IRA, Keogh, and other investment statements |
At home. |
Shred monthly and quarterly statements as new ones arrive; hold on to annual statements until you sell the investments. |
|
Credit-card bills |
At home. |
After you check and pay them, unless you need them to support tax filings. |
|
Employer defined-benefit retirement-plan communications |
At home. |
Never. |
|
Estate-planning documents |
Safe-deposit box. |
Never. |
|
Household warranties and receipts |
At home. |
After you no longer own the household item. |
|
Insurance policies |
At home. |
After you renew them. |
|
Investment purchase confirmations and 1099s |
At home. |
Hold until you sell the securities, then keep with your tax records for an additional seven years. |
|
Life-insurance policies |
Safe-deposit box. |
Never, unless a term policy has ended. |
|
Loan documents |
Safe-deposit box. |
After you sell your home, automobile, boat, etc. |
|
Marriage license or divorce decree |
Safe-deposit box. |
Never. |
|
Military-discharge papers |
Safe-deposit box. |
Never. |
|
Pay stubs |
At home. |
After you reconcile them with your W-2. |
|
Receipts |
At home. |
After you reconcile them with your credit-card or bank statements unless needed for a warranty. |
|
Safe-deposit box inventory |
At home. |
Never, but review and update annually. |
|
Savings bonds |
At home. |
Cash them in when they mature. |
|
Social Security cards |
Safe-deposit box. |
Never. |
|
Tax returns and supporting documents |
At home. |
After seven years. |
|
Vehicle titles |
Safe-deposit box. |
After you sell the car, boat, motorcycle, or other vehicle. |