Having an organized approach to financial records
can remove much of the stress associated with
living in an increasingly complicated world.
This information will help you get organized.
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Experts suggest that you separate your papers by your
need to use them, keeping short-term items together and
long-term items together.
Immediate needs files would include items from the
past year, including bills, bank statements, canceled
checks, credit card statements, health records and major
purchase receipts.
Your immediate and long-term files should be cleaned
out at least once a year, with your short-term files
either destroyed or placed in a long-term file. Be sure
to shred any sensitive documents, especially those with
account numbers, Social Security, and/or date of birth
information.
How long do I keep it?
Keep for 3 years: household bills, credit card
statements and receipts for minor purchases.
Keep for 7 years check registers, bank
statements, pay stubs and tax returns with supporting
documentation. The IRS can audit you for three years
from the date you file your return and can pursue
underreported income for six years. If your tax returns
contain information about home purchase or sale
information, you should keep those records indefinitely.
Keep forever or until assets are sold:
receipts for home improvements, receipts for major
purchases, retirement account statements, insurance
policies, birth certificates, car titles and house
deeds.
It’s helpful to separate everything by using file
folders or tabs so it is easier to locate what you are
looking for. Remember to keep it simple, clean your
files out once a year and keep all files in one place.
Many people now store valuable financial information
on their home computers. It’s important to back up
computer files and keep the backup data in a safe place
and to provide computer passwords with your other
important information.
A safe deposit box can be a secure place to keep
certain valuable and important papers, but don’t put in
a safe deposit box: original wills, powers of attorney
insurance policies or anything that will be needed in
the event of death.
Regardless of how organized you are, if your papers
cannot be found, they will not be useful to someone who
may be trying to help in a crisis. Let someone know how
to access your important records.
SunAmerica Securities* can offer assistance with a
wide range of financial options. To contact a SunAmerica
representative, call (602) 683-1000 or 1–800-523-4603.
*Not NCUA insured- not insured by the credit
union- may lose value.
