We all know it’s important to keep certain records handy. But which documents are most important, how long should they be kept, and where is the best place to store them? This FineMark blog post takes the guesswork out of good record keeping.
During this unprecedented time, many Americans are finding comfort in completing small, at-home projects. With that idea in mind, taking a little time to set up a record-keeping system may be just the thing to keep you busy in the short-term and organized for the long-term.
What Should I Keep and For How Long?
When it comes to keeping important documents safe, some items may seem obvious. For example, any documents pertaining to state or federal records such as birth, marriage, divorce or death certificates, Social Security Cards, drivers’ licenses or I.D. cards, etc., should be kept in a safe place and never thrown away.
Other items may need to be kept for specific lengths of time only. In particular:
- Tax records and receipts related to tax returns you’ve filed should be saved for seven years.
- Pay stubs, bank statements, medical records and bills should be kept for one year.
- Warranties and receipts for purchased items should be kept for as long as you own that item.
- The most recent versions of Social Security, annual insurance and retirement plan statements need only be kept until an updated version is issued.
Always Shred Personal Documents
Never throw paperwork containing account numbers or other personal details into garbage or recycling bins. To keep personal data and information secure and private, always use a paper shredder to dispose of documents that are no longer needed.
Safe Storage Suggestions
Developing a good record-keeping system now—before an emergency, important planning or serious life event happens—will help ensure that everything you need is accessible at a moment’s notice. FineMark suggests keeping important documents in three key places:
1. Keep these items in a Safe Deposit Box:
- Birth and Death Certificates
- Certificates of Deposit
- Citizenship/Naturalization Papers
- IRA Papers
- Legal Agreements
- Marriage and/or Divorce Documents
- Military Discharge Papers
- Property Deeds, Vehicle Titles and Bills of Sale
- Personal Property Appraisals and Inventory
- Stock and Bond Certificates
2. Keep copies of these items with an attorney or relative:
- Burial Instructions
- Financial and Medical Power of Attorney
- Trust Documents
- Wills
3. Keep these documents in a fireproof box at home:
- Financial and Medical Power of Attorney
- Insurance Policies
- Property Tax Receipts
- Trust Documents
- Wills
Organizing your papers, sorting them into a record-keeping system like the one outlined above, and storing them in places that are safe and secure will give you peace of mind today and in the future. If you have any questions as you sort through what to save and what to shred, give us a call. We’re happy to help!
