Hi everyone! Today we’ll be going over a very important, but sometimes forgotten topic; organizing your financial records.
Many people struggle when they open their email or mail. They ask themselves, “Should I keep it? Do I need this? Is this important? Should I just toss it in the trash?”
That’s why we follow the three, seven, and forever rule.
Keep the following for three years:
- Household bills
- Credit card statements
- Receipts for minor purchases
Keep the following for seven years:
- Canceled checks
- Check registers
- Bank statements
- Tax returns and supporting documentation
And now, here’s what to make sure to keep forever:
- Receipts for home improvements
- Receipts for major purchases
- Annual investment statements
- Gift tax returns
- Inheritance papers
- Insurance policies
- IRA statements
- Mutual funds statements
- And finally, a copy of your will
Join me next time for a discussion on where to keep these important documents!
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.