GENERATIONAMERICA.ORG
Dear Reader: The more your financial life becomes filled with things like owning a home, insurance policies, investing accounts and retirement savings — not to mention income taxes — the more organized you need to be. The beauty of today’s electronic world is that you don’t necessarily have to keep hard copies of every document. But you still need to know what documents you have and where they are, not only for your own sense of security but also for the security of your loved ones should something happen to you. Here’s what I suggest to get started. n ORGANIZE YOUR PAPERWORK INTO CATEGORIES First, it helps to think of your financial life in terms of basic categories. For example, you likely have: Bank accounts: Checking and savings account statements Debt: Credit card statements, car loans, student loans, personal loans Home: Lease and security deposit receipt if you rent; mortgage, title or deed and final settlement statement if you own your home; home improvement receipts
and other deductible expenses Insurance: Health, auto, homeowner’s/ renter’s, life, umbrella and disability policies; sales receipts for insured big ticket items Personal: Birth certificate, marriage certificate, passport, prenuptial agreement, divorce decree, health records Retirement: 401(k) and IRA statements, pension agreement, Social Security statements Investments: Statements for taxable brokerage accounts, trade confirms, children’s accounts Estate planning: A current copy of your will, trust(s), durable powers of attorney for finances and health care, advanced health care directive. Once you have the categories, it’s easier to create a filing system to match. n DECIDE WHAT TO KEEP AND WHAT TO TOSS Now look at what’s essential to keep and for how long, as well as what you can safely get rid of. Personal documents: It’s best to pretty much keep these forever.
Car: Sales receipt or lease, title, warranties and repair records
Insurance policies: Keep these as long as they’re active.
Taxes: Completed returns and receipts for charitable contributions, business
Tax returns: The IRS suggests that you keep your tax returns (along with
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Consider keeping your birth certificate, marriage certificate, prenuptial agreement, Social Security card, passport and automobile titles in a safe deposit box at your bank.