Get a handle on important papers

How long do you keep important papers? Have you wondered about this?

An accountant would come to the office where I worked every four months or six -he was a knowledgable person and very strict on EVERYTHING. I knew he would have the answer and I wanted to rid myself of yearly bundles of everything I had kept until there wasn’t room for any more. The boxes for important papers were filled. He would know the answer, wouldn’t he?

Well, I guess he did, but his answer was “keep everything until you are gone.” Like I said, he was a very conscientious person so his answer was the law according to him. That wasn’t the answer I wanted.

So, along came the Madison County Office for the Aging monthly newsletter and in it was the answer, I believe. Here is what they say:

Managing important papers and paperwork effectively helps keep you organized and gives you peace of mind when you need to track down information. Some documents need to be retained forever, some for years and some are disposable almost immediately. The recommendations for how long you should keep a particular document can vary widely. Here is a list of important documents with some suggestions for how long to keep them.

Wills, living wills, powers of attorney, health care proxy — keep forever, review every few years.

House deeds — keep until 6-7 years after sold.

Home improvement receipts — keep until 6-7 years after sold.

Insurance policies (life, homeowners, automobile) — keep for duration of policy.

Brokerage investment certificates — keep until the securities are sold, unless used to support tax return.

Vehicle titles — keep until car is sold.

Loan documents — keep until paid off. Pension plan documents/ IRA contributions — keep until accounts are closed.

Tax returns — keep 7 years. This includes all supporting documents (brokerage statements, home improvement receipts, medical bills, property tax bills, etc.)

Real property tax bills — keep 3-5 years.

Bank statements/canceled checks — keep anywhere from 1 month (if no discrepancies) to 3 years.

Warranty documents/service contracts — keep as long as you own the item.

Social Security statements — keep until next statement is received.

Annual insurance policy statements/bills — keep 1-2 years.

Retirement plan statements — keep 1-3 years or until retired/account closed. Keep quarterly statements until annual statement is received.

Credit card bills — keep anywhere from 1 month (if no discrepancy) to 5 years.

Other bills — keep anywhere from 1 month (if no discrepancy) to 2 years. Save this list. When you wonder if you should save something, refer to your list. This should help you with the piles of receipts and other documents that have been building up on your shelves for years...I know I have and out-some-are-going. I need a paper shredder!