Sorting through documents, from medical records to financial statements, is a balancing act between necessity and clutter.
So, how do you know what to keep and what’s simply junk?
Here’s a breakdown:
Tax Returns: Save returns and supporting documents for three years, or six if it’s complex or self-employment-related, aligning with the IRS audit window.
Before discarding old check stubs, cross-check them with your Social Security account for accuracy.
Home Information: Hold onto real estate financial records for seven years post-sale.
Retain home improvement receipts to potentially offset taxes upon sale.
Investments and Banking: For Medicaid applications, maintain five years of financial records, including statements. Otherwise, keep financial statements for a year, except income-related ones.
Stocks and bonds records should be kept for six years after the sale filing.
Medical Records: Store medical test results indefinitely for future reference, especially with major illness diagnoses.
Make password-protect digital copies for easy family access and keep proof of medical payments for six years post-payment.
By maintaining this balance, you not only keep what’s necessary but also gain a sense of security and control, knowing that you’re prepared for any financial, legal, or personal situation without drowning in paperwork.
We specialize in educating and helping you protect what you have for the people you love the most. Contact us to learn more about how we can help.
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