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Despite what you hear about financial documents, you don’t have to keep all of them forever!
Today’s lifework: Study the following chart so you can free yourself from the believing the hype around which financial documents are necessary to keep around.
|How Long to Hold||Name of Document|
|Less Than a Year||ATM, bank-deposit, and credit-card receipts until you reconcile them with your monthly statements
|A Year or More||Loan documents until the loan is paid off.
Vehicle titles until you sell them
Investment purchase confirmations in stocks, bonds, mutual funds or anything else until they are sold
|Seven Years||Tax documents because the government has six years to collect the tax or start legal proceedings if you fail to report more than 25 percent of your gross income on your tax returns.|
|Forever||Birth and death certificates, marriage licenses, divorce decrees, Social Security cardsmilitary discharge papers, defined-benefit plan documents, estate-planning documents, life-insurance policies, and an inventory of your bank safe-deposit box (if you own one)|
This chart was adapted from information from Consumer Reports. Click here for the full article on this topic http://www.consumerreports.org/taxes/how-long-to-keep-tax-documents/
Are you thinking, “Kara, but what about those little things—daily receipts that you accumulate from living life?”
More on that Day 10.
What financial document myth did you debunk with this chart?
Hit us up in The Happy Finances Community and let us know what you’ve learned about when to “hold ‘em” and “fold ‘em” when it comes to your financial documents.
That’s it for today’s lifework!
Also, leave a comment below with your “aha” moment or reach out to your accountability partner(s) for questions and insights.
Finally, hit me up and share your insights. I’m cheering you on.
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The Mama Bear Principle: Mama Bears are protective of their cubs and their crew. And that’s exactly how I feel about our community. Throughout the Happy Finances Challenge, I may recommend some products and service and receive some form of compensation. However, I would NEVER suggest them unless I truly believed they were useful or helpful.