As a general rule, we human beings are collectors. We collect everything. We save “stuff” we won’t ever need and that has no intrinsic value. Getting your finances in order means parting with some of these “treasures”. A list of what you should keep:
- Federal and State Income tax returns. (To prove you filed.)
- Investment Information. (What you bought, When you bought it, cost, When & How much sold for.)
- Retirement Account Records. (Keep year end recaps after verification of activity to prove after tax contributions and trustee accuracy)
- Insurance Policies. (Toss 2 years after terminated.)
- Trusts and other Estate Planning Information.
- Medical Records. (Unless needed for income taxes, toss receipts, etc.)
- Credit card receipts and Statements. (For one year only).
- Household Bills & Receipts. (Only keep for possible income tax records such as child care.)
- Cancelled Checks, ATM receipts, Bank Statements. (Statements & cancelled checks should be kept for no more than 6 years. ATM receipts kept only long enough to match to the bank statements.)
- Mortgage, Home Equity loan, Second Mortgage, Property Tax records. (Year end recaps should be kept for 6 years after you sell the property.)
- Home Sale/purchase records. (Keep for 6 years after the sale of property.)
Everyone should have: 1) Current list of accounts & assets. 2) A living Will. 3) A durable power of attorney for health care. 4) A durable power of attorney for financial matters.
FISCAL FITNESS WORKOUT
Here is a workout designed to put you in top fiscal fitness. Year end is a great time to assess your financial condition and begin a training regimen. Here are some exercises that will help you stay in optimum financial shape.
- Warm Up With a Meeting. Meet with your financial planner and develop your 2010 plan.
- Slim Down Spending. Maintaining a budget is the only way to track and control your spending.
- Stretch to Contribute More to Retirement Savings Plans. A comfortable retirement requires active planning and deliberate savings.
- Reduce Credit Card Debt. Paying interest on debt means you are voluntarily paying more for your purchases.
- Run For Coverage. Carefully choose among the insurance coverage choices available to you.
- Get a Personal Trainer. Everyone should have a handle on their financial condition. If your spouse has been handling your financial matters it’s important for you to at least learn the basics. Make time for your spouse to train you or get up to speed with a financial professional.
Inventory Everything You Own. Be sure to take photos, digital or traditional, or video everything you own. Store this data away from your home in a secure place. This pictorial record may prove crucial in the event of a fire or theft.
Get Moving on Managing Your Credit History. Everyone needs a credit history. Be sure each spouse establishes a separate credit history. Review your credit reports on a regular basis.
Power Up Your Legal Documents. A durable Power of Attorney, a Health Care Directive and a Will are the minimum essentials.
Organize Your Financial Records. Keeping financial records in an organized manner can save you time, money and trouble. Be sure your spouse, family and executor are aware where these records are stored.
Sue Shaw
Home Owners Welcome, LLC
Logan, Utah
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