We’ve compiled a list of strategies to keep crucial documents from piling up at your house.
Let Go
That stack of financial documents costs you time (sorting through everything) and money (late fees from forgotten bills in that pile). Learn to say goodbye and clear out the clutter.
- After checking your bank statement, discard ATM receipts.
- As soon as a bill payment clears, dispose of the statement or receipt
(for a tax deduction, keep it for at least three years).
Digitize
Most banks, credit card companies, investment companies, and employers offer paperless options. Once you switch, set up an easy-to-use organizational system for your digital files. Keep it simple so you won’t have issues finding documents.
When to Toss
- Medical bills: Unless you deduct the expense on your tax return, toss it as soon as it’s paid.
- Utility bills: Dispose after you pay them. If you are selling your home, keep the last year’s.
- Loans and insurance policy documents: File securely with other identification papers (birth certificates, marriage licenses, Social Security cards, passports, etc.) in a safe deposit box at your local bank or firebox at home. Keep payoff statements forever.
- Annual tax returns and supporting documents: Keep the most recent three years.
- Paystubs: Keep until you’ve received your annual W-2 form.
- Property records showing home improvements: Keep until the house is for sale.
- Bank statements: Keep for one year.
- Investment document: Keep capital gains tax reports for three years.
Shred ’Em
Shredding is key to getting rid of old important documents. Shred them before disposing to prevent your personal information from falling into the wrong hands.
Start Now
Don’t wait to tackle that pile of papers. Make organizing your files a routine.
IMPORTANT NOTICE
Novare Capital Management, LLC (“Novare Capital”) is an independent SEC registered investment advisor. Advisory services are only offered to clients or prospective clients where Novare Capital and its representatives are properly licensed or exempt from licensure. The information furnished is intended to be general and educational in nature. It does not constitute investment advice and it should not be relied on as such. It does not take into account any investor’s particular investment objectives, strategies, tax status, or investment horizon. You should consult your tax and financial advisor. Past performance is not indicative of future results. All investment involves risk and should be carefully considered. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information, and Novare Capital shall have no liability for decisions based on such information. Unless stated otherwise, any estimates, projections (including performance and risk), or predictions given are intended to be forward-looking statements and speak only as of the date of this presentation. Such estimates are subject to actual known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.
