Document Management

Begin organizing financial paperwork by understanding how long you need to keep the following records, courtesy of the IRS, but you can also use it as a guide to reduce other financial records:

  • Three years for most records if you have reported all your income.
  • Four years for employment tax records.
  • Six years if you under-report at least 25% of your income.
  • Seven years if you filed a claim for worthless securities or bad debt.
  • Indefinitely for years when you didn’t file a tax return or filed a fraudulent one.

Now, put all of your insurance, investment and legal documents in a safe place and tell loved ones where they can find them.