Spring Cleaning Your Financial Life: What to Keep, What to Toss
Spring Cleaning? You can declutter some old papers, but some you should keep. Here’s a summary:
You’ll see some documents listed below that you may want to keep. However, you don’t need to maintain paper records in all cases. We recommend scanning and storing records digitally in encrypted cloud storage, which makes it easy to retain long tax histories without physical files. Also, many of the records can be found online (ie: at your bank or with your credit card company). You should verify how many years the institution allows you to look back digitally.
Tax Returns & Supporting Documents
- Keep for 7 years
- This includes:
- Filed tax returns
- W-2s, 1099s, K-1s
- Receipts for deductions or credits
Investment cost basis documentation
- Keep until you sell the investment + 7 years
- Examples: Trade confirmations, Cost basis records, Reinvestment statements
Property Records (Home, Real Estate)
- Keep as long as you own the property + 7 years after sale
- Includes:
- Purchase documents
- Closing statements
- Capital improvements (renovations, additions)
Bank & Credit Card Statements
- Keep 1–3 years
- Longer (up to 7 years) if the statements support:
- Tax deductions
- Business expenses
- Major purchases
Insurance Policies & Claims
- Active policies: Keep current copies
- Claims: Keep until settled + several years
Retirement & Brokerage Account Statements
- Annual statements: Keep until you receive the year-end summary, then retain the summary long term.
- For retirement accounts, keep major contribution records indefinitely.
Documents to Keep Forever
- Birth certificates
- Social Security cards
- Marriage/divorce records
- Wills and estate documents
- Military records
- Adoption papers
- Social Security earnings statements
Here’s a quick summary:
| Document Type | How Long to Keep or Access Online |
|---|---|
| Tax Returns | 7 years |
| Tax Supporting Docs (W-2, 1099, receipts, deductions) | 7 years |
| Investment Trade Confirmations & Cost Basis Records | Until sold + 7 years |
| Brokerage & Retirement Account Statements | 1 year for monthly; keep annual summaries long term |
| Bank Statements | 1–3 years |
| Credit Card Statements | 1 year |
| Home Purchase Documents | As long as you own the property + 7 years after sale |
| Home Improvement Records | As long as you own the home + 7 years after sale |
| Insurance Policies | Keep current policy; discard old after replacement |
| Medical Bills & Insurance Claims | 1–3 years |
| Pay Stubs | Until year-end W-2 is received |
Investment advisory services offered through The GenWealth Group, Inc., a registered investment advisor. Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional.