How long should I keep it?

[Melissa Smallwood]

I am often asked by clients how long to keep paperwork. When you sit down to sort through paperwork you will be amazed at how much you have accumulated. So what do you need to keep and for how long?

Here are some general guidelines:

Vehicle records: for as long as you own the car
ATM slips: Store these with your bank statements and keep for up to seven years for tax purposes (if you operate a business, etc)
Credit Card Statements: If you operate a business you need to keep these for tax purposes for up to seven years- however, most credit card companies now send quarterly statements which are sufficient rather than keeping the monthly statements
Investment paperwork: keep your annual statements
Health records: permanently
Home improvements: as long as you own the home- store with your tax records
Mortgage records: as long as you own the home or up to six years after discharge of the loan
Pay stubs: keep until you receive your annual w-2 statement and then shred
Tax records: up to seven years (check with your accountant)
Utility bills and other bills: until they are paid and check is cashed- YOU DO NOT NEED TO KEEP AFTER THAT!!