Documents You Should Keep

Most of us store too many documents, too long. Here are guidelines on what records you should keep. Everything else – be ruthless! Ask yourself whether you can get it online, and when was the last time you needed anything from that file. 

Keep these documents:

  • One year of personal/household vendor invoices and statements
  • Seven years of tax returns and associated receipts/documentation
  • Keep investment tax basis information permanently

Tax implications:

  • Keep good records for income tax deduction purposes
  • Make itemized lists of household items you donate to charity; this will maximize tax deduction value
  • Put your “hobby assets” to good use - Seek out charities that may have a need for some of your collections
  • Remember that “related use” by a charity that uses your donated item to directly support its exempt purpose (like a used car donated to a charity that will use it, not turn around and sell it), will get you a greater tax deduction 

Share these important documents NOW with those who will need them, and include them in the documentation stored in a safe place, mentioned above:

  • Financial Power of Attorney
  • Health Care Directive
  • Estate planning documents

Questions?

Just start somewhere.  You’ll be happy you did - everyone loves a sense of accomplishment!  If you feel stuck and have any questions that you need answered to get you started, don’t hesitate to contact us via our website https://simplify-wealth.com.  Send us your questions via email and we will get back to you or call us at 612-203-2718.