Page 76 - April 2017 Life In Naplles Magazine

FINANCE

A GUIDE TO FINANCIAL
SPRING

by Jill Ciccarelli Rapps, CFP® CLEANING

Financial Advisor

S pring has sprung, and April is the perfect time to • Military discharge papers

sort through your official documents and reduce • Estate documents including wills, trusts, prenuptial
agreements, advanced medical directives, do not
the clutter after tax season!
Organizing and preserving your official documents will resuscitate orders and other instructions
save you time and effort in the long run, simplifying the
financial planning process. While keeping detailed records HOW LONG TO KEEP
is crucial for the well-being of your financial plan, it is
OTHER IMPORTANT DOCUMENTS
equally important to discard your outdated records on a
regular basis.
While all of the above documents should be kept
Given the wide variety of documents you have in your
indefinitely, there are different retention guidelines to
archives, you may find it difficult to determine which
observe for your other documents. See the following list
records you need to keep and how long you should maintain
of suggested timelines for maintaining the rest of your key
them. Here are some useful guidelines for maintaining
documents; of course, you should check with your financial
your official documents.
advisor to confirm that these guidelines are appropriate for
your financial situation.
RECORDS TO KEEP FOR A LIFETIME • Tax records including annual tax returns, W-2s, 1099s,
There are numerous records that you should keep cancelled checks, receipts, and the first two pages of Form
1040: Seven years.
throughout your entire lifetime. In order to avoid damaging
or misplacing these records, you should store these files in Note: Tax returns can generally be audited for any reason
for up to three years after filing; or up to six years if the
a locked safety deposit box or fireproof safe. You may also
IRS suspects underreported income. For this reason, it
elect to store them electronically in a password-protected
online vault. is wise to preserve all of your returns for at least seven
years (and even longer if a specific return is complicated
Regardless of your method, make sure to preserve the
following documents in a secure location that your loved or unusual – discuss with your financial advisor for more
details).
ones will be able to access:
• Property records including deeds, titles, and loan and
• Retirement plan and IRA adoption agreements
• Complicated tax returns (discuss with your financial lease agreements: The entire duration of ownership plus
seven years.
advisor to determine which annual returns, if any, should
be preserved) • Home improvement records including receipts,
contracts, and records of cost: Until you sell the property
• Social security cards and passports
and tax liability is settled.
• Birth certificates, marriage certificates, and death
certificates • Insurance policies including coverages, policy numbers,
and contracts: Life of the policy plus four years.
• Divorce papers or settlements
• Adoption papers • Bank statements and deposit slips: Seven years.
• Charitable contribution documentation: Seven years.
• School transcripts and diplomas
• Investment records including investment purchase
• Immunization records and records of any hospital stays
and surgeries receipts, dividend reinvestment records, mutual fund
annual statements and year-end brokerage account

76 Life in Naples | April 2017