Do I need to keep my monthly mortgage statements?
Most homeowners typically keep their statements for about 3 years. Even though your lender will have copies of your monthly billing statements, it's a good idea to have the physical ones on hand. You may want to keep each one for a longer period of time if you notice a mistake on one of your statements.
It's a good idea to keep your mortgage statements for three years. Even with electronic access, you never know when you'll need a hard copy. If you've noticed issues with your servicer, you may want to hold on to statements longer for proof of payment.
Other reasons you might need your mortgage statements include determining your capital gains tax liability, preparing for a major remodeling project and having documentation in case you get audited. The lesson here? “Keep everything,” says D'Annucci.
Is the bank required to send me a monthly statement on my checking or savings account? Yes, in many cases. If electronic fund transfers (EFTs) can be made to or from your account, banks must provide statements at least monthly summarizing any EFTs that occurred each month.
Gloria Mitchell. Real estate sale documents should be kept for at least seven years after the date of the sale.
Most homeowners typically keep their statements for about 3 years. Even though your lender will have copies of your monthly billing statements, it's a good idea to have the physical ones on hand. You may want to keep each one for a longer period of time if you notice a mistake on one of your statements.
It's best to keep the most recent mortgage documents for at least three to seven years, even after the home is sold. If you received a certificate of satisfaction for paying off a mortgage, then this document should be kept as well. These documents may become necessary in the case of an IRS audit or estate settlement.
Utility Bills: Hold on to them for a maximum of one year. Tax Returns and Tax Receipts: Just like tax-related credit card statements, keep these on file for at least three years.
Most financial experts say you should keep your bank statements in either digital or hard copy for at least one year. Once they've been in the filing cabinet (or your computer hard drive) for one year, you can finally shred the paper or press the delete button.
Your best option is to shred any documents that contain sensitive information before tossing them. Either invest in a shredder for your home or utilize a professional shredding service. You will likely pay a fee for this service, but it's a small price to keep your personal information safe.
Do I need to keep monthly credit card statements?
You usually don't need to keep your credit card statements, because card issuers let you download them from your online account. If you want a little extra security, you can hang on to credit card statements for 30 to 60 days.
Loan paperwork, such as refinancing agreements, should also be kept. By keeping this paperwork, it could come in handy if your monthly mortgage statement is not correct or if there's an unanticipated change to your monthly interest rate. You should also maintain a copy of the property survey of your house.
You'll need a variety of documents in order to sell your home. Some of the most important include your mortgage loan documentation, mandatory disclosures and the deed.
Bank statements and canceled checks. Even if they're old statements, they should be shredded. Your name, address, phone number, and bank account information are in those statements, along with your habits, purchases, and banking history.
The 28% mortgage rule states that you should spend 28% or less of your monthly gross income on your mortgage payment (e.g., principal, interest, taxes and insurance).
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
In most cases, you should plan on keeping tax returns along with any supporting documents for a period of at least three years following the date you filed or the due date of your tax return, whichever is later.
With tax considerations in mind, here are suggestions that may make sense for many people. Credit card and bank account statements: Save those with no tax return usefulness for about a year, but those with tax significance should be saved for seven years.
Storing Investment Records
It's smart to divide your investment records into those you'll use for short-term reference and those that go into long-term files or storage for three to seven years or longer. Once a year, it's a good idea to overhaul your records, discarding those that you no longer need.
Keep for a year or less – unless you are deducting an expense on your tax return: Monthly utility/cable/phone bills: Discard these once you know everything is correct. Credit card statements: Just like your monthly bills, you can discard these once you know everything is correct.
Should you keep old utility bills?
Monthly utility/cable/phone bills: Once you know the bill is correct, toss it. But if you deduct some of these costs on your tax return, you'll want to save them with your return (more on that in a moment). Credit card statements: If you know all the charges are correct, you probably don't need to keep this.
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
If they are old, paid bills and you're asking how to throw them away, just shred them.
To be on the safe side, 401(k) records should be kept for a minimum of six years after filing Form 5500, as indicated in ERISA Section 107.
Keep canceled checks for one year unless you need them for tax purposes. Refer to them when you reconcile your accounts each month so you know what has cleared.
