How Long To Keep Records?

[+ Lucky]

I grew up in the era of paper, so I have many old paper records, including banking and credit cards. Now that one can go paperless and then have access to years of statements, why keep the paper ones at all?

Tax records should probably be held longer, but for how long? Home paperwork? I don't know.

Medical records that are old are probably useless, but what is the cutoff?

As you might guess, I am undertaking a cleaning out of old paperwork and want your advice. Thanks!

[+ Vegas_Millennial]

28 minutes ago, Lucky said:

Now that one can go paperless and then have access to years of statements, why keep the paper ones at all?

I keep paper end of year statements for my retirement accounts.  Yes, they can be found on the internet, but I get everything mailed to me by paper and find it satisfying to have an annual paper record in the file.  I do this because I sleep better knowing I have a paper copy.  Monthly or quarterly statements I shred and discard.

30 minutes ago, Lucky said:

Tax records should probably be held longer, but for how long? Home paperwork? I don't know.

3 years for tax records.  Forever if you are committing tax crimes (such as providing massages without reporting the earned income).

I am keeping my tax records and my home records for as long as I own the home.  I am keeping paper receipts of any home improvements so I can deduct them from the capital gains taxes I'll owe when I sell my house.  When I sell the home, I'll discard my tax records and home records after 3 tax years after the sell of the home.

34 minutes ago, Lucky said:

Medical records that are old are probably useless, but what is the cutoff?

I only keep my childhood vaccination records.  Lab results and doctor visit records are discarded.  But, as a millennial, I didn't see as many different doctors as an older man might.

My carona virus vaccine card is already in the trash.  (Not that it was that good anyway... Filled out with pencil).

When I come across an old report card that my father saved for me in my files, I keep it because it brings me joy. 

If it doesn't bring you joy, discard it.

[pubic_assistance]

You don't need evidence of any financial dealings that are more than 7 years old. Obviously keep certain records permanently.  Mortgage paperwork, initial bank records, investment records etc.

All the rest can go in the trash. I know AMEX and Chase bank are rather a pain in the ass when you need an old statement so I don't rely entirely on th le web based access. It can take several days to access old files with some companies.

[BeamerBikes]

It’s a bit morbid, but I was thankful for the document hoarding when I took over affairs for my mom and then another friend during an illness.  
 

It gave me a starting point. 
 

If you get rid of most older records, keep an emergency oh shit folder to give someone a starting point to track down your assets.  

[viewing ownly]

Some experts say 3 years, others say 7. Split the difference and do 5.

[+ JamesB]

I keep paper records for 7 years. I have Digital / Scanned records that go back well over 25 years.

[+ BenjaminNicholas]

2 hours ago, JamesB said:

I keep paper records for 7 years. I have Digital / Scanned records that go back well over 25 years.

This is the way.

Most, if not all banks, now permanently discard digital records of banking transactions after 7 years.  

I keep my paper copies organized in storage, just in case.

[+ Vegas_Millennial]

15 hours ago, BeamerBikes said:

It’s a bit morbid, but I was thankful for the document hoarding when I took over affairs for my mom and then another friend during an illness.  
 

It gave me a starting point. 
 

If you get rid of most older records, keep an emergency oh shit folder to give someone a starting point to track down your assets.  

This is another reason I don't allow paperless statements for anything.  In the event of my death, hospital stay, or even extended holiday, my designated representative can simply look through my mail to determine what needs to be paid and when, and know with whom I have accounts.

[Beancounter]

@JamesB and I have a similar approach to document retention.  Every month I download to my PC digital copies of my brokerage statements, bank statements, credit card statements and any other important documents I deem need saving. Tax returns are scanned along with 1099s, W2s and other supporting documentation.  Like @JamesB I have records dating back more than 25 years.  Many times I’ve had to refer to my oler brokerage statements to get the cost basis of a security I’ve sold.  Of course nowadays brokerage firms are required to report the cost basis for any securities sold.  
 

Bottom line….saving records digitally is easy and doesn’t require a lot of physical storage place.  But to answer the OP’s question I would save tax returns for seven years.  Some records should be kept forever….deed to a house, closing papers on the sale/purchase of a home, costs associated with home improvements so they can be added to the basis of a home, documents showing proof a loan has been paid-in-full, etc.  

[+ The Big Guy]

I would keep tax records forever.  On a couple of occasions (for background checks for jobs), I have needed to provide W-2’s as proof of past employment.  For the past 5 years I have started keeping all records electronically which really cuts down on storage needs.  

[+ Charlie]

This is a topic that hits close to home, because I am looking at my bookshelves, which are overloaded to the breaking point. I find it hard to get rid of a book, even one I read once and will never read again. I still have textbooks from my college years, catalogs from schools I taught at, yearbooks from schools I attended, old appointment books, directories, magazines, etc., etc. I have large expensive picture books that I haven't looked at in years--I always tell myself that I will some day, but I never do. An enormous supply of maps, even though I no longer need them to travel anywhere. A full set of the Encyclopedia Brittanica (25 hard-bound volumes) that is a half century old, which I hardly have occasion to consult. I have a shelf full of cookbooks, although I subsist on frozen microwavable food. What to do with it all?

[+ augustus]

1 hour ago, Charlie said:

What to do with it all?

I'm married to paper too.   It's a good reflex to keep documents.  It helped me tremendously in a guardianship battle between me and my cousins over my elderly aunt.  I was able to prove my cousins lied in court thanks to years-old bank statements that my aunt kept.

[+ augustus]

If you didn’t file a tax return, the statute of limitations never started to run.  The statute of limitations applies only when you can prove you filed an income tax return. If the IRS doesn’t have a copy of your tax return, it’s going to assume you didn’t file one, and you have to prove you filed it.

[+ Lucky]

14 hours ago, Charlie said:

This is a topic that hits close to home, because I am looking at my bookshelves, which are overloaded to the breaking point. I find it hard to get rid of a book, even one I read once and will never read again. I still have textbooks from my college years, catalogs from schools I taught at, yearbooks from schools I attended, old appointment books, directories, magazines, etc., etc. I have large expensive picture books that I haven't looked at in years--I always tell myself that I will some day, but I never do. An enormous supply of maps, even though I no longer need them to travel anywhere. A full set of the Encyclopedia Brittanica (25 hard-bound volumes) that is a half century old, which I hardly have occasion to consult. I have a shelf full of cookbooks, although I subsist on frozen microwavable food. What to do with it all?

The woman I hired to declutter is local and only charges $25 hour. She did a good job and I look with relief at my former junk piles.

[+ Charlie]

2 hours ago, Lucky said:

The woman I hired to declutter is local and only charges $25 hour. She did a good job and I look with relief at my former junk piles.

But what would she do with all those books and papers?

[+ Lucky]

On 7/19/2024 at 11:26 AM, Charlie said:

But what would she do with all those books and papers?

Wouldn't be your problem anymore!

[BeamerBikes]

I also adopted a technique on how to handle being indecisive on keeping something. If you can’t clearly decide if you need it or can toss it? 
Throw that into a bankers box and mark the date.  If you haven’t touched the Bankers Box in a year from now, off the shredder.  
 

I also use a local shredding company.  I’ll get in a decluttering kick and box up all the old crap.  Then I’ll find out when the shredding company has a shop day when they take appts and they shred everything at their facility.  You pull up, empty the boxes, if it fills the bin more than halfway, then it’s $45.  Otherwise $30.  

Likewise towns around me will host shred days where they accept one or two boxes for free with a shredding service.  
 

It saves me half a day feeding a shredder which I won’t end up doing.  It’s quick, and very final. You don’t look at every paper over again and question if you need it.  Once the box is loaded in the car, it’s as good as done. 

Edited July 21 by BeamerBikes