Darlings,
I know I suggested keeping your password accounts in a binder in your home, but what of a fire or worst your home is broken into , That is where a heavy duty Fireproof safe is important.
Most casual thieves will take what they can easily transport, T.V. Dvd player, jewerly, ready cash, but if your safe is installed in your closet and bolted to the floor and the back wall that is best.
Mine is bolted and since I have concret underneath my flooring it's bolted to that I also have it disguised as a back wall since there is a hollow space in that area, so only the most descerning thief will spot it. Also if you are going away for any length of time, have a reliable, bonded house sitter staying at your place.
Another thing that my friend Mean Kitty mentioned (as a matter of fact she is here right now and we are going out to dinner---my treat). If you are a gun owner, keep your records that show the legal purchase of the gun in your safe deposit box, and if you should sell it write that down on your previous proof of purchase----Also, and she cannot stress this enough---IF YOUR GUN IS STOLEN REPORT IT IMMEDIATELY TO THE POLICE AND INCLUDE THE IDENTIFICATION NUMBER AS WELL this is to protect you from any legal action.
If Darlings you are just starting out in saving your papers, the first thing to get is a safe deposit box.
Another thing my friend Mean Kitty mentioned is this, if you have the space and are a coin collector, put your coins in your at home safe or at least in your safe deposit box.
Well Darlings, I must go, we are going to have a lovely Dinner, and then take in a movie---Mean Kitty wants to see "National Treasure" oh well, it's all in good fun.
Until Anon Kisses Darlings.
Saturday, January 5, 2008
Organizing what important papers to keep and other thoughts~~~~
My goodness Darlings,
All that rain and wind yesterday! I was watching the 5 o’clock news and I am so glad that I stayed home all day, but how frightening it must have been for those drivers on the Richmond-San Rafael Bridge.
It reminds me of the storms we had nearly 10 years ago and all those houses sliding down from the Hills. Some of my friends were nearly in that situation, fortunately their support pillars held and they had a chance to fix things so it would not be a problem again.
Well today Darlings I had to venture out into the rain, supplies for the house and groceries too, but I thought it would be best to have Princess stay at home, I didn’t want her to get wet in all of this. And my goodness did anyone see the lightening?
Fortunately Betty and I decided it would be best to join forces, so planning our trip like Generals we purchased the non-perishables first, then had a light lunch of soup and salad at one of our favorite eateries and I put Irma’s and mine idea about forming a booklet of places to go to, to rest have coffee, a light snack, or dinner, or other ideas----that way we wouldn’t have to rack out brains out.
She loved the idea so we are getting together tomorrow afternoon to plan how to focus our project---even if it’s for just our own use it will help take out any guess work and also give us a chance to plan on trying new places as well.
But I did promise to find a list of important papers to keep for your files. And Darlings, I was lucky and came across a web site that has listed from a government brochure what is important to keep, the brochure is no longer printed----but it’s alright to copy this information.
And trust me on this, you Darling Divas, this is very important information to have
Here it is-----there will be comments from me set within ( ) to add to it.~~~~~~~
Now Darlings at the bottom of all this Wonderful information is a list of how long to keep financial records, and although many places say 6 years I strongly recommend 10 years, it’s so much easier to keep track of decades.
Keeping Family/Household Records KEEPING FAMILY/HOUSEHOLD RECORDS
This brochure is no longer available in print. It is based on a chapter
from the U. S. Department of Agriculture's 1973 Yearbook of Agriculture
and has been adapted for use online by the Federal Citizen Information
Center of the General Services Administration as a public service. The
chapter on which this brochure is based was originally prepared by
Constance Burgess, a retired Cooperative Extension consumer education
specialist from the University of California. The information is in the
public domain and you are welcome to reference or copy it for educational
purposes.
What to Discard
When was the last time you couldn't find an important paper you knew you
had carefully put away someplace? How much time do you spend trying to
straighten out your household business affairs, especially at income tax
time?
How, in fact, do people decide what records are important to keep and what
they can discard? How do they decide where to store and keep such records
and papers?
Even though each family or household must work out its own system, some
general guidelines can be helpful. As a starter, ask yourself a few
questions:
How easy or difficult would it be for other members of your household to
figure out your record system? Or…do you even have a system?
Who besides you knows where to turn for necessary information about the
family household assets and obligations? Do you have a listing of people
who are important contacts, such as tax counselors, attorneys, bankers,
brokers, insurance representatives, employers, creditors, and debtors?
Are you sure titles to property and possessions are held in the best way
for all concerned? If not, you may want to ask an estate attorney or a
trust officer at your bank for professional assistance.
A good record system will provide a bird's-eye view of what happens to
property after you die or when a member of your household dies. Other
changes can alter plans too---for example, divorce or separation,
children reaching legal age, a long illness, a lawsuit, a natural
disaster, loss of a job, and retirement.
What happens if the place where you live is burglarized or there's a
fire and records are destroyed? What do you do when you lose track of
important paper. Which can be replaced, and how do you go about that?
Which ones cannot be replaced, and what do you do about those?
Papers to Keep in Safe Deposit Boxes
Every family household has some important records. Each of us should have
a birth certificate or an acceptable substitute. Since there are many
occasions when the information on your birth certificate will be needed,
it is important that you keep it in a safe place, preferably in a safe
deposit box.
If you have lost or misplaced birth certificates, consider applying for
replacements now, before there is a pressing need. Otherwise, you may have
to wait for one you need quickly.
State registration of births has been mandatory since 1920, and you can
contact your State agency to get a copy. The Bureau of the Census also
will search its files for proof of age.
By the same token, there will be death certificate for every person
someday. These will be needed occasionally and also are best kept in a
safe deposit box.
If you need to obtain these kinds of records, the publication, Where to
Write for Vital Records is available for viewing or purchase from the
Federal Citizen Information Center, Pueblo, Colorado 81009.
Other important documents to be kept in your safe deposit box include
marriage certificates, divorce or other legal papers regarding dissolution
of marriage, adoption papers, citizenship records, service papers, and any
other document that is either government or court recorded. The original
copy of a will, in most cases, is kept in the safe of the attorney who
prepared it.
This is highly desirable, since it may save complications
later. The client receives two carbon copies, one of which may be put into
his or her own safe deposit box. However, there could be a legal delay in
getting this copy at his or her death. The third copy, therefore, should
be kept at home where it is readily accessible.
Some of your important papers, such as investments, are of a business or
financial nature. Certificates for securities are nonnegotiable (can't be
sold or legally transferred) until they are signed by the owner.
Nevertheless, such certificates can be lost or stolen, and the signature
can be forged. In either case replacement involves both cost and delay.
Such certificates then, when not left with the broker, should be kept in
the owner's safe deposit box.
Government bonds can be replaced without cost, but there will be a delay
of several months. So it is best to keep these in the box also.
Among other investment-type documents that require safekeeping are papers
that serve as proof of ownership, such as deeds for real estate, other
mortgage papers, contracts, automobile titles (if this applies in your
State), leases, notes, and such special papers as patents and copyrights.
Renting a Safe Deposit Box
If you don't have a safe deposit box, then consider getting one. The
yearly rental, at your bank or savings and loan company, is inexpensive.(Darlings, even I cannot stress this idea enough)
Often the smallest size is adequate, though larger sizes are available at
slightly higher charges.
If you do have a safe deposit box, ask yourself if it is large enough to
hold everything that should be in it-and small enough to keep out things
that don't need to be there. If you store documents from investment
properties or securities, the rental can be claimed as a deduction for
income tax purposes. The box should not be used as a catchall for
souvenirs and unimportant papers.
What Goes In And What Stays Out
A guideline as to what goes in and what stays out of your safe deposit box
might be: Put it in if you can't replace it or if it would be costly or
troublesome to replace.
Many items can be replaced rather easily. Copies of insurance policies can
be obtained from your insurance companies. Copies of cancelled checks are
usually available at your bank. Generally speaking, you do not need to
keep the following in a safe deposit box: income tax returns, education
records, employment records, bankbooks, social security cards, guarantees,
and burial instructions.
Keeping Tax Records
How long should you keep tax records? The Internal Revenue Service has 3
years in which to audit Federal income tax returns. However, this limit
does not apply in unusual cases. If you failed to report more than 25
percent of your gross income, the Government has 6 years to collect the
tax or to start legal proceedings. Also, there are no time limitations if
you filed a fraudulent return or if you failed to file a return.
(Darlings, my late husband was an attorney and even if he wanted to conceal something from me he NEVER concealed anything from the IRS)
But you don't have to keep everything for tax purposes. You can lighten
your record load by discarding certain checks and bills once they have
served their purpose.
For example, you can throw away weekly or monthly
salary statements---assuming you are paid in that way---after you check
them against your annual W-2 Form.
But save cancelled checks that relate directly to an entry on your tax return, and keep all medical bills for 3 years to back up your cancelled checks.
(Darlings, I recommend that you keep all your medical bills permanently, for those of you who have relatives that are on Medicare and Medical, those bills can help prove your case, especially if there is any type of wrong doing, Mean Kitty’s Mother’s estate was being sued by Medi-Cal for monies even though there was no estate, but Medi-Cal insisted there was---and it was strange that the amount being sued for was the exact amount Mean Kitty had to pay for her Mother’s Funeral---she hired a lawyer to deal with Medi-Cal and they reduced their demands to $500 always get a lawyer on your side to do the fighting, if they are smart they will have connections)
The IRS generally keeps records for 6 years. You can obtain a copy of your
tax return by writing to the IRS center to which your return was sent.
Make sure you include your social security number and a notarized
signature.
Making Household Inventory Records
Among your important papers keep a household inventory. If there is a fire
or burglary in your home, this record will help you remember what has to
be replaced and how much each item is worth. An inventory also may show
that you need to increase your insurance because your possessions are
worth more than you thought.
The best way to go about compiling a household inventory is to start with
a sheet of paper for each room in the house, apartment, etc. Forms on
which to record items are available from several places, sometimes from
your county Extension office.
When you make your inventory, start at one point in the room and go all
the way around, listing everything. For each item, list what it is, how
much it cost, when it was purchased, and what it would cost to replace it.
Include the model number, brand name, dealer's name, and a general
description. If you take pictures of the rooms and your household
possessions, it will make identification or replacement, easier. Arrange
expensive collections, silver, and jewelry separately and take close-up
pictures.
When you have finished all the rooms, including the basement, garage, and
attic, add up the total replacement cost. That figure will represent what
your household is worth and is what your insurance should cover.
Update your inventory every 6 months or so by adding new purchases and
adjusting replacement costs.
(Darlings it would be best to keep the house hold inventory record in your safe deposit box---but if you do not have a chance to do that, then keep it in a fire proof safe or have two copies one in your safe deposit box and one in your at home safe)
Organizing A Home Filing System
A system for personal records is a necessity. No matter how modest your
home facilities might be, you need a special place to keep your papers.
That could be as elaborate as a room or home office or as simple as a
corner of the kitchen, bedroom, or hall.
Records, regardless of the filing system used, should be reviewed at least
once a year to discard items no longer needed. January is a good time for
an overhaul, since it's just before you begin to work on taxes.
The equipment you will need doesn't have to be elaborate. Think about a
filing cabinet before you think about a desk. The two-drawer type can be
covered with paint or wallpaper. A wooden slab or hollow-core door
stretched across the top of two cabinets can make a practical home office
desk.
If you don't have space for a small cabinet, buy accordion folders, a
storage chest that fits under the bed, or get sturdy cardboard boxes of an
appropriate size.
A home computer or portable typewriter and a pocket calculator can be
handy, but they are not essential. The essential thing is to know where
everything is.
(Trust me Darlings, there is often enough a time when having a manuel portable typewriter can be a God-send and they still are making them, just check the internet)
Two Home Files
You should keep two home files, in addition to your safe deposit box at
the bank. These two files are your active file and your dead storage file.
Your active file will hold:
1) unpaid bills until paid,
2) paid bill receipts,
3) current bank statements,
4) current cancelled checks,
5) income tax working papers.
After 3 years, move these items to your dead storage file.
There are other items which should always be kept in your active file.
These include:
1) employment records, such as resumes, recommendation letters, health benefit information;
2) credit card information, including the number of each card, by company name;
3) insurance policies;
4) copies of wills;
5) family health records;
6) appliance manuals and warranties;
7) education information, such as transcripts, diplomas, etc.;
8) Social Security information on benefits and regulations; and
9) an inventory of what's in your safe deposit box (you might store a key in the inventory folder).
10) (Darlings I also recommend a power of attorney as well as a Medical Power of attorney, and a letter recommending what should be done if you do or do not want to be resuscitated----also give a copy of these papers on Medical information to your lawyer and to a responsible, reliable family member on your family side not on your spouses side Remember the Terri Shaivo case)
Finally, keep a record book of the whereabouts of your important papers.
If you use a loose-leaf binder, you will be able to change papers easily
Or copy a page or two.
The book should contain a list of all your savings and checking accounts.
(Darlings with ATM’s and such do be sure to include your passwords with each account)
This way you won't become one of the missing depositors who have forgotten
Their accounts or who have died without telling relatives about them.
Also, include the name and branch of the bank where you keep your safe
deposit box.
The book also should have all of the family members' social security
numbers, and all of the insurance policy information. It's a good idea to
keep a copy of your household inventory here as well.
Don't forget to record all your household improvements.
Finally, make sure someone else knows and understands the family
record-keeping system.
Preparing A Net Worth Statement
Have you tried filling out a net worth statement as a means of keeping
tabs on yourself and your family possessions? Such a record provides a
good overall picture and can be prepared in an hour or less. If you do it
annually, you can see quickly whether you are getting ahead financially or
falling behind and, in either case, how fast.
An accurate net worth statement can serve as a point of departure for the
year ahead. If you're not making as much progress financially as you had
expected to, you can decide whether to stay on course or to change
directions for the coming year.
Where are you going to find a net worth form that will meet your needs? Try your county Cooperative Extension Service office. Or ask at your bank. Better yet, perhaps you can make one to fit your family.
All you do is list your assets, list your obligations, and subtract the debts from the assets. Hopefully the plus side of the ledger will get larger each year and the minus side smaller. But there may be good reasons why you'll fall behind sometimes, such as when you buy a
new home or when other expenses are heavier than usual.
THINGS TO REMEMBER
Use the checklist chart below to remind yourself what to keep and what you
can discard.
Safe Deposit Box
Birth Certificates
Citizenship Papers
Marriage Certificates
Adoption Papers
Divorce Decrees
Wills
Death Certificates
Deeds
Titles to Automobiles
Household Inventory
Veteran's Papers
Bonds and Stock Certificates
Important Contracts
Active File
Tax Receipts
Unpaid Bills
Paid Bill Receipts
Current Bank Statements
Current Cancelled Checks
Income Tax Working Papers
Employment Records
Health Benefit Information
Credit Card Information
Insurance Policies
Copies of Wills
Family Health Records
Appliance Manuals and Warranties
Receipts of Items Under Warranty
Education Information
Inventory of Safe Deposit Box (and key)
Loan Statements
Loan Payment Books
Receipts of Expensive Items Not Yet Paid For
Power of attorney and Medical power of attorney and Medical Directive
Dead Storage
All Active File Papers Over 3 Years Old
Items To Discard
Salary Statements (after checking on W-2 Form)
Cancelled Checks for Cash or Nondeductible Expenses
Expired Warranties
Coupons After Expiration Date
Other Records No Longer Needed
NET WORTH STATEMENT as of ________________
(update annually)
Assets
Cash on Hand$______________
Bank accounts (checking and savings)$______________
Credit Union account$______________
Savings & loan accounts$______________
Any other savings accounts$______________
House, market value$______________
Other real estate, value$______________
Household furnishings, value$______________
Automobile(s), blue book value$______________
Life insurance, cash value$______________
Stocks and bonds, today's value$______________
Profit-sharing or retirement plans$______________
U.S. Savings Bonds$______________
Money owed you$______________
Other assets or investments$______________
Personal property$______________
Total Assets$______________
Obligations
Mortgages, balance due$______________
Other loans (bank, credit union)$______________
Installment debts, balance due$______________
Credit cards, balance due$______________
Charge accounts, owed$______________
Other debts, total owed$______________
Insurance premiums due$______________
Taxes owed$______________
Other current bills$______________
Total Debts$______________
Net Worth (assets minus debts)$______________
Now Darlings this following list maybe a repeat of what is listed above but at the time that the government brochure was printed it wasn't listing IRA's or 4o1 k's and other things, so the information below maybe a repeat of above but it is an update.
Tax returns and proof of filing: Forever - in case you are audited.
Documents Supporting Tax Returns (W-2, 1099, receipts to prove deductions,
etc.): Six years. The IRS has up to three years from when you file to look for
errors on your return and up to six years to audit you if it suspects you
underreported income by 25 percent. (There’s no limit if fraud is involved.)
Receipts: Until the warranty expires, or for as long as you need them for tax
purposes.
Securities Statements (stocks, bonds, mutual funds, etc.): For 6 years after
you sell them; to prove a profit or loss for tax purposes
Medical Bills: 1 yr, unless deducting for taxes, then 6 years.
Pay Stubs: Until your W-2 arrives; (Be sure to double check it for accuracy on
a regular basis!)
401k and IRA Statements: Until your year end statement arrives. Keep your year
end statements for at least 6 years for tax reasons.
Bank Statements: 1 year to confirm 1099.
Utility Bills: 1 year to track usage, assist with budgeting. If you claimed a
home office on your taxes, keep your records for six years.
Credit Card Statements: 1 month for most, so you can reconcile your purchases.
Keep them for longer if needed for tax reasons.
This is great advice to simplify book keeping and getting rid of clutter! It’s
much easier to do if you take care of things as they come in instead of trying
to do a year’s worth of book keeping in one sitting. So take the 15 minutes a
week and get organized!
Don’t forget to shred any documents that have important personal or financial
information before throwing them out! Many of these important documents contain
all the information identity thieves need to steal your identity and ruin your
life.
What financial records to keep and how long to keep them Inside: Home
You can't take everything with you, but the following are
suggestions about how long you should keep personal finance
and investment records on file:
Financial records timeline
Type of record Length of time to keep -- and why
TaxesReturns
Canceled checks/receipts (alimony, charitable contributions, mortgage interest and retirement
plan contributions)
Records for tax deductions taken Seven years
The IRS has three years from your filing date to
audit your return if it suspects good faith
errors.
The three-year deadline also applies if you
discover a mistake in your return and decide to
file an amended return to claim a refund.
The IRS has six years to challenge your return if
it thinks you underreported your gross income by
25 percent or more.
There is no time limit if you failed to file your
return or filed a fraudulent return.
(Remember my Diva Darlings, never try to cheat the IRS, you will lose, always have a good tax preparer do your return, espeically if you are in business or work hard to earn your money)
IRA contributions Permanently
If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that
you already paid tax on this money when the time comes to withdraw.
Retirement/savings plan statements From one year to permanently(I recommend permanently Darlings, Never trust the IRS)
Keep the quarterly statements from your 401(k) or other plans until you receive the annual
summary; if everything matches up, then shred the quarterlies.
Keep the annual summaries until you retire or close the account.
Bank records From one year to permanently
Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments.
Shred those that have no long-term importance.
Brokerage statements Until you sell the securities
You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.
Bills From one year to permanently
Go through your bills once a year.
In most cases, when the canceled check from a
paid bill has been returned, you can shred the
bill.
However, bills for big purchases -- such as
jewelry, rugs, appliances, antiques, cars,
collectibles, furniture, computers, etc. --
should be kept in an insurance file for proof of
their value in the event of loss or damage.
Credit card receipts and statements From 45 days
to seven years (Espeically for any tax deduction or business related expense that is taken as a tax deduction)
Keep your original receipts until you get your
monthly statement; shred the receipts if the two
match up.
Keep the statements for seven years if
tax-related expenses are documented.
Paycheck stubs One year
When you receive your annual W-2 form from your
employer, make sure the information on your
stubs matches.
If it does, shred the stubs.
If it doesn't, demand a corrected form, known as
a W-2c.
House/condominium records From six years to permanently
Keep all records documenting the purchase price
and the cost of all permanent improvements --
such as remodeling, additions and installations.
Keep records of expenses incurred in selling and
buying the property, such as legal fees and your
real estate agent's commission, for six years
after you sell your home.
Holding on to these records is important because
any improvements you make on your house, as well
as expenses in selling it, are added to the
original purchase price or cost basis. This adds
up to a greater profit (also known as capital
gains) when you sell your house. Therefore, you
lower your capital gains tax.
)(Again Darlings when it comes to your house or condo never trust the IRS, I would keep it permanetly as an active file for 7 years then as an inactive file)
(Remember Darlings to also keep Medical Receipts for non-chronic and chronic illness and paid in full loan documents for at least 4 years although I would suggest permanently.
Keep all bank statements—including all canceled check, and receipts for living expenses, vacations, clothing and entertainment for 3 to 7 years especially if you are using it as a tax deduction---perhaps to be on the safe side-then permanently)
Source: Marquette National Bank and Catherine
Williams,
President of Consumer Credit Counseling Services
of Greater Chicago
Now Darlings, I got this information from several different sources but Bankrate.com information (posted just above) was the most recent as of 2005.
There is one piece of equipment that I MUST Recommend and that is a Cross Cut Shredder, heavy duty at that. Remember there is always the threat of Identity theft.
Must go Darlings, Kisses
All that rain and wind yesterday! I was watching the 5 o’clock news and I am so glad that I stayed home all day, but how frightening it must have been for those drivers on the Richmond-San Rafael Bridge.
It reminds me of the storms we had nearly 10 years ago and all those houses sliding down from the Hills. Some of my friends were nearly in that situation, fortunately their support pillars held and they had a chance to fix things so it would not be a problem again.
Well today Darlings I had to venture out into the rain, supplies for the house and groceries too, but I thought it would be best to have Princess stay at home, I didn’t want her to get wet in all of this. And my goodness did anyone see the lightening?
Fortunately Betty and I decided it would be best to join forces, so planning our trip like Generals we purchased the non-perishables first, then had a light lunch of soup and salad at one of our favorite eateries and I put Irma’s and mine idea about forming a booklet of places to go to, to rest have coffee, a light snack, or dinner, or other ideas----that way we wouldn’t have to rack out brains out.
She loved the idea so we are getting together tomorrow afternoon to plan how to focus our project---even if it’s for just our own use it will help take out any guess work and also give us a chance to plan on trying new places as well.
But I did promise to find a list of important papers to keep for your files. And Darlings, I was lucky and came across a web site that has listed from a government brochure what is important to keep, the brochure is no longer printed----but it’s alright to copy this information.
And trust me on this, you Darling Divas, this is very important information to have
Here it is-----there will be comments from me set within ( ) to add to it.~~~~~~~
Now Darlings at the bottom of all this Wonderful information is a list of how long to keep financial records, and although many places say 6 years I strongly recommend 10 years, it’s so much easier to keep track of decades.
Keeping Family/Household Records KEEPING FAMILY/HOUSEHOLD RECORDS
This brochure is no longer available in print. It is based on a chapter
from the U. S. Department of Agriculture's 1973 Yearbook of Agriculture
and has been adapted for use online by the Federal Citizen Information
Center of the General Services Administration as a public service. The
chapter on which this brochure is based was originally prepared by
Constance Burgess, a retired Cooperative Extension consumer education
specialist from the University of California. The information is in the
public domain and you are welcome to reference or copy it for educational
purposes.
What to Discard
When was the last time you couldn't find an important paper you knew you
had carefully put away someplace? How much time do you spend trying to
straighten out your household business affairs, especially at income tax
time?
How, in fact, do people decide what records are important to keep and what
they can discard? How do they decide where to store and keep such records
and papers?
Even though each family or household must work out its own system, some
general guidelines can be helpful. As a starter, ask yourself a few
questions:
How easy or difficult would it be for other members of your household to
figure out your record system? Or…do you even have a system?
Who besides you knows where to turn for necessary information about the
family household assets and obligations? Do you have a listing of people
who are important contacts, such as tax counselors, attorneys, bankers,
brokers, insurance representatives, employers, creditors, and debtors?
Are you sure titles to property and possessions are held in the best way
for all concerned? If not, you may want to ask an estate attorney or a
trust officer at your bank for professional assistance.
A good record system will provide a bird's-eye view of what happens to
property after you die or when a member of your household dies. Other
changes can alter plans too---for example, divorce or separation,
children reaching legal age, a long illness, a lawsuit, a natural
disaster, loss of a job, and retirement.
What happens if the place where you live is burglarized or there's a
fire and records are destroyed? What do you do when you lose track of
important paper. Which can be replaced, and how do you go about that?
Which ones cannot be replaced, and what do you do about those?
Papers to Keep in Safe Deposit Boxes
Every family household has some important records. Each of us should have
a birth certificate or an acceptable substitute. Since there are many
occasions when the information on your birth certificate will be needed,
it is important that you keep it in a safe place, preferably in a safe
deposit box.
If you have lost or misplaced birth certificates, consider applying for
replacements now, before there is a pressing need. Otherwise, you may have
to wait for one you need quickly.
State registration of births has been mandatory since 1920, and you can
contact your State agency to get a copy. The Bureau of the Census also
will search its files for proof of age.
By the same token, there will be death certificate for every person
someday. These will be needed occasionally and also are best kept in a
safe deposit box.
If you need to obtain these kinds of records, the publication, Where to
Write for Vital Records is available for viewing or purchase from the
Federal Citizen Information Center, Pueblo, Colorado 81009.
Other important documents to be kept in your safe deposit box include
marriage certificates, divorce or other legal papers regarding dissolution
of marriage, adoption papers, citizenship records, service papers, and any
other document that is either government or court recorded. The original
copy of a will, in most cases, is kept in the safe of the attorney who
prepared it.
This is highly desirable, since it may save complications
later. The client receives two carbon copies, one of which may be put into
his or her own safe deposit box. However, there could be a legal delay in
getting this copy at his or her death. The third copy, therefore, should
be kept at home where it is readily accessible.
Some of your important papers, such as investments, are of a business or
financial nature. Certificates for securities are nonnegotiable (can't be
sold or legally transferred) until they are signed by the owner.
Nevertheless, such certificates can be lost or stolen, and the signature
can be forged. In either case replacement involves both cost and delay.
Such certificates then, when not left with the broker, should be kept in
the owner's safe deposit box.
Government bonds can be replaced without cost, but there will be a delay
of several months. So it is best to keep these in the box also.
Among other investment-type documents that require safekeeping are papers
that serve as proof of ownership, such as deeds for real estate, other
mortgage papers, contracts, automobile titles (if this applies in your
State), leases, notes, and such special papers as patents and copyrights.
Renting a Safe Deposit Box
If you don't have a safe deposit box, then consider getting one. The
yearly rental, at your bank or savings and loan company, is inexpensive.(Darlings, even I cannot stress this idea enough)
Often the smallest size is adequate, though larger sizes are available at
slightly higher charges.
If you do have a safe deposit box, ask yourself if it is large enough to
hold everything that should be in it-and small enough to keep out things
that don't need to be there. If you store documents from investment
properties or securities, the rental can be claimed as a deduction for
income tax purposes. The box should not be used as a catchall for
souvenirs and unimportant papers.
What Goes In And What Stays Out
A guideline as to what goes in and what stays out of your safe deposit box
might be: Put it in if you can't replace it or if it would be costly or
troublesome to replace.
Many items can be replaced rather easily. Copies of insurance policies can
be obtained from your insurance companies. Copies of cancelled checks are
usually available at your bank. Generally speaking, you do not need to
keep the following in a safe deposit box: income tax returns, education
records, employment records, bankbooks, social security cards, guarantees,
and burial instructions.
Keeping Tax Records
How long should you keep tax records? The Internal Revenue Service has 3
years in which to audit Federal income tax returns. However, this limit
does not apply in unusual cases. If you failed to report more than 25
percent of your gross income, the Government has 6 years to collect the
tax or to start legal proceedings. Also, there are no time limitations if
you filed a fraudulent return or if you failed to file a return.
(Darlings, my late husband was an attorney and even if he wanted to conceal something from me he NEVER concealed anything from the IRS)
But you don't have to keep everything for tax purposes. You can lighten
your record load by discarding certain checks and bills once they have
served their purpose.
For example, you can throw away weekly or monthly
salary statements---assuming you are paid in that way---after you check
them against your annual W-2 Form.
But save cancelled checks that relate directly to an entry on your tax return, and keep all medical bills for 3 years to back up your cancelled checks.
(Darlings, I recommend that you keep all your medical bills permanently, for those of you who have relatives that are on Medicare and Medical, those bills can help prove your case, especially if there is any type of wrong doing, Mean Kitty’s Mother’s estate was being sued by Medi-Cal for monies even though there was no estate, but Medi-Cal insisted there was---and it was strange that the amount being sued for was the exact amount Mean Kitty had to pay for her Mother’s Funeral---she hired a lawyer to deal with Medi-Cal and they reduced their demands to $500 always get a lawyer on your side to do the fighting, if they are smart they will have connections)
The IRS generally keeps records for 6 years. You can obtain a copy of your
tax return by writing to the IRS center to which your return was sent.
Make sure you include your social security number and a notarized
signature.
Making Household Inventory Records
Among your important papers keep a household inventory. If there is a fire
or burglary in your home, this record will help you remember what has to
be replaced and how much each item is worth. An inventory also may show
that you need to increase your insurance because your possessions are
worth more than you thought.
The best way to go about compiling a household inventory is to start with
a sheet of paper for each room in the house, apartment, etc. Forms on
which to record items are available from several places, sometimes from
your county Extension office.
When you make your inventory, start at one point in the room and go all
the way around, listing everything. For each item, list what it is, how
much it cost, when it was purchased, and what it would cost to replace it.
Include the model number, brand name, dealer's name, and a general
description. If you take pictures of the rooms and your household
possessions, it will make identification or replacement, easier. Arrange
expensive collections, silver, and jewelry separately and take close-up
pictures.
When you have finished all the rooms, including the basement, garage, and
attic, add up the total replacement cost. That figure will represent what
your household is worth and is what your insurance should cover.
Update your inventory every 6 months or so by adding new purchases and
adjusting replacement costs.
(Darlings it would be best to keep the house hold inventory record in your safe deposit box---but if you do not have a chance to do that, then keep it in a fire proof safe or have two copies one in your safe deposit box and one in your at home safe)
Organizing A Home Filing System
A system for personal records is a necessity. No matter how modest your
home facilities might be, you need a special place to keep your papers.
That could be as elaborate as a room or home office or as simple as a
corner of the kitchen, bedroom, or hall.
Records, regardless of the filing system used, should be reviewed at least
once a year to discard items no longer needed. January is a good time for
an overhaul, since it's just before you begin to work on taxes.
The equipment you will need doesn't have to be elaborate. Think about a
filing cabinet before you think about a desk. The two-drawer type can be
covered with paint or wallpaper. A wooden slab or hollow-core door
stretched across the top of two cabinets can make a practical home office
desk.
If you don't have space for a small cabinet, buy accordion folders, a
storage chest that fits under the bed, or get sturdy cardboard boxes of an
appropriate size.
A home computer or portable typewriter and a pocket calculator can be
handy, but they are not essential. The essential thing is to know where
everything is.
(Trust me Darlings, there is often enough a time when having a manuel portable typewriter can be a God-send and they still are making them, just check the internet)
Two Home Files
You should keep two home files, in addition to your safe deposit box at
the bank. These two files are your active file and your dead storage file.
Your active file will hold:
1) unpaid bills until paid,
2) paid bill receipts,
3) current bank statements,
4) current cancelled checks,
5) income tax working papers.
After 3 years, move these items to your dead storage file.
There are other items which should always be kept in your active file.
These include:
1) employment records, such as resumes, recommendation letters, health benefit information;
2) credit card information, including the number of each card, by company name;
3) insurance policies;
4) copies of wills;
5) family health records;
6) appliance manuals and warranties;
7) education information, such as transcripts, diplomas, etc.;
8) Social Security information on benefits and regulations; and
9) an inventory of what's in your safe deposit box (you might store a key in the inventory folder).
10) (Darlings I also recommend a power of attorney as well as a Medical Power of attorney, and a letter recommending what should be done if you do or do not want to be resuscitated----also give a copy of these papers on Medical information to your lawyer and to a responsible, reliable family member on your family side not on your spouses side Remember the Terri Shaivo case)
Finally, keep a record book of the whereabouts of your important papers.
If you use a loose-leaf binder, you will be able to change papers easily
Or copy a page or two.
The book should contain a list of all your savings and checking accounts.
(Darlings with ATM’s and such do be sure to include your passwords with each account)
This way you won't become one of the missing depositors who have forgotten
Their accounts or who have died without telling relatives about them.
Also, include the name and branch of the bank where you keep your safe
deposit box.
The book also should have all of the family members' social security
numbers, and all of the insurance policy information. It's a good idea to
keep a copy of your household inventory here as well.
Don't forget to record all your household improvements.
Finally, make sure someone else knows and understands the family
record-keeping system.
Preparing A Net Worth Statement
Have you tried filling out a net worth statement as a means of keeping
tabs on yourself and your family possessions? Such a record provides a
good overall picture and can be prepared in an hour or less. If you do it
annually, you can see quickly whether you are getting ahead financially or
falling behind and, in either case, how fast.
An accurate net worth statement can serve as a point of departure for the
year ahead. If you're not making as much progress financially as you had
expected to, you can decide whether to stay on course or to change
directions for the coming year.
Where are you going to find a net worth form that will meet your needs? Try your county Cooperative Extension Service office. Or ask at your bank. Better yet, perhaps you can make one to fit your family.
All you do is list your assets, list your obligations, and subtract the debts from the assets. Hopefully the plus side of the ledger will get larger each year and the minus side smaller. But there may be good reasons why you'll fall behind sometimes, such as when you buy a
new home or when other expenses are heavier than usual.
THINGS TO REMEMBER
Use the checklist chart below to remind yourself what to keep and what you
can discard.
Safe Deposit Box
Birth Certificates
Citizenship Papers
Marriage Certificates
Adoption Papers
Divorce Decrees
Wills
Death Certificates
Deeds
Titles to Automobiles
Household Inventory
Veteran's Papers
Bonds and Stock Certificates
Important Contracts
Active File
Tax Receipts
Unpaid Bills
Paid Bill Receipts
Current Bank Statements
Current Cancelled Checks
Income Tax Working Papers
Employment Records
Health Benefit Information
Credit Card Information
Insurance Policies
Copies of Wills
Family Health Records
Appliance Manuals and Warranties
Receipts of Items Under Warranty
Education Information
Inventory of Safe Deposit Box (and key)
Loan Statements
Loan Payment Books
Receipts of Expensive Items Not Yet Paid For
Power of attorney and Medical power of attorney and Medical Directive
Dead Storage
All Active File Papers Over 3 Years Old
Items To Discard
Salary Statements (after checking on W-2 Form)
Cancelled Checks for Cash or Nondeductible Expenses
Expired Warranties
Coupons After Expiration Date
Other Records No Longer Needed
NET WORTH STATEMENT as of ________________
(update annually)
Assets
Cash on Hand$______________
Bank accounts (checking and savings)$______________
Credit Union account$______________
Savings & loan accounts$______________
Any other savings accounts$______________
House, market value$______________
Other real estate, value$______________
Household furnishings, value$______________
Automobile(s), blue book value$______________
Life insurance, cash value$______________
Stocks and bonds, today's value$______________
Profit-sharing or retirement plans$______________
U.S. Savings Bonds$______________
Money owed you$______________
Other assets or investments$______________
Personal property$______________
Total Assets$______________
Obligations
Mortgages, balance due$______________
Other loans (bank, credit union)$______________
Installment debts, balance due$______________
Credit cards, balance due$______________
Charge accounts, owed$______________
Other debts, total owed$______________
Insurance premiums due$______________
Taxes owed$______________
Other current bills$______________
Total Debts$______________
Net Worth (assets minus debts)$______________
Now Darlings this following list maybe a repeat of what is listed above but at the time that the government brochure was printed it wasn't listing IRA's or 4o1 k's and other things, so the information below maybe a repeat of above but it is an update.
Tax returns and proof of filing: Forever - in case you are audited.
Documents Supporting Tax Returns (W-2, 1099, receipts to prove deductions,
etc.): Six years. The IRS has up to three years from when you file to look for
errors on your return and up to six years to audit you if it suspects you
underreported income by 25 percent. (There’s no limit if fraud is involved.)
Receipts: Until the warranty expires, or for as long as you need them for tax
purposes.
Securities Statements (stocks, bonds, mutual funds, etc.): For 6 years after
you sell them; to prove a profit or loss for tax purposes
Medical Bills: 1 yr, unless deducting for taxes, then 6 years.
Pay Stubs: Until your W-2 arrives; (Be sure to double check it for accuracy on
a regular basis!)
401k and IRA Statements: Until your year end statement arrives. Keep your year
end statements for at least 6 years for tax reasons.
Bank Statements: 1 year to confirm 1099.
Utility Bills: 1 year to track usage, assist with budgeting. If you claimed a
home office on your taxes, keep your records for six years.
Credit Card Statements: 1 month for most, so you can reconcile your purchases.
Keep them for longer if needed for tax reasons.
This is great advice to simplify book keeping and getting rid of clutter! It’s
much easier to do if you take care of things as they come in instead of trying
to do a year’s worth of book keeping in one sitting. So take the 15 minutes a
week and get organized!
Don’t forget to shred any documents that have important personal or financial
information before throwing them out! Many of these important documents contain
all the information identity thieves need to steal your identity and ruin your
life.
What financial records to keep and how long to keep them Inside: Home
You can't take everything with you, but the following are
suggestions about how long you should keep personal finance
and investment records on file:
Financial records timeline
Type of record Length of time to keep -- and why
TaxesReturns
Canceled checks/receipts (alimony, charitable contributions, mortgage interest and retirement
plan contributions)
Records for tax deductions taken Seven years
The IRS has three years from your filing date to
audit your return if it suspects good faith
errors.
The three-year deadline also applies if you
discover a mistake in your return and decide to
file an amended return to claim a refund.
The IRS has six years to challenge your return if
it thinks you underreported your gross income by
25 percent or more.
There is no time limit if you failed to file your
return or filed a fraudulent return.
(Remember my Diva Darlings, never try to cheat the IRS, you will lose, always have a good tax preparer do your return, espeically if you are in business or work hard to earn your money)
IRA contributions Permanently
If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that
you already paid tax on this money when the time comes to withdraw.
Retirement/savings plan statements From one year to permanently(I recommend permanently Darlings, Never trust the IRS)
Keep the quarterly statements from your 401(k) or other plans until you receive the annual
summary; if everything matches up, then shred the quarterlies.
Keep the annual summaries until you retire or close the account.
Bank records From one year to permanently
Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments.
Shred those that have no long-term importance.
Brokerage statements Until you sell the securities
You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.
Bills From one year to permanently
Go through your bills once a year.
In most cases, when the canceled check from a
paid bill has been returned, you can shred the
bill.
However, bills for big purchases -- such as
jewelry, rugs, appliances, antiques, cars,
collectibles, furniture, computers, etc. --
should be kept in an insurance file for proof of
their value in the event of loss or damage.
Credit card receipts and statements From 45 days
to seven years (Espeically for any tax deduction or business related expense that is taken as a tax deduction)
Keep your original receipts until you get your
monthly statement; shred the receipts if the two
match up.
Keep the statements for seven years if
tax-related expenses are documented.
Paycheck stubs One year
When you receive your annual W-2 form from your
employer, make sure the information on your
stubs matches.
If it does, shred the stubs.
If it doesn't, demand a corrected form, known as
a W-2c.
House/condominium records From six years to permanently
Keep all records documenting the purchase price
and the cost of all permanent improvements --
such as remodeling, additions and installations.
Keep records of expenses incurred in selling and
buying the property, such as legal fees and your
real estate agent's commission, for six years
after you sell your home.
Holding on to these records is important because
any improvements you make on your house, as well
as expenses in selling it, are added to the
original purchase price or cost basis. This adds
up to a greater profit (also known as capital
gains) when you sell your house. Therefore, you
lower your capital gains tax.
)(Again Darlings when it comes to your house or condo never trust the IRS, I would keep it permanetly as an active file for 7 years then as an inactive file)
(Remember Darlings to also keep Medical Receipts for non-chronic and chronic illness and paid in full loan documents for at least 4 years although I would suggest permanently.
Keep all bank statements—including all canceled check, and receipts for living expenses, vacations, clothing and entertainment for 3 to 7 years especially if you are using it as a tax deduction---perhaps to be on the safe side-then permanently)
Source: Marquette National Bank and Catherine
Williams,
President of Consumer Credit Counseling Services
of Greater Chicago
Now Darlings, I got this information from several different sources but Bankrate.com information (posted just above) was the most recent as of 2005.
There is one piece of equipment that I MUST Recommend and that is a Cross Cut Shredder, heavy duty at that. Remember there is always the threat of Identity theft.
Must go Darlings, Kisses
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