How long should investment statements be kept

You probably already know that important documents such as tax returns, bank statements and paycheck stubs need special attention, but for how long, and in what format? And what is the best way to safeguard all that personal data? Your tax returns are important documents to keep as part of your financial history.

You can easily access your paperless statements and documents online and keep them safely stored there. Bank of America clients can easily manage paperless statements and documents using Mobile and Online banking.

Depending on your filing circumstances, the IRS may be able to ask you for supporting documentation for three to seven years after you file a return. Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W—2 and , bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years. You should also hold on to pay stubs so that you can use them to verify the accuracy of your Form W-2 when tax season arrives.

Otherwise, you can dispose of them as soon as you verify your payment was processed. You can also dispose of bank withdrawal and deposit slips after verifying them with your monthly statement. For physical documents, designate a safe, out-of-the-way place in your home to store all paper records that protects them from damage or theft. For digital records, be sure to archive and back up all electronic records. Use complex passwords to keep your account information safe.

Make sure your username and password combination is different from the ones you use for personal email, online merchants and social media accounts. Protecting your computer with antivirus software is also a good idea. Invest in a cross-cut shredder that will eliminate all traces of your personal information, or search for free shredding events in your community.

Having paperless statements and documents can help reduce the risk of identity theft posed by lost or stolen mail. The material provided on this website is for informational use only and is not intended for financial, tax or investment advice.

Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

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It will also make life easier when you have to do taxes again next year. If your home is hit by a fire or flood, or a thief pays a visit, you may need quick access to your insurance papers.

If you become ill, your loved ones may need to find papers that prove they can look after you, such as your healthcare proxy. Keep for less than a year. In this file, Weltman says to store your ATM, bank-deposit, and credit card receipts until you reconcile them with your monthly statements. Keep insurance policies and investment statements until new ones arrive. Keep for a year or longer. Hold on to loan documents until the loan is paid off. That will often be for more than a year.

If you own a car , hold on to the title until you sell it. If you have investments in stocks, bonds, and mutual funds, for example, keep the purchase confirmations until you sell, so you can establish your cost basis and holding period, McBride says.

Keep for seven years. If you fail to report all of your gross income on your tax returns, the government has six years to collect the tax or start legal proceedings. Using cloud-based storage not only saves on space, but also can be great for organizing and keeping your documents secure, since most services guarantee protection through encrypted networks. Many cloud-based solutions allow access through mobile devices, making your documents accessible almost anywhere in the world.

The last thing you want to do is shred something to save space, only to need it five years later. Throwing away documents with your trash exposes your information to anyone willing to do a little dirty work to steal your identity.

You might not realize how much information is present on your old bills, statements, voided and canceled checks and other financial documents. 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.

Many cities also hold free paper shredding days for residents. A financial life necessarily involves a significant amount of documentation—from monthly bank statements to insurance documents to the various materials required to file your taxes. Kevin Payne is a personal finance and travel writer who writes about credit cards, student loans, debt, credit, and family finances. Kevin lives in Cleveland, Ohio with his wife and four kids. Select Region. United States. United Kingdom.

Kevin Payne. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. One Year Documents that fall into this category include non-tax-related bank and credit card statements, investment statements, pay stubs and receipts for large purchases. How to Store Financial Documents You can cut down on clutter by creating a reliable system for storing your financial documents.

Paper Storage Many people choose to keep documents stored in a filing cabinet. The past several years have seen an explosion of cloud-based solutions, including: Dropbox Google Drive Microsoft OneDrive iCloud Amazon Cloud Drive Box NextCloud iDrive Carbonite Using cloud-based storage not only saves on space, but also can be great for organizing and keeping your documents secure, since most services guarantee protection through encrypted networks.

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