While there is some disagreement on how long documents need to be retained in one form or another, there are some general rules upon which many financial advisors agree. With respect to bank and financial statements, canceled checks, and federal and state income tax returns, six years is suggested. It is also suggested that you permanently maintain copies of your birth certificate, divorce papers, life insurance policies, Social Security card, and any military service records. Receipts for large purchases, service contracts or warranties or vehicle titles, should be retained until the same are sold, discarded or disposed of. Homeowners’ insurance policies, auto insurance policies, various contracts entered into, credit card account information, your last will and testament and/or powers of attorney, may be maintained until updated, modified or terminated. The above is simply a guide and retention of records is often times dictated by an individual’s comfort level.
