Documents to keep and store

Here are the documents to keep and store in a fireproof file cabinet or in a safe-deposit box:

Real Estate Documents: These include the title to your home, the deed of purchase, your mortgage contract, and your sales contract.

Records of all personal property your own: It's best to keep photographs or a videotape of these items, along with written estimates of their value.

Old tax returns: It's crucial to keep copies of your income tax returns for the past three years. That's because the IRS can typically probe that far back if it chooses to audit you. But it's good to keep all your tax returns.

Insurance policies: Keep all policies you still hold, from life to liability, at home in a fireproof safe. It's also a good idea to create a list of all your policies and your agents and keep it in your safe deposit box.

Legal documents: You also need to keep copies indefinitely of your will and, if you have them, your living will and power of attorney. Have your lawyer keep the originals and keep a copy at home. Be sure to get rid of old wills.

Bank checking and savings account statements: Holding on to your checks helps you keep track of where your money goes. The checks can also work as proof of a payment if necessary. Keep these statements for three years.

Investment records: Save monthly statements from your mutual fund companies and your brokerage firm. These statements will establish what you paid for an investment, so you'll have the information to compute the taxes when you sell it. After you get your annual summary statement you can shred the monthly statements - as long as the annual statements shows all your transactions for the past 12 months.

Exception - Save all trade confirmations and dividend-reinvestment statements for three years after you file a tax return declaring a gain or loss from selling securities. Save your annual statements indefinitely. If you have certificates of ownership for stocks, bonds or other investments, keep them in a safe-deposit box at the bank.

Retirement accounts: Keep all annual statements from tax-advantaged retirement accounts such as IRAs and SEPs. The statements will document your contributions and your earnings. It's especially important to keep annual statements from any nondeductible IRAs you may have. You'll need them to show the IRS which part of any future withdrawl was funded with after-tax money. Otherwise you'll wind up being taxed twice.

Debts: Aside from your mortgage contract, you'll also want to save records for your student loans, home equity loans, car loans, bank loans and other large debts. When they are paid off just kkep the statement that says so.

Miscellaneous documents: Also keep in your safe-deposit box the following: the title to your car, your birth and marriage certificates, your children's birth certificates and deeds to cemetery plots you own.

Records you can shred

Old, expired insurance policies.
Receipts for cars you don't own anymore.
Expired product warranties.
Old annual reports and proxy statements.