Apr 20, 2021
In this episode of Inside the Plan with the 401(k)
Brothers, Bill Bush and Andy Bush, advisors at Horizon
Financial Group, talk about tidying up financial clutter,
strategies for getting rid of documents you no longer need, and how
to stay on top of your economic situation.
- 02:57 – What should you do with
your financial documents that are laying around?
- 03:28 – Consider shredding old
- 04:35 – How far back do you need to
save your tax documents?
- 05:16 – What should be your process
with printed pay stubs?
- 06:16 – Secured cloud storage is a
good way to protect financial documents like utility bills, annual
tax returns, and receipts.
- 07:26 – What should be done about
- 08:11 – How long should you keep
- 10:37 – Keep your 401k-related
- 12:04 – Which physical documents
should you keep very secure and safe?
- 14:10 – The flood of 2016 affected
many people that lost vital documents and
3 Key Points:
- If you ever have to prove any purchases during an audit,
have at least 7 years of tax receipts.
- Hold onto property records because any improvements can
increase the property value and capital gains.
- Bank statements can be cleaned out
- “When it comes to tax documents, how far back do
you need? You need about seven years of tax documents. Well, if I
have 12, I surely don’t need those extra 5.” – Andy Bush
- “‘If you do get pay stubs, you may want to keep
those around until you receive your annual W2 form. But then you
don’t need them after that.” – Bill Bush
- “‘Investment documents. So, some of those play into, especially
when we are talking about capital gains, are a part of your tax
returns. So you kind of want to hang onto those.’” – Bill Bush