Ring in the new year with a new you

For Immediate Release   -   December 29, 2009

This is the perfect time of the year to roll up your sleeves and make a resolution to get a handle on your files and reclaim storage space.

What to keep: This depends upon your individual situation. Consider keeping tax return copies, 401K, IRA and certificates of deposit statements, insurance policies, medical records and receipts, loan records, 1099 and W2 forms. If you’re a business owner, consult your legal and accounting staff to determine exactly what should be kept for your situation.

How long to keep files: Many think seven years is the rule of thumb when it comes to tossing out records, however, this is not true for all documents. Before you start tossing out too much or too little, consult a financial advisor or professional records management center to determine the length of time to keep specific records. Never assume it’s better to be safe than sorry because federal law says that auditors may go through all records on hand.

Protect yourself: Many people believe their files are secure but haven’t taken into account the impact of a disaster like a flood or fire or the wrong person getting their hands on your files. Scan documents to convert them into electronic files and back up your hard drive. Lock all files in a fire and waterproof filing cabinet, safe or vault.