How do you organize your financial records?

[HFWR]

In my defense, I track major expenses in a spreadsheet, but "incidentals" are poorly tracked, if at all. I still have checks, so I can't possibly be broke...

 

[rodi]

I have just done a transaction, and the tax folks wanted copies of ALL my tax statements on that item going back to when I first included this item in my tax returns.

So much for the 7 year rule, I'm glad I didn't throw any tax stuff out.
After all its not hard to keep a box of folders tucked in a corner.

I've heard of this before. For that reason tax returns are forever. Tax returns stay in a hanging file for 7 years - then are put into a manila envelope and put in the "older records" box in the bottom of the spare room closet.

Other records are kept electronically in quicken and turbotax... I take a copy of these files on a thumb drive to the safe deposit box every 6 months or so. Quicken is backed up weekly to an external hard drive.

 

[Midpack]

Like others here, we opted out of paper copies wherever possible. They few things we still get on paper are scanned in as pdf's and/or just shredded. And our old paper records were all scanned and pitched years ago. All on my hard drive and backed up to an external hard drive, so plenty safe. And some can be accessed online if we ever lose anything.

I efile taxes, so there's no printed copy of returns. I do keep paper copies of last seven years of W-2's, 1099's etc.

DW keeps all CC receipts.

The only other paper records we still have that I can think of are SS cards, passports, car/boat titles, birth certs, jewelry appraisals, current insurance, marriage license, wills/etc. - all in a fireproof safe.

 

[littleb]

My accountant told me to keep tax documents for 3 years. If the IRS finds income not disclosed, a substantial mistake or fraud they can go back up to 6 years.

From the IRS website:

How far back can the IRS go to audit my return?

Generally, the IRS can include returns filed within the last three years in an audit. Additional years can be added if a substantial error is identified. Generally, if a substantial error is identified, the IRS will not go back more than the last six years.
The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly most audits will be of returns filed within the last two years.

 

[big-papa]

Tax forms are saved in PDF form and my computer is backed up regularly. I also have paper copies (plus other documentation) that I keep in the safety deposit (only keep 7 years worth). I used to keep statements from the brokerage firms to keep track of cost basis, but they all do that for you now. Other than that I have a queue of 3 months for bills. After 3 months, they go to the shredders.

 

[tmm99]

Thank you for this thread. I am surprised a lot of people still get paper statements. For folks who are paperless and download their statements, where do you keep the downloaded statements? I feel like putting them on google drive (currently on my laptop) but I worry about security of putting them on the cloud. But then, my mind argues that I have my taxes on Turbotax online and miscellaneous important documents online and I don't worry about them at all...

Where do you keep yours?


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[target2019]

PDFs are stored locally, in encrypted drive. Backing up to google drive or other place sounds reasonable. I would make an encrypted archive and upload that rather than 1000 files.

 

[2017ish]

I don't keep downloaded statements; in fact, I don't typically download them. If bank statement or credit card, I'll open on screen, reconcile the account in quicken and close them. Only if reconciling is proving difficult, or DW wants to see the past month do I download and print for quick review before shredding.

If I need statements for some reason, they are accessible through our online accounts.

 

[HpRyder]

My organization is divided into two areas, current receipts/statements and historical records such as tax filings, associated receipts, calculations etc.

For current receipts/statements, I scan paper copies of bank, Vanguard, Fidelity, etc. statements to dated titled pdfs. Download broker statements & dated title. Download credit card statements & date title. Scan credit card receipts to date title store id'd pdf files. Store all on small external HD under organizational & sub-folder year. After putting on small external HD, I disconnect it from computer. Put all paper copies into shred box and wait for yearly local shredding event (typically sponsored by local RE office). Watch shredding truck load multiple boxes of papers to be shredded and watch them shredded.

Once a month I do a differential copy of small external HD files to larger external encrypted HD to aggregate all new & old files. I copy larger encrypted HD file to flash drive and swap it out with prior months flash drive in bank safe deposit box.

Hope this helps you.

 

[RetireAge50]

The only paper I have are tax returns sitting in the basement.

All my other financial records are kept at the bank, brokerage, etc. They let me log on and view anytime I want and is nicely organized.

 

[tmm99]

I don't keep downloaded statements; in fact, I don't typically download them. If bank statement or credit card, I'll open on screen, reconcile the account in quicken and close them. Only if reconciling is proving difficult, or DW wants to see the past month do I download and print for quick review before shredding.

If I need statements for some reason, they are accessible through our online accounts.

Yes, right, but from what I can tell, the records online only go back about 3 years. Do you see it (3 years worth of info) good enough? (Same thing with my HSA account) From what people stated here, IRS usually only cares about 3 years worth of data, so maybe it is good enough..?

 

[2017ish]

Yes, right, but from what I can tell, the records online only go back about 3 years. Do you see it (3 years worth of info) good enough? (Same thing with my HSA account) From what people stated here, IRS usually only cares about 3 years worth of data, so maybe it is good enough..?

Since everything other than cash pocket-money purchases is detailed and categorized in quicken, I can't think of any reason I'd need a hard copy from three years ago for the bulk of financial transactions.... (In any event, just checked online and I can request a copy back to May 2009 statement for my BoA credit card and checking accounts with no charge.)

Agree on the HSA--those receipts, which are not part of a financial statement, are in a folder and pdf'd on my hard drive and backups; but once we apply them to draw money out, they'll go into the pertinent tax folder/scan. Similarly, receipts and contracts for additions to house basis are scanned in, as they provide details not present on the financial institution statements.

 

[Mulligan]

I don't keep downloaded statements; in fact, I don't typically download them. If bank statement or credit card, I'll open on screen, reconcile the account in quicken and close them. Only if reconciling is proving difficult, or DW wants to see the past month do I download and print for quick review before shredding.

If I need statements for some reason, they are accessible through our online accounts.

I am bad....When I received financial statements in mail, I filed them all away. When I went paperless several years ago, I printed off everything. In past year or two, I haven't kept a copy of anything. I just look on my online account. I need to print quarterly statements just to do something to prove I own something, I suppose.

 

[2017ish]

I am bad....When I received financial statements in mail, I filed them all away. When I went paperless several years ago, I printed off everything. In past year or two, I haven't kept a copy of anything. I just look on my online account. I need to print quarterly statements just to do something to prove I own something, I suppose.

Then again, if we have an EMP or another Carrington Event, you may be better situated than those of us who are all electronic!

 

[gayl]

For taxes I use Turbotax and can download almost everything. The main thing that needs to go in manually is charitable. I don't have any rentals though.

all investments are at SCHWAB and available online for 10 yrs. I had a minor business for over a decade (never really took off) so I keep that for 3+ yrs.

 

[Urchina]

I don't understand this at all. I haven't received paper statements from anything in years -- I just get an email when a new statement is ready, and I download the pdf.

A dozen different financial institutions (banks and brokerages), and they all do the same thing --no paper.

Scanning the few documents that do come by mail is easy, because there are so few.

Most of our investments / banking statements are paperless.
Three of my retirement accounts don't have this as an option (local county government, and they have not upgraded the system yet). Just three accounts, but still results in what seems like an awful lot of paper.

This thread has given me some good information and has also given me some more questions to ask, like:
1. Are the cost-basis accounting services offered by our brokerages / deferred comp plans accurate way back to when we started contributing, or do they have just part of that data?
2. How do you encrypt an archive for upload to the cloud?
3. When am I ever going to use any of this information again? (Knowing how I'll use data really helps me organize it for retrieval).
4. I need to do some research to better understand how cost basis is used. I think I've got the basics, but wouldn't mind a deeper understanding. Do I need that information for tax-deferred accounts, or just for taxable ones?
5. How can I streamline this process so that it's efficient, effective, and traceable (in the event that DH needs to take over our finances).


Thanks for the ideas, everyone!

 

[gayl]

Most of our investments / banking statements are paperless.
Three of my retirement accounts don't have this as an option (local county government, and they have not upgraded the system yet). Just three accounts, but still results in what seems like an awful lot of paper.

This thread has given me some good information and has also given me some more questions to ask, like:
1. Are the cost-basis accounting services offered by our brokerages / deferred comp plans accurate way back to when we started contributing, or do they have just part of that data?
2. How do you encrypt an archive for upload to the cloud?
3. When am I ever going to use any of this information again? (Knowing how I'll use data really helps me organize it for retrieval).
4. I need to do some research to better understand how cost basis is used. I think I've got the basics, but wouldn't mind a deeper understanding. Do I need that information for tax-deferred accounts, or just for taxable ones?
5. How can I streamline this process so that it's efficient, effective, and traceable (in the event that DH needs to take over our finances).


Thanks for the ideas, everyone!

1. The statements may not have data for stocks that were purchased / transferred into the taxable account prior to 2010 but the firm can get you reasonable amounts.

2. No idea.

3. When you sell investment and need to file Sch D

4. Only needed for taxable accounts

5. Your brokerage has a 10 yr history online so why the cloud?