“Do I Still Need to Save This?”

Do you frequently ask yourself, “Should I keep this?” Or do you catch yourself saying, “Now, where is that? Did it get tossed out?” If so, maybe it’s time to evaluate your record-retention system. Effective record retention does not happen without careful thought and consistent follow-through. Following are several suggestions to help you get and stay organized.

What to Keep

Keep only those records that you will need later. The following categories may help you decide what you should be saving:

• Birth and death certificates of family members

• Marriage certificate and family keepsakes

• Genealogy records, personal histories, patriarchal blessings, and important personal letters

• School performance reports, transcripts, and diplomas

• Church ordinance and priesthood advancement documents

• Military and missionary discharge documents

• Health, disability, and life insurance policies

• Insurance correspondence and claims paid

• Records of any serious family illnesses

• Immunization records for family members and pets

• Automobile and home owner’s insurance policies

• Automobile registration and maintenance records

• Real estate deeds and records of home improvements

• Documents relating to wills, trusts, and other legal matters

• Tax records and supporting documentation

• Business agreements, employment contracts, and records of earnings and employment benefits

• Investment account statements and documents

• Social Security data and retirement documents

• Documents dealing with your home mortgage, automobile loan, and other obligations

• Family budgets and financial statements

• Household bills

• Cancelled checks and bank statements

• List of all assets and their locations

• Product instruction manuals, warranties, and guarantees

What to Toss

Try not to accumulate too many unneeded records; but since you can never be certain of the future, it’s better to save something you don’t need rather than to discard something you might need.

Some documents have lasting value to the family and should be kept permanently—Church documents, family history records, real estate records, checks and receipts for major purchases, business or investment documents, and papers dealing with wills and trusts.

Income tax returns and supporting data, paid loan documents, and bank and investment statements can generally be discarded after about seven years.

Most records can be discarded sooner—generally after two to three years. These include household bills, part-year financial information after annual summaries arrive, most maintenance and repair records, completed contract agreements, and expired insurance policies, warranties, and guarantees.

How to Get Organized

Your plan should be tailored to your personal organization style and circumstances. I started by sorting my stacks of papers into the categories shown above. Then I placed each set of documents in a manila folder. If one folder would not hold everything, I would further sort the contents and set up additional folders.

I labeled each file and organized the contents chronologically. If there were several folders in a category, I attached them with metal clasps and dated each folder. Now I can quickly locate important information and discard it when I no longer need it.

Staying in Control

It’s time to upgrade your system when you spend too much time searching for information, when you lose important documents, or when papers pile up throughout the house. Under the best record-retention plan, each document has its place and you need to touch it only once before you immediately file it.

All family members should understand how records are maintained, but one person should be responsible for filing documents. Keep many records tucked safely away so they will not be inadvertently discarded or disorganized. But store others—like medical information and insurance claim forms—so they are quickly available in case of emergency.

Organizing and maintaining a record-retention plan can help make an orderly and well-managed home. It is an ongoing process—but the benefits are well worth the effort.—William W. Duncan, certified public accountant, Diamond Bar, California