Organize Your Important Records
The File Folder System
3. Social Security. Keep your most recent Social Security Benefits Statement in this folder. If you haven't received a statement in the mail in the last 12 months, request one by going online to www.ssa.gov or telephoning the Social Security Administration toll-free at (800) 772-1213.
4. Investment Accounts. This folder is for every statement you receive related to investments you have (mutual funds, stocks, bonds, etc.) that are not in a retirement account - a brokerage account for example. Prepare a separate file folder for each of these.
5. Savings and Checking Accounts. This is the place for monthly bank statements, with a separate file folder for each account. Generally speaking, you don't need to keep bank statements for more than a few months - certainly not more than a year. If you get your statement online, print out a copy and stick it in the file.
6. Household Accounts. If you own your home, this hanging folder should contain the following files:
- House Title for documents such as title reports and title insurance policies. (If you can't find these documents, call your real estate agent or title company.)
- Home Improvements to hold receipts for any home-improvements. (Improvement expenses can be added to the cost basis of your house when you sell it, which means a bigger tax deduction for you. So, keep these receipts for as long as you own your house.)
- Home Mortgage for your mortgage statements which you should check regularly, since mortgage companies often don't credit you properly.
If you're a renter, this folder should contain your lease agreement, the receipt for your security deposit, and the receipts or canceled checks for your rental payments.