Keeping records can be key

Q: We are downsizing from a large house to a condo, and we need to purge 30 years’ worth of paper records and don’t want to dispose of anything that should be kept. What kinds of documents and records does a person need to keep?

A: Most records can be categorized temporary or permanent, according to John Barghini, with the Minneapolis accounting firm of Hansen, Jergenson, Nergaard.

Examples of permanent records to keep:

“Purchase documents for your residence and any property you own. Also, any refinance, remodeling or improvement documents.

“Personal records such as marriage and birth certificates, and citizenship or military discharge papers. Wills and estate-planning documents.

For many personal records, it’s a good idea to keep the originals secure in a safe-deposit box, for example, but to keep copies on hand.

Temporary records include:

“Tax returns and all documents used to support deductions should be kept for seven years. Keep trade confirmation notices you receive from your stockbroker or mutual fund office for tax purposes.

“Once checked for accuracy, there’s no need to keep credit card and banking statements. If you use them for yearly budgeting purposes, they can be tossed after that.

“Proof of asset ownership for insurance purposes, such as sales slips for expensive items, or photos and videotapes of valuables. (It’s a good idea to keep these secure off-site too.)

“Insurance policies. Vehicle and home insurance policies can change, so keep them as long as they are in effect.

“Keep warranties and owners manuals until they expire or as long as you own the item.

“If you use your computer for a document retrieval tool, it’s a good idea to create and keep back-up discs and copies of passwords.