Don’t Waste Your Money: What documents should be saved? - News, Weather, Sports, Toledo, OH

Don’t Waste Your Money: What documents should be saved?

(WTOL) – Now that it is 2012, it is time to start preparing for tax filing. It is also a great time to start thinking about spring cleaning. Out of boxes of bills, checks and other old paperwork, it is important to know what is safe to shred. What should be pitched and what should be saved?

According to Yahoo Finance, after one year people can safely throw away old credit card bills and statements, utility bills and cell phone bills.

However, it is advised to wait at least four years to shred bank statements, insurance statements (in case filing or disputing a claim), and receipts for televisions, computers and big ticket items (in case warranty work is needed).

There are some documents that should be kept for longer terms, or even forever.

 Yahoo Finance recommends saving tax documents for at least 10 years, not the three to five years some advisors suggest. Audits can come at any time, and paperwork is required.

Also, Yahoo Finance urges people to never destroy papers proving paid off mortgages and car loans. Questions about a car loan can come up even 10 years after paying a car off.

Old bills and receipts can be thrown away, but loan and tax documents should be kept for as long as possible.

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