Your thoughtful retirement plans, the supporting documentation, and all of your important personal records must be organized and maintained. Where are the files? Do you have copies? Does anyone else have knowledge of, or access to, the materials? Should they?

There are both pretty simple and very elaborate methods for record keeping. You may already have a favorite filing system. If you do, take a few minutes to make sure your records are up-to-date and add to them the retirement plan you've just created. If you don't yet have a plan for keeping your records organized and up-to-date, you might get started with the following steps:

Step 1: Create a Master List
List your key personal records—what they are and where they can be found. (You may prefer to open and complete the form in MSWord.)

• Birth certificate, marriage license, diplomas, passport, military discharge papers, and medical records.



• Add to the list your legal documents, including your will, financial power of attorney, and advance medical directives.



• Next, add the names of the financial reports or statements you receive: Social Security, pension plan, IRA, and other bank or investment statements, along with your insurance policies.



• Finally, add the documents you have that show ownership of your home, car, and other possessions.

Step 2: Gather the Records and Decide How to Store Them

• Look at what you've assembled. How much space do you need? Would you prefer to use a file cabinet, a file box, a set of loose-leaf binders, a set of folders, a plastic container? How about color-coded paper or plastic files? Be as creatively organized as you choose-just pick a plan that you will stay with!



• Note that a safe deposit box in a bank for your will and insurance policies is a good idea, but check with the bank to make sure access won't be restricted upon your death.

Step 3: Put It All Together
Having all of your records together in one place and keeping them there is the physical organization that will help you to keep a mental organization about your important documents and your important plans for your future.You will appreciate knowing that you can put your hands on important papers.

You will accumulate many financial papers over time, so it is important to know which to keep and for how long. You should keep the following documents:

• 3 Years: Household bills (paid and unpaid); receipts for minor purchases; health records; and income tax receipts.
  
  
• 7 Years: Cancelled checks; check registers; bank statements; bank deposit slips; year-end pay stubs; credit-card statements; receipts and records of deductible expenses; income and tax paperwork (some financial advisors suggest that you keep a copy of your tax returns with documentation for at least 10 years). In addition, investment purchase and sale records should be kept for seven years after the tax deadline for the year of sale.
  
  
• Permanently: Personal records that provide documentation of events such as birth, marriage, divorce, death, military service, adoption, naturalization and medical records. Also, housing and investment records such as titles, deeds, trust agreements, wills, retirement plan agreements, and power of attorney documents should be kept as long as the agreements are in effect. For tax purposes, papers documenting home purchase and improvements should be kept as long as your own the property or are rolling over profits into new property.

For those records that you decide to discard, it’s in your best interest to shred them. You can purchase a shredder at most office supply or discount retailers. Make sure the shredder is a “cross-cut” model and has a credit card slot.