Out with the Old: Get Your Financial Documents in order for 2025
January is the perfect time to declutter your financial life and start fresh. Whether you’re ready to go paperless or prefer physical records, organizing your financial documents now can set the tone for a more streamlined and stress-free year. Follow these simple rules to take control of your finances in 2025:
Going Digital? Secure Your Documents
If you’re transitioning to a digital system, ensure all documents are stored securely online in a protected, easy-to-access location. Use encryption, strong passwords, and backup systems to safeguard your information.
Learn More: An IT Professional on How to Stay Safe Online, Avoid Scams, & Keep Information Secure – Season 2, Ep.3
What to Keep and What to Shred
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Bank Statements and ATM Receipts:
- Keep physical copies for up to one year.
- Shred them securely if they’re no longer needed.
- Consider digital storage to reduce clutter.
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Tax Returns:
- Retain tax returns and supporting documents for at least three years after filing.
- After this time, dispose of them properly using a shredder or a secure drop box.
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Medical Records and Legal Documents:
- Keep records of major surgeries or medical events indefinitely for reference.
- Preserve any legal documents you acquire, such as wills or contracts, permanently.
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Retirement Account Statements:
- Preserve statements for 401(k), IRA, Roth IRA, and other investments to monitor your progress.
- Consolidate annual summaries for easier tracking and digital storage.
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Major Life or Home Records:
- Permanently keep records related to mortgages, home improvements, major purchases, and significant life events.
Need guidance on what to keep or toss? Call us at (309) 263-1333—our advisors at 210 Financial are here to help!
The Benefits of Decluttering
Organizing your financial documents not only reduces stress but ensures you’re prepared for tax season, major life events, and future financial planning. Whether you opt for physical or digital storage, taking the time to declutter now saves you headaches later.
Start Fresh with 210 Financial
Not sure where to begin? Our team of advisors is here to guide you every step of the way. Call us at (309) 263-1333 to schedule a consultation and start 2025 with your finances in order.
Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.
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