Documents - what to save, what to shred

[ny biker]

I'm working on cleaning out and organizing my closets. One of them includes several bins and boxes of documents. I know you are supposed to save financial documents, like bank statements, for seven years.

What about medical bills and insurance EOBs? I think it is useful to keep some of them just to have a record of certain medical providers and events, but in general, how much do you have to save from previous years?

Also, I have lots of paperwork relating to mortgages. My current home is the only place I have ever "owned," but I have had several different mortgages. I started by using two loans from First Horizon to buy the condo. One was a 5/1 ARM. First Horizon sold both loans to Everhome. I refinanced both loans into one new one with Everhome before the ARM reset. So, that was loan #3 overall. Everhome promptly sold #3 to Countrywide. Countrywide was bought by Bank of America. Then I refinanced again, this time with MetLife, into loan #4.

Some of the mortgage holders sent me monthly statements, others sent quarterly statements. Plus I have various notes and documents from the discussions leading up to the settlement of the four loans, as well as communications regarding escrow balances and changes to the escrow amount. And of course I have all the settlement docs.

So what do I need to save out of this mess, and what can I shred?

Thanks in advance!!!

[Irulan]

You can google this and get lists of what's recommended.

[ny biker]

Well I'd say that's true about many of the questions posted on this forum. But I think responses I get here would be more reliable than something from a website that I know nothing about. Not to mention the different experiences and perspectives people have here -- someone might have learned from experience the difference between what you need to keep and what is optional but very useful.

Thanks.

[Blueberry]

I don't have specific advice for you on the documents, but wanted to offer a suggestion or two:

For many documents (mortgage statements included), I've started scanning them and keeping them electronically. If there's something you're on the fence about, I would scan and keep.

I would save the mortgage origination documents, scan the statements and notes. I would scan the health information and maybe start a word doc with information on what procedure when to help keep you up to date (and that way, it could be shared with a doc).

[shootingstar]

I think it's useful to keep key hard copy docs. for mortgage/financial. I have known people who had their computers stolen.

I have also heard of stories of fraudsters who have taken over a person's property title without your knowledge.

And depending on the bank, it depends how long they offer storage of e-bank statements through one's account. There's a limited time period.

For taxation purposes, in Canada one is obligated/safe to keep supporting documentation (this includes medical bills. Yes, we have a different medical system and different very limited tax rules concerning that..) for 7 years. (in federal legislation). A person can be audited at any time during that time by the government tax authorities.

For anyone who is reading this (since this is the open Internet): I worked for a Canadian court and several public sector law organizations as well as for a large accounting firm.

I would be seeking advice directly from government websites/help lines that administer tax, finance legislation in your jurisdiction and offer the most objective information. Infractions of the law, would be reported to these various authorities that required personal income/expense documentation.

[OakLeaf]

I don't think insurance documents are any use if you need to prove your medical condition at a later date. For that, you'd need the actual medical records. Keep them only for financial/tax/contract reasons.