Sherry Littlejohn: Hi! I'm Sherry Littlejohn with Wells Fargo and Company. Today we're learning about what kinds of documents and records you should save and in what format.
Electronic copies of certain signed paper documents such as wills, deeds, trusts, stock certificates, passports, and powers of attorney do not carry the same legal effect as signed paper originals which is why you should always keep and protect your signed original documents.
However, electronic versions of some documents such as brokerage and bank account statements usually do have the same legal standing as their paper counterparts.
The Internal Revenue Service does not require you to keep your records in a particular way according to irs.
gov website. You can use your checkbook to keep a record of your income and expenses. In your checkbook, you should record amounts, sources of deposits, and types of expenses.
You also need to keep documents such as receipts and sales slips that can help prove a deduction. You should keep your records in an orderly fashion and in a safe place. You should keep copies of your bank and credit card statements and copies of canceled checks. It's very important to keep all records for your home purchase and improvements. So you can show proof of your cost basis when and if the property is sold.
Other valuable documents to save include birth and marriage certificates, citizenship papers, powers of attorney, trusts and wills. You should also save the originals of vehicle titles and warrantees. Your vehicle registration needs to be kept in your car, but you may want to make a copy and store it in your home.
It's a good idea to keep all your warrantees: vehicle, appliances, electronics, and other valuable items in a safe place in your home. For anyone who has college loans, you should keep records for all your payments even after the loan is fully paid. The same is true for any other type of loans.
Keeping the originals of important documents can be very helpful in achieving your financial goals.