Saving for Retirement

On a Break Until the 4th Quarter

Exciting things are coming in the 4th Quarter of 2023.

Until then, the show will be in hiatus as I build new tools to help you - my listener.

Got questions or want to take one of my Summer webinars? Email [email protected]

How long should I keep my documents?

Welcome to "Powering Your Retirement Radio"! Today, I want to address one of the most frequently asked questions about the documents you should keep hard copies of and for how long. It doesn't matter if it's your tax return or investment statements; fortunately, digital copies are acceptable for many of these documents now. But you may have a concern about what happens if the drive fails. Many people still have banker's boxes or a filing cabinet hiding somewhere. And if you are like many people, it is overdue to be cleaned out.

I will go over Tax, Healthcare, Legal, Asset and Debt, and Other Documents to keep track of. Let's start with Tax Documents, as outside of CA, tax season is over, and in CA, it is at least starting to slow down.

A. Tax returns and supporting documents - 7 years.

B. W-2 and 1099 forms - 7 years.

C. Deduction receipts and statements - 7 years.

D. Business expense receipts and statements - 7 years.

E. Investment statements - until you sell the investments + 7 years.

F. Property records - until you sell the property + 7 years.

G. Retirement plan statements - until you close the account + 7 years.

You should keep these documents for at least seven years in case of an audit. The same goes for your W-2 and 1099 forms. Deduction receipts and statements should also be kept for seven years, as should business expense receipts and statements. You might ask why? The IRS can audit your return up to three years after it is filed unless they are claiming fraud, and then it is seven years. Investment statements and property records should be kept until you sell the investments or property, plus seven years. Finally, retirement plan statements should be kept until you close the account, plus seven years.

Now for Healthcare documents, things like:

A. Medical records - indefinitely

B. Insurance policies - indefinitely

C. Explanation of benefits (EOB) - 1 year

D. Prescription receipts - 1 year

E. Health savings account (HSA) statements - 7 years

Medical records should be kept indefinitely, as should insurance policies. Explanation of benefits (EOB) should be kept for at least one year, and prescription receipts for at least one year. Health savings account (HSA) statements should be kept for seven years. I got an EOB this week from May of last year. Since I switched carriers this year, it was good to be able to pull out the old policy and call and find out what the charge was for. Also, on HSA, since you can carry forward expenses into the future, it really is seven years after you have claimed the expense since that is when you would claim the deduction.

How about those Legal-related documents:

A. Estate planning documents - indefinitely

B. Marriage and divorce documents - indefinitely

C. Adoption and custody papers - indefinitely

D. Wills and trusts - indefinitely

E. Power of attorney - indefinitely

F. Real estate deeds - indefinitely

G. Vehicle titles - until you sell the vehicle.

H. Lawsuits and settlement agreements - indefinitely

This section is simple, keep everything. You need the current copies but also the old copies to document the changes and when they happen. It doesn't happen all that often, but when a distant relative shows up claiming they were promised or are entitled to something, having clear documentation of when a change occurred can save a lot of hassle and potentially money.

Now for Asset and debt-related documents, basically for financial information:

A. Loan agreements and promissory notes - until the debt is paid off + 7 years.

B. Home purchase and improvement documents - until you sell the home + 7 years.

C. Vehicle purchase and maintenance documents - until you sell the vehicle + 7 years.

D. Investment and brokerage account statements - until you sell the investments + 7 years.

E. Real estate purchase and sale documents - until you sell the property + 7 years.

Loan agreements and promissory notes should be kept until the debt is paid off, plus seven years. Home purchase and improvement documents should be kept until you sell the home, plus seven years. This is important when you make improvements that will increase your cost basis. Vehicle purchase and maintenance documents should be kept until you sell the vehicle, plus seven years. Investment and brokerage account statements should be kept until you sell the investments, plus seven years. On this one, I tell people to keep their monthly statements for the current year and then keep the comprehensive year-end on file, and they can get rid of the monthly statements. Finally, real estate purchase and sale documents should be kept until you sell the property, plus seven years.

Finally, all your other important documents:

A. Birth certificates, marriage licenses, and other vital records - indefinitely

B. Social Security cards - indefinitely

C. Passports - until you renew.

D. Education transcripts and diplomas - indefinitely

E. Employment contracts and personnel files - indefinitely

You should keep hard copies of these documents. Birth certificates, marriage licenses, and other vital records should be kept indefinitely, as should Social Security cards. On Social Security Cards, you can get a new one issued, but you can't get more than three in a calendar year and ten in your lifetime. Passports should be kept until you renew them. Education transcripts and diplomas should be kept indefinitely. Employment contracts and personnel files should also be kept indefinitely.

That is a bunch of documents. It's important to note that the above recommendations are general guidelines and may vary depending on individual circumstances or jurisdictional requirements. Always consult with a professional advisor if you have any questions or concerns about document retention. I have attached a link here so you can download a checklist or fill out an online version.

Until next time stay safe!

You can visit the podcast website here: https://poweringyourretirement.com/2023/05/09/documents

Edward F. Sanders - Financial Strategist

Welcome back to Powering Your Retirement Radio. I am Dan Leonard, your host. Today I am joined by Ed Sanders.

Ed Sanders is a financial strategist with over 19 years of experience in the finance industry. Originally from Akron, Ohio, Ed attended the University of Arizona before moving to the Bay Area to work for Wells Fargo after graduation.

In 2004, Ed made the decision to leave the corporate world behind and pursue his passion for helping people achieve financial freedom. As a financial strategist, Ed specializes in college planning, risk reduction, creating tax-free income sources, and eliminating debt.

In this episode, Ed will share answers to many problems people face including:

Debt as a hindrance to accumulating wealth.

What is your effective interest rate, and why it matters.

Eliminating Debt Forever.

The snowball strategy.

Paying cash for cars and what that costs you.

Ed's Webinars Series.

Thank you for tuning in to today's podcast with a financial strategist, Ed Sanders. We hope you found his insights and advice on college planning, risk reduction, creating tax-free income sources, and debt elimination helpful and informative.

If you have any further questions or would like to learn more about Ed's services, please visit his website and other links below. Don't forget to subscribe to our podcast for more expert insights and advice on a variety of topics.

Thank you again for listening, and we'll talk with you in the next episode.

Ed's Contact Information:  
LinkedIn: https://www.linkedin.com/in/edwardfsanders

Website: www.edwardfsanders.com

Enter debt for immediate effective interest cost: www.eliminatedebtforever.com

To book a time to talk to Ed →  http://esanders.youcanbook.me

For more episodes, please visit the Podcasts website: https://poweringyourretirement.com/2023/04/29/edward-f-sanders-financial-strategist

What to do on your worst day

Hello, and welcome back to Powering Your Retirement Radio. Today's episode is not uplifting, but still worth a listen. We will all likely face this event once or twice in our lifetimes. Unfortunately, like most emotional and personal things, you learn by doing it and never really share it with anyone. So, here is an outline of things to consider when your spouse or a loved one passes away.

1 Notify Friends and Family, designate the family members who can help with some of the necessary tasks 2 Contact a funeral home, medical school crematorium according to the deceased wishes 3 If the deceased was religious, contact their place of worship to arrange for services and other customs. Flowers, Picture Boards, Videos, Memorial Cards, Readings, etc... 4 Write the obituary, and send it to the local paper and funeral home. Name, age, city of Residence, date of death, birthplace and year, parent's name, biographic information, survivors, details of the service (Funeral home can help. 5 Update Social Media after the immediate family has been notified 6 Notify employers 7 Notify children's schools 8 Notify Social Security 9 Notify the Professional team, Attorney, advisors, tax professional, executor 10 Locate wills and Trust 11 Order 10 to 20 Death Certificates - Funeral home or Health Department 12 Set up a spreadsheet or notebook to keep track of food, gift cards, letters, phone calls & help provided so you can thank people later. 13 Make a list of people you can lean on for help and emergencies. 14 Call DMV - Car registration Expiration, cancel DL, is Auto Insurance still valid? Varies by state. 15 Rely on supportive people 16 Accept whatever help is offered 17 Allow the emotions to come; it will be a rollercoaster 18 Be honest with children, and allow them to participate to the extent they wish 19 Do judge people's reactions. Everyone grieves differently 20 Collect Veterans benefits 21 Determine recurring bills to be paid and or canceled 22 If the deceased was in a rental, determine the turnover of the property time frame 23 Create a calendar to keep track of important dates 24 Prepare to go through deceased possessions. 25 Practice good self-care

For more information, please visit the podcast website: https://poweringyourretirement.com/2023/04/14/what-to-do-on-your-worst-day/

Treasury Bills and SVB

Hello, and welcome back to Powering Your Retirement Radio. In today’s episode, I want to discuss the most often question I get these days: "Should I buy Treasury Bills?” I also want to discuss what happened with Silicon Valley Bank (SVB).

It seems like several times each week. Someone calls to ask what I think about buying Treasury Bills. I first want to know why they want to buy them. Is it because they have extra money languishing in the bank, or do they want to move money from their current investments to something guaranteed?

Either way, you can make a case for it, but you need to determine if it is shifting money that is already invested. What will cause you to change your investments in the future? If it is cash in the bank, then it is a little less complicated. With rising interest rates, you should plan to buy bonds that you plan to hold to maturity, in my opinion. You can trade them, but that changes the simplicity of buying a 3- or 6-month Treasury Bill that will mature at par.

I will tie in with why this is what happened that caused the failure of SVB. Being forced to sell longer-dated Treasury Securities that were in a paper loss position because of interest rate increases. If they didn’t face a run on the bank and could have held to maturity, they would have gotten all their money back. Unfortunately for SVB, they were forced to realize the loss and caused the second-biggest bank failure in US History.

Have a listen for the complete story.

 

For more information, visit the podcasts website: https://poweringyourretirement.com/2023/03/24/treasury-bills