What Financial Paperwork Should You Keep?
Key takeaways
Be sure to keep track of key documents like your estate plan, insurance paperwork, home and vehicle titles, tax returns, and more.
Whether stored physically or digitally, it’s important to keep important documents in a central, safe location.
Ensure someone you trust knows where to find your documents and knows how to access them in an emergency.
Daniel P. McLennon, JD, CFP®, CLU®, ChSNC® is a sophisticated planning strategies attorney at Northwestern Mutual.
Bank statements, tax returns, account notices. Financial paperwork piles up quickly (even digitally). You may feel like you should be keeping a lot of this stuff. But what do you really need? And where should you keep it so that it’s safe and available when you need it?
Here’s a quick guide to help you sift through all that paperwork and secure your most important documents.
You should absolutely keep these 6 financial documents
Whether your records are physical or digital, protecting them is vital. Here are a few documents that you should always save and protect:
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Get startedEstate documents: Copies of your current will, trust documents, financial and healthcare powers of attorney, advanced directives, information for guardians of your children, and lawyer contact information
Personal documentation: Birth certificate, Social Security card, photocopy of your driver’s license, passports, marriage certificates, divorce decrees and death certificates
Account information: Details on where you maintain accounts (banking, checking, investment, retirement, credit, etc.) and account numbers
Insurance paperwork: Names of your insurance companies (medical, disability, life, home, flood, earthquake, auto, etc.), policy numbers, policy declaration documents, and details on how to file a claim
Property documentation: Deed to your current home, receipts for improvements to your current residence, titles to cars you currently own, etc.
Tax returns: Hang on to these—and the documentation that supports them—for seven full years
How to keep paper documents safe
For the physical documents you need to keep, step one is to make a concerted effort to funnel your essential documents into a centralized, secure place. Doing so makes it easier for you to grab what you need in an emergency. It also makes managing your affairs far less confusing for loved ones (should that need arise).
Here are three of the best places to secure your paper documents:
Safe deposit box: Depending on where you live and what size box you need, you can pay anywhere from $30 to a few hundred dollars each year to enjoy the security of a bank vault. Keep in mind that access to your box’s contents may be limited to regular business hours.
Fireproof box or home safe: To secure documents at home, a fireproof box or home safe with keycode access will do the trick. Consider protecting your essentials from moisture damage by sealing your documents in waterproof bags and using packs of desiccant (materials used to help maintain dryness, like silica).
A trusted professional or friend: If you have documents stored in a single place, you risk putting all your eggs in one basket. Consider giving copies of your documents to an attorney and/or trusted relative to ensure that you have backups in a second location.
Securing digital documents
In 2024, many of your important records are probably stored digitally. And keeping those records safe requires a different toolset:
Password protection: You can easily password-protect your own documents, image files and folders on your device—if you can click it, you can secure it.
Encryption: As you store sensitive files, consider encrypting them. Someone seeking access will need to have a decryption key to access your file contents. With a quick web search, you can find several guides to the best encryption software offerings currently on the market.
A flash drive: Transfer or back up your important files using a flash drive, and store the drive in your fireproof box or safe deposit box.
Cloud storage: Cloud storage is another great option. Consider options like Apple iCloud, Microsoft OneDrive, Google Drive or Dropbox. Sometimes you can find a free plan, but paid subscriptions may have added features and additional storage space. The big advantage here is that your files are accessible anywhere, and you don’t have to worry about a physical device being destroyed.
Your circle of trust
Once you’ve done all this work, make sure that someone else knows where everything is and how to access it in the event of an emergency.
Start today
If your documentation isn’t yet in order, now is the perfect time to start the process. If you have more questions about how to get started, contact your Northwestern Mutual financial advisor. They have a wealth of knowledge about important financial documents and can provide practical advice tailored to your needs.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
