We often get asked by our clients “Is this important? Do I need to keep it?”

In today’s world, we are all inundated with paper and digital pieces of information and it becomes overwhelming to shift through and figure out what is important.

Best practice is to have a plan for you digital and paper copies, how you will store important documents and whether your plan is manageable in the long term. Digital storage offers some solutions but is not a “fix all”. As the number and size of files grows, one either needs to consistently sort through their digital filing or continuously pay for more storage over time. Backing up your important documentation in the cloud allows for easy access across your devices, but only if you know where you are storing your documents and keeping your digital storage organized. It is important to note, much like a physical filing cabinet, online or technology-based document storage isn’t always foolproof. Relying solely on either physical or digital storage could lead to issues down the road.

There are certain items that should be held securely:

Your will, power of attorney and health directives. These should be kept in a safety deposit box, in a fireproof box at home, or at your lawyer’s office. Ideally a notarized copy would also be held by your executor and respective attorneys. As a digital back up to hard copies, Alberta also now has a will registry which can be used to provide access to your will in the event a hard copy cannot be found. This is an inexpensive service that can provide some peace of mind. Other important items to store alongside your crucial estate documentation: real property report, marriage certificate, birth certificates, and SIN card if you have one. It is essential that these documents are not only kept safe for your own use, but also secure so that your key identity information doesn’t fall into the wrong hands.

Taxes filings, including all receipts, need to be kept for a minimum of 6 years from the date of filing. To save yourself from noting what day exactly you filed, we advise clients to keep their tax filings on hand for 7 years, which gives a little grace period to be sure you hold onto your tax information long enough. It is notable that if a reassessment takes place within that 6-year period, the clock “resets”. As such, you would want to keep careful track of any reassessments and ensure you don’t dispose of your tax filing information until you are well and truly clear of your requirements to keep them on hand.

Statements for bank accounts, credit cards, and investment accounts are common culprits of clutter. You might be inclined to hang onto bank and credit card statements to keep track of spending and to have a record of purchase date for warranty eligible purchases. The year-end investment account statements will provide you with an update on account performance over the past year including any fees paid. If you plan on switching banks, credit cards, or investment institutions, be sure to download or save all statements you might need in the future as once you sever your relationship with that company, they will not hold your documentation for longer than they are legally required to.

Utility bills, cable bills, phone bills, and other ongoing expenses. Generally, it is not required unless you need proof for taxes. Depending on your cell phone contract, you may be paying for your device month to month, typically at the end of the term of the contract you are required to either pay out the remainder for the phone or return it for an upgrade/switch, keep note of when that happens so you don’t get dinged with “late fees”. Similarly, utilities companies will occasionally offer promotional rates that last for a limited time. Phone bills, if you have a mobility bill that is paying down the phone purchase cost, be sure to keep track of when that is paid out and when your bill should decrease. If you have special rates on these utilities keep track of when those end as you may want to call to see if you can extend them.

With all storage methods, spring cleaning is key. Set aside some time each year to purge your old documents both digitally and in hard copy format. Cleaning out the old is key to keeping the important current documents organized and easy to find. Safely dispose of old documents listed above by having them shredded to prevent potential fraudulent usage.

For all your digital resources, be sure that you have an up-to-date list and passwords securely saved somewhere that your power of attorney and executor know about so they will be able to access information as needed. In today’s day and age, it is vital that your executor and power of attorney have access to this information as more services are offered online only or online preferred. Wiithout a roadmap the power of attorney or executor will fly blindly trying to find your account details and will have a challenging time piecing your financial life together.

If you are looking to simplify your financial world and consolidate reach out to our team at KozakFinancialGroup.com or 403-266-0158 and we would be happy to talk to you about strategies.