by Catherine Avery

 A Personal Note…

Happy New Year! My best wishes to you for a happy, healthy and prosperous year ahead. 


The new year gets us revved up to put our best foot forward to make the most

of the year ahead.So far, the stock market has been off to a good start. 

The world as we see it is getting less worse and there is finally hope for some

light at the end of the tunnel.  As with most recoveries, the day to day can

often be bumpy. However, having a plan for your own personal needs and goals can help keep you focused.  Many people avoid the financial plan because they

are afraid of what they will find, but anyone will tell you that knowledge is power!

Warm regards,

Catherine Maniscalco Avery

 CAIM specializes in creating and managing 

customized and fully diversified investment portfolios for private investors.

203.966.2712  p
203.966.5697  f

To Throw or not to Throw out (old financial records) – that is the question.
           It’s that time of year again!  (No, we don’t mean trying to stick to your New Year’s resolutions!)   We mean it’s time to clear out year-end statements, old bills and financial records, and gear up for tax time!  The basic questions to ask yourself during this process include:
  • Should I keep this?
  • What will my accountant need?
  • What can I safely discard?
How many of you have gone searching for a vital document, only to realize that it got tossed a few months back.  If only you’d known you were going to need it…     What follows is a guide to help you decide what to keep and what to throw out so you need never be in that quandary again:

The Guide
   1. Tax Returns.  Keep them for 7 years.  The IRS has 3 years from your filing date to audit your return if it suspects good faith errors.  Six years to challenge it if it thinks you underreported your gross income by 25 % or more.
      2. IRA Contributions.  Keep them permanently.
      3. Retirement/Saving Plan Statements.  Keep the quarterly statements from 401(K) and other plans until you receive the annual.  If it all adds up, shred the quarterly and keep the annual until you retire or close the account. 
      4. Bank Records.  Go through them and only keep those checks related to taxes, business expenses, home improvements or mortgage payments.  Shred the rest.
      5. Brokerage statements.  Keep them until you sell the securities.
      6. Bills.  Go through your bills once a year.  Only keep those for big purchases i.e. jewelry, cars, appliances, furniture and computers etc. for proof in case of loss or damage.
      7. Credit card receipts and statements.  Keep your original receipts until you get your monthly statement – shred the former if both add up.  Keep the statements for seven years only if tax related expenses are documented.
      8. Paycheck Stubs. Keep them for one year once you’ve verified all the info on your W-2 form is accurate.
      9. House/Condo records.  Keep from six years to permanently.  Keep all records documenting purchase price, permanent improvements and expenses incurred during buying and selling.  Holding on to evidence of improvements is important as it adds to your original house cost and can mean a greater profit (capital gains) if/when you sell the house.


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 For those of you with questions, feel free to call me at 203.966.2712
  Also please visit my website at www.catherineaveryinvest.com
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Copyright 2009, CAIM LLC

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