Ask Dr. Don By Don Taylor, Ph.D., CFA • Bankrate.com

Home records retention

Dear Dr. Don,
What types of papers do I need to keep and how long? I have my canceled checks from 1970. I am afraid to throw anything away. What about old car titles and old utility bills? I really don't have any problems with my bills; I'm just confused about when and what to shred!
Pack Rat

Dear Pack,
This is one area where "When in doubt, throw it out!" just doesn't work. While there are Web sites such as Organized Forever, I found the information provided by the North Dakota State University Extension Service to be very useful because it combined document retention information along with a filing system that split items between current files, inactive files and a safety deposit box in its Guide for Family Records.

None of the guides I reviewed specifically mentioned utility bills. When you go to sell your home, potential buyers often ask for an accounting of your monthly utility expenses. My power provider, Florida Power & Light, provides a billing history online. Your provider may do something similar.

If that's the case, there's no real reason to hold on to the old utility bills. If you can deduct utility expenses for your home office or some other reasons, however, then you would want to keep the bills for a minimum of six years along with other supporting documents for your tax records.

The federal government's public information site also has information about home record keeping, if you want to see the government's view on what you should keep.

-- Updated: Oct. 22, 2003