End of Year Tips

Clear the Clutter in 2012!
MONEY Magazine and Debbie Stanley, author of “Organize Your House in No Time,” says that investing a few hours in an overfilled file cabinet (or shoebox?) can help you start off 2012 in an uncluttered, organized way. What to keep? What to shred?
DOCUMENTS: HOW LONG TO KEEP
• Tax Returns Forever Tax backup (receipts, W-2s, Six years (the IRS has up to this amount statements, etc.) of time to audit returns) Year-end investment statements Until six years after you sell, for proof of gains and losses for taxes
• Pay stubs Until you get your W-2 in January
• Receipts for home improvements Until six years after you sell the home, for tax purposes
• Receipts for big-ticket purchases As long as you own the item, for warranty and insurance claims


Know Your Score!
The National Foundation for Credit Counseling reports that only 4 in 10 Americans know their credit score. For $20, you can log on to www.myfico.com and obtain your score along with a credit report and an explanation on the positive and negative factors affecting your score. The FICO scoring model, the one most commonly used by lenders, ranges from 300 to 850. A score of 740 or higher entitles you to the best rates. Remember, your credit score determines what interest rates you will get on loans and credit cards.