Do I need to file Monthly investment updates?

Question

I have been purging through all of my old files. I have a Roth IRA and a traditional IRA through American Funds, and they FLOOD me with Mailout/updates.

I'd like to clear out un-needed paper. What would you recommend with these packets. Keep them all? Keep only the most current until the new one comes in?

I don't want to get rid of them if they are needed, but I don't see why I need all of these reports.

Thanks,

Answer 1

You will only need them if you don't have them.  

Because of the requirement to have tax related documents available for seven years, most people would recommend that you keep your IRA statements that long.  But just the statements. And only the statements needed to cover all activity.

This means that once you have the statement that shows a dividend or capitol gains distribution you no longer need the separate notification document.  If there are quarterly or annual statements that list all of the activity for the quarter or year, then you no longer need the monthly statements.

You never need the separate privacy statements and prospectuses that they send you.  (You should read them, of course.)

Or, if you trust American Funds to keep your statements available online for seven years or you can download them to safe (well backed-up) electronic storage of your own, you don't need to keep anything they send you longer that it take to ensure (to the extent you feel is necessary) that all activity got included in the monthly statement.

One exception to all of the above is if you have any post tax funds in your regular IRA and don't want to pay income tax on them when you withdraw them you will want to check with American Funds on what you will need for a paper trail for that.