ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Monday, August 12, 1996 TAG: 9608130025
SECTION: MONEY PAGE: 6 EDITION: METRO
COLUMN: money matters
SOURCE: MAG POFF
Q: I am curious about what records to maintain for long periods of time. I finally got out of the habit of saving old utility bills. What I don't know about is pay stubs from insurance premiums and old, old checks from long-existing checking accounts and credit card monthly bills that date back for years.
A: It's not the type of record, but the matter it pertains to, that determines how long you should save an item.
For instance, you save every record pertaining to every house that you ever owned. That covers not only all deeds and financial records, but also every improvement, including invoices and checks. You will need all of these documents to prove your tax basis in the house if you ever sell it.
You should save all tax records and their backup documents for five to seven years. If you discard them after that period, you should save all forms pertaining to every house you ever owned and to the tax status of every Individual Retirement Account. Some experts recommend keeping your tax records for your lifetime if you have storage space.
You should save all records concerning your retirement plans, although you can replace quarterly statements with the annual summary.
If you have stocks, bonds and mutual funds, you must save the purchase records until you sell them. Then they become a part of your tax records. You can discard quarterly mutual fund statements when you receive the annual report summarizing the year, but you save the annual reports until you sell the mutual fund.
You should save your old bank statements and checks for five to seven years. Then you can discard the statements and routine checks. You should save checks pertaining to the house and every other topic that might be open to a later question. If you had a divorce and received child support as part of the settlement, you might want to save child-support checks.
You can keep the last payment stub for your insurance policy, which shows it was in force on that date. Note the check number and date of payment on the stub. Expired insurance policies should be saved for three years in case you become the target of a retroactive claim. You might want to retain your credit card statements for a year.
Check out policies on returned articles
Q: I wish you would tell me if I am right or wrong.
I recently bought a dress at a woman's apparel store. I did not try it on then because I had someplace to go. When I tried it on, it didn't fit.
I told the clerk I would like my money back. I needed it to pay for my daughter's insurance. She said she couldn't give it back, and she gave me a receipt with the amount I had paid for the dress.
I wasn't told that I couldn't get my money back if I bought anything there, and there is no sign in that store saying such a thing. Other stores give you your money back if you take things back. I am 78 years old, and this money is needed.
A: Virginia has no law governing a store's policy on returned merchandise. Each store has its own policy, which must be posted in the store. The establishment you mentioned has a sign near the cash register pertaining to terms for layaways and returned merchandise. In the latter instance, the store said its policy is for no cash refunds. You get a credit for other merchandise at the store.
The store manager said the policy helps to keep prices low. She said the store formerly gave cash refunds, but people would keep clothing for a long time and then ask for a cash refund. Now there are limits on returns.
People who shop in unfamiliar stores should specifically inquire about return policies before buying merchandise.
Mutual fund investing can be done on own
Q: How do you begin investing in mutual funds? Can I do this myself or do I need a liaison? What is the Janus Fund and where can I get information on that?
A: It is not difficult to invest in a mutual fund, except that most of them require a minimum initial investment. This can range from $100 to many thousands, with most in the $1,000 range.
If you feel that you need guidance and advice, you would consult a stockbroker for help. In return you would pay several percentage points in the form of a commission.
But you can very easily do it yourself. Look for recommendations in financial magazines such as Money and Forbes. These publications will give you telephone numbers that you can dial directly to obtain a prospectus and application forms.
The Janus Fund is an old-line fund in a family of funds that have performed well over the years, but this is no guarantee of future results. You can reach Janus by calling 1-800-525-8983.
A spokeswoman for Janus said the initial investment is $2,500. This is waived, however, if you open an account for $500 and agree to an automatic deduction for adding to the account by $100 a month. When your account reaches $2,500, the automatic deduction requirement also is dropped.
LENGTH: Medium: 92 linesby CNB