Getting Organized
One of the by-products of a highly regulated investment industry is the creation and distribution of paper. Lots of it. It comes in the form of contracts, disclosures, information booklets, trade confirmations and statements. Chances are you’ve got more of it than you want and some of it you don’t need.
Why can’t the mailings of statements be supressed? I get a lot of requests for this. The current system mails hard copies for most items. I’m sure the rationale would include that it would limit the chance for abuse and the potential fallout of litigation. On the plus side, an envelope in your hand is hard to ignore, easier to open and review. Anticipate more electronic distribution in the future but in the interim, paper is here to stay.
But how to stay organized ? To start, open your statements when they arrive. Take some time to review the period ending, total assets, income and activities. If it’s a registered plan make sure the beneficiary is identified if appropriate. You are also responsible for material changes which include; changes to your name, address, marital status, employment, financial situation or investment objectives. If something is amiss, contact your advisor.
What should be kept, what can be discarded? All statements have a disclaimer to retain for tax purposes. This is a bit misleading and likely forces a lot of people to just keep everything that has ever arrived “just in case.” Best option. Make an appointment. You, your advisor and your paperwork. Most should be happy to help educate you on what’s important, what’s not and the resources available should something go missing.
Ensure you check with your accountant before taking a file folder full of documents to start a fall bonfire or put through an industrial shredder. In checking with Faye Reynen of Reynen Business Services she informed me that their policy is for clients to not destroy any records of items they still own. In addition, the onus is on individuals to keep records of items owned and sold for the 7 year period after the sale as required by CRA rules. Sage advice.
Technology has meant that the CRA now recognizes “electronic records and supporting documents produced and retained in an electronically accessible and readable format. Circular RC 4409 can be found at
http://www.cra-arc.gc.ca/records/
for those that find it easier to get and stay organized electronically.
The only thing that takes more time than getting organized is not getting organized.