facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog external search brokercheck brokercheck Play Pause
Military Finances 101: Which Financial Documents Should You Back Up? Thumbnail

Military Finances 101: Which Financial Documents Should You Back Up?

Managing Your Finances

In the digital age, where technology has revolutionized the way we manage our lives, safeguarding our financial documents has never been more critical. From tax returns and bank statements to investment portfolios and insurance policies, our financial well-being relies on organized and secure documentation. 

Here, we share a comprehensive guide on what financial documents you should back up and why these backups are crucial for your financial future.

Personal Identification Documents

Passport and Driver's License
Copies of your passport and driver’s license are essential for various financial transactions, including opening bank accounts and applying for loans. In case these physical documents are lost or stolen, having digital copies can expedite the recovery process.

Social Security Card
Your Social Security card is a crucial piece of identification. A digital copy can help you quickly prove your identity in various situations, from job applications to financial transactions.

Income and Employment Documents

Tax Returns
Backing up your tax returns is essential for future reference, especially when applying for loans, mortgages, or financial accounts. Digital copies make it easy to retrieve specific information when needed. When it comes to taxes, it’s best to keep any tax records for at least seven years and tax returns for one year.1

Pay Stubs
Keep digital copies of your pay stubs to track your income, deductions, and contributions to retirement accounts. These documents also serve as proof of income for loans and rental applications.

Employment Contracts
Save copies of your employment contracts to reference terms, conditions, and benefits. This can be crucial for legal matters or negotiations if needed.

Banking and Financial Statements

Investment Statements
Maintain digital records of investment portfolios, including statements from brokerage accounts and retirement funds. These documents are vital for assessing your financial growth and planning for the future.

Loan Agreements
Save digital copies of loan agreements, including mortgages, car loans, and personal loans.2 This ensures easy access to terms, interest rates, and payment schedules.

Insurance Documents

Health Insurance
Back up health insurance policies, benefit summaries, and coverage details. This is crucial for medical emergencies and filing insurance claims.

Life Insurance
Save digital copies of life insurance policies, ensuring beneficiaries have easy access to the information in the event of the policyholder’s passing.

Property and Auto Insurance
Keep digital records of insurance policies for your home, car, or any other valuable assets. This aids in the swift processing of claims in case of accidents or disasters.

Wills and Trusts
Back up your will and any trust documents to ensure that your wishes are carried out. This is crucial for the distribution of assets and the well-being of your loved ones.

Power of Attorney
Save digital copies of documents granting power of attorney to a trusted individual. This ensures that someone you trust can manage your financial affairs in case of emergency.

Safeguarding your financial documents is not just a matter of convenience but a fundamental aspect of securing your financial future. By backing up personal identification documents, income and employment records, banking and financial statements, insurance policies, and estate planning documents, you are taking proactive steps to protect yourself and your loved ones in various life situations.

Military Documents for Retirees

You'll definitely want to keep track of your DD-214. It will be needed if you want to qualify for VA benefits from healthcare to burial. So, you'll want to keep it forever.

You may also want to keep your training records. This is especially true if you have a specialized set of skills such as a pilot. Your firearms training can automatically qualify you for a concealed carry permit.

Awards and Decorations may be worth keeping for sentimental reasons.

Military Finances are Different

Just like you have documents to keep track of that civilians don't need to track, you have unique financial and tax benefits that your civilian counterparts don't have and most financial advisors don't understand. That is why we think you should work with a financial planner that deals with them every day. If you'd like to find out how we work with people like you, use the button below to schedule a free initial consultation.

If you found this article useful, you might like the following blog posts:

Military Finances 101: Should I Consider a Free Credit Lock?


Military Finances 101: Identity Theft


Military Finances 101: Virtual Spending. Which Payment App Is Right For You?



  1. https://www.nasdaq.com/articles/how-long-should-you-keep-your-bank-statements
  2. https://www.consumerreports.org/money/taxes/how-long-to-keep-tax-documents-a5302825423/ 

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Disclaimer
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by C.L. Sheldon & Company, LLC ), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. C.L. Sheldon & Company, LLC does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to C.L. Sheldon & Company, LLC website or incorporated herein, and C.L. Sheldon & Company, LLC takes no responsibility therefore. All such information is provided solely for convenience, educational, and informational purposes only and all users thereof should be guided accordingly. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from C.L. Sheldon & Company, LLC . To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. C.L. Sheldon & Company, LLC is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the C.L. Sheldon & Company, LLC ’s current written disclosure statement discussing our advisory services and fees is available for review upon request. DISCLAIMER OF TAX ADVICE: Any discussion contained herein cannot be considered to be tax advice. Actual tax advice would require a detailed and careful analysis of the facts and applicable law, which we expect would be time consuming and costly. We have not made and have not been asked to make that type of analysis in connection with any advice given in this blog post. As a result, we are required to advise you that any Federal tax advice rendered in this blog is not intended or written to be used and cannot be used for the purpose of avoiding penalties that may be imposed by the IRS. In the event you would like us to perform the type of analysis that is necessary for us to provide an opinion, that does not require the above disclaimer, as always, please feel free to contact us.