Organizing Your Tax-Relevant Documents: Quick Tips for Doctors [Podcast]

By Katherine Vessenes, JD, CFP®

Tax Day will be here before we know it! Today's discussion revolves around a topic that promises to ease your future burdens: organizing your 2023 tax-related documents and beyond.

Tip One: The 1:3 Rule

The cornerstone of a good filing system is the 1:3 Rule. This rule dictates that any document I need to file must be filed in 1 minute, and retrievable within three minutes. This can be on your computer or done with a paper filing system.

What about digital statements? Bank statements, credit card statements, and mortgage documents are accessed electronically, eliminating the need for physical copies and endless paper shuffling! Just pull them from your online account when/where needed.

Tip Two: Organizing Your System

We should begin with a basic, yet effective, setup using expandable Manila file folders. Each folder is meticulously labeled with a year and category, ensuring seamless organization and retrieval. Categories should include banking, health and medical, home-related expenses, investments, receipts, and warranties. While some categories like banking rarely need physical documentation, others like receipts and warranties demand a more tangible approach. The inclusion of the year on each folder ensures easy sorting and returns, minimizing confusion and maximizing efficiency.

Utilizing this filing system can revolutionize personal financial organization. Whether it's accessing warranties or retrieving receipts for tax deductions, the system facilitates quick and hassle-free document retrieval.

At the end of the day, implementing a streamlined filing system can significantly reduce financial stress and improve overall organization. MD Financial Advisors is here to offer additional guidance and a second opinion on your financial matters. Until next time, take care, prioritize self-care, and continue to plan, protect, and prosper.

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Katherine Vessenes, JD, CFP®, is the founder and CEO of MD Financial Advisors who serve 600 doctors from Hawaii to Cape Cod. An award-winning Financial Advisor, Attorney, Certified Financial Planner®, author and speaker, she is devoted to bringing ethical advice to physicians and dentists. She can be reached at Katherine@mdfinancialadvisors.com.