You probably receive a lot of paperwork from the folks with whom you have accounts, whether it's your broker, your mutual fund company, or your 401(k) provider. Here's a list of what you should keep:

• Keep confirmation reports of stock purchases and sales, including the execution prices and trade dates. It's important that you can prove the purchase price of any stock that you sell.
  
  
• Keep all statements and reports. Perhaps most important are 1099 forms, which show your proceeds from sales of securities (1099-B) and other capital assets, as well as interest income (1099-INT), state tax refunds and other government payments (1099-G), dividend income (1099-DIV), Social Security earnings (1099-SSA), and distributions from IRAs, pensions, and annuities (1099-R). You'll generally receive these statements in mid-January for the prior year.
  
  
• Keep records of how you acquired any securities (such as through purchase, inheritance, etc.) and your cost basis.
  
  
• If you participate in a dividend reinvestment plan (for stocks and/or mutual funds), keep track of the dividends you receive, how many shares they purchase, and at what price. This information is necessary to help you calculate the new cost basis for your shares. You might set up a chart for each separate investment to keep track of these details. A three-ring binder can be effective, as it will allow you to add sheets of paper wherever you need to.
  
  
• Keep records of contributions to IRAs and other retirement plans. If you make nondeductible contributions to an IRA, make sure you declare these on IRS Form 8606 so that you don't end up paying a second tax on them down the line. You should have year-end account statement as well as receipts for your contributions. And if you make contributions to a Roth IRA, make sure that you keep track of those contributions so you can remove them (without tax or penalty) later on in life.
  
  
• If you donate stock to a charitable organization, keep records of what you donated, the day of the donation, your cost basis for the shares, and their fair market value. Keep track of cash donations, too.
  
  
• If you give stock away as a gift to a friend or relative, also keep records of what you gave, the day of the gift, your cost basis for the shares, and their fair market value.