Whether in paper form or digitized, there are two issues to consider when it comes to financial documents.

First, how do I prevent identity theft? Second, what do I need to keep, and what can I dispose of?

It seems we are more alert to potential identity theft by mail, email or phone, and less so when it comes to documents you use and keep at home or at your office. The Federal Trade Commission tells us to protect documents that contain personal information. What documents? Social Security and Medicare cards, financial records, prescriptions for medications, old driver's licenses, credit cards, checkbooks, cancelled checks and anything that contains your identity.

Iron Mountain, which provides storage and information management services, adds these items (tinyurl.com/3szwz8np):

-- Junk mail ("your personal data may be included in those garbage mailers and credit card offers"). Note that you can opt out of junk mail and prescreened credit offers at the FTC's "How to Stop Junk Mail" page -- tinyurl.com/bdh4b9sv.

-- Medical prescription labels (they "contain private information, including your name, contact information, and doctor's name," which means "someone could ... get access to your health care information and medical background").

-- Photos and old IDs ("Thieves can use your old pictures or IDs maliciously to fake their identity").

-- Travel itineraries (thieves "can use your travel itineraries to rebook flights and hotels or gain access to your accounts").

-- Resumes and curriculum vitaes ("Because resumes often contain personal information, like telephone numbers, email and home addresses, and job or education history").

-- Shipping labels ("Double-check your boxes before you recycle or reuse them").

-- Memos and notes (The notes "likely contain personal information that you don't want identity thieves to get their hands on." An example: "Did you scribble any passwords while on a call with IT?").

The concern, according to the FTC (tinyurl.com/mk6c45u3), is identity thieves stealing "your name and address, credit card or bank account numbers, Social Security number, or medical insurance account numbers. And they could use them to:

-- buy things with your credit cards

-- get new credit cards in your name

-- open a phone, electricity or gas account in your name

-- steal your tax refund

-- get a job

-- get medical care

-- pretend to be you if they're arrested"

In 2024, the FTC's IdentityTheft.gov website received more than 1.1 million reports of identity theft (tinyurl.com/4na2zyy2).

Given that concern, some documents do need to be kept for a while, but not forever.

The FTC recommends keeping these financial documents for a year: bank statements, pay stubs, credit card and utility bills, deposited checks and undisputed medical bills. The FTC adds: "If you can access these documents electronically, consider shredding your paper copies" (tinyurl.com/vb4mz87c).

The IRS recommends three to seven years or longer based on the type of document (and an "indefinitely" timeline for certain situations -- if you did not file a tax return or you filed a fraudulent return).

"Generally, you must keep your records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or the IRS can assess additional tax." See the IRS webpage "How long should I keep records" (tinyurl.com/4fjfhpys).

Other documents fall under the category of keeping them while you own the items, such as the title to your vehicle, the title or deed to your home, and sales receipts and warranty information for major appliances.

Finally, there are certain documents you should keep forever (and lock up), according to the FTC. Among them:

-- Birth certificate or adoption papers

-- Social Security cards

-- Valid passports and citizenship or residency papers

-- Marriage licenses and divorce decrees

-- Military records

-- Wills, living wills, powers of attorney, and retirement and pension plans

-- Vital health records (especially those that pre-date electronic health records)

-- Death certificates of family members

You can find additional information about identity theft at the FTC's "What To Know About Identity Theft" page (tinyurl.com/mk6c45u3) and its IdentityTheft.gov website.

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Would you be happy if cryptocurrency became an investment option in your company's 401(k) plan?

One possible roadblock to keep the 401(k) option from becoming reality was removed after the Department of Labor's Employee Benefits Security Administration (EBSA) issued Compliance Assistance Release No. 2025-01 in late May (tinyurl.com/3wh7zarx).

The new release rescinded a 2022 communication (Compliance Assistance Release No. 2022-01) that cautioned retirement plan fiduciaries "to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan's investment menu for plan participants" (tinyurl.com/3atpk3jc).

The 2025 release states that the standard of "extreme care" is "not found in the Employee Retirement Income Security Act (ERISA) and differs from ordinary fiduciary principles thereunder."

What is the ERISA standard? As noted in a footnote in the 2025 release, the requirement is that "a fiduciary curate a plan's investment menu 'with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims' for the 'exclusive purpose' of maximizing risk-adjusted financial returns to the plan's participants and beneficiaries."

By rescinding the 2022 guidance, the Labor Department "reaffirms its neutral stance, neither endorsing, nor disapproving of, plan fiduciaries who conclude that the inclusion of cryptocurrency in a plan's investment menu is appropriate" (tinyurl.com/edwvc5f7). U.S. Secretary of Labor Lori Chavez-DeRemer added in the press release that the department was "making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats."

This shift comes at a time when prices of cryptocurrencies have climbed. As an example, on June 3, 2023, bitcoin closed at $27,075.13. Two years later to the day, bitcoin closed at $105,432.47 (tinyurl.com/3w5j6rpv) -- an increase of 289%.

Notwithstanding, should cryptocurrency be viewed the same as an S&P 500 Index fund? The answer is a firm "no."

Why? "Crypto assets have experienced higher levels of volatility relative to more traditional investment assets, meaning that price swings -- and any investment value -- may go up and down dramatically and unpredictably, and the risk of losing all of your investment is significant," says FINRA's "Crypto Assets." Read FINRA's articles "Bitcoin Basics" (tinyurl.com/4ydfc4pp) and "Crypto Assets" (tinyurl.com/rd2jn67k). FINRA (the Financial Industry Regulation Authority) regulates member brokerage firms doing business in the U.S.

A U.S. Government Accountability Office report released to the public in December of 2024 found that available industry data and stakeholder interviews suggested that "crypto assets are a small part of the 401(k) market." It also cautioned that "GAO's analysis of investment returns indicates crypto assets have uniquely high volatility -- a measure of their riskiness to participants -- and their returns can come with considerable risks" (tinyurl.com/5n9yd7nw).

The 2022 EBSA guidance on cryptocurrency said that "[c]ryptocurrencies are often promoted as innovative investments that offer investors unique potential for outsized profits. These investments can all too easily attract investments from inexpert plan participants with great expectations of high returns and little appreciation of the risks the investments pose to their retirement investments."

When I wrote about digital currencies possibly being part of 401(k) accounts in August 2021, I recommended thinking about priorities:

"Priority No. 1: Save for your retirement.

"Priority No. 2: Invest for growth over the long term.

"... Priority No. 100: Speculate only after meeting priorities 1-99. Bitcoin falls into the speculation category, as do other cryptocurrencies."

Has that view changed? Before guessing my answer, imagine someone putting 100% of his 401(k) into bitcoin.

Speaking of 401(k)s, National 401(k) Champion Day launches for the first time on June 15 (tinyurl.com/58e78zjy). It celebrates the award I founded and sponsor in my pro bono role as an advocate of financial literacy education.

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If you don't participate in a 401(k) plan at work because one isn't offered, why should you read this column? I'll admit I have a prejudiced view. I believe you can help others in your circle of friends and family who may not realize why they should participate.

Let's go through a few basic points together.

For some motivation, consider this: 401(k)s help create millionaires.

Fidelity Investments reported 537,000 401(k) participants with more than $1 million 401(k) accounts at the end of 2024 (Fidelity's 2024 fourth-quarter retirement analysis -- tinyurl.com/mcdfx33k). Overall, there were 24.5 million 401(k) participants in the study.

More motivation: Not saving enough is a common concern.

A 2024 Global Retirement Survey of 724 retirement plan participants by MFS Investment Management, a U.S.-based global investment manager, found that 59% were very or extremely concerned about saving enough money for retirement (tinyurl.com/yc4jb8x6).

And the challenges are real. When asked what, if any, competing financial priorities prevent them from adequately saving for retirement, 31% of the respondents said saving for an emergency, 28% indicated they live paycheck to paycheck and cannot save for retirement, and 19% said they are setting money aside for child education.

401(k)s offer the answer.

There is no better way to save for retirement, especially if the plan offers an employer match. A match compresses the time it takes to double an investment. If it takes roughly 10 years to double an investment with an annual return of 7.2% (rule of 72), what if you could double your investment overnight? Wouldn't that appeal to you?

That's what a 401(k) with a dollar-for-dollar match gives you -- double your investment without the need to wait 10 years. Most 401(k)s do have matches. The dollar amount varies.

Good enough. But what if someone "can't afford" to participate?

Even though a payroll contribution is usually necessary to participate in a 401(k), that does not mean that the dollar amount of your paycheck will necessarily drop.

In your circle of friends, do you know anyone who receives tax refunds? If they don't participate in the 401(k) because they "can't afford to," tell them get some advice on tax management. IRS Form W-4 is the key.

If someone is getting a refund, they are lending money to the federal government. Why do that if you can use that money to pay for your 401(k) contribution? (If you would like more information on how to do that, I'll send you some columns I've written on the subject. Write to readers@juliejason.com.)

Another motivating factor: People need a vehicle to create retirement security for themselves.

When asked in the MFS survey, 48% somewhat or strongly agreed that they could financially support themselves during a 30-year retirement. Also surveyed by MFS were 310 retirees, most of whom (76%) said they somewhat or strongly agreed they could financially support themselves over a 30-year retirement period.

To use a 401(k) effectively, you will want to do some homework to make sure your financial decisions are sound. While 42% in the survey cited a financial adviser or planner as a resource, 39% indicated they used a plan provider, and 35% cited their employer.

Interestingly, 30% indicated a family member as a resource, and 18% named a friend, peer or co-worker. The latter group provides the basis for the 401(k) Champion Award, which honors those who not only use their 401(k)s wisely to save for retirement but also encourage those around them to do the same. Full disclosure: In my role as an advocate of financial literacy education, I founded and sponsor the award (401kchampion.com), as well as National 401(k) Champion Day, which will be celebrated for the first time on June 15 (tinyurl.com/58e78zjy).

Company retirement plans such as 401(k)s need your attention, even if you aren't working for a company that offers them. Why? It's simple. People you know, your circle of friends and family, are likely participants or eligible to be participants. And you want them to participate -- for their own financial futures.

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