Affordable Brokerages

Q I want to open a brokerage account, but the firms I checked require between $1,000 and $5,000 up front. What can I do?

— T.R., Hickory, N.C.

A Keep looking. Many brokerages, such as optionsXpress, don't have minimums. Others have modest minimums, such as Scottrade's $500. Details about and ratings for scores of brokerages can be found in SmartMoney magazine and other periodicals.

You can learn about and compare brokerages online at www.smartmoney. com/brokers and www.broker.fool. com. Note that commissions at many brokerages have fallen to as low as $5 or $10 per trade. This is a far cry from the typical discount commission of $30 to $50 a few years ago and the hundreds of dollars that some fullservice brokerages will still charge you today.

Q How long must I keep financial records, for tax purposes?

— P.R., Racine, Wis.

A It depends. Keep copies of all your tax returns forever, as you never know when they'll come in handy. Keep canceled checks, deposit statements and receipts for at least three years, ideally seven. (If a check is related to next year's tax return, hang on to it for an extra year.) Retain your stock trade confirmation receipts and statements for as long as you own the stock and for at least three years (ideally seven) after you close out your position in the stock (usually by selling). Keep proof of improvements to property for at least three years after the sale of the property. Keep escrow closing documents (for both the purchase and sale of property) for at least three years (yes, ideally, seven) after the property is sold.

Be sure to think before you throw anything out.

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