If i install a new version of itunes, will it erase my current version and data?

I am trying to set up my new iphone 5.  i always get msgs from icloud that i have too much data so i have to purchase more space, so i have to restore from itunes backup.  i just backed up my iphone 4 to itunes, and itunes says it's updated - there are no other updates - however it says it's itunes 10.6.3 is the current version.  my new phone is telling me that i need to use itunes 10.7 or later and that I have to download it from itunes.com. 
I just downloaded it but i am afraid to install it for fear that it will erase my data from my iphone 4.
help!!

You don't say which operating system version you are running, nor which very specific computer model you have, both of which are needed to come up with a solution.  Get more information about your computer. Go to the Apple in the upper left corner of any window, then  "About This Mac".  Write down what it says about "version"and report that here.  Now continue to "More Info..."  Copy and paste the information here, but omit the serial number and Hardware UUID (if present).
For an iPhone5 you will need iTunes 10.7.  That requires you be running OSX 10.6.8 or greater.  Old Macs cannot run OSX 10.6.8.  Something reporting you are up to date while running iTunes 10.6.3 might be one of those Macs and you may have to buy a new computer to use your iPhone5.  Once we know the information I requested we can tell for sure.
Installing a new iTunes should not affect the current content.  That said, there are monthly reports here from some unlucky person who claims running an update erased their content.  You should always (even when not doing updates) back up your computer.  Some day your hard drive will unexpectedly die and all your computer content will be lost.  Definitely back up before doing updates and you don't have to worry.

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