SAVE OR SHRED? What documents should I keep and what can I toss?

Spring is here, which means it’s time to finally clean up those papers that are piling up everywhere!
 
In this digital age, many people and businesses are going the paperless route. But many others tend to keep a ton of paperwork and let the paper pile high. 
 
Below is a guideline of what to keep or toss or shred (unless you are keeping things for tax purposes). And keep in mind that most statements, bills, etc. are available to view online. If you still can’t part with the paperwork, another option is to scan the documents and store the file on your computer.
 
KEEP FOR 1-3 MONTHS: 

• Phone bills
• Utility bills
• Credit card statements
• Sales receipts for minor purchases 
• ATM and deposit slip receipts

Once you are finished paying and reconciling your bills, toss or shred them. Bills for big-ticket items such as cars, furniture, computers, appliances, etc. should be kept for insurance purposes in case you have to file a claim for loss or damage.
 
KEEP FOR ONE YEAR:

• Bank statements (if there are no tax significance)
• Pay stubs (Keep the pay stubs to ensure they match your W2. If they match, you can shred the pay stubs.  If not, ask your employer for a corrected W2).
• Medical records and bills, unless needed for insurance purposes
• Monthly mortgage statements
• Checkbook ledgers

 
KEEP FOR ABOUT 6-7 YEARS

• Tax records, including copies of returns, receipts, and supporting documents (ie. W2s, 1099s, charitable contributions, mortgage interest payments, and retirement plan contributions) (keep for 7 years)
• Documents relating to the purchase or sale of a home, or payment for home improvements (keep for 6 years after the sale)
• Bank and brokerage statements (keep for 7 years if there are tax-related expenses, such as charitable contributions or real estate taxes)
• Medical Bills/Claims
• Cancelled checks
• Disability records
• Unemployment income stubs

 
KEEP FOR AWHILE:

• Insurance Records for as long as the policy is in effect, plus 5 more years
• IRA and retirement contribution documents until you withdraw the money, but shred quarterly statements once you receive the annual summaries and the numbers agree.
• Loan Contracts for as long as you are paying on the loan
• Warranty documents for the length of the warranty
• Car title for as long as you own the car

KEEP FOREVER

• Birth, marriage, divorce and death certificates
• Social Security Cards
• Passports
• Business Licenses
• Estate Planning Documents
• Pension Planning Documents

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​A good rule of thumb if you’re deciding what to save or shred is to think about how difficult that document is to replace and if keeping these documents will make it easier for your trustee or personal representative to manage your affairs and your estate. 
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