WHAT DOCUMENTS TO SHRED?

Even if you’ve opted to go paperless on things like bank statements, you probably still receive important mail related to your finances. These could be medical bills, old tax returns, or explanations of benefits from your insurance companies, for example.

So how do you know which documents you should shred?

Documents to store forever

A number of documents should be stored forever. These are the most important that you may need at any time for a variety of reasons. Ensuring that they’re kept in a safe place and that a copy is secure will save you a lot of time when they’re needed.

Academic records: Diplomas, transcripts, and any portfolio work that may be used in the future when applying for a job
Adoption Papers
Baptismal Certificates
Birth Certificates
Death Certificates: may be needed for tax purposes
Driver Licenses
Employment Records: Any clauses, agreements, disciplinary files, and performance reviews
Marriage Certificates
Medical Records
Military Records
Passports
Retirement and pension records
Social Security Cards
Wills

Documents to store for a certain period of time

Imagine having a lifetime’s worth of bank statements and bills piled up on your desk. After even just a decade, that stack would likely be outrageously big. There are many types of documents—mostly financial—that you should keep for a certain period of time, but don’t need to store forever. You may need to reference them monthly or weekly for a while, then they just become another piece of paper lying around creating clutter.

The tricky part is knowing when you can get rid of these types of records. There’s no good answer for everything, but recommended guidelines based on what it is:

Bank statements: One month
Bills: One year for anything tax or warranty related; all other bills should be shred as soon as they have been paid.
Credit card bills: Shred immediately when paid.
Home improvement receipts: Keep until the home is sold.
Investment records: Seven years after you’ve closed the account or sold the security.
Leases: Keep until you’ve moved out and have received your deposit back from the landlord.
Pay checks and pay stubs: One year, or until you’ve received your W-2 statement for that tax year.
Sales receipts: Keep for the life of the warranty for major purchases such as appliances and electronics. For things such as groceries and clothing, only keep the receipt until you know that it won’t be needed to return merchandise.
Tax documents: Seven years, including your filing and all accompanying documents such as W-2s and receipts.
Vehicle records: Keep until the boat, car, or motorcycle is sold.