To Shred, Or Not to Shred?

To shred or not to shred? This is one of the most common questions I hear from clients (and for those of you who live locally, I'm not talking about the white powdery stuff outside, because we all know the answer to that question). Here is a very quick run-down on papers that you should save, how long to save them, and items to shred/toss.

Keep for 1 Month

• Credit-card receipts
• Sales receipts for minor purchases
• Withdrawal and deposit slips (toss after you've checked them against your monthly bank statement)

Keep for 1 Year

• Paycheck Stubs
• Monthly bank, credit-card, brokerage, mutual-fund, and retirement account statements

Keep for 6-7 years

• W-2s, 1099s, and the other guts of your tax returns
• Year-end credit card statements, brokerage and mutual-fund summaries

Keep Indefinitely

• Tax returns
• Receipts for major purchases
• Real estate and residence records
• Wills and trusts

Keep in a safe-deposit or fire safe box

• Birth and death certificates
• Marriage licenses/Divorce Decrees
• Passport
• Social Security card
• Insurance Policies
• Anything that would be really, really annoying or difficult to replace if needed (if you can avoid a trip to any of the above government agencies, you will be much happier)

For this last group, I recommend keeping a photo copy of everything in your regular filing system for quick access. There are a lot of times when you may just need to grab a copy quickly.

Always shred anything with account information and/or social security numbers. If you are ever not sure on what to keep, don't hesitate to ask your accountant or favorite professional organizer.