Can I Shred This?

We often hear from clients, “What documents can I clear out that I no longer need?” The answer to this lies in the type of document. So, to help you get organized, I’ve broken it down into three categories based on the amount of time a document should be kept: forever, for the foreseeable future, and 12 months or less.

Some documents are difficult to replace and should be kept forever. These will include birth or death certificates, Social Security cards, marriage licenses, divorce papers, military discharge documents, current life insurance policies, current estate planning documents and passports. Some experts also suggest holding onto records relating to your personal health conditions indefinitely. These types of items should be kept in a fireproof safe to prevent destruction in the event of a disaster.

Other documents are important to keep for a certain period, but you won’t necessarily need them forever. For any records related to home or vehicle ownership or other major purchases or investments, hold these as long as you own the asset. These can include information about your mortgage, receipts for home improvements, car titles, a deed, or any warranty information. Most advisors also suggest holding onto at least three years of tax returns, although the IRS can look back at up to seven years of returns when auditing. Therefore, we suggest holding onto tax-related documents for at least seven years.

After one year, it’s typically okay to dispose of things like deposit slips, paystubs, shopping or dining out receipts (not related to your tax return), and utility bills. If you’re throwing these items in the trash, however, you could be putting yourself at risk of identity theft. Therefore, anything that contains personally identifiable information like name, address, phone number, email, date of birth, driver’s license number, account number, Social Security number, or bank and credit card account numbers should be disposed of securely.

We invite you to join us on October 15th for our Shred & Secure event, where you can have unnecessary documents securely shredded at no cost and then join our interactive conversation about cybersecurity. Sign up via our website or on Eventbrite, and feel free to bring a friend!

- Margaret Gooley, CFP®, CDFA®, Worley Erhart-Graves Financial Advisors

This article was included in the Worley Erhart-Graves Quarterly Newsletter.