Never throw away original, hard-copy documents that establish identity, legal rights, or ownership. Key documents to keep forever include birth/death certificates, Social Security cards, passports, marriage/divorce decrees, adoption papers, wills, house deeds, military records, and property titles. Secure these in a fireproof safe or safety deposit box.
Here are five document types not to shred and are better to keep – especially with services that offer offsite media storage you can trust.
Keep Forever
Documents you can toss after one year
Even if they're old statements, they should be shredded. Your name, address, phone number, and bank account information are in those statements, along with your habits, purchases, and banking history. Even if the account is closed, shred it anyway.
How long should I keep medical records? Hold on to medical bills for a year, unless there's an ongoing insurance dispute or you claim a tax deduction for medical expenses. Keep health insurance policies for as long as the insurance is active.
The 8 Financial Documents You Should Always Shred
Keep important papers like birth certificates, wills, deeds, titles, insurance policies, and Social Security cards in a safe deposit box or fireproof box that you'll be able to access quickly in an emergency. And set up a simple filing system to keep everything else in its place.
The 5-5-5 Rule for decluttering, popularized by Steph of The Secret Slob and Apartment Therapy, is a quick, low-pressure method that involves setting a 25-minute timer, picking five different zones in your home, and spending just five minutes tidying or decluttering each zone before moving to the next, making it ideal for tackling daily messes without feeling overwhelmed.
Credit card and bank account statements: Save those with no tax return usefulness for about a year, but those with tax significance should be saved for seven years.
Suze Orman's four essential documents for financial and personal security are a Will, a Living Revocable Trust, a Durable Financial Power of Attorney, and an Advance Directive for Health Care (also known as a living will), all designed to protect your assets and ensure your wishes are followed if you become incapacitated. These documents guide who inherits your property, who manages finances, and who makes medical decisions, preventing family disputes and costly probate, notes the Suze Orman website.
You generally don't need to keep 20-year-old tax returns; the standard IRS recommendation is to keep most tax records for 3 years, but 6 years if you significantly underreported income (25% or more), or even indefinitely if you never filed or filed fraudulently. For most people, keeping records for 3-7 years covers standard audits, but if those returns are from a time you bought/sold property or have complex investments (like worthless securities), you might need them longer, so consider shredding or securely disposing of anything older than 7 years unless it's for property records.
You need to keep tax-related documents, bank/credit card statements, payroll records, sales records, and investment purchase/sale slips for 7 years to cover potential IRS audits, while records supporting tax deductions (like receipts, bills) should also go with your tax returns for that period; however, tax returns themselves and certain long-term asset records might need to be kept permanently.
After paying credit card or utility bills, shred them immediately. Also, shred sales receipts, unless related to warranties, taxes, or insurance. After one year, shred bank statements, pay stubs, and medical bills (unless you have an unresolved insurance dispute).
The 50% rule for clutter is a straightforward decluttering method that challenges you to reduce the number of items in any space (drawer, closet, room) by half, aiming to keep spaces only 50% full for easier management, better organization, and a less overwhelming environment, often by removing duplicates, unused items, or things you no longer love, creating breathing room and simplifying decision-making.
The Declaration of Independence, U.S. Constitution, and Bill of Rights, known together as the Charters of Freedom, established the government's structure and continue to secure the rights of American citizens.
Examples are things like your birth certificate, marriage certificate, Social Security cards, retirement accounts, life insurance documents, will and powers of attorney. You need to keep all of these things—forever. Your birth certificate, marriage certificate and Social Security card matter most when you're alive.
If you have an old document that isn't mentioned above, Mendelsohn said, you're probably safe following the seven-year rule. There are exceptions. If you own a business, failed to file a tax return or get sued, you may wish you held on to every shred of associated paper. Otherwise, it can probably go.
Many people don't even bother to look at these materials, with approximately 44 percent of junk mail thrown away without being opened. However, throwing out your unwanted mail in the trash or recycling bin could put you at risk of identity theft.
You should not put heavy-duty metal (binder clips, large staples, tools), electronics (hard drives, phones, CDs/DVDs, batteries), sticky/laminated items, clothing, food, or large amounts of cardboard/plastic in a paper shredder, as these can damage the blades, overheat the motor, or cause jams, fire, and safety hazards. Always check your shredder's manual, but generally avoid anything that isn't paper or small staples/clips.
However, an office paper shredder can make fast work of destroying a small quantity of business checks. If you use a shredder, you'll want to make sure it cuts both vertically and horizontally. When you're finished, dispose of the shredding in a secure, non-public garbage drop off.