Retired? What Papers to Keep and What to Shred

Retiring is a great time to clear out the file cabinet. Maybe you're moving to a smaller home. Maybe you just want your kids to find the right papers someday. Either way, the hard part is knowing what you can let go.

You don't have to guess. The Federal Trade Commission (FTC) has a simple list. Here it is, word for word, with an example under each part.

Keep for a year

The FTC says to keep these for a year:

• Bank statements
• Pay stubs
• Undisputed medical bills
• Credit card and utility bills
• Deposited checks

The FTC adds: “If you can access these documents electronically, consider shredding your paper copies.”

Keep for at least three years

The FTC says to keep these for at least three years:

• Income tax returns
• Tax-related documents, like canceled checks, receipts, W-2s, and 1099s
• Records related to selling a home

The FTC also says: “In some cases, the IRS recommends keeping tax returns and tax-related documents for longer than three years.”

The IRS explains when. For example, it says to keep records for 7 years “if you file a claim for a loss from worthless securities or bad debt deduction,” and to keep records “indefinitely if you do not file a return.” For a home or other property, the IRS says to keep the records “until the period of limitations expires for the year in which you dispose of the property.”

The IRS also says: “When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.”

Keep while you own it

The FTC says to keep these while you own the item:

• The title to your vehicle
• The title or deed to your home
• Documents related to mortgage or vehicle loans
• Home improvement receipts
• Rental agreements and leases
• Sales receipts and warranty information for major appliances

Keep forever, and lock up

The FTC says to keep these forever and lock them up:

• Birth certificate or adoption papers
• Social Security cards
• Valid passports and citizenship or residency papers
• Marriage licenses and divorce decrees
• Military records
• Wills, living wills, powers of attorney, and retirement and pension plans
• Death certificates of family members
• Vital health records (especially those that pre-date electronic health records)

Shred

The FTC says to shred these:

• ATM receipts
• Offers of credit or insurance
• Cleared checks (after 14 days)
• Credit reports
• Prescription information for medicines you no longer take
• Expired warranties
• Expired credit cards, driver’s licenses, and other forms of identification

The FTC says: “When it’s time to dispose of documents with your personal or financial information, shred them. If you don’t have a shredder, look for a local shred day in your community.”

Keep time up? Shred it. Don’t just toss it.

Try it on one paper with VETTA

Lists help. But the pile won't move until you make a decision. Here is the VETTA Method on one piece of mail: a credit card offer.

• Value: Why does this matter? It doesn't. You didn't ask for it.
• Evaluate: What is it, and what does it require? An offer of credit. It needs nothing from you.
• Time: How long should I keep it? The FTC says to shred offers of credit.
• Transfer: Where does it belong? In the shredder.
• Act: What do I need to do next? Shred it today.

One paper, one decision. Do that again tomorrow, and the pile gets smaller.