To Shred or Not to Shred. That is the Question.

Old pay stubs. Receipts. Previous years’ tax returns. For most people, these and thousands of other pieces of paper are filling up your file cabinets and spilling out of your desk drawers. But in today’s digital world of record keeping, do you really need to keep these paper documents, and if so, for how long? This is a common question we hear from our clients, so we thought we’d share some tips on what to shred and what to keep with the readers of Patch.com.

What Should You Shred?

Shred After 1 Year:

• Receipts for small purchases
• Bank records
• Credit card bills
• Pay stubs
• Household bills

Shred After 7 Years:

• Federal/state tax returns
• Canceled checks
• Check registers

Never Shred:

• Home improvement receipts
• Receipts for major purchases
• Annual investment statements
• Gift tax returns
• Investment statements
• Estate planning documents (will, etc.)
• Health care proxy forms
• Inheritance papers
• Life insurance policies

Here’s one more helpful tip: If you are counting on a register receipt for future proof of a home improvement for taxes or for when you sell a home, make a copy of any carbon or thermal receipts so the images will last; keep the bank/credit card proof as well for high-cost items.

For those of you with a massive amount of confidential paperwork to shred, or those who simply want to make sure that their confidential documents get shredded completely, we invite you to attend our 2nd Annual “Shred Fest” on Friday, May 11, 2012 at our Land O’ Lakes office (20635 Amberfield Drive, Suite 102). ShredGreen will have a shredding truck onsite from 3 – 4 p.m. and a secure drop box will be onsite earlier in the day for those of you who can’t make it during that hour.

At last year’s Shred Fest, we shredded approximately 2,000 pounds of paper in just 3 hours! That’s 17 trees saved, 380 gallons of oil saved and 700 gallons of water saved. Not bad!

If you are still unsure what paperwork or records you should keep and what is safe to shred, call one of our financial advisors at Independent Financial Services for a complimentary review of your financial paperwork at (813) 908-2701.

The author of this article is the co-owner of Independent Financial Services in Land O’ Lakes. With over 100 years of combined experience among its dedicated staff, Independent Financial Services provides a variety of financial services to its clients, including comprehensive financial planning, ongoing active money management and investment management. The all-women firm specializes in four key areas: women and investing, retirement planning, divorce planning and small business solutions. Visit www.independentfinancialservices.net for more information.

Due to regulatory constraints, we are unable to accept online comments on this article. However, if you have any questions or would like to discuss issues brought up in this article, feel free to call or e-mail Jeannie directly at jeannie.holliday@investmentcenters.com or (813) 908-2701.

Investment Centers of America, Inc. (ICA), member FINRA/SIPC and a Registered Investment Advisor, is not affiliated with First National Bank of Pasco or Independent Financial Services. Securities, advisory services and insurance products offered through ICA, and affiliated insurance agencies are *not insured by the FDIC or any other Federal Government agency *not a deposit or other obligation of, or guaranteed by any bank or their affiliates * subject to risks including the possible loss of principal amount invested.