April 21, 2025

Simplifying Document Security: What to Shred and What to Keep

Allworth Head of Wealth Planning, Victoria Bogner offers a straightforward guide on what to shred and what to keep when organizing your financial documents.

At Allworth Financial, we know that managing your paperwork is more than just keeping your desk tidy—it’s crucial for safeguarding your financial identity and ensuring your future is secure. Let's dive into a straightforward guide on what to shred and what to keep. We aim to make this process as simple as possible, so you can stay protected without the hassle.

Shred It: Clearing the Clutter Safely

Monthly Statements: Once you've checked your monthly bank and credit card statements against your records, you can shred them after a year, unless they're needed for tax reasons. But any paperwork with sensitive info, like account numbers? Shred them as soon as they’re not needed.

Unwanted Offers and Old Receipts: Junk mail like pre-approved credit card offers and receipts that aren’t needed for tax returns or warranties should be shredded. This helps keep your personal details out of the wrong hands.

Expired Documents: That pile of old warranties, contracts, and insurance policies? Once they’re past their prime, it’s time to shred them to avoid any misuse of the personal details they carry.

Outdated Legal Documents: If you have legal paperwork that’s been updated or is no longer relevant, shred it to keep your records current and avoid confusion.

Keep It: Securing Your Financial Foundation

Tax Time: Hang onto your tax returns and supporting documents for at least seven years to cover you in case of audits or amendments.

Property Ownership: Keep all documents related to property ownership, such as deeds and receipts for major home improvements, if you own the property plus an extra seven years for tax purposes.

Investment Statements: Save monthly investment statements until you receive the annual summary, then keep those annual summaries to track your investment performance over the years.

Retirement Readiness: Documents related to retirement plans, like 401(k) statements or IRA contributions, should be kept if you have the investments, helping you monitor your retirement journey.

Essential Estate Planning: Keep vital documents like wills, trusts, and powers of attorney in a secure spot indefinitely. Update these documents as needed to reflect any major life changes.

Digital Housekeeping Tips:

With more of our lives online, it’s crucial to also keep digital copies of important documents secure. Make sure these are stored in a backed-up, encrypted environment to prevent unauthorized access.

Why Bother?

Proper document management helps protect against identity theft and fraud. At Allworth Financial, we urge you to use these tips to not only safeguard your information but also ensure your financial plans are up to date and reflect your long-term ambitions.

Ready to Take the Next Step?

Organizing your financial documents is a great first step towards effective financial planning. Why not take this opportunity to review your overall financial strategy? At Allworth Financial, we’re here to help you ensure that your investments are working as hard as they can towards your financial goals.

Are your investments aligned with your future plans? Could your money be doing more for you? Reach out to your financial advisor for a comprehensive review of your investment portfolio. Your Allworth team is eager to help you fine-tune your strategy and maximize your financial growth.

Let’s make your financial management work for you, with Allworth Financial.