Keep it or shred it?

Knowing what financial papers to keep and what papers can be shredded is sometimes hard to remember and then you've got a file cabinet full of papers and you get to the point where you want to shred it all.

Shred

• bank statements, once you've balances your checkbook, shred away.
• paid bills
• mutual fund prospectuses

File away

• pay stubs, until you've confirmed your W-2
• tax returns, keep for 6 years
• social security notices, until a new one comes

Save forever

• any loan statement that says paid in full
• mortgage settlement statement, even for a property you've sold

from Barbara Hemphill, author of Taming the Paper Tiger at Home