In with the new, out with the old–so goes the saying for the New Year. It is also this time of the year when I keep the pack rat in me at bay (at least, I try to) and figure out what financial documents to retain and which things to feed to the shredder.

It’s not the most exciting item in my to-do list. I hate those paper cuts. Plus, I have a problem with letting go…weird as that may sound when we’re just talking about piles of paper!

So, I walked over to our accounting department and picked their brains. Here’s what I came up with:

• Keep your tax records for three years, at the minimum. This is required by the Bureau of Internal Revenue, but I personally recommend keeping all tax records since you started working.
• Credit card records should be kept for at least a year but keep the ones that record major purchases like appliances, along with receipts.
• Bank statements are good for a year, too. Records of deposits and bank transfers should always be crosschecked with statements and then shredded.
• Keep insurance records well, make duplicates and send copies to beneficiaries. Make sure your spouse knows where they are.
• Investment records like mutual fund statements, brokerage reports, and other documents should be kept in separate folders and well-labeled, just in case something happens to you and your spouse or other beneficiaries need to see them. This is a common problem especially among old retirees who have forgotten their investments and have not kept their records well.
• Loan documents should be well preserved, together with payment records. Needless to say, you’re better off keeping them forever.
• Do keep current warranties and throw away those that are no longer current. But I recommend keeping a directory of the contact numbers of repair shops.
• Shred all ATM receipts and other financial documents. You never know where they can end up if you just toss them in the trash. I don’t think the dumpster divers have crossed over from the US to the Philippines, but better safe than sorry.