Which Financial Papers Can I Throw Away and Which Should I Keep?

Unsure of what financial papers to keep or discard? Morningstar’s article on what to keep and throw away provides both lists. Normally I shred outdated receipts and keep everthing else like ultility bill statements. Yet since I am limited to storage space I will happily add this list to my shred and scan pile.
Tip#1: Have a cross-shredder to shred any credit card applications and other financial documents with your personal information.
Tip#2: Have a scanner to scan other important financial statements onto a backup CD then shred the papers. This way you save more space and you still preserve important financial history even if you are unsure of what to throw away.
Tip#3: Buy a filing cabinet to maintain organization.

MorningStar’s Shred It List:
1. Throw away canceled checks (if you still get them) for routine purchases such as groceries, gasoline, clothing, utility bills (unless you deduct them).
2. Your bank and brokerage statements may come with “stuffers”–typically some marketing material about other services. Read it once when it arrives and if you don’t plan to use that service, throw it out.
3. Bank deposit slips and ATM receipts: Once you’ve verified these on your monthly statements, toss them.
4. Keep payroll stubs until you receive your annual W-2 or 1099. Once you’ve verified the information on those documents is right, toss the monthly paperwork.(Keep a few for verifiable documentation.)
5. If you’re going to vote your proxies related to investments you own, do it right away. If you choose not to vote your proxies, toss them.
6. Read your annual reports when you get them. Then you can throw them out.
7. Old insurance policies or estate documents.
8. Credit card receipts–after you verify them on your monthly statements.(Keep only if you have big ticket items like furniture for warranty purposes.)
9. Utility bills (unless you deduct them for tax purposes)
10. Old Social Security statements

Requirements as to how long to keep these records vary from 3-7 years so keep it on average about 5 years then discard them.