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Is It Safe to Throw Away Bank Statements?

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Before we answer the question as to whether or not it’s safe to throw away bank statements, we need to cover how long you should keep certain statements. The following list is provided by TrueShred.

Statements to shred right away:

  • Sales receipts (unless you need them for tax purposes; in that case, scan them first)
  • ATM receipts
  • Packing slips and online purchase orders
  • Canceled and voided checks (that aren’t tax-related)
  • Utility, internet, and cell phone bills (once paid)
  • Credit card, insurance, and bank account solicitations that come in the mail
  • Expired warranty coverage
  • Correspondences from the DMV or IRS (once settled)
  • Travel-related materials (besides your passport)

List of documents to throw out after 3 years

  • Bank statements
  • Credit card statements (once paid)
  • Pay stubs (once checked against your W-2 for accuracy)
  • Medical bills (once paid and free of insurance disputes)



List of documents to throw out after 7 years

  • Tax returns
  • W-2s
  • Tax-related receipts and canceled checks
  • Records for any tax deductions you took
  • Other tax records

List of documents to throw out (variable intervals)

  • Auto titles (keep for as long as you own the car)
  • Home deeds (keep for as long as you own the property)
  • Disputed medical bills (keep until the issue is resolved)
  • Home improvement receipts (keep until you sell your house and pay any related capital gains taxes)

List of documents to keep forever

  • Birth certificates
  • Adoption papers
  • Social Security cards
  • Marriage certificates
  • Divorce decrees
  • Citizenship papers
  • Passports
  • Death certificates

You should keep these documents in a very safe place. I’d recommend a fireproof safe to keep these things protected.

How should you dispose of sensitive documents?

It is safe to throw away your bank statements, as long as you do so in a particular fashion. If you have a significant amount of paperwork, hire a shredding service. If you don’t have that type of volume, put it through a shredder. Tearing the papers up once or twice won’t do the trick.

Another safe disposal method, as recommended by Patch.com is to wrap up unused or spoiled food with the sensitive documents, and throw them in the refuse bin. Scavengers are more likely to “skip over” the refuse bin when they’re looking for sensitive information for identity theft purposes.

Below, are several ways to dispose of your sensitive documents without the use of a shredder. This list is provided by WigglyWisdom.com.

  1. Hand shred – tear up the paper with your hands. Make sure you tear the vital information and place it in separate recycling bins.
  2. Burn them – local ordinances can hinder your ability to do this, so be sure to check the laws for your municipality. Tear up the paper first, in the same way, you would for point #1, in case a piece of paper flies away.
  3. Compost – paper breaks down and can add carbon to your compost pile.
  4. Soak them in water – 24 hours in a bucket of water can leave your documents illegible.

There are three other items on that list if you’d like to learn a little more.

Conclusion

Bank statements and other financial documents contain incredibly sensitive information. It’s important you a) keep proper records and b) dispose of these items in a safe manner.

Related:

Earlier this year, I wrote a piece about the most important financial documents. If you’d like to learn more, go check that out here.

 

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com

Family Member Opened an Account in My Name-Now What?

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family member opened an account in my name

When people envision identity theft, they picture some stranger masquerading as them. But that isn’t always what plays out. During one year, about 550,000 victims of identity theft said that a person they knew took their information, not a stranger. While getting your identity stolen is always a difficult situation, when a family member is responsible, it’s even more complex. So if you have the question, if a family member opens an account in my name? Here’s what you need to know.

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5 Must-Know Privacy Lessons I Learned From 9-11

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I was late to work and sneaking up the stairwell to my office. A passing friend said, “A second plane just hit the World Trade Center.”

There’d been a first plane? The World Trade Center? It must be a little Cessna.

The entire office huddled around televisions. I wasn’t prepared for what they were watching. The heroism of everyday people that day still amazes me.

Later in the week, among the flurry of stories echoing the disaster, one personal finance problem emerged: private financial documents with personal client information littered the streets of Manhattan. Many of the firms in the World Trade Center were financial companies (in fact, one firm owned by a cousin of a client, Alger Mutual Funds, lost David Alger and 35 other staffers that day). I began helping the media complete stories about “How to Protect Your Privacy.”

Although we can’t prevent another 9-11, we can make sure that our financial documents are the last thing we worry about when far more important concerns (such as people) should dominate our thoughts. Here are five lessons I took far more seriously after that day than I had previously:

 

5 Steps To Protect Your Identity

 

shredder1) Shred unnecessary documents. A good shredder pays for itself immediately. If you’re using it for household bills, this Amazon shredder will only set you back $29.99. Businesses should invest in a more robust tool.

2) Don’t give out your social security number, telephone number, or other unnecessary information on documents. I hand over wrong numbers like a hot woman at the bar. Create a separate email address reserved for email forms and correspondence with companies.

3) Check your credit report regularly. You’ll want to keep a tight watch over predators trying to access your credit. Companies with free credit tools like Quizzle or CreditKarma are great places to monitor lender activity. On episode #2 of our Two Guys & Your Money podcast, Len Penzo reported that he turns off his credit with each credit company until he needs it. Look for other mistakes while you’re there: a recent ABC news story reported that over 90% of all credit reports have inaccurate information.

4) Review every credit card statement. Ever wonder why Mr. Monopoly looks shocked when you draw the “Bank Error in Your Favor….Collect $40” card in the popular board game? It’s because errors happen all the time and they’re rarely in your favor. More importantly, you may see early signs of thieves trying to gain access to your credit.

5) Back up your documents – I’ve recently begun transferring my paper documents into digital form. Keep these in two places in case you lose access to the first or thieves steal the data.

Foremost in my mind today is the tragic and unnecessary loss of life on 9-11. I learned far greater lessons than the five I pointed out above. However, I also learned a little about taking care of my financial life so that if tragedy strikes, the threat to my identity is minimized.

 

What steps do you still need to take to better protect your financial privacy?

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