Do you have a junk drawer full of random paperwork and documents? You’re not alone. Most people do, but what you keep in there could either hurt or help you. Toss the wrong thing, and you could run into financial problems (and even issues with the IRS). But keeping everything isn’t the answer either. That can cause confusion and even lead to identity theft, in some cases.
When it comes to financial records, keeping the right documents isn’t just about organization. You need to make moves to protect yourself. The IRS generally recommends keeping tax-related records for at least three years, though some situations require longer retention. On the flip side, holding onto unnecessary documents increases your risk of identity theft if they fall into the wrong hands. That being said, here are six bank papers you really need to hold onto, and three you’re better off tossing today.
