Was wondering about what financial records I should be retaining, and for how long. It seems there is a significant amount of differing opinion out there, so I would recommend staying on the conservative side of any fairly reliable advice you come across, meaning that if, for example, one source says 3 years and another says 7 years, go with the 7 years. Also your personal situation can have an effect on this - for example, if you itemize deductions on your personal tax return, you should retain the relevant records, whereas if you take the standard deductions, then certain records you wouldn't need to hang on to such as credit card records.

According to the IRS, "You must keep your records as long as they may be needed for the administration of any provisions of the Internal Revenue Code. Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out." With that in mind, here's some fairly conservative guidelines for an individual salary or wage earner in the US:

• Tax Returns - permanently.
  Includes associated records for tax deductions, charitable contributions, mortgage interest, retirement contributions, etc. Note that the IRS has three years from your filing date to audit your return if it suspects good faith errors. The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund. The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more. There is no time limit if you failed to file your return or filed a fraudulent return.
  
  
• IRA contributions - permanently.
  If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw.
  
  
• Retirement/savings plan statements - from 1 year to permanently.
  Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary, then if everything matches up, shred the quarterlies. Keep the annual summaries until you retire or close the account.
  
  
• Bank records - permanently, or minimum 7 years.
  Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments. Shred those that have no long-term importance.
  
  
• Brokerage statements - until you sell the securities.
  You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.
  
  
• Bills - from 1 year to permanently.
  Go through your bills once a year. In most cases, when the canceled check from a paid bill has been returned, you can shred the bill, however, bills for big purchases such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. should be kept in an insurance file for proof of their value in the event of loss or damage.
  
  
• Credit card receipts and statements - from 45 days to 7 years.
  Keep your original receipts until you get your monthly statement, then shred the receipts if the two match up. Keep the statements for seven years if tax-related expenses are documented.
  
  
• Paycheck stubs - keep for 1 year.
  When you receive your annual W-2 form from your employer, make sure the information on your stubs matches. If it does, shred the stubs, if it doesn't, demand a corrected form, known as a W-2c. Keep final pay stubs from old employers for 7 years.
  
  
• House/condominium records - from 7 years to permanently.
  Keep all records documenting the purchase price and the cost of all permanent improvements such as remodeling, additions and installations. Keep records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent's commission, for 7 years after you sell your home. Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.
  
  
• Phone and utility bills - 1 year to 7 years.
  Toss after a year, as long as you don't have a home office, use your phone for business calls, or anticipate any need to prove long-term residency. Retain for 7 years if you have more than one home. If you have moved within the past few years keep a copy of the last year at the previous address.
  
  
• Insurance records/policies - permanently.
  Keep all policies permanently, or for 7 years after maturity. Retain records of any claims made for 7 years.

There's probably a bunch of other things, but this is just a basic guideline. You should keep two home files - your active file and your dead storage file. Your active file will hold unpaid bills until paid, paid bill receipts, current bank statements, current canceled checks, income tax working papers. After 3 years, move these items to your dead storage file. That should keep things running fairly smoothly. If in doubt, don't throw it out.