I disagree with Shane. If you mill 1/16" off each side of a 1/8" tang you have removed the tang. 1/8" is a good tang thickness, so I would not even consider any shelf on the side.
Remember to taper the tang a bit from the ricasso to the tang end. You want the guard to just snug up as it reaches the ricasso shoulders.
Learning to fit a snug guard is an important part of making a quality knife. Take your time, file in small amounts, and don't be afraid of making a new guard if the first one doesn't fit well. The biggest reason a guard fits poorly ids if you fit it =before HT and final sanding. The blade will be smaller in thickness after the final sanding and polishing work, do the fitting only once the blade is completed all but sharpening the edge.