Simplifying one's financial life

[Tybee]

Recently Tradd suggested something and I thought what a good idea, and I did it. It was to bring up the balance of checking accounts to a minimum of 2000, so as to have a nice margin in there. So I did that with my main checking accounts, and it also helps to keep my spending in check, so I don't fall below that threshold.

This is a good example of a little thing you can do to simplify your finances. What kinds of things do you all do, suggestions for ways to declutter your financial life a little?

[happystuff]

I also tend to keep a higher balance in my checking - mainly for those unexpected things that I don't want to take money out of savings for.

Don't know if this is decluttering finances, but I also tend to use my cash-back credit card for groceries and gas, but then I just let it accumulate - kind of "credit and forget it" - LOL. Last time I let it sit for about a year and was able to pay off an entire 2 months of card balances/charges! That was nice.

[pinkytoe]

I need to do a lot of simplifying of financial stuff-hopefully by year's end. Moving several small funds to one institution would be a start. An example is that vacation pay I got when I retired 8 years ago. It has doubled since then but will be taxable so there it sits.

[iris lilies]

I’m not sure I need to simplify – yet. We did a fair amount of consolidation, recording, etc., when we put together our will and trust several years ago. But then we opened yet another bank account in Hermann because we needed a local bank to vouch for credit purchases at the local lumberyard.

January is a month where I sit down and rework documentation of our finances and household. Maybe I will look to see if there’s something that can be eliminated. I think DH is on board with cutting down accounts. Between the two of us we use 3 brokerage houses with multiple accounts within, for instance. That’s not going to change, but we can look at bank accounts anyway.

[Tybee]

I know I will never go down to one or two checking accounts and one brokerage account. That is too simple for me, at least at this stage.

But I did empty out one tiny brokerage account and moved the money into a different one. Now I have to actually close the brokerage account itself, just aren't any branches of the bank in this state.

[Tybee]

I need to do a lot of simplifying of financial stuff-hopefully by year's end. Moving several small funds to one institution would be a start. An example is that vacation pay I got when I retired 8 years ago. It has doubled since then but will be taxable so there it sits.

But if it is taxable why can't you move it to the same kind of account--so into a Rollover IRA, for example.

[Tybee]

I also tend to keep a higher balance in my checking - mainly for those unexpected things that I don't want to take money out of savings for.

Don't know if this is decluttering finances, but I also tend to use my cash-back credit card for groceries and gas, but then I just let it accumulate - kind of "credit and forget it" - LOL. Last time I let it sit for about a year and was able to pay off an entire 2 months of card balances/charges! That was nice.

That is a cool idea! I was thinking of opening an Amazon credit card to do that, but gosh, opening another credit card seems to be less simple.

[iris lilies]

But if it is taxable why can't you move it to the same kind of account--so into a Rollover IRA, for example.

Can you create a .rollover IRA if you aren’t working? I guess so.

Tybee when you moved out those funds, did they charge those horrible exit fees? I forget about those because I don’t close down brokerage accounts for the most part. One time I did it immediately after retiring and oh my God they took out a ton of money. Shysters.

We recently moved money from our city Edward Jones brokerage guy to the Hermann Edward Jones brokerage guy because our city guy moved to another company and so we no longer had any ties at all there.

[pinkytoe]

There are "rules" about moving from 457B to an IRA. There will be an "exit fee" and apparently the funds were in an annuity so more complication there. I may just cash it out and go on a nice trip to see the ocean again.

[Tradd]

I’m going to keep several grand in my big bank savings account. Almost no interest but it’s easily accessible. My emergency fund is a Vanguard Cash Plus account. 3.9% interest, but it’s 1-2 business days to transfer to my big bank checking account.