Transcripts

"Money File"-Simplify...Simplify...Simplify

SUSIE GHARIB: In the "Money File" tonight, a few thoughts on simplifying your financial life. Here's Jonathan Pond, author of "You Can Do It! The Boomer's Guide to a Great Retirement."

JONATHAN POND, AUTHOR, "YOU CAN DO IT!: Simplifying your financial life will save time and reduce aggravation, allowing you more time to enjoy the good life. Here are some ways to manage your financial affairs more efficiently. First, set your records straight. A good record-keeping system has three main components, including a safe deposit box to store important personal documents; an active file that keeps track of personal papers and important information necessary to help in preparing your current year's tax returns; and finally an inactive file primarily for the purpose of proving past tax returns and substantiating home improvements and investment transactions. Once you set up these files, get rid of any papers that you won't need.

My second suggestion is to consolidate your accounts, including credit card accounts, bank accounts and investment accounts. Chances are you have a lot more accounts than you actually need. Another way to simplify your financial life is to automate your investing; the more you put your investing on automatic, through regular transfers from your paycheck or checking account into a retirement or investment account, the more time you save and the more money you're likely to accumulate. And I've saved the best tip for last and that is to bank online. Online banking offers many advantages, including access in a single site to all of your accounts at a particular institution. Also, filling out checks by hand will be a quaint relic of the past. I'm Jonathan Pond.