5-Minute Fix: Streamline Your Investments

Here’s a good way to start off the New Year and save yourself time, money, and aggravation.

Many investors have accounts spread among several brokers and custodians, making it hard to keep tabs on what they really own and how their funds are invested.

You can streamline your account management by consolidating all your accounts (including old 401k accounts) with one brokerage firm. It makes it much easier to monitor and manage your investments, rebalance and diversify your portfolio, simplify tax reporting, and handle routine administrative tasks. Plus, by maintaining higher account balances, you may qualify for lower fees or higher service levels.

It’s especially critical to consolidate accounts when you near retirement.  When you retire, having all your accounts in one place makes it easier to calculate how much income you can draw from your portfolio each year.  Plus, it makes it easier to calculate and withdraw your Required Minimum Distribution and manage other retirement income flows.

There are a few accounts that cannot or should not be consolidated, so be sure to ask your financial advisor for help before transferring accounts.


About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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