As you head into retirement, consider consolidating accounts
There's a lot to do as you head into retirement. On the financial front, think about consolidating accounts to make it easier to manage your investments.
Greg Daugherty, executive editor at Consumer Reports, says there are some good reasons to doing this.
"Often you'll get a better deal if you have more money at a particular financial institution, lower fees for example," Daugherty said. "It also cuts down on all the paperwork and all the junk mail you get. And when you have to take required minimum distributions when you turn 70 1/2, it also makes it easier to calculate how much money you have and take that money out at an appropriate pace."
Daugherty suggests one easy way to consolidate.
"Pick a good financial services provider that offers a range of things, such as mutual funds, stocks, bonds and all the rest of it -- and look for a low-fee one also," he said. "If you're already doing business with a place like that you might want to move as much of your stuff as you can there."
Very often, they'll help you do it. Before you do anything, be sure to find out if there are any transfer fees involved and if there's a way to get them waived or paid for by the brokerage firm getting your business.
More Info:
7 Money Stumbles to Avoid
Greg Daugherty, executive editor at Consumer Reports, says there are some good reasons to doing this.
"Often you'll get a better deal if you have more money at a particular financial institution, lower fees for example," Daugherty said. "It also cuts down on all the paperwork and all the junk mail you get. And when you have to take required minimum distributions when you turn 70 1/2, it also makes it easier to calculate how much money you have and take that money out at an appropriate pace."
Daugherty suggests one easy way to consolidate.
"Pick a good financial services provider that offers a range of things, such as mutual funds, stocks, bonds and all the rest of it -- and look for a low-fee one also," he said. "If you're already doing business with a place like that you might want to move as much of your stuff as you can there."
Very often, they'll help you do it. Before you do anything, be sure to find out if there are any transfer fees involved and if there's a way to get them waived or paid for by the brokerage firm getting your business.
More Info:
7 Money Stumbles to Avoid
There is a limit on how much is insured by the FDIC and so money markets and savings accounts in one place shouldn't exceed that. The biggest problem right now is that the interest being paid on mm, savings, and CDs is pathetically low. Instead of relying on these "experts" to help you manage your affairs, use your own common sense. The experts have nothing to loose, you on the other hand can end up broke.
there is something to be said about not putting all your eggs in one basket... it is ok to lump services but you want to ensure you have some liquid funds somewhere else 'just incase' one area is compromised you are not 100% wiped out if ONE PASSWORD
I think you should consider your goals, needs, and objectives before deciding to consolidate. Â Optimization comes from identifying strengths in many elements and using a hybrid strategy that utilizes all of those elements as one. Â Plus, where you might have increased fees from an unconsolidated approach, you may get improved returns or a better strategic upside. Â Some of the best investors are those that our retired, since they have more time to monitor activities and move with the markets. Â