Page 15 - Summer 2019 - Lubbock Senior Link Magazine - Online Magazine

FINANCIAL FOCUS

Consolidating Accounts Can Lead to Clear Financial Strategy

one of us can completely • Diversification – If you own • Avoiding mistakes – If you own
control all the things that several different financial accounts, several separate accounts, you could
happen to us. Yet, when it including IRAs, 401(k)s and online see a loss in one or more of them
Ncomes to achieving your accounts, you might have many and overreact by selling investments
long-term financial goals, including similar investments within them. that could still be valuable to you.
a comfortable retirement, you do You might even own a cash- But with a consolidated investment
have a great deal of power – as long value insurance policy containing platform, you can see more clearly
as you follow a clear, well-defined investments that closely track that the impact of a loss may be
financial strategy. And one way the ones you have in the other small, relative to the rest of your
to help build and maintain such a accounts. This type of duplication holdings.
strategy is by consolidating your can be harmful because, if a market
financial accounts. downturn primarily affects one As we’ve seen, consolidating
type of asset, and your portfolio is your investment accounts with a
Over the course of their lives, many dominated by that asset or similar single provider can have several
people pick up a variety of financial ones, you could take a big hit. But if advantages. So, think carefully about
accounts from multiple sources. you have all your investments in the bringing everything together – you
They might have a few IRAs from same place, a financial professional may find that there’s strength in
different providers, a couple of old can review your holdings and unity.
401(k) plans from past employers, an recommend appropriate ways to
insurance policy (or two) purchased diversify your investment dollars. This article was written by Edward
many years ago, and a scattershot of (Be aware, though, that while Jones for use by your local Edward Jones
stocks, bonds, certificates of deposit diversification can reduce the impact Financial Advisor.
and other investments. of market volatility
on your portfolio,
If this picture describes your it can’t guarantee
situation, you may want to think profits or protect
about consolidating. For one thing, against all losses.)
having a variety of accounts can run
up a lot of fees. Furthermore, you’ll • Staying on track
have lots of paperwork to keep – With all your
track of all your accounts, including accounts in one
several different tax statements. Plus, place, you’ll find it
just by having so many accounts, easier to keep the
you risk forgetting about some of big picture in mind
them – and if you don’t think you’d and make the moves
ever forget about your own money, necessary to help
consider this: Well over $40 billion you progress toward
in unclaimed cash and property, your financial goals.
including 401(k)s, pensions and Two main actions
IRAs, is awaiting return to the include buying or
rightful owners, according to the selling investments
National Association of Unclaimed and adjusting your
Property Administrators. portfolio to make
it more aggressive
But beyond reducing your possible or conservative,
fees, paperwork and potential depending on your Felicia A Brightbill, AAMS®
for lost assets, consolidating your situation. Financial Advisor
accounts with one provider can 4612 71st St www.edwardjones.com
Member SIPC
give you a centralized, unifying Lubbock, TX 79424
investment strategy, one that can 806-792-4506
help you in the following ways: IRT-4395D-A

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