Assets everywhere!
Are you one of “those people”? Do you have assets everywhere? A dangling IRA account over here, an OLD 401(k) account over there, a Computershare account or two from grandma, a leftover Brokerage account from a great idea you had a few years ago. We have noticed that some of our clients have accounts everywhere. Did you know that normally those accounts COST you money and are MISERABLE for your heirs?
We aren’t advocating being less diversified, merely consolidating those different holdings into one overall account. One of the primary benefits of consolidating funds into a single brokerage account is the simplicity it offers in managing your assets. With multiple accounts, managing investments, tracking performance, and staying on top of transactions can be a cumbersome and time-consuming task. By centralizing your assets, you gain a clear overview of your holdings, making it easier to monitor their performances, and assess their role in your overall estate planning strategy.
One location also helps in the event of your incapacity; your loved ones may need to access and manage your financial assets. Having a single brokerage account simplifies this process significantly. Your designated power of attorney or trustee will find it much more straightforward to navigate a single account, rather than having to locate and manage various accounts across different institutions, potentially avoiding delays in settling your estate.
Don’t forget the costs: managing multiple brokerage accounts often leads to increased costs, including account maintenance fees and transaction fees. Consolidating your assets can help you reduce these expenses, as many brokerages offer lower fees for larger accounts. Over time, these cost savings can significantly impact the overall value of your estate. With a single brokerage account, it’s easier to maintain a consistent and regular review of your assets, too.
Consolidating your funds into one brokerage account is a strategic move that can significantly benefit your estate planning process. It streamlines asset management, enhances accessibility for your heirs, reduces costs, improves tax efficiency, and simplifies beneficiary designations. When it comes to estate planning, simplicity and clarity are key, and consolidating your assets into a single brokerage account is an effective way to achieve both.
Let us know if we can help you get this consolidation started, help you clean up your beneficiary designations, or diagnose cost concerns.