Dont Drop The Retirement Ball

Dont Drop The Retirement Ball

Don't Drop the Retirement Ball
Juggling may be entertaining, but the average person may not have the concentration to​ keep the balls in​ the air .​
Yet half of​ Americans in​ their prime savings years juggle their retirement money in​ three or​ more accounts, according to​ Fidelity Investments estimates .​
Whether they are 401(k)s from previous jobs or​ forgotten IRAs, these multiple accounts can burden investors with several statements and potentially more account fees .​
Most importantly, scattered accounts may make it​ more difficult to​ keep a​ diversified investing strategy on track .​
It's natural to​ think that multiple accounts may automatically diversify a​ portfolio, but that's not necessarily true, says Cynthia Egan of​ Fidelity .​
In fact, managing a​ mix of​ stocks, bonds and cash across numerous accounts can be confusing and may make it​ harder to​ detect risks to​ your portfolio .​
For example, some investors unknowingly hold the same security in​ several accounts, which could result in​ a​ big hit to​ the portfolio if​ that stock price falls .​
Identifying how much is​ too much is​ simple with one view of​ all your retirement money .​
Merging multiple accounts into a​ single Rollover IRA can make it​ easier to​ manage your savings, allowing you to​ easily review your holdings and quickly make adjustments .​
Here are three more tips to​ help simplify your portfolio:
1 .​
Find them all .​
Even if​ you have to​ spread your statements across the kitchen table, identify all of​ your accounts that can be consolidated, including forgotten IRAs and old 401(k)s .​
2 .​
Mix it​ up .​
We've all heard that while diversification doesn't ensure a​ profit or​ guarantee against loss, an​ age-appropriate mix of​ stocks, bonds and cash is​ the key to​ potentially better long-term performance .​
Make it​ easy with a​ lifecycle fund that is​ automatically rebalanced by a​ professional as​ your target retirement date approaches .​
3 .​
Keep it​ moving .​
Just like your regular trip to​ the dentist for a​ preventive checkup, be sure to​ review your portfolio annually to​ make sure your overall retirement strategy stays on track.
Fortunately, there are many resources available to​ help you manage your retirement savings .​
At the end of​ the day, however, consolidating retirement accounts into a​ single IRA account can help you more easily evaluate your retirement assets, develop a​ more thoughtful retirement strategy and monitor your investments to​ build your portfolio - making it​ easier to​ keep your eye on the retirement ball.

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