Consolidating your retirement assets may help you retire more comfortably.  Having your retirement assets working in a disjointed manner can significantly hurt your chances of a comfortable retirement.  Instead of these assets working in an uncoordinated manner, consider consolidating them.

Consolidating your retirement assets under one roof can help you coordinate your investment strategy more effectively.  Achieving more transparency over more assets is always one of the more helpful investing tips.  But another helpful tip is simple:  More control over more assets may result in more money to use in retirement. 

So why consolidate your retirement assets? 

Less Accounts May Equal Less Fees

Fans of the 1980s cartoon “Voltron” remember the titular giant robot being formed from five smaller robots coming together to form one large one.  The same principle applies to retirement assets.  Why not consolidate five smaller accounts with various providers into one larger one with a single provider, to give your assets more punch and better pricing on your investment options? 

Investors may benefit from sales charge or fee breakpoints levied by plan administrators and investment managers.  Larger investment amounts will warrant a higher breakpoint.  For example, investors with $500,000 of investable assets looking to invest in a stable of mutual funds with a single fund family may find themselves with a lower sales charge than say, an investor with $100,000 of investable assets.

Investment advisory fees charged on accounts can also add up.  Investors will find that by consolidating with a single provider, they will likely keep more of their assets in the long term.  Given that there are more assets to invest, the investor may be able to obtain a lower annual fee on their retirement assets.

Construct A Plan for Your Assets

Having numerous, uncoordinated smaller retirement accounts also hurts due to the lack of a coordinated plan or an investment strategy for these assets.  But not consolidating these assets also hurts other important tasks related to a successful portfolio.  Due diligence tasks such as investment research, for example, cannot be effectively completed. 

Putting a plan together for these assets also helps other important retirement considerations.  For example, required minimum distributions from retirement accounts must begin at age 70 ½.  It becomes a lot easier to not only calculate the amount required but also to avoid a potential tax penalty if all retirement assets are accounted for and no stone is left unturned.

Ultimately, these assets should fit into your estate plan as well.  It becomes easier for your beneficiaries and designated executor if your assets are properly titled and can be assessed with a proper valuation.  This significantly reduces paperwork and the chance that these assets will come into dispute during the probate process.

Simplify a Complex Problem

At 4Thought Financial Group, we recognize the complexity associated with retirement.  That’s why our unique investment methodology focuses not only on portfolios that perform well in multiple market conditions, but also provides you with a low-cost rollover option for your 401k or IRA.