So, you have now figured out just exactly what kind of assets you have to work with and you have a good plan set out for consolidating your retirement money. At this point, you might feel like you just get to sit back and watch the wealth grow, right? This is definitely not the case! In order for you to have a successful and comfortable retirement, you also have to evaluate and organize your investments and make sure that they stay on track with the goals that you are trying to reach. Don’t get lazy now; here are some helpful ways to keep your investments in line.
Examining Your Investments to Consolidate Your Retirement Money
Sit down and make a comprehensive list of your assets and where you currently have them invested. You should do this by grouping them into categories of time horizons and your risk tolerance and what kind of objective you are fulfilling with each. Examine each one to see how well it is fitting the goal of consolidating your retirement money. Make sure that you have enough money in your safer, slow building investments to keep you well protected for those rainy days.
When you are evaluating your portfolio, it’s important to look at the amount of time that you are willing to let your investments grow as well, especially if you are not going to retiring for several decades. This can give you some really good incentive to put a little bit more into growth funds in order to effectively capitalize on your opportunities to consolidate your retirement money to its fullest potential.
Organization Is Key for Consolidating Your Retirement Money
Once you have looked at each one of your investments and know a little bit more about where they are sitting at, you should take steps to make sure they are well organized in order to achieve your goals. The first thing to look at is the way that your individual accounts are divided. You can rearrange your investments to make your life a little easier and to reduce confusion.
If you have several different IRAs then you can easily put them together to make things simpler. Pay attention to any penalties for other types of accounts that you might want to combine and keep in mind that with some of them there can be tax issues for combining them.
If you have investments that are funded by your money after tax then it is really important for you to keep them separate from your other investment types. If you don’t then you will have to pay attention to your distribution schedule to avoid being penalized. This can be a lot of hassle when you are trying to consolidate your retirement money and it’s best to avoid this situation.
Don’t Be Afraid To Switch Things Up
You should remember that you didn’t sit down and spend all of that time evaluating your investments for no reason. It’s necessary for you to actually pay attention to the information that you have gathered so that you can make sure that all of your money is doing exactly what it is supposed to be doing for you. If you notice something that is not performing well, then don’t be afraid to replace it with something that might work better, or to take that money and add it one that is doing what you need it to.
Take this information to look at how diversified your portfolio is, as well. Having it all laid out in front of you in one area can make it a lot easier for you to tell if you need to make some adjustments. You can prevent your portfolio from becoming too lopsided by simply paying attention to where you money is sitting. This gives you the perfect opportunity for some rebalancing.
Make sure that you are paying attention to how you consolidate your retirement money. This is the only way for you to be effective and efficient with your investments. If you find that you don’t have the time or the patience for this task, then it is critical that you have a financial advisor that you trust to help you with the decisions regarding your portfolio.
Remember, you need to evaluate your investments from time to time and make sure that your portfolio is diverse and is performing to match your expectations. You also can consider combining certain types of accounts in order to simplify your life and cut down on the number of people and companies that you have to go through for your money. If you do this, however, pay special attention to the tax issues surrounding different kinds of accounts. All of this should make it much easier for you to see how your assets are growing for you and how you can adjust them for better profit.