Is it Time to Clean up Your Portfolio for The New Year?

By Yann Kostic from the December 2014 Edition

For many of us, a portfolio of investments is like a junk closet: It starts out organized, but gradually collects random stuff until it needs some serious cleaning.

But unlike cleaning a closet, cleaning your portfolio can save (or even earn) you money. The first step is to look at the number of accounts you have. Over our lives, we tend to accumulate accounts as we move and change jobs, leaving us with many we don’t need. So, go through your accounts, and consolidate.

First, close down all but one brokerage account for taxable assets. Putting investments in one account makes it easier to monitor your asset allocation, which is your mix of stocks, bonds, and cash.

Additionally, doing so could lower fees. Ensure you are dealing with a stable brokerage that is or will quickly become familiar with your financial situation.

Then, roll all of your tax-deferred retirement assets into one plan. In addition to allowing you (or your advisor) to better monitor your asset allocation, consolidating 401(k) and Individual Retirement Accounts (IRAs) will make it easier to calculate the required minimum distributions you must take from those accounts once you pass age 70 1/2.

Once your accounts are consolidated, you’ll want to look at your investments, asking if they align with your longterm goals. At this point, it’s important to discuss your objectives with your advisor, particularly when you’re thinking about selling, as doing so can result in capital gains and losses, and a potential tax impact.

Yann Kostic is a Financial Advisor (RIA) and Money Manager with Atlantis Wealth Management, specializing in retirees (or soon to be), self-reliant women and Expats in Mexico. Due to a recent transition to an international custodian, firm clients are now allowed to hold multiple currencies in a single account, including US, Canadian dollars and Mexican pesos for instance. Yann splits his time between Florida and Lake Chapala/Manzanillo. Comments, questions or to request his Newsletter “News You Can Use”. Contact him at Yannk@AtlantisWealth.com, in Mexico: (376) 106-1613 or in the US: (321) 574-1529

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