Neaten Up and Fly Right
Consolidate accounts to save yourself time and money.
January 22, 2008
By Jennifer Campion
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Women today juggle a multitude of roles — career woman, wife, mother, bill payer, chief cook and bottle washer. No wonder we’re often overwhelmed. And those piles of paper! At the end of a busy day, we come home to an overstuffed mailbox that demands our attention — if we have any left to give.
Some tough-love advice: Deal promptly with your incoming mail and you’ll actually save yourself lots of time in the long run.
First, sort out the important correspondence from the unimportant. Second, take a good look at the unimportant stuff. Do you have any idea how many mailing lists you’re on?
No need to find out the exact number; it’d probably just depress you. Instead, remove your name from lists by registering with the Direct Marketing Association’s Mail Preference Service at https://www.dmachoice.org/MPS/. (This option is available only to consumers, not to businesses.) You can fill out an online form or print out and snail-mail the registration document. Both methods cost $1. You can charge the fee to your credit card online or mail a check with your registration.
Keep in mind that it can take up to 90 days to feel the full benefit of participation in the Mail Preference Service. Also, you will still receive correspondence and catalogues from companies with whom you already do business. But you should spare many trees by taking your name off direct-mail lists — and save yourself a lot of time.
Evaluate what is left in your stack of mail. Do you write regular checks to cover certain monthly bills? Consider an online bill-pay program. Check with your bank to see if it offers this service.
Setting up the bill-pay program takes some preparation: You’ll need to know the names of your vendors, their addresses and your account numbers. Once your monthly payments system is set up, all you do is log on to the site, choose the vendor, and enter the amount and the date it is to be paid. You even receive an immediate confirmation of payment.
This method of bill paying eliminates instances of checks getting lost in the mail. Past payments can be tracked easily if you ever need verification. Think of the time you’ll save! If you prefer your incoming bills to be e-mailed to you rather than sent through the U.S. Postal Service, this can often be done, too. Check with your vendors.
Another issue: Do you receive multiple investment statements in the mail? If so, consider consolidating your investments. The benefits are numerous. But first you must evaluate your investments — bank accounts, brokerage or mutual funds, IRAs and insurance products.
If you have opened multiple IRAs over the years, you may be paying a maintenance fee for each account. That may be incentive enough to consolidate your accounts. One account, one fee!
Do you still have money in a former employer’s retirement plan, such as a 401(k)? Roll it over into your IRA, a tax- and penalty-free transaction. This will give you more investment options than you had under the old company plan.
Consolidating also allows you to keep better track of performance and investment choices, and will make life simpler if you have to add, delete or change a beneficiary.
This same simplifying strategy can be applied to your regular investments and nonretirement assets. Do you have accounts at various brokerage firms, banks and/or mutual fund companies? What if you could combine all holdings into a single statement? Many firms will encourage you to do just that.
Research various firms to see which ones offer incentives, such as reduced fees, for keeping money with them and what minimum amount is required. Fees for services, including maintenance, wire transfers and online bill-pay, are often waived.
Make a wish list of the services you would like to have and then inquire about them. This can save you money. By consolidating your holdings, you instantly become a larger client than you were before and thus may have more direct interaction with your firm or adviser. More important, you will be able to see your investment performance evaluation on one statement. You might even avoid overlapping or duplication in investment choices.
You do a number of things by following these steps. First, you cut down on trash. By choosing to consolidate investments, you can quickly determine your total account value and investment performance. You also may save on fees or pick up a few additional services for being a valued client.
Most important, you’ve now freed up time to spend relaxing with family or friends.
This is just a beginning. Eliminating clutter in your life allows you to focus on your priorities. Take a few minutes to think of other areas you can clean up. Pretty soon you’ll find time in your day that was not there before.
Make 2008 the year of you!
The material contained in this article has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. Citigroup, Inc., its affiliates and employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should consult with an independent tax adviser based on the taxpayer’s particular circumstances.
Jennifer Campion is a financial planning specialist with Smith Barney in Baltimore. This article was written by Jennifer Campion and does not reflect the views of Smith Barney or its affiliates. Visit Jennifer’s website at www.fc.smithbarney.com/jennifercampion.
