Financial Clutter can be hazardous to your wealth

When it comes to new customers and potential customers, I often get into financial chaos. I call a financial mess as a "financial things." Just so crowded closet or garage, if you do not type, you will not know what you have.

The two most common forms of financial mess that meeting are as follows:

Multiple accounts overlap. Maybe some have maybe 3-4 IRA accounts, a 401 (k) from a work in progress and one or two otherfrom previous jobs, a brokerage account, a pension, etc.

Often, in addition to many accounts, customers, or in the pipeline, investment vehicles that best described as a collection of different. Mutual funds, equities, fixed income sub-account.

A problem in both cases is that for most people is simply too difficult to keep track of all these investments, particularly those establishments rarely, if ever, are seen as an investmentPortfolio. If anyone has the knowledge or know-how, a proper review and control of their investment will take time. Busy as we are with work, family life and general management of our finances to get pushed down the list.

Another problem is that a collection of investment will prove to be improperly allocated for your needs. A number of years I had to check a client wants to work with a financial planning. He felt that was diversesince he had 19 mutual funds. The analysis of funding for the overlay of companies, we found that all 19 instead of Microsoft, Intel, Cisco and a number of other stocks. Almost all funds are Large Cap Growth Fund. This was a few months before the correction point Com/911 2000-2002. I suspect that if these customers had made money on all these would hit the bottom down by 50% or more of the time the markets.

For this reason, one of the first thingsI believe that with a new client class operation, the set-up an Excel spreadsheet with a simple line for each item and change scheduled. I complex, the sharing of customer and provides a basis for a reallocation of the portfolio.

While I focused on investment, the type of noise described above is often accompanied by disturbances in other areas:

non-existent or missing beneficiary designations on insurance policies do not, annuities andRetirement accounts. Since the receiver is called the last factor, as these items are distributed at the time of death, a missing or outdated designation of beneficiary may choose these activities, go to someone else as if you were there. Beneficiary designations can be updated on various changes in life, including marriage, divorce, birth of a child, a death in the family.

Obsolete or no estate planning documents. I do not mean muchHere, perhaps more in a future post, other than this. If you have minor children usually need an upgrade, the appointed guardian required for children (ask a lawyer for the needs of your state). If it is not the worst has happened, the result can potentially for your children and your family very bad.

Lost or misplaced assets. This is huge, and why many states have an unclaimed property department, usually inState Treasurer's Office. was a true story, I recently discovered that over $ 1,500 to an old address was sent in 1985. I filled the forms and about 12 weeks later I received my check from the treasurer Wisconsin.

As a financial planner, the first things I heard to gather information on any financial investment for a new customer, as well as copies of important documents and tax returns. This gives me an idea of where the customer and allows us toStart planning how you will receive when they do financially.

If you work with a financial advisor, call the financial mess in your life to be eliminated.

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