Easy Ways to Organize Your Money
I’ve been giving many seminars the last few months at colleges, artist organizations and for entrepreneurs. For more information, click here.
Let’s face it we all have an old 401k lingering, IRAs at multiples firms. What surprised me recently when I was teaching my course at Barnard College Athena Center for Leadership “Keeping Your $20’s In Your 20’s” someone asked what should she do about her 401k since she’ll be changing jobs every few years. She hasn’t even started working yet! But that is today’s reality- we switch jobs often or are Entrepreneurs or Freelancers working for ourselves. I also have worked with so many entrepreneurs and freelancers over the last fifteen years and the one theme is they have multiple IRAs at various firms. Plus a pension or bank account they forgot about. Here are some easy ways to get organized - which helps you make more money!
Before I tell you what to do, think about why you should get more organized.
1. Seeing all your old retirement accounts in one place helps you realize you have more money saved than you thought.
2. You save money by consolidating accounts and examining fees
3. Motivates you to be more proactive and save more for your IRA
4. Chances are you have duplicate mutual funds or are not properly diversified. Let’s remedy that!
1. Gather all your statements. This is the HARDEST PART!
2. Consider transfering them to a no-load low expense ratio firm such as Fidelity, Schwab or Vanguard
3. Pick either a target date retirement date mutual fund or 4 mutual funds from the main groups (i.e. Large Cap, Small Cap, International and Bond)
4. You will be surprised how much you have saved and motivate to save more!