The Season of Surprise Statements: Why Financial Organization Matters
As the year winds down, mailboxes start filling with a variety of envelopes – tax forms, policy updates, year-end summaries, and statements from accounts you haven’t thought about in ages. It happens every year: clients call us saying, “I didn’t even remember I had this account!” If your mailbox is suddenly full of unfamiliar paperwork, it’s a sign that it’s time to organize your finances.
Maybe it’s an old 401(k) from a job you left years ago, a savings account with $312 still sitting in it, or an investment account you opened during your “I’m definitely getting my life together this year” moment – all quietly chugging along without you. These documents showing up are actually helpful reminders that your financial life is bigger and more scattered than you may realize. And that’s exactly why it’s so important to organize your finances before the new year hits.
Don’t Forget About Your Old Investment Accounts
One of the most common oversights we see includes forgotten investment accounts. When people change jobs, move, or simply shift priorities, accounts can get left behind. Over time, they add complexity, fees, and confusion. If you feel like you have “financial clutter,” you’re not alone – this is the time of year when those forgotten pieces make themselves known.
Getting everything back into one clear picture can help you make better decisions. Consolidating accounts, updating beneficiaries, and making sure your investments match your long-term plans are essential steps as you organize your finances going into the new year.
You Could Still Be Paying Advisory Fees – Without Realizing It
Here’s something not many people think about: you may still be paying advisory fees on forgotten accounts.
Some retirement plans or investment accounts automatically charge portfolio management fees, fund expense ratios, and administrative fees, even if you haven’t looked at or touched the account in years.
That means you’re not only leaving money scattered – you’re potentially paying for advice and management you’re not receiving. Consolidating accounts, or at least reviewing them, can help ensure your money is working for you, not draining quietly behind the scenes.
Your Money Might Work Harder Somewhere Else
Another issue found with forgotten accounts can be directly related to the investments themselves. There are times these investments are outdated, meaning they may not suit your best needs anymore.
We often see things like:
- Default funds that no longer match your age or goals
- Extremely conservative (or overly aggressive) allocations
- Cash positions earning next to nothing
- Funds with higher-than-average fees
In other words, your money could be working harder for you if you simply bring everything into view. When you organize your finances, you give your investments a chance to align with your long-term goals – not with whatever default settings someone selected 10 years ago.
What Can You Do?
If you’re not sure what these surprise statements are for, or simply don’t know what to do with them, just give us a shout. Visit us at jbenjaminfinancial.com to see what we’re all about or give us a call at 843.352.3262 to get started today.