Investment Account Management Tips That Really Matter
Properly managing your investment accounts may be more important than you think. From ensuring you get crucial information to helping you avoid potential tax consequences—these details can help.
Managing your investment accounts might sound daunting, but it is crucial whether you’re flying solo or working with an advisor. Keeping your account information updated and taking occasional actions may be key to helping you make informed financial decisions and ensuring your account details match your wants and needs. Here’s a handy checklist to help you stay on top of your accounts:
1. Update Your Contact Information
Ensure your email, mailing address and phone numbers are all current. If your cell phone is now your main number, it may be time to ditch that old landline from your account profile.
Keeping your contact information updated means you won’t miss important messages about your account and investments. American Century clients can log in to their client portal to update their information.
2. Check Your Beneficiaries
Life changes like births, marriages, divorces and even retirement can trigger account updates. Ensure your beneficiary and transfer-on-death designations for all your accounts reflect your current wishes. Even if nothing has changed, you should still log in to confirm or update your beneficiary’s contact information every so often.
3. Log In Quarterly, Review Your Statements
Regular logins keep your username and password fresh in your mind, plus they help you monitor your investments regularly—a must for tracking your progress. Bookmark your investment company’s login page and make it a habit to check your statements quarterly.
It may mean you’re juggling too many accounts. Consolidating your investment accounts might simplify things and help you better see if you have gaps or overlaps in your whole portfolio. Consider talking to a consultant to find out how to consolidate.
4. Align Your Communication Preferences
How do you receive financial information? Do you have paper statements for some accounts and electronic statements for others?
Consistency can make tracking easier. Decide whether you want to store your statements (and tax forms and other pertinent investment documents) electronically or in a secure or locked filing cabinet. Log in to update your preferred delivery method.
Additionally, if you're not receiving statements, follow up. Missing paper statements could be a sign of identity theft. Learn more about how American Century Investments® protects clients' accounts, as well as how to protect yourself on- and offline.
5. Read Updates and Insights
Emails from your investment company can show how market events may affect your investments. While news outlets provide general info, company-specific updates reveal how your manager positions assets. This information can help you make more informed financial decisions when needed.
6. Reevaluate Automatic Investments
If you've received a raise or expanded the scope of your investment goals, you may want to consider adding or increasing automatic investments. Some retirement plans offer automatic increases (1% more each year, for example) to make it easier for investors to grow their retirement plan contributions and invest more when their salaries increase, too.
You can do the same with IRAs on your own, keeping in mind the contribution limits that the IRS sets every year.
7. Call Before Major Account Transactions
Potential tax implications, upcoming fund distributions, and current economic and market events could have an outsized effect on large purchases and redemptions. Make it a point to call your advisor or a financial consultant each time you make major transactions to address factors that could affect your bottom line.
If you're nearing age 73, it's time to start planning required minimum distributions (RMDs) from your retirement accounts.
You should also review your cost basis method before making a redemption. Talk to your tax advisor and investment consultant.
8. Check Account Fees
Account fees and service fees may change periodically. Watch for notifications and take note of any changes on your statements. If you're looking for additional investment options, call your advisor or investment manager to discuss them.
9. Consider Financial Aggregation Tools
Maintaining your accounts may be easier if you can see everything in one consolidated view. Online financial aggregation tools can get you started by showing all your financial information side by side. Add bank accounts, investments, 401(k)s and more for a convenient snapshot of all your finances, not just from a single company.
10. Make Regular Contact With Your Investment Company
In addition to the other tips for managing your account, consider setting up regular account reviews. Schedule a time to call a financial consultant for an annual or semiannual review, or whenever life events change your financial situation.
At American Century Investments, we can help you evaluate your goals, retirement budget and overall plans for your financial future. You can also schedule a one-time personal consultation with a certified financial planner or a few sessions to receive a detailed financial plan.
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Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
American Century's advisory services are provided by American Century Investments Private Client Group, Inc., a registered investment advisor. These advisory services provide discretionary investment management for a fee. The amount of the fee and how it is charged depend on the advisory service you select. American Century’s financial consultants do not receive a portion or a range of the advisory fee paid. Contact us to learn more about the different advisory services. All investing involves the risk of losing money.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.