“I had no idea my investments were tanking.”

April is financial literacy month. And for us, being financially literate starts with knowing what you have and where you have it. If you don’t know where your accounts are, you probably have no idea how your investments are performing. Neglecting your investments is a great way to sabotage your long-term financial goals.

The Hold-Up

We have found that the hardest part of financial planning with clients is the lag time between when we decide we are moving forward and when we actually start the process of planning.  The reason being is that most people don’t know if they use paper or e-statements, what institutions hold their accounts, where to find their paper statements, or the login information used to access their e-statements. The most important aspect of being financially literate is understanding what you have and where you have it.  

Our Advice - Get Organized

1. Accounts- Keep a running list of the institutions and account types you have: checking, savings, joint, individual, Roth IRA, IRA, 401k, 403b, 457, etc. If you are unsure of which each account type is, check out our blog about the different account types. If it’s easier, you can label them as cash, retirement, or non-retirement. Be sure to list them in a spreadsheet to keep everything organized. If you are concerned about the safety of your information, just include the basics - like the name of the institution and the name of the account, as a point of reference.  
2. Statements- Understand which institutions provide your statements electronically or via paper statement. Often, clients forget when they have accounts at multiple institutions, and how they receive them. If you keep a running list, you can always refer back to where you can look for the information.

Know the frequency to which you should be receiving statements – monthly, quarterly, or annual are typical. It’s a lot easier to compare how you are doing if you have all of your statements in one spot, software that aggregates positions from different institutions, or a professional that will help you keep track. 

• For all electronic logins, keep a password-protected list of your usernames and passwords. Some apps that will store and protect private information include RoboForm, 1password, keeper, NORPAC, and others.
• For paper statements, keep a basket or drawer designated for all financial statements that come in the mail. This way, they are organized and easy to find when you need to reference them. 

Help Us Help You

The purpose of financial planning is to map out a path based on what we know today. We take what you make and subtract what you spend to determine excess or deficit in spending. Then, we take that number and reference it to what you own to maximize the output over time. We NEED to know what you have to make that successful, and you should know that too.

If you want to understand what your path to wealth maximization can look like, schedule an appointment by:

• Calling: 973-554-1770
• Emailing: myplan@grwealthplan.com
• Texting:  862-217-5344

Happy organizing!