Fair warning: This article is a bit of a trap. While there are some people who can successfully manage multiple retirement accounts, I wouldn’t recommend too many for most people. There are many complications that arise when keeping track of these accounts. Logistics can often get in the way of efficient savings, so my best advice for multiple accounts is to consolidate. To help me explain why, we have a video analysis from Retirement Matters Inc. In the video, they go over a few reasons why having too many accounts can hurt your retirement.
Who is RMI?
Retirement Matters Inc is a YouTube channel focused solely on retirement advice. the founder, Dave Grant, is a certified financial planner who has made a living by improving people’s retirement plans. For several years, he has been producing high-quality retirement content for average folks like you and me to use. He has a wealth of information, so we are going to hear what he has to say.
In Summary
So, while you may not be over the 3 account limit, but everyone is different. If you’re looking up how to manage multiple accounts, odds are you haven’t purposefully ended up with them. If it isn’t a purposeful plan, then you shouldn’t fall into the trap of complexity with your money. While harder may feel more effective, this usually isn’t the case for the average worker. You have enough to worry about, and there is enough variety within each account to utilize flexibility. You don’t want to end up having to track so many different fees that you are just throwing away money, like when you forgot to cancel the free trial at your local gym. So, consolidate if you can. Simplicity is the best way to maintain consistent gains within you retirement account.
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