Advantages to Consolidation
- Paperwork is reduced
- Consolidation of statements: all banking and brokerage activity can appear on one statement.
- Easily manage your money flows
- Direct deposit of paychecks, pensions etc.
- Automatic sweeps to interest bearing accounts mean less idle money
- Checks & credit card activity are summarized in one monthly statement
- IRA distributions start automatically at age 70.5 and are deposited into checking with tax withheld
- Automatic payment of recurring bills
- Chances of (expensive) errors are reduced
- All assets can be viewed and analyzed in one step
- Portfolio values are easy to monitor
- Investment returns can be more easily calculated
- Allocation is easy to monitor
- Simplified tax preparation and record keeping
- One source for 1099’s, capital gains, dividends, and interest
- Check writing and debit card activity is:
- Maintenance of cost basis information and other historical information
- Estate administration (in case of death) or disability is centralized
- In the event of death, every institution that holds the decedent’s assets will require one set of documents:
- Death certificate dated 60 days or less from date of death
- Affidavit of domicile
- Letters testamentary
- Copy of trust, if applicable
- Benefits of centralized estate administration include:
- One source for all requirements
- Continuity of management and custody
- Conservative investments traditionally associated with a bank are available
- FDIC Insured money market funds with checking access
- US Treasury securities
- FDIC Insured CDs (w/ totals over $100k)