Attorney, Daniel H. Alexander has over 20 years of experience in Estate Planning, Business Planning and Civil Litigation.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
Back to Blog
Tip #5: Consolidate accounts, diversify and reduce risk.
The fewer accounts you have the easier it will be for you to manage as you get older and the easier it will be for your successor trustee. However, be aware of the FDIC rules regarding amounts protected in banks. Currently, each depositor is insured to at least $250,000 per insured bank. That's per bank, not per account.
Additionally, you need to be sure your accounts are diversified, especially if we are of retirement age or older. Diversified accounts can weather the storm better and help to ensure the funds will be there when needed.
Finally, at retirement age or older, reduce your investment risk. Again, so that the funds will be there when needed. Riskier investments usually have a potential for higher returns, but they also have a higher likelihood of losing. We want to make sure your funds are there for you when you need them!