YOUR MONEY KISS Financial Hassles Goodbye (NAPSA)—Simplicity is key to developing a successful financial portfolio. According to Rande Speigelman of the Schwab Center Bank Accounts Credit Cards Mutual Funds for Investment Research, con- sumers should focus on the KISS principle—Keep It Simple, Sweetheart. Simplifying finances can save more than time and hassle. It can also save money. Below are five steps to simplify your finances. Consolidate Accounts Too many accounts scattered among banks and brokerage houses creates problems: It’s harder to track investments and you may be paying more in fees. Consolidating investment accounts—even banking services— with a single provider makes managing financial affairs far easier. In addition, you will be more likely to meet minimum balance requirements and pay less in fees. Cut Down on Credit Cards If you have more than one or two major credit cards, in addition to numerous department store and/or gas station cards, you probably have too many. Even if you don’t use them all, a large number of cards can hurt your credit rating because lenders may be wary of all that available credit. If you do use more than one or two cards, you could end up making a handful of minimum payments each month, burying yourself in interest payments. Mutual Funds: Enoughis Enough Too many funds, particularly in a single asset class style such as large-cap growth, could turn you into a “closet indexer.” You end up paying higher fees for active management when, if you put your mutual funds all together, you’d get pretty much the samethingif you bought an index fund. Even worse, all those different man- agers could be buying the same stocks, increasing your risk and exposure. By consolidating your portfolio into fewer funds, you could find your portfolio is both easier to track andlesscostly. Many people love the idea of con- solidating their finances. TRAs: All for One and Onefor All There maybe estate planning reasons to hold more than one IRA but for most of us, one traditional IRA, one Roth IRA and one employer plan such as a 401(k) should do the trick. If you have more than one traditional IRA, con- sider consolidating them into a single account. And if you have 401(k) assets with a former employer, consider rolling them over into your traditional IRA. You'll find it easier to keep track of your investments and you might even end up paying less in fees overall. Filter the Noise With newspapers, magazines, radio, television and the Internet, we have access to more financial news and information than previous generations could ever have imagined. Unfortunately, access to lots of information doesn’t always lead to wise decision-making. Financial goals should be measured in years and decades, so don’t make rash decisions based on day-to-day news. Tune out the clatter and stay on course with long-term goals. For additional tips on how to simplify your finances, visit www.schwab.com Prospectuses containing more complete information, including management fees, charges and expenses, are available from Schwab. Please read the prospectus carefully before investing or sending money. Charles Schwab & Co., Inc. Member SIPC/NYSE. (0803-12057)
