In 2012, former House Speaker Newt Gingrich did something that you wouldn’t have expected from someone worth approximately $6.7 million (according to public financial disclosure forms from 2011). He bounced a check.
That goes to show that no matter how much money you make, it’s the little things – in this case, a delay in processing the check and forgetting it was still out there when the account was closed – that can trip you up. And while they may come out all right in the wash (we’re guessing Gingrich’s bank waived his insufficient funds charge after learning of his error), they can cost you time and extra fees and charges. In some instances, they can even damage your credit rating.
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It helps to have a system that puts all your financial information at your fingertips. That used to mean organizing your printed financial statements. Today it means going high tech with account aggregation, which uses sophisticated software called “screen scraping” to gather data from accounts you can access on the Internet. Your information is password protected and appears in an easy-to-use graphic interface. Plus, you have just one password to remember!
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Not all aggregation sites offer the same amenities. Your financial advisor can help you determine what you need and which accounts to include that will give you the best overall picture of your day-to-day finances. You may be able to set payment or low-balance reminders and make online payments – helping you eliminate the hassle, cost and embarrassment of late payments or bounced checks.
Some sites even offer digital document storage, providing a paperless depository for wills, insurance policies, powers of attorney, contracts and other important documents. Having such information easily accessible can be a relief for your family in case of an emergency.
Using account aggregation can give your trusted advisors a more complete picture of your personal situation. That in turn better enables them to make recommendations best suited to you and to suggest adjustments as your big picture changes. So simplify your life – ask your financial advisor about account aggregation.
