I'm a Financial Adviser: When Managing Your Wealth Feels Like a Pain, Simplify
Multiple accounts, inherited assets and life transitions can make finances harder to manage. As you head into retirement, often one of the smartest moves can be simplifying what you already have. Here's how to do that.
Not long ago, I worked with a couple trying to untangle a financial puzzle they had built over several decades.
They had done a lot of things right. Both had successful careers and had been consistent savers. But along the way they had accumulated accounts in several places — retirement plans from past employers, checking and savings accounts at different banks, and investment accounts opened for various purposes over the years.
At the time, each decision made sense. One account came from a job change. Another was opened to take advantage of a promotional savings rate. A third was connected to income from a side project.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But years later, the couple was struggling to keep track of how everything pieced together. Required distributions were landing in unexpected places, and some accounts hadn't been reviewed in years. What once felt organized had quietly become complicated.
Most people don't set out to create financial complexity. They're simply responding to whatever financial decision is right in front of them at the time — a new job, a growing family, saving for college or an opportunity that seems sensible in the moment. Over time, those decisions add up.
At a certain point, financial planning shifts from building wealth to organizing and understanding what you've already built. And for many families, that's when simplification becomes just as important as growth.
When more accounts don't mean more control
Having more accounts can sometimes create the impression that a financial plan is more sophisticated or better organized than it really is. In reality, complexity often makes it harder to see what's actually happening.
When accounts are spread across multiple institutions, it becomes harder to see how investments work together. Portfolios may unknowingly duplicate each other. Cash reserves can sit in several places without anyone realizing how much is actually available, and even tracking withdrawals can become more complicated than it needs to be. Over time, the structure itself can become the problem.
Instead of helping people feel more in control, a patchwork of accounts can make it harder to answer basic questions: How much risk am I really taking? How much income will these assets produce? Am I saving or spending at the right pace?
Financial success doesn't always make life simpler. Sometimes it just adds more moving parts. That's often the moment when simplification becomes one of the most valuable steps in the financial planning process.
When good news creates stress
Complexity doesn't always build slowly. Sometimes it arrives all at once. I once worked with a woman who inherited a substantial sum from her sister. From the outside, it looked like a financial windfall. But instead of feeling relieved, she felt overwhelmed.
For the first time in her life, she was responsible for decisions she had never had to make before — how to invest the money, when to withdraw it and how to navigate the tax rules tied to inherited accounts. What appeared to be a blessing quickly felt like a set of responsibilities she didn't feel prepared to manage.
Moments like this highlight something I've seen many times over the years: Financial complexity doesn't always feel like opportunity. Sometimes it feels like pressure.
Life transitions reveal the cracks
Often, it's a major life event that reveals just how complicated things have become. Retirement can require coordinating withdrawals from multiple accounts. Health issues or caregiving responsibilities can force difficult financial decisions, and the death of a spouse may leave someone responsible for accounts they were never involved in managing.
I've also seen how complexity surfaces during health crises. One client spent close to $200,000 a year caring for her husband at home with full-time caregivers. The financial resources were there, but the uncertainty about how long those costs might continue created enormous stress.
Situations like this often force families to make decisions quickly. When accounts and plans are scattered across different institutions, those decisions become much harder.
In some cases, the complexity is compounded by technology. Many financial institutions now require online forms and digital account access, which can be intimidating for clients who didn't grow up managing their finances that way.
The more moving parts there are, the harder it becomes to respond calmly when life changes.
The value of simplification
In my experience, one of the most valuable roles a financial adviser can play is helping people simplify. That doesn't necessarily mean eliminating accounts or strategies. It means creating a coordinated system where each piece has a clear purpose and fits within a broader plan.
Sometimes that involves consolidating retirement accounts so clients can see their full financial picture in one place. Other times it means aligning investments, tax strategies and estate planning so decisions made in one area support the others.
Clarity is often more valuable than complexity. When people understand what they own, why they own it and how it supports their long-term goals, anxiety tends to fade. Financial decisions become easier because they are grounded in a clear plan.
A plan people can live with
In today's financial world, it's easy to assume that more strategies, more accounts and more sophistication automatically lead to better outcomes. But as financial lives grow, simplification often becomes just as important as accumulation.
In my experience, the most successful financial plans aren't the ones with the most moving parts. They're the ones people understand, feel confident about and can live with over time. Because ultimately, the purpose of financial planning is to help give you peace of mind.
Related Content
- Six Financial Actions to Take the Year Before You Retire, From a Financial Planner
- Three Strategies to Organize Your Retirement Accounts
- 20 Ways to Clean Up Your Finances This Spring
- I'm a Financial Adviser: These 3 Questions Can Help You Navigate a Noisy Year With Financial Clarity
- Key to Financial Peace of Mind: Think 'What's Next?' Rather Than 'What If?'
