Reducing Financial Complexity - Starting the Journey

In the past, I typically had funds at several banks and brokerages.   I also had multiple accounts at each bank and brokerage.  Each brokerage account used different strategies and had numerous different stocks, both long term and for trading.  Part of the reason for the higher complexity was  the elimination of brokerage commissions, which allowed me to increase diversity with smaller lots without incurring a cost penalty.  Complexity didn't cost more.

Even though it was a lot, I was able to keep track of our savings, investments and trading without much effort.   I also enjoyed managing the many accounts, thinking I was adding value.     Recently, I evaluated my results and discovered (no surprise) that I would have done better if I had simply invested in the S&P 500 index and didn't ever sell.  Ah, the benefit of 20/20 hindsight.

So here is my plan for simplifying:

• Have a maximum of  two banks, which has been accomplished.  One is our checking account and bill paying service, but pays very low interest rates.   The other is a credit union for our bank savings since it pays the highest local CD rates.  We no longer consider opening a new bank account to earn the bonus.
  
  
• Minimize the number of single stock positions and replace with ETFs and CDs/Bonds. Our brokerage accounts have way too many small lots individual stocks in too many separate accounts. I'm not sure what the endpoint will look like.  At this point, I am selling off most individual stocks and rotating in money market funds or bonds/CDs for now.   I will reinvest in MGK and VOO when there is market pull back or correction.
  
  
• Create regular streams of consistent annual income.  In the past, we put more emphasis on investment capital gains for our income.  However, that can be volatile to highly volatility.  I'm trying to Dividend and Bond/CD income to create more consistency.  The challenge with this approach is reinvestment at maturity.   I'm stable until 2028.  We'll see how it goes after that.

Thanks for following my journey.  In the next couple week, I will be attend financial advisor presentations that claim to achieve this.  I do not want insurance or annuity solutions so I am interested in their options.

This is not financial nor retirement advice. Please consult a professional advisor.

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