How To Simplify Investments And Boost Returns

Fight “portfolio sprawl” with these tips.

- Sergei Klebnikov

INVESTING CAN OFTEN seem complicated, but it doesn’t have to be. In fact, when it comes to managing your portfolio, a streamlined approach with few funds and fewer accounts can help you make the most of your money—and could even boost your returns, says Morningstar director of personal finance Christine Benz.

Benz, who recently published a report on fighting what she calls “portfolio sprawl,” says decluttering your investments can be one of the easiest ways to improve your finances. That’s especially true for older workers and those nearing retirement, since they’ve had the most time to collect extra baggage.

Sprawl is a problem because it makes it hard to keep tabs on what’s in your portfolio, not to mention your asset allocation across different accounts, she says. “It just requires more oversight than is ideal.”

We interviewed Benz to talk about this challenge. Here are three steps to success:

CONSOLIDATE ACCOUNTS