Some doctors describe their financial organization skills…. or lack thereof … as chaotic. While it was once said that art is the triumph over chaos, technology may be a huge asset in the battle against financial chaos.
Technology has both positive and negative implications when it comes to personal financial organization and management.
On the one hand, technological advances have left many feeling overwhelmed. The sheer magnitude of information available and thrust upon us may actually impede our abilities to make financial decisions. There is infinite data available for us to research and learn about each of our investment decisions. In addition, economic pundits, financial experts, market media personalities and everyone in between push out their opinions on what should be done with our hard-earned money. Many people are on data overload.
Technology has also created new financial management responsibilities for us. We must manage all of our online accounts and passwords in a safe and secure manner. Managing multiple accounts calls for ingenuity, and challenges us to find a way to look beyond the individual accounts to our entire financial picture.
On the flip side, technology advances may enable people to become far more financially organized than they have ever been before. Specialized wealth management and financial software programs attempt to provide clarity and financial organization. The result of such organization may be increased clarity of financial purpose, and a greater sense of control which may be a positive step toward achieving your financial goals.
Here is what technology may do for you when it comes to financial management and organization:
Create a complete financial picture
Most of your accounts may be consolidated and gathered in one secure location, accessed only by you and those you so designate. Therefore, your various brokerage accounts may be listed right alongside your 401(k) account. The key point is that your investments may be consolidated in one place, and accessed with one secure sign-on.
Up-to-date data
You may no longer have to wait until the end of the month or end of the quarter to discover your account value. Eligible accounts may be updated nightly to provide the values you rely upon in making your financial decisions. Account aggregation capabilities allow you to continuously monitor your financial life to determine how current market conditions are affecting your short and long-term goals.
Track progress toward goals
Current market fluctuations, particularly of late, can leave one feeling anxious as to whether long-term financial goals can be met. Wealth management programs with account aggregation and sophisticated reporting capabilities may help you monitor your progress towards goals so that your expectations of what it is going to take to achieve those goals are realistic.
Useful alerts and reminders
Using wealth management software, you may set up alerts so that you are notified of any unusual account activity, or when certain important dates are on the horizon (e.g., stock options vesting, etc.). Some programs even track frequent flyer miles and you may receive notifications when you have met certain reward thresholds
Secure documentation storage. An increasing number of people have taken the paperless approach in their home life organization. It can be quite beneficial to have your important financial and legal documents, (legal papers, wills, trusts, birth certificates, family photos, medical records, etc.) along with your secure financial information. This way you may have access to it, in any location that you can establish a secure internet connection?
Collaboration
One of the biggest benefits of an online wealth management system is that it allows you to collaborate with your key advisors. You may grant access to your advisors so, for example, your financial advisor (provided you have provided a written discretionary agreement), lawyer, and accountant may all work together efficiently to help you achieve your goals.
While financial planners would like to believe that our clients refer us to their friends and family because of the financial advice we attempt to impart, we know that is only half of the equation. The other half of the equation is the technology we use.
Rey Descalso, President of Privada Wealth Management, has been serving the Medical community for over six years. If you would like to learn more about Privada Wealth Management, visit www.privadawm.com or email Rey at rey.descalso@jwcemail.com.
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