r2i forum

While doing taxes this year and looking at my financial health, I realized that I have been maintaining too many accounts - checking, savings, credit cards, etc. I am thinking of consolidating the accounts in the following manner.

1) Checking
Only one account where my and my wife's salary gets direct deposited. Till now our salaries go into different accounts. Also I have another checking account with a local credit union which I am planning to close.

2) Savings
One money market account which is linked to the checking account. I have other savings accounts with HSBC direct, ING direct for me and wife, local credit union. I am planning to close all these accounts except HSBC direct (see point 3).

3) Savings account for emergency fund
HSBC direct account. Now I have ING Direct,

4) One brokerage account
Taxable account for stock trading

5) One investment account
Taxable account for MF/ETF trading. Decided on Vanguard after reading multiple threads in this forum

6) One retirement account each for self and wife
Tax deferred account. There could be multiple in the future but would like to consolidate as much as I can.

7) Credit card accounts
Idea is to have a Discover, Mastercard and Visa with add-on for spouse. Mileage related cards and shop cards come and go.

Gurus here, pls suggest your opinions.

Also, I would like to know if mostly people consolidate the accounts between spouses or are there advantages of keeping them separate. I am leaning towards consolidation as I have indicated above, to avoid headaches maintaining different accounts.

Consolidation is good for Checking, Savings and Credit card accounts. But for investment accounts if you are planning to R2I in near future then it's better to have accounts separately between you and your spouse. The reason being Indian tax system treats such assets as individual asstes and hence eligilble for more deduction. India does not have conecpt 'MArried filing jointly' like in US.

this may be a minor thing. accounts are FDIC insured up to 100K. chances are quite low of ever having to use this. and you really should not be keeping 100k in an checking/saving ac.

Never consolidate your credit cards. The 0% offers can be used effectively for investments.