Wealth coordination – the key to financial agility

Byron Moore wealth coordination

Byron Moore

Moore for your Money


Question: I struggle with follow through. I’ve made several financial promises to myself, but I just don’t keep up with the details. The only thing I can say I’ve ever done consistently is my 401K, and that’s because it happens automatically and I never think about it. What can I do to improve my follow through?

Answer: Make it automatic. Like that 401K of yours.

We tend to overestimate the value of the big commitments we make in a rush of conviction and enthusiasm. Conversely, we tend to underestimate the value of small but growing habits we practice over time.

Try this simple idea: use a wealth coordination account (WCA).

A WCA is just a checking account that is dedicated to your wealth building efforts. It acts as the Grand Central Station of all the flows of money that are now coming into and going out of your financial life – you just don’t have an effortless way to keep track of them all.

Now you do.

Your WCA is not your household checking account. It isn’t your savings account for vacations, tax payments or that cosmetic surgery you want.

It is for long-term wealth building. So keep everything else out of it.

Since most people are plagued by debt and have no plan to extricate themselves from its slavery, let’s deal with it first.

But didn’t I just say to keep everything out of the WCA that isn’t long-term wealth building? That’s actually the point. The monthly cash flow you are now sending to the credit card company needs to eventually be re-routed back to you. The way to make that happen later is to start running that cash flow through the WCA now.

Let’s say you owe $1000 on a credit card and you are paying $100 per month to the card company. With the WCA strategy, you’re going to have your bank automatically transfer $100 each month from your household checking account into your WCA. Then you will also set up an automatic payment from the WCA to the credit card company. In about eleven months the credit card company will stop accepting those payments (the card will be paid off), but you will continue those automatic transfers from your household account into your WCA – very much like you do with your 401K each pay period. It’s automatic and you hardly (ever) think about it.

Without the WCA, that cash flow now going to the credit card company will wind up staying in your household account and (in all likelihood) being spent. In fact, you’ll wonder how you ever got by without it.

Do you save money systematically now? Great – put it into the WCA first.

Do you invest in mutual funds on a regular (monthly) basis? Set up an automatic draft from your household account, to the WCA, then to the mutual fund. That way you can keep track of what you’ve done.

Do you have rental property? Rents in excess of your operating expenses can be deposited into your WCA.

Do you get an annual bonus? Are you expecting a tax refund? Don’t deposit it into your household checking account – that’s like putting a post-it-note on a dollar that says “spend me!” Deposit it into your WCA.

Do you earn dividends and interest off of taxable stock and bond portfolios, or mutual funds of the same? Consider having the interest and dividends paid to your WCA. That way you can decide if re-investing back into the same portfolio makes the most sense.

Overtime, deposits will tend to continue going into the WCA, while some withdrawals will cease (like debt payments). As this automatic financial snowball keeps rolling, it will gain size and speed. But rather than simply letting it accumulate inside the WCA, on a regular basis you’ll want to redeploy that capital in a balanced, diversified way throughout your financial plan. It may be used to shore up your protection, rebuild savings or invested to grow.

Don’t leave your financial success to chance or even good intentions.

Automate the process, starting with a wealth coordination account.

byron signature small

Byron R. Moore, CFP® is Managing Director / Planning Group of Argent Advisors, Inc. Mike Jones is Managing Director / Investment Group of Argent Advisors, Inc. Write to either at 500 East Reynolds Drive, Ruston, LA 71270 or call (318) 251-5800. This newsletter is available via email on a free subscription basis. You can subscribe by clicking here. Direct any questions, comments or suggestions to Byron Moore at bmoore@argentadvisors.com or to Mike Jones at mjones@argentadvisors.com.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Argent Advisors, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. The opinions of any single advisor do not necessarily reflect the opinions of Argent Advisors, Inc. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Argent Advisors, Inc.. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.
Argent Advisors, Inc. is a registered investment adviser registered with the Securities and Exchange Commission. Argent Advisors, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. Argent Advisors, Inc does not offer tax, legal or insurance advice. If you are a Argent Advisors, Inc. client, please remember to contact Argent Advisors, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. A copy of the Argent Advisors, Inc.’s current written disclosure statement discussing our advisory services and fees is available upon request.


Argent Financial Group

Celebrating its 30th anniversary in 2020, Argent Financial Group (Argent) is a leading, independent, fiduciary wealth management firm. Responsible for more than $30 billion in client assets, Argent provides individuals, families, businesses and institutions with a broad range of wealth management services, including trust and estate administration, investment management, ESOPs, retirement plan consulting, funeral and cemetery trusts, charitable organization administration, oil and gas (mineral) management and other unique financial services. Headquartered in Ruston, Louisiana, Argent was formed in 1990 and traces its roots back to 1930.

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