Computer security and privacy gurus admonish users to never write down user names and passwords
and to never use the same password repeatedly for different accounts. But with the proliferation of
websites giving us access to confidential information like our bank and investment account balances,
keeping passwords straight in your head has become a mind-boggling proposition.

After several years of empty promises, account aggregation technology has
finally achieved a level of security and reliability to make it valuable for
consumers. Account aggregation websites use sophisticated software called
“screen scraping” to gather data from those PIN-protected accounts that have
been authorized by the individual. The sites present the information in an
easy-to-use graphic interface.

What kinds of accounts can be aggregated? Virtually any that report balances
on a website: checking and savings accounts, investment accounts, mutual
funds, 401(k) accounts, frequent flier and reward plans, travel reservation
services, credit card accounts and loans. Even monthly expenses such as
phone or utility bills, if available online, can be included in your aggregated
account.

After you’ve authorized the accounts the aggregation service can access for
you, you can manage those accounts by setting payment or low-balance
reminders, making on-line payments and tracking your net worth.

Some sites even offer digital document storage, providing a paperless
depository for wills, insurance policies, powers of attorney, contracts and
other important documents. Having such information easily accessible can be
a relief for your family if, for example, you become incapacitated or die
suddenly.

Obvious benefits to account aggregation include ease of access (only one
password to remember), a one-stop source for financial as well as
nonfinancial information, information available any time and less time
spent reviewing paper statements.

An even bigger benefit comes in the enhanced picture your financial
professional can get of your personal situation. Knowing your liabilities
(credit card accounts, mortgage, auto loan) as well as your assets can help
your trusted advisor build a more complete financial plan and keep current on
your status.

Not all aggregation sites offer the same amenities, so make sure the site has everything you need before
you do the work of setting up your accounts for aggregation. You may want to visit with your financial
professional, who may offer an account aggregation tool among his or her services. If not, he or she can
help you determine which features will be most valuable to both of you in building that big picture of your
personal finances.

This article was submitted by Robert Valentine of Financial and Retirement Management.Robert Valentine is a well-known expert in the matters concerning investors. His articles on financial planning matters that concern investors have been published by several publications throughout the United States.