Fight “portfolio sprawl” with these tips.BY SERGEI KLEBNIKOV
      INVESTING CAN OFTEN seem complicated, but it doesn’t have to be.In fact, when it comes to managing your portfolio, a streamlinedapproach with few funds and fewer accounts can help you make themost of your money—and could even boost your returns, says Morningstardirector 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 theeasiest ways to improve your finances.That’s especially true for older workersand those nearing retirement, sincethey’ve had the most time to collectextra baggage.
      Sprawl is a problem because it makesit hard to keep tabs on what’s in yourportfolio, not to mention your assetallocation across different accounts, shesays. “It just requires more oversightthan is ideal.”
      We interviewed Benz to talk about thischallenge. Here are three steps to success:

CONSOLIDATE ACCOUNTS
      For most investors, your 401(k) is tied toyour employer. That means, after you’veswitched jobs several times, you’relikely to end up with several of theseaccounts. This can make it harder tokeep track of your savings and can pushup costs, unless you consolidate theaccounts into an IRA or your currentemployer’s 401(k).
      If you don’t love your current 401(k),an IRA may be your best bet. Not onlyis an IRA not tied to your job, it typicallyoffers a far greater range of investmentchoices, including ETFs, mutual funds,and stocks, says Benz.
      Consolidating can also lower yourcosts by enabling you to qualify for fundshare classes with lower expense ratios.Still, it’s important to remember that youcan take account consolidation only sofar, Benz says. For instance, if you’recurrently employed and contributing to a401(k), you’re not going to be able to rollthose savings into an IRA until you leaveyour job. What’s more, there is no wayfor life partners or married couples tocombine their accounts. You have to keepthem separate.

USE TOTAL-MARKET FUNDS
      Benz’s next tip: Construct your portfolioaround total-market index funds. Nowsold by most large firms, including Fidelity, BlackRock (iShares), Vanguard,and Schwab, these funds offer bothconvenience and a lower price. “It’simpossible to beat the expense ratioson broad-market index funds,” says Benz.The three core areas you want to focuson: total U.S. stock market, total internationalmarket, and total U.S. bondmarket indexes.
      Another portfolio option is a targetdatefund, which holds a mix of stocksand bonds that grows more conservativeas you age and can be a “superefficient”way to save for retirement, accordingto Benz.
      Of course, if you plan on consolidatingyour holdings, don’t overlook taxes. Intaxable accounts, selling fund shares thathave appreciated in value likely meansrecognizing a taxable gain, even if youimmediately reinvest the money. Intax-advantaged accounts like 401(k)s andIRAs, capital gains are not an issue.

DON’T OVERLOOK CASH
      Finally, turn your attention to cash.Default options like brokerage sweepaccounts can have notoriously low yields,says Benz.
      Instead, check out what’s availablefrom online savings accounts. Amongthe best available rates, according toMONEY’s annual Best Banks survey:accounts at Marcus by Goldman Sachsand Synchrony, which each offera savings rate of 2.25%. In contrast,brick-and-mortar banks offer savingsrates as low as 0.1%, according to ourBest Banks database. Another goodoption is putting money into CDs,especially if you’re looking for a low-riskcash account for retirement. Banks suchas Ally and Barclays offer some of thehighest rates around: almost 3% for a12-month maturity.
      “You just want to make sure you’renot letting your money lie fallow,” saysBenz. “It pays to be discerning.”