The ‘Golden Rule’ when it comes to investing has always been to diversify the investments in your portfolio. However, consolidating your assets with one advisor can strengthen your portfolio and financial future.
Your investments should include a range of asset classes and types of products. The major asset classes include cash, bonds, and domestic and foreign stocks. Diversifying your asset allocation is cornerstone to a healthy investment strategy and ensures that the structure of your portfolio reflects your personal circumstances. It also allows you to manage portfolio risk while increasing potential returns over time.
Consolidating your investments with one advisor has a lot of benefits! Here are five.
1. See the big picture
A broad perspective is important to capitalize on opportunities in the market, enhance diversification and avoid overlap in your investments. Your financial advisor needs to be able to see the big picture, especially when you go through major life changes.
Having a single point of contact allows your financial professional to have the clearest picture possible of your financial goals. This unifies the direction you are going, allows for easier pivots if your situation changes and helps to identify any gaps in your financial plan. Which means you can feel more confident in your financial future and have less to worry about!
2. Save money on fees
By consolidating your investments with one institution or advisor you will save on account fees, transaction costs and even mutual fund expenses. Avoid paying multiple fees, especially for the same type of account. Also, by consolidating your accounts you might qualify for a reduction on fees or higher interest rates due to balances being higher!
3. Make tax time less stressful
When one advisor is overseeing your investments, it is easier to see tax-saving opportunities. Taxes vary depending on income type, such as interest, dividends and capital gains and the accounts in which they have been invested. If you have one advisor overseeing your accounts, they can give the best advice on making the most of certain investments in different accounts, like Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
4. Get accurate tracking
Working with one advisor and institution means you can keep track of your investments! Your paper and online statements will come from one place.
Reduce investment clutter. Make monitoring your financial progress easier on yourself!
5. Transfer without trouble
Simplify transferring dollars between accounts because they are all in one place, with one institution. Contributions and withdrawals become easier. Simpler is better, especially when it comes to investment coordination. It will take less time to adjust if your needs, wants or market conditions change.
Make your in investments effective and efficient by diversifying your portfolio and consolidating your financial advice. With the right professional advice, you will reach your goals faster.
We can help!
Bringing your assets together under one roof is easier than you think! We can help you achieve your financial goals. Talk to an advisor today!
Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Financial planning services are available only from advisors who hold financial planning accreditation from applicable regulatory authorities. Credential Securities is a registered mark owned by Aviso Wealth Inc.