Consolidation of assets
Wealthy investors sometimes open multiple investment accounts of the same type with different financial institutions, believing it to be an effective way to diversify their investments.
Consolidation of assets
Wealthy investors sometimes open multiple investment accounts of the same type with different financial institutions, believing it to be an effective way to diversify their investments. By diversifying your investments, you can reduce risk. However, diversification is really about how you invest your money, not where you keep it. Investing through multiple accounts, rather than helping you diversify, can actually have the opposite effect because it’s more difficult to get a clear idea of how you’re investing your assets.
There are many other reasons to consider consolidating your assets with one trusted advisor instead. These include:
- Reduced costs.
- Simplified administration.
- Easier estate settlement process.
- More efficient retirement income planning.