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INVESTING ADVICE

Investing for Retirement: Diversify Your Portfolio, Not Your Advisors

Diversifying your investments is one thing. But doesn’t mean you should diversify the advice you receive — particularly when you start thinking about investing for retirement. And, trust us, it’s never too early to do that.  

If you are serious about your investment future, it is important to seek guidance. While it may seem logical to get multiple opinions on the investment landscape, take the following example to heart. Imagine you take a trip. There are ancient ruins nearby that you’d like to explore and you want to get the most out of the experience. You start searching for a guide to help. How many guides do you hire? Unless you want to get pulled in multiple directions, it’s in your best interest to only hire one.  

The same theory rings true when you start thinking about investing for retirement. You don’t need a handful of opinions on how to invest your money and design your legacy— you need one person you can trust to guide you through the process. 

At this stage in your life, you likely have multiple accounts, at various institutions, and with a roster of advisors. That’s a lot to juggle. The trend in today’s wealth management is to diversify your portfolio but consolidate your advisors in order to stay focused and have your money work for you.

It makes sense: it’s far more effective to have one person who understands your goals and has a clear view of your investments, rather than you having to manage a vast swath of accounts with a variety of people and institutions.  

Here are a few other reasons to consolidate your advisors:  

The Big Picture (From One Viewpoint)

Your retirement goals can be achieved in many different ways. It’s always important to keep your eye on the big picture — if you have multiple advisors, they may be approaching your future from differing angles. This can cause confusion and, ultimately, you could be working against yourself, rather than moving your entire portfolio towards the same goal.  

Dealing with one advisor and having your investments registered with the same institution streamlines your process and ensures you aren’t over-investing in one area. 

Convenience

Simply put, do you want to be shuttling around to different meetings all the time to talk about your finances? When you consolidate the location of your investments it means you can go to one place and talk to one person about what matters to you the most: your future. Don’t waste your time — consolidate. 

Tax Efficiency + Fees

Unless multiple advisors are having open conversations (which they aren’t!) it’s hard to know if you are taking advantage of all of your tax opportunities. There are also penalties for over-contributions, which could be in play if there are two similar investments operating in two different places. In addition, fees are often charged in a variety of ways — if all of your investments are managed in one place, your fees may be less.   

Trust in the Future

Looking at your post-retirement financial future is a very personal thing to talk about. It is important to not only trust your advisor, but to feel comfortable talking to them about very intimate topics, like estate planning and your will. It’s much easier to have these conversations with one person, rather than trying to keep multiple people on the same page. When it comes to carrying out your will, having all of your assets managed in one place is much easier on your family.  

Looking Ahead in One Direction

Your road to financial freedom is best paved going in one direction. We suggest streamlining your investment accounts to one institution and would be happy to help you do so. Please get in touch with one of our financial advisors to start the process and ensure your retirement goals are achieved, simply and effectively. 


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