If you have changed jobs, switched financial service
providers, retired, or had other life-altering events, chances are your
investment portfolio reflects these shifts, meaning you have bank and brokerage
accounts at multiple institutions. Consolidating at least some of these
accounts into one portfolio may benefit you in a few different ways, from
easier asset allocation to potential fee savings.

You will want to consult a trusted, licensed financial
advisor for guidance on which accounts can and should be combined and which
need to remain separate, either for taxation reasons or your particular investment

We outline below six of the top benefits you can reap by
consolidating investment accounts.

Less Complicated Asset Allocation

Having your entire portfolio together – or at least the
majority of it – enables you and your financial advisor to see the big picture.
Taking advantage of this broad perspective, you can make savvier investments, improve
diversification, and avoid duplication of investment types. You may also find
it easier to manage risk that arises due to your life changes or the market’s


Sometimes, simpler is better, especially when it comes to
logistics. When you have all or most of your investments at one institution,
you have to remember only one login and password, one set of allowable investment
rules, and one customer service contact. 

You can also save time and paper simply by cutting back on
the number of individual statements you receive – electronically or via mail.

Easier Estate Planning

Another beneficial aspect of consolidating investment
accounts is that your heirs will have an easier time managing your assets after
you have passed away or when you are not able to manage them yourself.

Plus, you will be more apt to have your beneficiary
information up to date when you have just one or a handful of accounts.

Reduction of Costs

You could realize savings when paying your account fees and
commissions, as many firms lower these costs once an account reaches a certain
monetary threshold. This is not the case with every account or firm, so do your
homework before deciding to consolidate for the purpose of reducing your
incurred expenses.

Better Management of Retirement Withdrawals

If you are 70 ½ years old or older, you must make required
minimum distributions (RMDs) from your retirement accounts. Calculating these
accurately can become an unnecessary challenge when you have multiple accounts
at various firms. Consider rolling over or transferring as many of these as

Tax Advantages

Consolidation can also help you execute a tax-efficient
investing strategy. Your CPA will appreciate your streamlined accounts, as
well, because your gains and losses will be on possibly just one statement
rather than spread out over several.


These are only a few of the potential benefits of consolidation. Discuss the pros and cons with your financial advisor before deciding the best solution for your situation.

Amuni Financial, Inc. is a Broker-Dealer and Registered Investment Advisor. Member FINRA/SIPC. Please see our website for the states in which we’re registered to do business.

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