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 strategies. 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 volatility. Simplification 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 possible. 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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