As a general rule, diversifying your assets and not placing all your eggs in one basket are recommended. When it comes to investing, this principle applies, but not to your financial advisor. Many people believe having multiple advisors will help them diversify their money and investments. By spreading your investments over many channels, it can actually complicate matters. Let’s look at a few benefits of pooling your assets with one financial advisor –

• Investment portfolio diversification – Asset allocation is an approach to investing among major asset classes, such as stocks, mutual funds, fixed deposits, etc. The use of different asset classes can protect your portfolio from market fluctuations and provide growth options. In the case of a scattered asset allocation, you may not have the ability to track accurately how well you have diversified and what your growth is. Having all your assets under one umbrella makes it easier to track investments, allow you to diversify your assets, avoid duplicating investments, and allow you to reach your investment goals.

• Avoid conflicting advice – When you work with multiple financial advisors, they will all offer different opinions and advice, which can lead to conflicting advice and investment duplication. If you consolidate with a financial advisor, you can benefit from more informed guidance and easier decision-making.

• Save Time and Money – Having your assets consolidated in one place will reduce administration costs like transaction fees, advisor fees, mutual fund expenses, etc. Consolidating your assets in one location will allow you to generate statements together as opposed to trying to determine your investment portfolio from several statements.

• Tax Benefits – It is difficult to track investments that are tax-benefited or if you have invested enough to save taxes if your assets are with different financial advisors. Consolidating all your investments in one place allows you to see if there are tax benefits associated with your investments. A CA can assist you in filing your taxes if your financial advisor has one.

• Performance Monitoring – When your assets are all gathered together, you can track and monitor their performance more easily. This way, you can re-invest as you change your financial goals. Having assets divided among different advisers makes it extremely challenging to monitor and assess their performance.

• Simplification of Tax Documents and Statements – When you have all your assets under one financial advisor, filing your taxes, investment statements and tax receipts can conveniently be handled in one place.

• A comprehensive view of your portfolio – By consolidating assets in one location, you are able to view your portfolio as a whole. This will help you evaluate your financial situation and give you a better picture of your investments.

• Financial Life Simplified – When your finances are all in one place, accountability is more straightforward and less time-consuming. As you simplify your life, you will have better financial control and efficiency.

Having one financial advisor will allow you to better manage your assets and investments, streamline planning and accountability, and ensure more accurate reporting. In addition, you benefit from easy monitoring, less paperwork, and a better perspective on planning your financial future. We offer award winning financial planning services, so you do not need to worry about managing multiple advisors, or navigating the hassles of multi-advisor communications and monitoring. Reach out to us today.