Diversification is one of the golden rules of investing to reduce risk

and boost your return potential over time.


Consider consolidating your assets with one knowledgeable advisor who can provide you with a properly coordinated financial strategy.  Investor surveys indicate that wealthy investors open multiple accounts of the same type, with different financial institutions and different advisors, either because it simply happened this way over time or because they believe it to be an effective way to diversify.

But diversification is really about how you invest your money — not where you keep it.

Investing through multiple accounts and multiple advisors instead of consolidating your assets with one trusted advisor may impede proper diversification and potentially expose you to greater risk.

The benefits of consolidating your assets with one advisor include:

  • Reduced costs
  • Simplified administration and consolidated reporting:
  • Easier estate settlement process
  • Access to comprehensive wealth management services
  • More tax-efficient retirement income planning
  • For convenience alone, consolidation is a strategy worth considering. With consolidation, you work with one advisor who sees the big picture – who understands your overall financial situation and provides the customized advice you need.

Consolidation of your assets can help your advisor maximize your after-tax retirement income.

Family Wealth Management tip:

Sometimes, investors decide against consolidating their assets with one advisor, thinking that they can “diversify by advisor.” This is particularly true of investors with portfolios of $1 million or more. The idea is that if one advisor doesn’t do well, the other might. Unfortunately, this is a myth. By dividing your investments among multiple advisors, you actually make it more difficult to properly manage your investments. Since each of the advisors doesn’t know what the others are doing, it often results in over-diversification, conflicting advice and needless duplication of your investments. Furthermore, it’s difficult to know how your investments are performing overall by having your assets spread among more than one advisor. A better option is to consider consolidating your assets with one knowledgeable advisor who can provide you with a properly coordinated financial strategy.