Consolidation is an important step in simplifying your portfolio. It can be difficult and counterproductive to reach your financial goals when multiple strategies are being used, especially without communication between advisors. There are many factors associated with asset consolidation to consider including:

• Accurate Asset Allocation
  It’s often very difficult to coordinate accounts across different financial advisors to build an accurate asset allocation. Working with one advisor will help keep your portfolio diversified and avoid overlapping similar investments across multiple accounts
   

• Tax Efficiency
  Allocating certain investments in non-retirement vs. retirement accounts can lower your taxes and save you money. By having your accounts in one place, it allows for easier coordination to maximize tax efficiency.
   

• Simplified Tax Documents and Statements
  Consolidation allows you to access all of your financial data from one place and eliminates the burden of multiple tax receipts and statements on an annual basis.
   

• Simplified Cash Flow Management
  Projecting income from various institutions will be challenging because the information is often presented in different formats and different time periods. You also work more efficiently when using one source to compute your future income stream.
   

• Monitoring Performance Results
  Comparing one account to another should be done carefully, based on the types of investable assets and appropriate benchmarks.  Having a centralized reporting system allows you to monitor performances for each individual account as well as on the consolidated level.
   

• Required Minimum Distributions
  Once you hit the age of 72 you will be required to take a Required Minimum Distribution (RMD) from your retirement accounts. If your accounts are spread out, the computation of the RMD will have to be done for each account. Consolidation helps to determine the total amount and to plan based on your expected future cash flow. You will also be able to take out all RMDs from one account.
   

• Transaction Benefit
  Certain strategies are only possible when taxable and retirement accounts are located on the same platform. For example, a client who needs to take a RMD can take advantage of an “in-kind transfer” without selling securities. This strategy is when you transfer the shares of your investment from your retirement account to your non-retirement account instead of selling them and receiving cash. This would allow you to continue investing instead of having to cash out your investments.
   

• Cost Efficiency
  Most financial advisor management fees are based on the total “Fair Market Value” of all accounts. Consolidation might allow you to be qualified for a lower fee schedule because you have more total assets invested with the same financial advisor.
   

• Integrated Technology
  Paperless access through a wealth management portal allows you to securely view ALL your accounts (individually and on a consolidated level) using one access. This gives greater visibility and will help you better understand your complete financial situation.