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  • Writer's pictureJohn J. Diak, CFP®

5 Benefits to Consolidating Your Investment Accounts with a Financial Advisor


5 Benefits to Consolidating Your Investment Accounts with a Financial Advisor

Are you tired of juggling multiple investment accounts and struggling to keep track of all your statements and tax forms? Managing your finances is complicated enough without having to keep up with investment accounts at multiple institutions. Consolidating your accounts can make managing your finances much easier.


This article will explore the many benefits of consolidating your investment accounts and how it can help you take control of your financial future. Whether you are looking to simplify your finances for yourself or your family, we’ve got you covered.


Simplification for You & Your Family

In today’s fast-paced world, having multiple debit cards, credit cards, and investment accounts is not uncommon. This can lead to many statements and tax forms that can be difficult to keep track of. However, consolidation can make managing your finances much more effortless. By consolidating your accounts, you can have one statement that contains all your information, making it easy to review, manage, and keep track of.


More Effective Portfolio Management

Consolidating your accounts can provide your financial advisor with a holistic or macro view of your finances. While advisors can review statements for accounts not held under their umbrella, consolidation can give them a greater insight into your full financial picture. This ultimately allows your advisor to help you make more informed decisions. Diversification and rebalancing of your portfolio is much easier when your investments aren’t scattered in different locations.


Easier Estate Planning

As you age, you may need to turn your account management over to a trusted family member or financial advisor. Consolidation will make it much simpler for them to take on. And, consolidation makes it more likely that your beneficiaries will be up-to-date because all your accounts are in one place. This can help prevent delays in your estate settlement and unnecessary stress for your loved ones.


Potential Reduction in Cost

When your accounts are scattered at different institutions, you’re likely paying more in fees. Many times a fee is charged for each transaction. If you’re making transactions on multiple accounts at multiple institutions, you’re going to get dinged each and every time. Further, when working with a financial advisor, consolidating accounts means having a higher balance in that account, which will likely qualify you for a lower fee structure. Consolidation can also help your advisor identify tax minimization strategies, which can lead to significant savings.


Easier Withdrawals

In 2023 at the age of 73, you are required to take distributions from retirement accounts, which can be a headache if you’ve got your accounts spread out. Consolidation makes it easier for your advisor to calculate your overall required minimum distribution (RMD) and remove it from one account instead of calculating and withdrawing from each account. This can also allow for a more strategic withdrawal approach, as we can consider the overall picture of your financial situation. By consolidating your accounts, you can avoid the headache of leaving the responsibility of calculating and withdrawing RMDs to multiple advisors and the potential for errors or penalties.


If you’d like to consolidate your investment accounts with us, please contact us. We would be happy to help you simplify your finances and take control of your financial future.


John J. Diak, CFP® is the Principal & Client Wealth Manager at Oatley & Diak, LLC in Parker, Colorado. He assists clients through many difficult lifestyle changes such as business downturns, retirement planning, divorce, the death of a spouse, and family estate issues among others. Oatley & Diak, LLC is a family-run registered investment advisory (RIA) firm that provides clients with investment management and financial planning services in a hands-on, intimate environment. Learn more about them at oatleydiak.com.


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.


This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.


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