The Benefits of Asset Consolidation

In the investment and planning fields, we talk to clients about the benefits of consolidation of assets. It is a client centered value, often misunderstood and underutilized in many situations.

Consider your car. Do you take it to one mechanic or multiple? The benefits of using one garage allows those mechanics to know you, your car, your driving habits, your budget or budget constraints and they can work to extend the life of your vehicle, keeping your particular situation in mind.

Your financial planning, especially as you approach retirement, should be done in the same manner. Working with one advisor or a team of advisors ensures they know exactly what your goals and wishes are. As well, those professionals know how much income you need, how your expenses could vary, what your concerns are and how much flexibility you need in your planning. They can ensure dollars are received in the most tax effective manner when needed most.

If you work with several institutions, they may spend more time competing for your business than developing strategies that actually help you. Also, advisor turnover, limited product shelves, and inaccurate advice can do permanent damage to your planning.

The closer you get to retirement, the more important consolidation becomes to your planning. Not only that, but consolidation makes the transition of assets to a spouse or children much easier to process in the event of a death.