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Investment Management Retirement Planning

The Benefits of Consolidating Accounts

Nine ways to benefit from holding your assets with a single advisor

Consolidating your assets with a single financial advisor does more than simplify your financial life. It also offers greater coordination and efficiency that can ultimately help you more effectively achieve your financial goals. Here are some of the reasons why:

Coordinated Asset Allocation

Asset allocation is a key to any investment strategy, keeping your investment goals in sync with your time horizon and risk tolerance. Diversifying accounts can make asset allocation a guessing game, but consolidation can help ensure that all the aspects of your portfolio are working together.

Tax Efficiency

Coordinating tax-advantaged vs. non-tax-advantaged retirement accounts can help you get the greatest tax efficiency from your retirement accounts, while uniting your tax records for ease of reporting.

Simplified Cash Flow Management

Consolidation can help you assess your future income stream and your future cash flow needs - and keep them in sync with each other.

Reducing Wash Sale Risk

Especially in a year with great volatility like 2022, wash sales are common around year-end. But they can be risky if you don’t follow the restrictions around buying and selling similar securities. A single account can help keep things on the straight and narrow.

Monitoring Performance Results

A centralized reporting system allows you to monitor the performance of each individual account as well as keeping an eye on how they work together.

Flexibility for Life Changes

Whenever your life turns a corner, having your accounts centralized can help you maintain strategic continuity and coordinate distributions and inflows.

Consolidated RMDs

If your retirement accounts are held with different advisors, you will have to compute your Required Minimum Distributions for each account separately. With consolidation, computation is easy, and you can take all your RMDs from a single account.

Lower Fees

Consolidation brings efficiencies and economies of scale that could reduce the amount you would otherwise be paying to multiple managers and advisors.

More Holistic Financial Planning

Holding your accounts with a single advisor simplifies your life, while allowing your assets to work in concert to help create the financial future you deserve.

Please reach out to your Baird Financial Advisor if you have any questions about how consolidation might enhance your personal finances.

The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.

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