solving the puzzle

The benefits of consolidating your accounts

Get a complete view of your cash flow, investments & financial needs

Whether you have numerous advisors managing your financial affairs or a combination of self-managed and discretionary accounts with one advisor, you can benefit substantially from consolidating your accounts under the guidance of a single advisor offering an overarching wealth-management service.

A unified wealth plan tied to your goals & risk appetite

Bringing disparate assets under one umbrella can mean eliminating redundancies, streamlining fees, and generally simplifying and optimizing your wealth plan. Ultimately, the purpose of consolidating accounts is to create a unified, tax-efficient wealth strategy that enables you to achieve all your goals over time and in line with your risk appetite. To do so, you need a complete view of your cash flow – both in and out – as well as your investments and financial needs.

By working with one advisor, you will also be able to capitalize on a full range of wealth and financial planning services. At Richardson Wealth, we provide access to a team of Tax and Estate Planning professionals as well as Insurance specialists who offer a customized and unbiased service in line with your objectives.

Listen to more episodes of Conversations on Wealth.

Simplification eliminates redundancies

There are numerous reasons many of us have various investment and retirement accounts: the desire to diversify investments; the simple fact of acquiring different investment assets and opening multiple accounts at various life stages or as the opportunity presents itself; the inevitable result of changing jobs and ending up with various pension plans and investments spread out across a number of companies; or we may simply find it difficult to streamline these holdings. This can make for a complicated and messy financial picture that may be difficult to keep track of and manage. Consolidation of accounts can eliminate the redundancies. While this provides you with a clearer perspective on your assets, it can also ensure that your family will have less difficulty dealing with your affairs should you fall ill or die unexpectedly.

Effective asset allocation

Ironically, having multiple advisors – in a sense, diversifying your advisors – is one instance in which the diversification rule is not effective. That’s because two, three or more advisors can select the same investments, or you may have multiple funds with the same stocks. Moreover, having multiple advisors can mean duplicating investment styles and capitalization sizes. This lack of cohesion can create a highly skewed asset mix, producing an imbalance in terms of your asset allocation. As a result, with your assets split between more than one advisor, you may be taking on more risk than intended or a bigger cash position than required, which can cause an opportunity cost in your portfolio.

One professional who is best equipped to oversee multiple accounts can help you create a unified investment plan and rebalance more effectively over time as markets shift.

Optimize tax-saving opportunities

Managing your wealth effectively requires continuous attention and an overall perspective to ensure that as your family’s goals change, and as financial markets and government regulations evolve, you are capitalizing on strategies to help maintain, protect and transfer your wealth. Tasking one professional with overseeing your financial affairs can also provide a more focused approach to saving or deferring tax.

Investing time and effort as you prepare your personal tax returns can result in substantial tax savings. To assist you in identifying potential opportunities to reduce taxes and protect your family’s wealth, we recommend using one advisor who has an overview of your financial picture.

Take control of your risk

Consolidation allows you to take control of your wealth, alongside your trusted Advisor, to deliver integrated solutions to preserve the wealth you have accumulated over the years, enhance it in accordance with your goals and objectives, and transfer it efficiently to your beneficiaries.

For more information on consolidation and creating a plan that supports your objectives, please contact your Advisor.

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