4 Reasons Why We Believe Wealth Consolidation is Worth the Effort - Rodgers & Associates
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4 Reasons Why We Believe Wealth Consolidation is Worth the Effort

In meeting with people to review their finances, it quickly becomes apparent that many do not under­stand the benefits of consol­i­dation. The old adage, “Don’t put all your eggs in one basket,” is frequently misun­der­stood when it comes to consol­i­dating invest­ments. When you choose a single financial custodian, you might actually improve your portfolio’s diver­si­fi­cation and strengthen the concept of putting your invest­ments in different baskets.

Here are 4 reasons why we believe you should consider consol­i­dating your finances:

1. More in-depth financial infor­mation at hand.

Centralized assets provide vital infor­mation to better manage your wealth. One of the most important benefits is that you’ll have a deeper under­standing of your current asset mix. Many financial advisers have technology that permits daily valuation and analysis of a given portfolio. By under­standing your true overall market position, you can then make better decisions on how to invest and rebalance your portfolio.

2. Cash flow is signif­i­cantly easier to monitor.

When different types of accounts are held at the same financial insti­tution, funding IRAs or ROTH IRAs, calcu­lating and distrib­uting your IRA Required Minimum Distri­b­ution, and distrib­uting cash for monthly spending in retirement all become easier and more efficient. Many people know they should be doing these things, but then hesitate at the unknowns of obtaining, signing, and submitting paperwork to accom­plish their goals.

3. Tax time is less burdensome.

Because you will have fewer tax reporting forms to receive, track, and input, you will reduce prepa­ration time and fees. Harvesting losses, incurring capital gains, or making ROTH conver­sions can also be facil­i­tated when this infor­mation is presented in a consol­i­dated fashion prior to the end of the year, instead of when you are meeting with your accountant.

4. Family finances are easier.

Financial support from spouses and other family members also becomes easier. The simple act of consol­i­dating assets sets the stage for a more under­standable accounting of your finances, eases the burden on anyone looking to assist you or take over for you when you can no longer manage them yourself, and ultimately when you pass your assets on to your heirs.

Most people don’t realize the amount of paperwork and knowledge it takes to bring assets into alignment through consol­i­dation. By working with a trusted financial advisor, you can gain the assis­tance to intel­li­gently pursue this worth­while goal. By taking on this task now, you will be in a better position to meet life’s challenges and to take control of your financial destiny.