Some Do's And Don'ts For Streamlining Your Portfolio

25 January 2023
 Categories: , Blog

Over many years, your financial portfolio often grows and expands to become much more complex than it began. Should you take steps to rein in this expansion and streamline your portfolio instead? While the answer may be yes, it should be done in the right ways. Here are a few great ways to streamline yours — and some things you should avoid. 

Do Consolidate Accounts. 

One of the easiest ways that Americans lose track of what they have and where it's located is through account creep. Has account creep infiltrated your finances? Do you still have old 401(k) accounts with prior employers, IRA accounts in various institutions, or idle bank accounts? If so, consolidate these for better results. 

Don't Give Up on Goals. 

Many professionals recommend a limited number of savings goals at any given time. The reason is that people simply can't juggle a large number of priorities at once. However, while it's good to keep your goals limited, don't stop making any. Just decide where to focus in broader categories. 

Do Reduce Custodians. 

Who is in charge of managing your portfolio? Ideally, this should be as few individuals and organizations as possible. Not only does this save money in fees, but it also allows you to craft a more cohesive financial strategy because everything is accounted for. And your wealth management planner will get a better feel for your money management style and needs. 

Don't Skip Diversification. 

Whatever way you decide to reduce the complexity of your finances, don't let that result in a lack of diversity. Diversity is important to protect your finances against the natural ups and downs of income and investing. This includes diversifying levels of risk and reward, organizations in which you invest, and seasonal cycles. 

Do Use Subordinates. 

If you want to maintain diversity, explore new investments, or save for different goals, exhaust all options within your current portfolio first. Keep up with new options offered by your brokerage services or financial institutions. Look for providers that offer more in-house management choices. And make use of online tools for goal-setting rather than new accounts. 

Where to Start

Ready to start making your financial portfolio the best it can be by simplifying it? Not sure how to begin? No matter what your challenges, where you are in your journey, or what you need help with, a qualified wealth management planner is your best resource. Make an appointment with a local wealth management planning service today to learn more.