|
Consolidate for Better Control |
|
|
|
Consolidate for Better Control of Your Finances
When you lose control of your financial life, you lose wealth-building potential. If your retirement finances are in a state of disarray, you'll find it difficult to set goals, invest properly and track your progress.
Often, the solution is simple: consolidate your retirement accounts. Instead of spreading savings, investments and other aspects of your financial life among a series of financial institutions, bring them together. When your Registered Retirement Savings Plan (RRSP), non-registered investments and other financial products are with one institution, you'll have more control over your future.
One of the primary benefits of consolidation is the ability to more effectively track your finances. Instead of having to pore over a series of statements from different institutions, your records will be streamlined. Monitoring will require less effort and you'll see the "big picture."
This should make setting goals and meeting them more straightforward. You'll be able to better identify the progress you make, now and into the future. You can gauge aggregate investment returns to see whether you're headed where you want to go. And you'll see at a glance whether your portfolio is well-diversified, which is an important ingredient of investment success.
When it's time to choose new investments or rebalance your portfolio, working with one institution makes everything simpler. Buying and selling investments - including mutual funds and individual securities - is less complicated because you can readily move cash from one investment to another.
Consolidation can be particularly important to your RRSP or other retirement accounts. With all of your retirement investments are under one roof, they can be managed more efficiently. If you have a self-directed RRSP, selling investments and reinvesting the proceeds is easy. Conversely, if you have many RRSP's spread out among financial institutions you won't necessarily have that type of flexibility. And dealing with a single institution eases the transition from an RRSP to a Registered Retirement Income Fund (RRIF) when it's time to use retirement savings for income.
A consolidated portfolio can also help you manage the overall risk level of your investments, helping generate the returns you need to meet your goals.
Another important benefit of consolidation is better financial advice. When you deal with a single institution you can build a closer relationship with a financial advisor, who can provide guidance and suggest investments that will keep you moving toward your goals. You may also realize a reduction in account fees if you consolidate.
If your financial life is confused, start consolidating today. It may be easier than you think. A financial advisor can help you with the paperwork necessary to transfer accounts, investments and other aspects of your finances. |
