Does Diversification of Your Investments Prevent You From Having an Overview of Your Portfolio?

Some investors misinterpreted the advice, "You shouldn't put all your eggs in one basket" and have divided their investments between many institutions. The risk of such a scattering is sometimes even greater among self-directed investors. Are you trading on multiple platforms? Or those that also use several advisers?

If so, know that holding all of your investments in one institution offers many benefits.

Optimize Your Performance by Reducing Costs

You know there are fees associated with your trades, but there may be additional fees for holding certain accounts in each of the institutions where you do business. If you avoid duplicate accounts (such as RRSPs), you avoid these costs.

Grouping your investments will also give you a better overview of your portfolio. This will ensure that you maximize your tax benefits while you avoid exceeding allowable contribution limits and incurring penalties.

In addition, by combining your investments, you can more easily take advantage of favourable offers, depending on the assets held and the number of trades made.

Simplify Your Portfolio Management

By combining everything under one roof, you simplify your life. In addition to saving time by having fewer follow-ups, you will no longer have to process countless statements, compile multiple tax slips and memorize several passwords for your online access.

Amalgamation also offers you the following advantages:

  • View your entire portfolio at a glance;
  • Obtain a clear summary of your accounts;
  • Facilitate the transfer of securities between various accounts;
  • Seize market opportunities;
  • Quickly access your current orders, market information and watch lists.

For a Clear View of Your Investments

By using a single platform, you get tools that incorporate relevant and necessary information to keep track of your portfolio. You can therefore:

  • Maintain a portfolio that is consistent with your investment strategy;
  • Get an overall picture of your asset allocation;
  • Take advantage of an asset allocation that respects the diversification of your portfolio as a whole and, if necessary, modify the holding of certain securities in various asset classes;
  • Facilitate portfolio rebalancing in order to reduce overexposure to securities or markets.

Peace of Mind at Retirement, for You and Your Loved Ones

In addition to making life easier for you, consolidating your investments will make it easier for you to organize your retirement income by making sure your assets are disbursed as efficiently as possible.

In addition to providing a better overview of your affairs, having easy-to-access and well-ordered documents simplifies the lives of your loved ones in the event of illness, accident, disability or death. As a general rule, the fewer papers to look for, the easier it will be to manage your finances...

Do You Have Several Advisors?

In addition to your online brokerage activities, you may be dealing with more than one advisor to manage your personal finances. Again, it would be beneficial to establish your financial plan and follow it with only one wealth management advisor. In addition to simplifying your life, consolidating your business in one place could benefit you in the short and long term.

The author

Angela Iermieri

Angela Iermieri

Financial Planner at Desjardins Wealth Management
Angela Iermieri is a spokesperson for Desjardins Wealth Management and a financial planner (Desjardins Financial Services Firm). With over 20 years of experience in the field, she’s also a financial planning and personal finance expert. She has over 20 years of experience in finance. She shares her expertise and educates people on personal finance by writing articles in various internal and external publications, and by putting together This link will open in a new tab. informational videos.