Making the decision to cleanse your portfolio by minimizing holdings, just like you minimize your possessions, can have some positive effects. When you take the time to examine what you own, you may make the decision that some things need to go. The same is true when you clean your portfolio. Call it portfolio cleaning, financial planning, or whatever you choose, but the end goal is the same; to clean out investment holdings that no longer suit your investment strategy.
Having duplicate holdings, investments, or multiple accounts can clutter up the picture of your financial health.
When you take the time to examine everything, it’s easy to create a clutter-free portfolio that is easily managed and brings you closer to your goals. It’s possible that you have multiple retirement accounts that have been spread among multiple firms, and contain the same funds. Each of these has fees associated with them. An easy solution to this problem is to consolidate accounts, and if applicable, the funds as well.
Have your financial advisor do a fund analysis on your portfolio and other investments that may be held outside, such as your company retirement plan. This can help eliminate repetitive investments that are not part of your investment strategy. You have minimal fund choices in a company retirement plan, but your advisor can assist you with choosing funds outside that plan that align with your financial goals.
In addition to financial planning, be upfront with your advisor about all of the investments you have even if you work with multiple advisors. If other investments are ‘kept secret’, you may be contributing to cluttering your portfolio unless you are assigning specific investments for specific purposes to each advisor. Transparency and openness can make your portfolio cleaning process streamlined and simplified.
Getting a second opinion on your portfolio is never a bad idea, let’s set up an appointment today. Give our Las Vegas Financial Advisory a call or message here.