Dividing your money between different asset classes can help you reduce your risk and boost returns over time – this is called diversification.
You may also think it’s wise to spread your assets among investments at several different financial institutions. But it’s often better to stick to just one. Here’s why:
- Get smarter financial advice: Without all your investments under one roof, it can be nearly impossible to get a full picture of your finances. This may lead to conflicting recommendations, missed opportunities and, even worse, costly mistakes.
- Maintain a truly risk-adjusted, diversified portfolio: Although you may assume you’re diversifying your assets, you may end up with overlapping investments, or more risk than you need to achieve your goals. Bringing your money all together makes rebalancing and tracking performance much easier to do.
- Save money: When all your investments are in one place, your advisor can better implement various tax strategies for you including harvesting tax losses when needed. When you consolidate with Azzad, your family can qualify for fee breaks as your assets reach certain thresholds. Clients who reach our investment minimum of $500,000 benefit from holistic financial planning that includes an annual tax planning analysis.
- Better manage your withdrawals: Managing your cash flow in retirement is complicated enough. When you consolidate you can better plan your withdrawals so that you are able to generate income from your portfolio, with the least tax liability possible and without prematurely exhausting your assets.
- Peace of mind: Life is already busy at the best of times. Having everything in one location can save you the time and effort of having to comb through numerous statements.
Consolidating your assets, however, doesn’t mean you should have them all in one portfolio or with one money manager. That’s why at Azzad we have over a dozen investment portfolios that are managed by 7 different investment management teams.
Schedule your free consultation to find out how consolidating your money with us can give you clarity, confidence and save you money.