Diversification is a cornerstone of smart investing — but does that mean you should diversify your financial advisors, too? The short answer is no. While spreading your investments across asset classes and markets is a proven strategy, fragmenting your financial guidance can actually do more harm than good. Consolidating your investment accounts with one competent financial advisor offers clarity, efficiency, and better outcomes. Here’s why.

A comprehensive view for better investment decisions

When you work with multiple advisors, no one has full visibility into your financial landscape besides you. This fragmented approach can lead to conflicting strategies, concentration risk, and an undiversified portfolio that may deviate from your risk tolerance and goals. Worse, one advisor may sell an investment while another buys it, canceling both actions and incurring unnecessary fees while falling short of your goals.

By consolidating with a single, trusted advisor, you can coordinate your financial plan comprehensively, ensuring your overall portfolio is properly diversified, rebalanced as needed, and aligned with your long-term goals.

Enhanced tax efficiency and strategic planning

Working with multiple advisors can create tax inefficiencies, as they may lack tax expertise or take actions without full visibility into your overall financial picture. They also might try to incorporate tax planning without knowing what the other financial advisor is doing. Without a unified strategy, you may miss tax-loss harvesting opportunities, trigger unintended capital gains, or fail to optimize tax-efficient withdrawal strategies. A single advisor with full visibility can proactively minimize your tax burden and structure your investments for maximum after-tax returns.

More effective Required Minimum Distributions (RMDs)

For retirees, Required Minimum Distributions (RMDs) can be a logistical headache when spread across multiple institutions. Each account custodian calculates RMDs independently, which increases the risk of miscalculations and potential IRS penalties. A single advisor can manage these distributions efficiently, ensuring compliance while optimizing tax impact.

Reduced fees and improved cost efficiency

With an AUM fee model, the more money you invest, the lower your advisor fees tend to be. When you use multiple advisors, you risk losing out on these discounts. Scattering your investments often means paying multiple advisory fees, transaction costs, and administrative expenses. When your assets are consolidated, you may qualify for reduced fees, lower expense ratios, and improved access to institutional pricing. Over time, these savings can compound significantly, potentially enhancing your overall investment returns.

Simplified financial management and reporting

It can be a hassle juggling multiple investment statements, tax forms, and account logins. Having everything under one roof means simplified reporting, streamlined tax preparation, and a single point of contact for all your financial matters. Your time is valuable — don’t waste it being stuck in the middle between multiple advisors.

Stronger estate planning and wealth transfer

As your wealth grows, so does the complexity of your estate. Multiple financial institutions can create confusion, delays, and additional costs for your heirs. Consolidating accounts ensures a smoother transition of wealth, with clearly designated beneficiaries and a trusted advisor who understands your legacy goals.

The bottom line

A fragmented financial management can lead to lower overall returns. According to research by Vanguard, a structured, disciplined approach to financial planning offered by a single fiduciary advisor can add up to, or even exceed, 3% in net returns annually.*

Your financial future deserves a comprehensive, tax-smart approach. Consolidating your investment accounts with a single, competent financial advisor provides better tax efficiency, lower costs, stronger estate planning, and ultimately, greater peace of mind.

At Earned, our integrated approach ensures your investment strategy aligns with your tax situation. With your tax accountant and investment manager working together, we proactively help you keep more of what you earn.

If you’re ready to simplify your financial life and maximize your wealth potential, let’s have a conversation.