Wealth Management Nevada: Benefits of Consolidating Investments

Wealth management Nevada for high net worth and ultra-high net worth individuals is tricky business. Banks, brokers, and other financial institutions might keep telling you to invest in a diverse portfolio with fixed investment packages. However, what they won’t tell you about are the extra costs, taxes, and the risks they bring along. Therefore, while they do tell you not to keep all your eggs in one basket, sometimes it’s a good idea to simplify and consolidate your investment accounts, provided that you have an experienced and trusted financial advisor to guide you through it. Check out our helpful guide for choosing a financial advisor for investors with $10 million in assets or more.

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Pillar Wealth Management is an independent, 100% fee-only firm offering white-glove wealth management services. We have a team of dedicated and highly knowledgeable wealth managers who are always striving to help our affluent clients achieve financial success and serenity. Our advisors have more than 30 years of experience in this industry, which helps them serve clients with $5 million to $500 million in liquid assets to the best of their abilities. We offer a wide range of fiduciary services, such as investment management, risk management, tax planning, estate planning, retirement planning, and more for holistic and comprehensive wealth management.

In this blog, we’ll be discussing the benefits people seeking to simplify and consolidate investments can attain and how to choose the right person for the job. Let’s get started.

Table of Contents
What Does it Mean to Consolidate Your Investments? Benefits of Consolidating Your Investments Wrapping Up

What Does it Mean to Consolidate Your Investments?

Investment management is a core part of wealth management, Nevada, and it’s also one of the hardest to manage, especially if you don’t have a good advisor to guide you. Banks and brokers will constantly tell you to diversify to get higher returns and spread out your risk, and then pull out a standard investment portfolio that has nothing to do with your financial goal and life’s aspirations.

That’s why you need the right financial advisor. They will understand what you really want, tell you to diversify when necessary and advise you to consolidate your investments when it serves you better. But what does it really mean to consolidate your investments? Essentially, it means streamlining your numerous investment accounts into one portfolio for simplification and better management. It could mean consolidating from several advisors, firms, or various accounts.

Click here to start a conversation with one of our advisors to learn more about consolidating your investments.

Benefits of Consolidating Your Investments

Diversification definitely has its benefits for high net worth and ultra-high net worth individuals. However, it’s not always the best option for every investor. Sometimes, it’s better to consolidate your investment accounts, and here’s why.

Efficient Asset Allocation

Good investment management is all about efficient asset allocation. You can diversify all you want, but it won’t bring your risks down or give you high returns until you’ve invested in the right mix of assets. This is where consolidation can help in wealth management for individuals and couples. Consolidating your investment accounts into one or a select number of portfolios can make it much easier to invest in a few but better assets for more efficient asset allocation. Once you have your wealth allocated in the right assets, you have a much clearer position of your financial situation and you can engage in financial planning. Moreover, consolidation can help you avoid duplication of assets, which frequently happens when you diversify across assets as well as advisors.

Asset allocation is just one aspect of your portfolio and investment management. Click here to read our complete guide on ways to improve your portfolio performance.

Monitoring Performance

An important element of investment management, as well as good wealth management Nevada, is constant evaluation and adjustments in your financial plan and overall strategy. This is only possible when you’re constantly and accurately monitoring the performance of all your investments.

So, what do you think would be easier, tracking the performance of ten portfolios with assets all over the place or two portfolios with efficient asset allocation? The easier it is to track your performance, the better decisions you can make for your assets going forward. With consolidated assets, it’s much easier to monitor the performance of each asset and then make decisions based on that. Additionally, it’s also much easier to compare assets against each other and invest more or drop those assets accordingly.

However, monitoring performance also requires the active participation and expertise of a skilled financial advisor. At Pillar Wealth Management, our team of experienced fiduciary advisors have vast knowledge about the industry and are well-versed in all the ins and outs of investment management. Therefore, they can quickly pick up on any important performance cues and advise you accordingly to help you attain maximum growth. Click here to read our handy guide on how to maximize portfolio growth strategies for families worth $5 million to $500 million in liquid assets.

Tax Optimization

Taxes are the biggest drain of your wealth and assets if they arenot managed properly, and that is exactly what happens when you diversify across various portfolios. You have multiple investment accounts, multiple sources of income, and you might be dealing with multiple firms and advisors as well. This can make it quite hard to track your tax liabilities or manage them efficiently.

Consolidating your investment accounts makes it easy to manage your taxes and help bring them down. With a more streamlined portfolio, you can see precisely where you are losing a lot to taxes and restructure your assets accordingly for better tax optimization. Our advisors at Pillar Wealth Management have decades of experience in various services, such as investment management and tax planning. Click here to chat with our experienced advisors about your tax planning.

Reduced Costs

Consolidation also helps bring down other costs and expenses that often accrue with a diversified portfolio. There are separate account fees, advisor fees, trading fees, etc. When you’ve got most of your wealth invested in a few places, the overall annual fee is lower.

Additionally, since there are fewer assets to manage, the management fee goes down, too, as you can qualify for a lower fee schedule. With reduced costs, you can get more from your investments and enjoy a more efficient portfolio. Other than that, sometimes, certain mutual funds can offer lower-cost share classes on higher investments, which is usually possible only with consolidation.

Quality over Quantity

Consolidation can also help high net worth and ultra-high net worth individuals focus on quality over quantity. Diversification is of no use if you have numerous underperforming portfolios. They will simply drain your wealth through excessive taxes and costs with no returns. That’s why people seeking to simplify and consolidate investments can enjoy quality over quantity.

Consolidation can help you see exactly which investment accounts are doing well, and you can focus on them while getting rid of the other low performing accounts. This way, you can increase your returns as well as minimize your costs by cutting away unnecessary accounts or advisors. If you want to learn more about protecting and growing your wealth efficiently, order a free hardcover copy of our book, The Art of Protecting Ultra-High Net Worth Portfolios and Estates – Strategies For Families Worth $25 Million To $500 Million.

Required Minimum Distribution

Consolidation of investments is also beneficial for retirement planning. When you hit the age of 70.5 years, you are expected to withdraw a Required Minimum Distribution (RMD) from your retirement accounts. This can be quite complicated and a lengthy process when you have multiple investment accounts and various IRAs and 401(k)s. You will not only have to calculate the RMD separately for each account but also withdraw it from different accounts each time.

Moreover, if you forget or miss the withdrawal from any account, you can face serious consequences in the form of heavy fines and penalties. With consolidated investment accounts, you can easily withdraw the RMD from one account without much hassle or extra effort.

At Pillar Wealth Management, we offer an extensive range of Wealth Management Nevada services, including retirement planning, which can be complicated for individuals and families. Therefore, our advisors can help with retirement planning and wealth management for individuals and couples as well. Click here to start a conversation about your retirement planning today.

Cash Flow Management

With multiple investment accounts as well as various sources of income coming through, it becomes difficult to manage the cash flow and determine your precise financial situation. Moreover, different institutions and advisors will present different formats of your income and finances over different periods of time. When you actually go to withdraw your money, you will be left confused as to which account to draw from and how much.

A consolidated investment portfolio can help you develop a simpler and more practical cash flow management strategy. Additionally, you will also require the help of a good financial advisor who can keep an eye on all your accounts and advise you accordingly as to where and how much you can withdraw. If you still haven’t found the right advisor for yourself, click here to read our ultimate guide to choosing the best financial advisor for investors with $5 million to $500 million in liquid assets.

Easier Estate Planning

If your numerous investment accounts are already so hard to manage yourself, imagine how difficult it will get when you’re no longer there, and your heirs have to deal with tracking, dividing, and distributing your wealth. With consolidated investment accounts, you can simplify your estate planning and ensure that your wealth goes in the right hands according to your wishes.

In addition to that, you will also have an easier time updating your beneficiary regarding your assets and wealth. In comparison, having a lot of investments increases the chances of forgetting to update your beneficiary and thus, your efforts go to waste as the assets go somewhere else.

How to Choose the Right Financial Advisor for Wealth Management Nevada

Consolidation of investment accounts is definitely a crucial strategy for high net worth and ultra-high net worth individuals. However, how successful it is and how well it is executed depends on the guidance and participation of the right financial advisor.

Besides all these benefits, ultimately, the consolidation of investment accounts should fulfill the investors’ financial goals, retirement plans, life aspirations, etc. And that is only possible when you have an advisor who understands those goals and values and develops a tailored investment plan accordingly. Therefore, when you’re choosing a financial advisor for Nevada wealth management for real estate investors or otherwise, you should consider the following factors:

List of services provided
Experience
Track record
Reviews
Credentials
Expertise
Cost
Fiduciary services

Wrapping Up

There is no doubt that the consolidation of investment accounts brings numerous benefits. It simplifies your overall financial planning, which is crucial for any strategy or decision you make after that. It can clarify your financial situation and give you a better idea of what you need to do to achieve your goals and targets. However, for all this, you need a suitable financial advisor as well.

At Pillar Wealth Management, we have a team of dedicated fiduciary advisors who offer a wide range of services to help clients attain financial success and serenity. We work closely with our affluent clients to understand their needs and develop customized investment plans accordingly. Click here to schedule a free consultation session at Pillar Wealth Management today.

Authors

Hutch Ashoo

Chris Snyder

To be 100% transparent, we published this page to help filter through the mass influx of prospects, who come to us through our website and referrals, to gain only a handful of the right types of new clients who wish to engage us.

We enjoy working with high net worth and ultra-high net worth investors and families who want what we call financial serenity – the feeling that comes when you know your finances and the lifestyle you desire have been secured for life, and that you don’t have to do any of the work to manage and maintain it because you hired a trusted advisor to take care of everything.