These days almost everyone has multiple investment accounts, from standard brokerage accounts to retirement accounts such as 401k’s and IRA’s to college savings plans such as 529’s. Being able to view all of your accounts in one place rather than hopping from website to website or monthly statement to monthly statement can make the process of keeping tabs on your investments substantially easier. But being able to see everything in one place isn’t simply a time-saving trick. It can also improve how you manage your portfolio.
Perhaps the most important benefit is the ability to identify issues across more than one account. Let’s say, for example, that in one of your accounts you own a few stocks in the technology sector. By itself this may not be a problem, especially if this one account is a fairly small portion of your wealth. If your other accounts contain funds that are overweight in technology stocks, however, you could end up with a dangerously high overall exposure to the technology sector.
Whether you’re looking at the breakdown of your portfolio by asset class, region of the world, or economic sector, being able to see all of your accounts in one place gives you the 30,000 foot view that makes it possible to figure out if something is off-course and needs to be corrected. The first step to taking control of your wealth is to be able to see it all together.