Maybe you think that by having multiple accounts—especially if they’re at different financial institutions—you’re diversifying by making sure your assets aren’t all in the same place.
Did you know, though, that this strategy may cost you time and money and potentially leave you with investment redundancies and gaps? After all, when’s the last time you really took a deep look at that retirement account from three jobs ago?
A time-proven solution for having too many retirement accounts is to consolidate those accounts.1 Here are a few reasons why keeping your accounts separate could be hampering your financial progress.
Your investments might not be as diversified as you think
An often-cited reason for having retirement accounts spread among different financial institutions is to diversify your investments. But consider someone who has six different accounts: They may be seeing some significant overlap in their investments.