Does Keeping Your Assets at Multiple Firms Actually Reduce Risk?

Brielle Eve |

A common belief among investors is:

"I don’t want all my eggs in one basket, so I keep my money at multiple firms."

On the surface, this might seem like a way to manage risk. However, your “eggs” aren’t which advisors manage your money—your eggs are the investments you choose. Having multiple advisors doesn’t necessarily mean better diversification, and in some cases, it can lead to inefficiencies in managing your overall financial strategy.

Considerations When Spreading Assets Across Firms

If different advisors are managing separate portions of your portfolio without coordination, you may face:

Overlapping investments – Without a full view of your holdings, you could end up with concentrated exposure to certain stocks or sectors.

Missed tax planning opportunities – Strategies like tax-loss harvesting, Roth conversions, and capital gains planning are more effective when all assets are considered together.

Uncoordinated financial planning – Retirement income planning, estate strategies, and risk management work best when approached holistically.

Increased complexity – Multiple accounts mean more statements, tax documents, and logins to track. This can make it harder to stay organized.

A More Streamlined Approach

At Prepared Retirement Institute (PRI), our focus is to Educate. Prepare. Manage.

  • We educate clients about the difference between investment diversification and account dispersion.

  • We prepare financial strategies designed to align with long-term goals.

  • We manage assets with a coordinated approach, considering tax efficiency, risk exposure, and broader financial objectives.

Bringing assets together under one strategy can provide:

  • A more complete financial picture – Visibility into all holdings allows for a more structured approach.

  • Strategic tax considerations – A comprehensive view may help identify potential tax-saving opportunities.

  • Simplified account management – Consolidation can reduce administrative complexity.

  • More cohesive risk assessment – A unified approach allows for better alignment with an individual’s risk tolerance and financial goals.

Aligning Your Financial Strategy

Managing assets across multiple firms does not necessarily reduce risk or enhance diversification. What matters is having a thoughtful, well-coordinated plan that aligns with your goals.

If you have assets in multiple places and would like to explore a more integrated approach, let’s have a conversation. We’re happy to discuss how coordination may benefit your financial strategy.