Viewing your retirement savings and investments all in one place offers many benefits. It can simplify the ongoing management of your retirement plan and may save you money.
Simplify your retirement planning
It's not how many firms you have accounts with that makes your portfolio diversified, it's the asset allocation across your accounts. Viewing your portfolio in one place makes it easier to monitor what is happening across your accounts and rebalance when necessary. Through Fidelity, you can invest in 175 Fidelity and over 10,000 non-Fidelity funds, ETFs, stocks, bonds, and more to help you build a diversified portfolio.
Managing your financial life with one provider can alleviate headaches and make it easier to have a realistic view of your cash flow, needs, and progress. Plus, having your retirement and brokerage accounts at the same firm can help you implement tax-efficient strategies.
Pay less to get more
If you're investing through multiple providers, you might be paying more in fees than you need to. Account-level fees, fund expenses, and trading fees can really add up and you may be able to save money if you consolidate.
Our IRAs have no annual account fees* and we offer low-cost trades as well as many commission-free investments. Plus, you get access to one-on-one guidance, education, insights, research, and tools to help you build a stronger portfolio and plan for your future.
Partner with someone who understands you and your goals
Whether you are still saving for retirement or are already retired, having a financial plan is important and having your accounts in one place makes planning so much easier.
When you consolidate your accounts with Fidelity, you can easily track, monitor, and adjust your plan over time with a trusted partner who understands your unique needs and knows how to help you achieve your goals.
FAQs
Consolidation makes it much easier to implement changes to your strategy and keep your portfolio's intended asset allocation on track. It should make setting your investment goals and tracking your progress more straightforward and you will have a deeper understanding of your overall asset mix.
What are the benefits of consolidating retirement accounts? ›
Consolidating 401(k)s can help you:
- Lower administrative fees.
- View your portfolio holistically.
- Monitor investments in one place.
- Prepare your taxes more easily.
- Simplify your finances for the future.
Consolidation makes it much easier to implement changes to your strategy and keep your portfolio's intended asset allocation on track. It should make setting your investment goals and tracking your progress more straightforward and you will have a deeper understanding of your overall asset mix.
What are the benefits of consolidation in Fidelity? ›
Consolidating multiple 401k accounts into one Fidelity account provides a unified overview of retirement funds, simplifying tracking and decision-making. This also leads to potential cost savings through reduced fees and expenses.
Is it better to consolidate investment accounts? ›
Consolidating your investments gives your financial advisor greater insight into your full financial picture. This can help your advisor offer a strategy designed to get all of your assets working together toward your goals.
What are the advantages and disadvantages of consolidation? ›
It's possible to streamline your monthly debt payments into a single payment, lower your interest rate, improve your credit health and pay down credit cards faster. Still, you may also have to pay fees for a consolidation loan, and there is no guarantee that you'll get a lower rate than you currently have.
How many are the benefits of consolidation? ›
Consolidation can provide several benefits to businesses, such as increased efficiency, reduced costs, improved communication, and increased market power. It also allows businesses to streamline their operations, eliminate redundancies, and focus on their core competencies.
What are the reasons for consolidation? ›
Motives for Consolidation
This could include: Increasing Market Share: More market share tends to create economies of scale that just aren't available to smaller players in a market, including increased visibility, increased buying power, and lower customer acquisition costs.
What is consolidation and why is it important? ›
In business, consolidation occurs when two or more businesses combine to form one new entity, with the expectation of increasing market share and profitability and the benefit of combining talent, industry expertise, or technology.
What is the purpose of consolidation? ›
Consolidation adds together the assets, liabilities and results of the parent and all of its subsidiaries. The investment in each subsidiary is replaced by the actual assets and liabilities of that subsidiary. Consolidation adjustments are then made for any: Goodwill.
The decision to consolidate shares is often driven by market considerations. By reducing the number of issued shares, an increase in per-share value can create greater market certainty during times of trading volatility. It can also improve liquidity and make shares more marketable and appealing to new investors.
How do I consolidate my retirement accounts? ›
2. Work with a financial professional.
- Rollover an old 401(k) to an IRA.
- Rollover an old 401(k) to your current employer's 401(k)—if the plan accepts incoming rollovers.
- Move an IRA to a 401(k) plan—if it accepts incoming rollovers.
- Combine multiple IRAs into one IRA.
Fewer accounts can save you money
When it comes to investing, costs matter. The less you pay, the more money you get to keep. And combining accounts is one way to potentially bring down the cost of investing.
What is the best option for consolidation? ›
5 best debt consolidation options
- Balance transfer credit card.
- Home equity loan or home equity line of credit (HELOC)
- Debt consolidation loan.
- Peer-to-peer loan.
- Debt management plan.
Another benefit of multiple IRAs during estate planning is tax diversification. Traditional IRAs are subject to required minimum distributions (RMDs) when you turn 73. As a result, you may have less tax-advantaged money left to pass down to your beneficiaries.
Is it beneficial to have multiple retirement accounts? ›
Having multiple IRAs can help you fine-tune your tax-minimization strategy and gain access to more investment choices and increased account insurance. Here are the pros of having multiple IRAs: Tax diversification: Different types of IRAs provide different tax breaks.
Is it smart to have multiple retirement accounts? ›
One of the chief reasons to consider opening multiple IRAs is to increase diversification in your portfolio. Diversification manages risk in your investments and avoids overweighting your portfolio too heavily in any one direction.
What does it mean to consolidate retirement accounts? ›
Instead of leaving your money spread over numerous plans and financial institutions, you may want to consolidate retirement accounts by rolling them into one easy-to-manage account. Doing this can offer several advantages and may be a good option for your financial future.
