Should You Keep All of Your Money At One Firm?

Sean Sevey |

Over time, I've been asked numerous times whether it's wise for a client to entrust their entire investment portfolio to a single firm. It's a question that doesn't have a one-size-fits-all answer. Depending on your unique financial situation and the relationship you have with your advisor, there can be advantages to diversifying your portfolio across multiple firms.

Personally, I manage my family's investments across three different firms. This decision isn't arbitrary; it's based on several factors. We keep our 529 college savings plans at one firm because they offer the lowest fees and give us greater control over our investments. Our retirement accounts and liquid assets are spread across two other discount brokerage firms. I appreciate being able to access the various research tools, fee structures, and levels of service that different firms offer. Additionally, with the rise of website outages and cybersecurity threats in recent years, diversifying custodianship helps mitigate the risk of unexpected disruptions.

When it comes to our clients, we always advocate for using the platforms that best meet their needs. We have the capability to consolidate all of their accounts from different firms into a comprehensive report. This report allows us to analyze various aspects of their financial situation, from tax and risk efficiency to charitable and legacy planning.

At Sevey Wealth, we take pride in our independence. We don't hold or control any of our clients' investments, and we've deliberately stayed separate from banks, broker-dealers, insurance providers, or custodians. Our role is that of a consultant, empowering our clients to manage their own wealth. This commitment is fundamental to our fiduciary duty to prioritize our clients' interests above all else.

Ask yourself: Can your advisor make the same claim?