Experts Say Think Holistically with Your Retirement Investments

The key to managing all of your retirementinvestment accounts is to use a holistic approach. Financial advisor ScottHolsopple, says ” All of your accounts need to be workingtogether and working toward the goals you set.” Only 27 % ofinvestors examine all of their assets to develop a “master assetallocation” plan according to Financial Finesse. Managing assets holisticallymeans applying your asset allocation plan, which identifies how much fundingyou, want in stocks, bonds, and other investment vehicles.

Experts are recommendingthat investors should invest in each asset class in the investment vehicleoffering the most tax efficiency instead of duplicating your asset plan in each investment vehicle. Choosing the right asset location can result in different returns ondifferent accounts. However, thinking of your retirement investmentsholistically maximizes the overall portfolio earning the investor the highest potential returns. Advisors also suggest itis a good idea to look at the entire portfolio when rebalancing the assets. 

See Andrea Coombes Multiple Retirement Accounts? Think Holistically., Wall Street Journal,  Aug. 2, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.