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Ask Sallie: Should I “Diversify” by Using Multiple Investment Platforms? (Video)

By Sallie Krawcheck

Sometimes people tell us they’re thinking of spreading their money across multiple investing platforms in order to “diversify” their investment portfolio. But is that a good strategy? Here’s Sallie’s response.


Sallie’s answer:

Eh. Eh. Eh. I mean, I guess if you don’t like your platform that much, maybe you’re trying things out if you’re not sure. But in general, you won’t get the view across the assets — the asset allocation can be off.

When you add all your assets up, you could be too much in this type of equity, or in this ETF, or this mutual fund, and then you’ve got to keep an eye on that yourself and track that across the different investment platforms.

So the best idea, I think, is to find one you trust, find one that’s a fiduciary — so obligated to act in your best interest — where fees are relatively low, where you feel comfortable with them. Go ahead and put your money in there so that you get — and your advisor gets — a view across all of your assets. That’s the best way to plan.


Disclosures

© 2019 Ellevest, Inc. All Rights Reserved.

All opinions and views expressed by Ellevest are current as of the date of this writing, for informational purposes only, and do not constitute or imply an endorsement of any third party’s products or services.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice.

The information provided does not take into account the specific objectives, financial situation or particular needs of any specific person.

Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

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Sallie Krawcheck

Sallie Krawcheck is the Co-Founder & CEO of Ellevest. Her life’s mission is to help women to reach their financial and professional goals.