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.
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