Over the years, our investment portfolios can become needlessly complicated. But, they need not be – we believe that streamlined portfolios can be highly effective. And, there is little evidence to show that complicated portfolios perform consistently better than a streamlined portfolio.

Streamlined portfolios have fewer “moving parts” which also allows investors to:
• See the forest from the trees – Streamlined portfolios let you see your asset allocation, cash flows etc. more clearly and holistically.
• Take action faster – re-allocating few accounts is easier than re-allocating many.
• Improve tax planning – taxes are easier to plan for and easier to do.
• Improve retirement income planning – it’s easier to take a holistic view and act on it. Imagine coordinating RMDs across several accounts with different providers.
• Be better prepared for estate planning – your spouse or your heirs have fewer items to understand, oversee, and act on, if you are incapacitated.

A rough paraphrasing of Einstein’s thought makes sense for your investments: Make everything as simple as possible, but no simpler. Informed simplicity is sophistication at its best.

But, why do portfolios get complicated in the first place?