What would a financial planner model before making a recommendation on simplifying an old or overly complicated investment portfolio?

Question

What I want to understand is this: what would a financial planner model before making a recommendation on simplifying an old or overly complicated investment portfolio? The part that needs sorting out is that a household has many funds, old retirement plans, and concentrated positions that were accumulated without one overall strategy.

Soradin · Accepted Answer

For the long term plan, run more than one scenario because a recommendation that works only under one return, inflation, or longevity assumption is fragile. As part of the financial analysis, start by viewing all accounts as one portfolio. As part of the financial analysis, identify the purpose, tax status, fees, asset class, and concentration of each holding, then compare the combined allocation with the household's goals and risk capacity.

What would a financial planner model before making a recommendation on simplifying an old or overly complicated investment portfolio?

Soradin

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