March 31, 2016
There is common advice that circulates that when investing, a person should be diversified. Diversity of types of investments is very good when investing, but if a person isn’t organized it can be a huge pain in the neck at tax time, and when dealing with individuals who have recently passed away. It’s hard to track for taxation purposes. Diversity is one thing, but having money with three or more financial planners can be very cumbersome.
When doing your taxes, if you have money invested with multiple financial planners it is harder to keep track of all your necessary tax forms and to make sure you have calculated your capital gains properly. It also makes it more likely that you will over contribute to your RRSPs and not be able to stick to a solid financial plan. It’s hard to have one plan with three financial planners.
Keep this in mind as you make investments in the future.