Choosing a single financial institution to oversee your affairs will also make your life a lot easier when it comes to reporting. You will receive one investment statement, benefit from more accurate reporting of investment returns, and be able to track investments with ease; this cannot be achieved unless everything is consolidated. You might also receive fewer tax slips, which should reduce the amount of time spent on taxes, or make it less expensive for someone else to prepare.
Consolidation can go a long way to simplifying your administrative life, especially when it comes to pre-retirement planning. If you have multiple accounts – registered, non-registered, and/or TFSAs, for instance – it could be a challenge to determine which source of income to draw upon. This becomes particularly difficult when you must convert RRSPs into RRIFs, where you are required to make minimum withdrawals from each account annually. It is better to sort out and streamline this area in advance, so that your advisor can determine the most tax-efficient way to maximize your retirement income. The same thinking applies to estate planning and intergenerational wealth transfer, which require significantly more administration and paperwork, in the event that everything is spread out over several accounts.
Account consolidation might yield substantial savings, as many institutions reduce their fees when assets reach a certain size threshold. It may also allow you to qualify for higher levels of service or premium discounts; in some circumstances, account fees may be tax deductible.