How Many Investment Accounts Should I Have?
Keeping too many accounts could cost you time and money. Consolidation can help.
How many accounts do you have: two, four, seven? Most people don't set out to have as many accounts as they do. However, between workplace retirement plans, former employers’ plans, investment accounts and bank accounts, they often end up with several financial relationships.
But more and more, people are choosing to work with fewer companies, according to market research from Hearts & Wallets.
35% of U.S. households have relationships with 3+ financial firms, down from 39% in 2024.
Another 35% only work with one financial firm, up from 30% in 2024.
Overall, the average household works with 2.4 firms, down from a peak of 2.7 in 2023.
Source: Hearts & Wallets, “Stores & Success Metrics 2025: Leaders in the Consolidating Wealth & Retirement Market,” November 2025.
Sometimes it's good to keep your investments in more than one place. But sometimes it costs you more time and money than it should. It could be time to consolidate your accounts.
Why Should I Consolidate Investment Accounts?
When your assets are spread across many companies, it can be hard to know if your investments are meeting your goals.
Account consolidation generally means moving your money so you have fewer accounts and companies to manage. That could mean transferring investments to one firm, combining retirement accounts or reducing the number of providers you use.
Consolidation can help you get a clearer view of your investments, make your account management more efficient and put you in a better position for the future.
1. See the Big Picture
Consolidation may be the easiest way to get a comprehensive view of your current investments.
Track What’s Working
You can monitor your overall portfolio performance and track how purchases or withdrawals affect your balance.
Make Better Decisions
Understanding your asset allocation can help you spot gaps and avoid duplicate investments.
Manage Risk
You can identify changes in your risk exposure during market volatility or as your personal situation evolves.
2. Save Time and Potentially Money
Consolidating can help you cut down on paperwork and emails and potentially reduce fees. And if you move your investments to a single company, you only have one place to go for questions or concerns.
Streamline Recordkeeping
You’ll have fewer account statements, tax documents and notifications to keep track of.
Calculate RMDs
Fewer retirement accounts may make it simpler to determine your annual required minimum distributions (RMDs).
Reduce Costs
Meet minimums more easily, depending on the firm and service you use, and qualify for fee discounts, price breaks or other asset-based benefits.
3. Plan for the Future
Creating and maintaining a comprehensive financial plan can be easier when you’re dealing with fewer accounts and companies.
Stick With Your Plan
Streamlining your finances can meet your organizational needs now and help keep you on track toward the long term—and the future you envision.
Level Up Your Tax Strategy
Tax planning, filing and implementing strategies like rebalancing and tax-loss harvesting may be easier with fewer accounts.
Simplify Estate Planning
Consolidating helps you manage your money now, and it can also mean less stress for your heirs when they settle your estate.
Have questions? A specialist can discuss your options for consolidating accounts. Request a call.
Will I Have to Pay Taxes When I Move My Money?
Moving money doesn’t necessarily mean tax consequences or penalties.
Many employer retirement accounts can be rolled over into a Rollover IRA with a new provider without creating a taxable event. Additionally, transferring an IRA from one company to another (a trustee-to-trustee transfer) won’t incur taxes either. (Learn more about IRS rules for retirement rollovers and transfers.)
For taxable accounts, you may be able to transfer them “in kind” without incurring taxes. In-kind transfers involve moving one brokerage account to another as-is, without selling assets or buying new shares.
Other investment redemptions, transfers or exchanges could result in a taxable event and trigger capital gains taxes. Please contact your tax advisor regarding the impact on your tax situation.
When Does Consolidating Investments Not Make Sense?
Simplifying your finances makes sense in many scenarios, but you’ll need to consider your account types and circumstances.
You Plan to Retire Early
If you plan to retire earlier than 59½, you may want to keep your money in an existing 401(k) or 403(b) and not move it elsewhere. With both types of accounts, you can withdraw money at age 55 without a penalty if you leave the job or retire (separation from service).
Your Account Closure Is Subject to Charges and Fees
Certain annuities have a surrender period (generally six to eight years after purchasing the annuity) during which you will incur withdrawal charges. This surrender charge is meant to discourage investors from withdrawing those funds.
Obstacles to Consolidation: Real or Misunderstood?
In most cases, fewer accounts can make an investor's life easier. So why do some investors hesitate to combine accounts?
"It's too complicated."
It can be, but our specialists have been through the process and can help you through it.
"Investing with several companies means better diversification."
Having multiple accounts isn’t the same as true diversification. It depends on what you're invested in.
"It's hard to let go."
It's OK to be loyal to a company, but consider whether an investment makes sense to own. It's worth a second look to ensure each investment has a role in your overall plan.
"It will cost too much in taxes."
Many transactions will not incur any taxes at all. For those that will trigger a taxable event, a tax advisor can help you decide whether the move might still be beneficial for your future.
Will I Be Limiting My Investment Options if I Consolidate?
Managing your money with a single company can still give you many investment options. With American Century Investments, you can build a well-rounded portfolio from more than 80 no-load mutual funds across a variety of investment strategies.
Or, if you’re looking for more convenience, choose one of our professionally managed asset allocation portfolios. They offer instant diversification in a single investment choice. Additionally, our brokerage services can make consolidating assets from other companies simple by bringing all your investments into one place.
Before You Move Your Money
First, be sure to ask your current providers about potential consequences, including taxes, penalties, charges or specific fees for liquidating or transferring your assets.
Second, be choosy. Look for an investment company that:
Provides a variety of choices for building your portfolio.
Offers an assortment of services and complimentary guidance.
Charges reasonable fees and expenses.
Third, go with a company you trust. When you work with a single firm, it can be easier to understand how the company operates and how they manage your money. Make sure you're confident with their long-term track record, customer service and commitment to investors.
Ready to Consolidate?
Learn about your options or discuss your plans with a specialist.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.
Diversification does not assure a profit nor does it protect against loss of principal.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
Rebalancing allows you to keep your asset allocation in line with your goals. It does not guarantee investment returns and does not eliminate risk.
This information is for educational purposes only and is not intended as a personalized recommendation or fiduciary advice. There are different options available for your retirement plan investments. You should consider all options before making a decision. Our representatives can help you evaluate all of your distribution options.
Brokerage Services are provided by American Century Brokerage, a division of American Century Investment Services, Inc., registered broker/dealer, member FINRA, SIPC.