15 Portfolio Spring Cleaning Tips: Advisors' Advice

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Christine Benz, Morningstar’s personal finance and retirement planning director, recently laid out several steps to declutter an investment portfolio, noting that streamlining holdings can save investors time and money.

Spring cleaning a portfolio — consolidating holdings, trimming providers — makes oversight easier for investors, which should mean more time for other priorities, Benz said. It also could trim expenses, opening the door to buy into lower-cost funds and secure discounts on financial advice, she suggested.

Among numerous detailed points, Benz cautioned investors to be tax-conscious as they make portfolio changes and consider potential tax consequences, getting professional advice if needed. People with taxable holdings should “move slowly and deliberately,” she said.

And while Benz suggested investors consider consolidating old 401(k) and tax-deferred rollover IRAs into one “mega IRA,” she also noted possible reasons to leave assets in old company retirement plans and suggested consulting with an advisor.

Depending on circumstances, company retirement plans may offer better protection from creditors than IRAs, she said. Someone with a “gold-plated” 401(k) at a former employer might consider leaving assets there and even rolling over funds into it, she added. And a company retirement plan might offer attractive investments that aren’t available in an IRA.

We asked advisors what steps they’re suggesting their clients take to clean up their portfolios this spring. Check the gallery for tips from 15 advisors. Some responses may be edited for clarity or length.

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