How can I make sure I am properly diversified across multiple accounts?September 26, 2012: 6:30 AM ET
I have many mutual funds and ETFs spread out between my IRA, 401(k), 529 and a brokerage account. How can I compare the holdings of each fund to ensure I'm not overinvesting in one sector? — Joe K.
One do-it-yourself option is to use an online portfolio analysis tool such as Morningstar's free Instant X-Ray, suggests Jean Keener of Keener Financial Planning in Keller, Tex. With Instant X-Ray (find it by going to morningstar.com and clicking on the "Tools" tab), plug in the ticker symbols of all your investments, from stocks in your taxable account to the mutual funds in your 401(k). The tool crunches the data and spits out an analysis of your portfolio's asset allocation, along with other bits of information, from key valuation measures to average fees and expenses.
"These tools can help you identify any potential problem areas in your portfolio," says Keener. For instance, you may find that your portfolio is overly concentrated in large-cap stocks, or that you have very little in the way of international exposure.
— Austin Kilham
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