It's not a secret, and indeed it's absolutely true, that you as a smart investor should be diversified. The problem is how to track and manage all that diversity one you have a decent portfolio built up.

If you really want to be a smart investor, as a bare minimum, you need to build a financial aggregator to get all the data on your different investments and accounts in the same place.

Why do you need a financial aggregator?

In short, you need to set up a financial aggregator if you haven't already done so because having all your information in one place gives you insight into what's going on in your own financial world.

Let's be specific here and talk about what could potentially happen to you if you lack that kind of insight:

  • You can wind up not tracking fees properly
  • You can wind up owing money and not even noticing it
  • You could be leaving money on the table
  • Conversely, you could be not aware that it's time to pull out of a position or flip.

In short, if it's out of sight, it's out of mind. And that's no way to invest properly, especially in the long run.

Now that we've established the pressing need for a financial aggregator for any serious long-term investor, let's look at their ins and outs a little bit more deeply:

How does a financial aggregator work?

It's very simple. A financial aggregator allows you to gather all your assets in one place, and then links into them. This allows you to track them all in real time. More importantly, it allows you to track them against each other, so you can see how well different parts of your portfolio are performing, relatively. In this way, you can take intelligent action in an timely manner.

A good financial aggregator should allow you to create custom dashboards which fill your screen with relevant information, and leaves other important information just a click away.

Since no two portfolios are exactly alike, no two dashboards will be alike either.