Author Topic: Do you have all your financial investments under one roof?  (Read 4578 times)

soccerluvof4

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Do you have all your financial investments under one roof?
« on: December 25, 2015, 11:32:29 AM »
I am shortly going to be in the position where all my dollar investments will be in Vanguard from 401k to IRA to index funds as I just feel its simple and there easy to work with. In the last 3 years I have moved all sorts of things to Vanguard and alot of it as well has been the low costs.  The amount of money is obviously enough for me to be retired but Just curious to see if people have the same scenario or feel they wouldn't do that etc.. for whatever reason you might have. I am interested in just investments separate of Real Estate or other investments. For some reason I am questioning it , not sure why maybe just need some assurance but in any case lets keep it civil. Thanks!

pbkmaine

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Re: Do you have all your financial investments under one roof?
« Reply #1 on: December 25, 2015, 11:39:08 AM »
Most of our money is at Vanguard, and in a couple of months it will all be there, except for the amount we keep in the bank for free checking and enhanced services.


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arebelspy

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Re: Do you have all your financial investments under one roof?
« Reply #2 on: December 25, 2015, 12:33:02 PM »
Mine is more spread out, but I'd be fine having it all at one of the big, good ones (Vanguard, Fidelity).. it's just easier to keep them as is than try and consolidate.
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Midabistew

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Re: Do you have all your financial investments under one roof?
« Reply #3 on: December 25, 2015, 12:44:14 PM »
90% in Fidelity
5% in oakmark
5% in current employer 401k which will be transferred to fidelity after I FIRE in 6 days.
Relatively small amount in HSA Bank


Another Reader

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Re: Do you have all your financial investments under one roof?
« Reply #4 on: December 25, 2015, 01:00:28 PM »
If I were to consolidate everything at one company, it would be Fidelity, as I prefer their customer interface.  Most of my holdings are at Fidelity.  I don't have problems with the web site or having to do silly things to make the situation fit the software like I have with Vanguard.  I am happy with their offerings and service over multiple accounts.  They have cheap index funds (Spartan) as well as a few managed funds I have owned for a long time.  They have some excellent commission-free ETF's available as well.  Vanguard has experienced a lot of growing pains over the years and they now have a target drawn on their back.  I don't think they will go out of business, but I do think the business model will change. 

When I started out investing in mutual funds, everything was done by check and US Mail.  You could not hold one company's funds at another company.  If you wanted to own individual stocks, you signed on with a broker or found a way to get into a DRP plan.  As a result, I have legacy accounts at a couple of mutual fund companies.  Some of those accounts are decades old and have done very well.  I probably should move the shares to Fidelity, but transaction costs would increase.  Same thing with the old DRP accounts.  Some of those are also decades old.

I have a retirement account at Vanguard, as well as a taxable account.  The retirement account is a rollover and is invested in Wellington.  Same issue with transaction costs, not cost effective to move.  The taxable account is invested in $0 commission Vanguard ETF's.  I also have a taxable account with Schwab, as they offer some ETF's I like and offer $0 commission trades on those.

Although this set-up is unnecessarily complicated, I find it to be easy to track through Personal Capital.   In fact, the account aggregation software has de-motivated me from consolidating.  My guess is you have no reason NOT to consolidate, as you likely started investing in a more modern, internet-based environment.  However, if you have old accounts floating around, look at the consequences of consolidating before you decide to do so.

MDM

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Re: Do you have all your financial investments under one roof?
« Reply #5 on: December 25, 2015, 01:52:50 PM »
Fidelity, Vanguard, and Schwab.  Each for different reasons.

Fidelity - Employer 401k with institutional fees
Vanguard - IRAs
Schwab - Custodial IRAs

Could combine them, but no real incentive to do so.

RetirementDreaming

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Re: Do you have all your financial investments under one roof?
« Reply #6 on: December 25, 2015, 02:24:30 PM »
Same here.  Lots of accounts for different reasons.

Fidelity - 401k
Vanguard - Trad IRA, Roth IRA, Taxable
Computershare - Individual stocks
UBS - Employer stock for ESPP

JoeBlow

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Re: Do you have all your financial investments under one roof?
« Reply #7 on: December 25, 2015, 03:11:19 PM »
401k - Merrill Lynch (will rollover into Vanguard when I quit)
Roth - Vanguard
IRA - Etrade (This account is from the early 90's.  I will eventually roll over into Vanguard)
HSA - Bank of America
After Tax 1 - Scottrade
After Tax 2 - Ameritrade

MrsDinero

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Re: Do you have all your financial investments under one roof?
« Reply #8 on: December 25, 2015, 04:05:22 PM »
It is better or worse to have everything spread out?  Right now I am all over the place.  I have let things languish for far too long.

Mutual Fund - Alliance Bernstein
401k (old) - Merrill Lynch
401k (current) - Fidelity
Stock from old ESP - American Stock Transfer

soccerluvof4

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Re: Do you have all your financial investments under one roof?
« Reply #9 on: December 25, 2015, 04:15:08 PM »
I had some in TD Ameritrade but not trading any more so thats going to Vanguard. My 401k when i closed I rolled over to Vanguard and a few other things. I have My HSA through the bank , checking and savings account for emergency fund at same bank. Anyhow, thanks for the replies I was just curious as I said didnt know if it was good idea or not or something I should be aware of. Just over thinking it i guess probably.

Scandium

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Re: Do you have all your financial investments under one roof?
« Reply #10 on: December 25, 2015, 04:22:33 PM »
It is better or worse to have everything spread out?  Right now I am all over the place.  I have let things languish for far too long.

Mutual Fund - Alliance Bernstein
401k (old) - Merrill Lynch
401k (current) - Fidelity
Stock from old ESP - American Stock Transfer
The only reason I see to keep it spread out is that the SEC broker insurance is only up to $500,000. So if you have one mill it could make sense to have it with two companies. Not sure I'd bother though, I'm confident enough in vanguard. Or Schwab for that matter

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AlwaysBeenASaver

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Re: Do you have all your financial investments under one roof?
« Reply #11 on: December 27, 2015, 01:07:37 AM »
The only reason I see to keep it spread out is that the SEC broker insurance is only up to $500,000. So if you have one mill it could make sense to have it with two companies. Not sure I'd bother though, I'm confident enough in vanguard. Or Schwab for that matter
Thanks for the heads up, I wasn't aware of the 500K limit on protection.

MrsDinero

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Re: Do you have all your financial investments under one roof?
« Reply #12 on: December 27, 2015, 05:33:44 AM »
It is better or worse to have everything spread out?  Right now I am all over the place.  I have let things languish for far too long.

Mutual Fund - Alliance Bernstein
401k (old) - Merrill Lynch
401k (current) - Fidelity
Stock from old ESP - American Stock Transfer
The only reason I see to keep it spread out is that the SEC broker insurance is only up to $500,000. So if you have one mill it could make sense to have it with two companies. Not sure I'd bother though, I'm confident enough in vanguard. Or Schwab for that matter

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Thank you.  That is something to consider.

MustacheAndaHalf

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Re: Do you have all your financial investments under one roof?
« Reply #13 on: December 27, 2015, 09:35:31 AM »
Note Vanguard and most fund companies insure above the $500,000 limit.
https://investor.vanguard.com/investing/account-protection
"To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from certain insurers at Lloyd's of London and London Company Insurers for eligible customers with an aggregate limit of $250 million, incorporating a customer limit of $49.5 million for securities and $1.75 million for cash."

Crushtheturtle

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Re: Do you have all your financial investments under one roof?
« Reply #14 on: December 27, 2015, 09:57:45 AM »
Note Vanguard and most fund companies insure above the $500,000 limit.
https://investor.vanguard.com/investing/account-protection
"To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from certain insurers at Lloyd's of London and London Company Insurers for eligible customers with an aggregate limit of $250 million, incorporating a customer limit of $49.5 million for securities and $1.75 million for cash."

So that means each individual Vanguard investor is covered up to $250M, or all the investors in "aggregate"?
Also, $49.5M + $1.75M =\= $250M.

Travis

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Re: Do you have all your financial investments under one roof?
« Reply #15 on: December 27, 2015, 10:01:59 AM »
Taxable accounts and both IRAs in Vanguard.
401k - TSP
Where it gets complicated is I have my cash in three different banks. One bank for having a big name and access everywhere, another that gives me a significant insurance discount for having an account with them, and the other is a credit union that one day I might want a mortgage with them and I'll get a great rate.

seattlecyclone

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Re: Do you have all your financial investments under one roof?
« Reply #16 on: December 27, 2015, 10:34:04 AM »
The only reason I see to keep it spread out is that the SEC broker insurance is only up to $500,000. So if you have one mill it could make sense to have it with two companies. Not sure I'd bother though, I'm confident enough in vanguard. Or Schwab for that matter
Thanks for the heads up, I wasn't aware of the 500K limit on protection.

Do be aware that the $500k limit is per "capacity." You get a separate $500k limit for each of the following:
  • taxable account in your own name
  • joint taxable account
  • account belonging to a corporation
  • account belonging to a trust
  • traditional IRA
  • Roth IRA
  • account held by an executor on behalf of an estate
  • custodial account held for a minor or other dependent

A married couple could then easily have $1.5 million saved with one brokerage company in taxable accounts alone, plus $500k per IRA type per spouse, and they could form a trust to hold some more assets if that still isn't enough.
« Last Edit: December 27, 2015, 10:36:01 AM by seattlecyclone »

YoungInvestor

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Re: Do you have all your financial investments under one roof?
« Reply #17 on: December 27, 2015, 12:41:16 PM »
Note Vanguard and most fund companies insure above the $500,000 limit.
https://investor.vanguard.com/investing/account-protection
"To offer greater protection and security, Vanguard Marketing Corporation has secured additional coverage from certain insurers at Lloyd's of London and London Company Insurers for eligible customers with an aggregate limit of $250 million, incorporating a customer limit of $49.5 million for securities and $1.75 million for cash."

So that means each individual Vanguard investor is covered up to $250M, or all the investors in "aggregate"?
Also, $49.5M + $1.75M =\= $250M.

What I read there is 250m$ overall, max of 50-ish million per customer.

Seems kind of small considering the size of the firm. Perhaps I'm missing something.