Author Topic: IRA and Brokerage Account  (Read 2802 times)

BuzzardsBay

  • 5 O'Clock Shadow
  • *
  • Posts: 81
IRA and Brokerage Account
« on: October 15, 2013, 11:21:50 AM »
I have an IRA with Vanguard (It is from a 401k I had at a former employer).  I would also like to open an account to invest in mutual funds outside of the regular retirement accounts.  Even thought I love investing with Vanguard, I'm a little concerned with having both accounts with the same company.  I know it would be easier from a statement standpoint.  I think it just feels as though it will be a little too much of "having all my eggs in one basket".  I do have a 401k at work and, eventually, that will be rolled into the Vanguard IRA as well.

What do you think?  Does having everything with one company make you uncomfortable?

matchewed

  • Magnum Stache
  • ******
  • Posts: 4357
  • Location: CT
Re: IRA and Brokerage Account
« Reply #1 on: October 15, 2013, 11:38:21 AM »
Not really. Any event big enough to take down Vanguard can't really be defended because your mutual fund acount is with Fidelity.

Michread

  • Stubble
  • **
  • Posts: 212
Re: IRA and Brokerage Account
« Reply #2 on: October 15, 2013, 12:00:59 PM »

What do you think?  Does having everything with one company make you uncomfortable?

Nope.  It simplifies my life! 

Petunia 100

  • Stubble
  • **
  • Posts: 136
Re: IRA and Brokerage Account
« Reply #3 on: October 15, 2013, 12:02:00 PM »
No, I am not concerned.  SIPC ensures you will receive your securities in good order in the event your custodian fails.  I.E., if you own 100 shares of ABC stock, you still own that stock if Vanguard fails.

BuzzardsBay

  • 5 O'Clock Shadow
  • *
  • Posts: 81
Re: IRA and Brokerage Account
« Reply #4 on: October 15, 2013, 01:23:17 PM »
But what if you own 10,000 shares of a Vanguard Mutual Fund.  Does that still come into play?

matchewed

  • Magnum Stache
  • ******
  • Posts: 4357
  • Location: CT
Re: IRA and Brokerage Account
« Reply #5 on: October 15, 2013, 01:52:23 PM »
But what if you own 10,000 shares of a Vanguard Mutual Fund.  Does that still come into play?

Why would the amount of shares matter? It is an index fund. If the underlying index performs poorly it doesn't matter if you were with Vanguard or Fidelity, if the underlying or benchmark just took a crap, so would your investment regardless of who it is with.

Frankies Girl

  • Magnum Stache
  • ******
  • Posts: 3116
  • Age: 82
  • Location: The laboratory
  • Ghouls Just Wanna Have Funds!
Re: IRA and Brokerage Account
« Reply #6 on: October 15, 2013, 02:27:17 PM »
I prefer my accounts all in one place. The chances of something happening to take down the likes of Vanguard or Fidelity are so small, that I don't think it is at all a possibility, and if that one in a million catastrophe happened, I imagine that it would involve a situation where money would be irrelevant at that point.