Author Topic: fido taxable acct for main job savings and schwab taxable acct for side hustle?  (Read 1330 times)

bluepearl

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Hello,

I am not sure if I am overthinking this arrangement, appreciate your advice. Thanks in advance.

This is the first year I can afford taxable investments (after maxing out ALL tax sheltered investments this year, yeah!).  I have two main investment account relationships (fidelity and schwab)

At fidelity I have all my retirement accounts (401k, ira), plus direct deposit from my day job, and bill pay for daily living expenses. 

At schwab is where I manage my side hustle money (may be a couple hundred bucks a month), plus bills related to my side hustles.

I foresee investing about ~$1K investment per month from my day job and ~$100 -$500 max from  my side hustle.

Right now I feel like keeping my day job extra at fidelity (buy Fidelity Total Market Index Fund FSTMX or FSTVX), and keeping my side hustle extra at schwab (buy Schwab Total Stock Market Index Fund SWTSX).

The only benefit I personally like is that I can look at the schwab account at anytime and see how much I earn from my side hustle for self bragging purpose.  If they are comingled it's not that easy to tell...

Am I unnecessarily complicating things?  The funds will eventually be used/ drawn down in an early retirement situation.  I would like to understand any tax selling complication or annoyance factors from having 2 tiny investment accounts. 

I appreciate your advice, thanks.



dannymurphy

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I can relate to wanting separate accounts just for tracking purposes. I do the same thing. The major benefit of keeping investments in one place that I've seen is that wash sales are appropriately accounted for in your tax documents. Otherwise you need to track it. But, if you plan on buying different funds anyway...
FWIW, I really like Schwab. Also their funds have very low fees.

ZiziPB

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Since you already have relationships and accounts with both, there is nothing wrong with maintaining two investment accounts.  Keep in mind that the Fidelity fund you want to invest in has minimum investment requirements.  It would be easier to meet the minimum if you have all your money in one account. 

Radagast

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It probably is fine either way. In taxable accounts, those Fidelity funds pay short and long term capital gains several times per year which will cause you to lose money to taxes because other people sold shares. It is better to use ETF's such as ITOT (Fidelity), or SCHB ( Schwab).