1 Broker or 2
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1 Broker or 2
I am using Vanguard for all of my mutual fund needs. I am also using Vanguard Brokerage Services for all of my individual stock and bond holdings. I also have a brokerage account at Wells Fargo Advisors with a portfolio of individual muni bonds, which I am closing.
Question, when I close the Wells Fargo Advisor broker account, should I move these assets to another broker (I.e., Fidelity) or put all my assets with Vanguard? I guess I am concerned about a Black Swan event at Vanguard that could end up with all my non cash assets tied up in one place.
I have a total of $18 million in mutual funds, individual stocks and bonds.
Should I split these between 2 firms or consolidate all with Vanguard?
Question, when I close the Wells Fargo Advisor broker account, should I move these assets to another broker (I.e., Fidelity) or put all my assets with Vanguard? I guess I am concerned about a Black Swan event at Vanguard that could end up with all my non cash assets tied up in one place.
I have a total of $18 million in mutual funds, individual stocks and bonds.
Should I split these between 2 firms or consolidate all with Vanguard?
Re: 1 Broker or 2
How comfortable are you having all your money in one place? If it causes you some worry then what is the problem with continuing to use two? I don't think it's hurting anything, and I don't think there is a definitive right answer. A lot of people just feel better having part of their wealth split between two firms.
Never underestimate the power of the force of low cost index funds.
Re: 1 Broker or 2
We have our accounts at a few brokers. I prefer that because I use the best things that each broker offers, plus I avoid any restrictions imposed by any individual broker. That is, if I somehow get restricted at Vanguard, I can do the same thing at WellsTrade. Also, I feel that if one broker is the subject of a cyberattack, that I will not be impacted because I can just use another broker.
I want to point that WellsTrade (the no-advisor, low-cost online broker at WellsFargo) is my best broker (they give me free trades, so it is no cost to me). That is followed by TDAmeritrade, then Fidelity, then Vanguard.
I want to point that WellsTrade (the no-advisor, low-cost online broker at WellsFargo) is my best broker (they give me free trades, so it is no cost to me). That is followed by TDAmeritrade, then Fidelity, then Vanguard.
Re: 1 Broker or 2
I have one advisor. All funds are held by a single and separate custodian . I'am comfortable with this arrangement. Having funds at more than one location would only increase your odds of a black swan event IMO. Single advisor/custodian is simple and efficient.
You can sum up any active fund manager’s presentation at an investor conference in one sentence: “We’re doing well, all things considered.”
Re: 1 Broker or 2
What is a "Black Swan" event?
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Re: 1 Broker or 2
Any perceived diversification is for emotional reasons. In a practical sense you have no risk in a brokerage account (unless you believe VG, Fidelity, or WF are printing statements in someone's basement and they've made off with your actual money). Something like a bankruptcy or an account freeze is theoretically possible, but would amount to an administrative issue, not one that would cause a financial loss. Having a substantial enough emergency fund in the credit union down the street usually alleviates any potential risk of a month long web outage or something. I suppose the custodial banks actually holding the money could also commit fraud, but also seems unlikely. That said, as mentioned, having a couple accounts may simply make you feel better and there's really little downside to that arrangement as well, except another account for your estate to settle in the event of death (or manage in the even of incapacity).
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Re: 1 Broker or 2
I currently have accounts at five brokerages (not counting the 401(k)). That's a result of my project over the Christmas break to see how much in brokerage bonuses I could garner. The answer was, $2,150.00.
Next December I'll probably move everything again for more more more bonus money. Bwa-ha-ha-ha!
Brian
Next December I'll probably move everything again for more more more bonus money. Bwa-ha-ha-ha!
Brian
Re: 1 Broker or 2
With that much money, I'd keep funds at two institutions, or possibly even more. Even with much, much less money, I have money in several places: about half at VG, and the rest divided among several other institutions (partly for historical reasons, and partly to access investments not available through VG.)reason-logic wrote:I am using Vanguard for all of my mutual fund needs. I am also using Vanguard Brokerage Services for all of my individual stock and bond holdings. I also have a brokerage account at Wells Fargo Advisors with a portfolio of individual muni bonds, which I am closing.
Question, when I close the Wells Fargo Advisor broker account, should I move these assets to another broker (I.e., Fidelity) or put all my assets with Vanguard? I guess I am concerned about a Black Swan event at Vanguard that could end up with all my non cash assets tied up in one place.
I have a total of $18 million in mutual funds, individual stocks and bonds.
Should I split these between 2 firms or consolidate all with Vanguard?
Obviously, if you double the number of locations for your assets, you double the odds of losing all the money that's at any one location, but with as much money as you have, even a loss of half your investments shouldn't be fatal.
Paul
Re: 1 Broker or 2
http://en.wikipedia.org/wiki/Black_swan_theoryRed35 wrote:What is a "Black Swan" event?
Re: 1 Broker or 2
Haha, I also did a round of brokerage bonuses, though I made a bit less than you. However, I'm going to take my winnings and reconsolidate...keeping track of the various accounts is annoying.Default User BR wrote:I currently have accounts at five brokerages (not counting the 401(k)). That's a result of my project over the Christmas break to see how much in brokerage bonuses I could garner. The answer was, $2,150.00.
Next December I'll probably move everything again for more more more bonus money. Bwa-ha-ha-ha!
Brian
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Re: 1 Broker or 2
That's what the big spreadsheet is for. Yes, there are a few extra account downloads to do now, but those take no appreciable time, and I don't do it that often anyway. The Big Spreadsheet collates all the information and presents it for me.Cash wrote:Haha, I also did a round of brokerage bonuses, though I made a bit less than you. However, I'm going to take my winnings and reconsolidate...keeping track of the various accounts is annoying.
Brian