Eggs in one basket, revisited

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

Other than cash needs, do you keep all liquid investments with Vanguard?

Poll ended at Mon Sep 30, 2013 5:24 pm

All at Vanguard, total is less than $1M
13
18%
All at Vanguard, total is $1M-$5M.
19
26%
All at Vanguard, total is over $5M.
0
No votes
Divided between Vanguard and at least one other company
35
47%
All non Vanguard
7
9%
 
Total votes : 74

Eggs in one basket, revisited

Postby Diogenes » Sat Aug 31, 2013 5:24 pm

I am a big fan of Vanguard, for reasons that do not to be listed for those here. On the other hand, my investment philosophy dictates that I not place all my eggs in any one basket. In this case I am not comfortable placing all my liquid assets with one firm, even one as great as Vanguard and even when invested there in several very low cost index funds. I know many people here likely feel differently as many do feel it is OK to trust one company. For this reason though I still keep different pots. I may pay slightly higher costs this way, but not much, and it takes no additional time on my end to manage.

I have read the section on the Wiki that discusses this, and Mel Lindauer's good 2008 post here viewtopic.php?p=148439#148439, as well as the good points brought up by craigr here viewtopic.php?f=10&t=95719. However, strange things can and do happen, and with a single firm being your interface with your liquid wealth...with no SIPC applicable as discussed here...http://www.obliviousinvestor.com/is-it- ... companies/.

My philosophy has been to set things up simply, but to ensure my lifestyle would not be radically altered if one source (i.e. pension, or mutual fund manager) tanks or gets eliminated by graft or corruption, cyber intrusion, or something that hasn't been thought of yet.

I am curious what percentage feel it is OK to place everything in one place, perhaps preferring simplicity over 'eggs in one basket' concerns, thus the poll and the topic bump.


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Re: Eggs in one basket, revisited

Postby Call_Me_Op » Sat Aug 31, 2013 5:32 pm

I don't like all of my eggs in one basket.
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Re: Eggs in one basket, revisited

Postby livesoft » Sat Aug 31, 2013 5:35 pm

The simplicity of "all eggs in one basket" is kind of funny to me because I can have 5 vendors and say all my eggs are "in the internet" or "on my computer". I use a web browser to access them all pretty much seamlessly.

And as noted many times, folks are forced to have multiple vendors because they and their spouse are working with employer-sponsored retirement plans. There is no way to get around that as far as I can see. In those cases, one is used to working simply with a portfolio spread over 3 or 4 vendors. Perhaps it's better than playing sudoku and will keep your mind from deteriorating?
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Re: Eggs in one basket, revisited

Postby mhc » Sun Sep 01, 2013 10:03 am

All my work related accounts (401k, HSA) are at Fidelity. All others (taxable, roth, 529, coverdell) are at Vanguard. I would have no issue having everything at Vanguard.
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Re: Eggs in one basket, revisited

Postby mickeyd » Sun Sep 01, 2013 3:16 pm

Having my entire stash @ Vanguard does not seem to be having all of my eggs in a single basket. Each fund owns the assets of that fund and the shareholders of that fund own all of the shares. Vanguard owns nothing.

I can also appreciate that having your stuff at VG and Fido helps you sleep at night. Sleep tight.
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Re: Eggs in one basket, revisited

Postby cheese_breath » Mon Sep 02, 2013 12:21 am

My big eggs are in Vanguard and TIAA-CREF. Smaller eggs are a company pension and an annuity (which used to be a company pension). The rest of my eggs are in the fridge.
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Re: Eggs in one basket, revisited

Postby Diogenes » Tue Sep 03, 2013 5:59 pm

Interesting responses so far. The comment by Mhc reminded me I should have specified liquid assets are those that you can actually move (unlike work related accounts in which you are locked in).

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Re: Eggs in one basket, revisited

Postby BHCadet » Tue Sep 03, 2013 6:02 pm

We're still working. So, we have multiple accounts.
After we're retired, we probably will have two (Fidelity and Vanguard).
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Re: Eggs in one basket, revisited

Postby tludwig23 » Tue Sep 03, 2013 6:14 pm

I'd be comfortable having everything at Vanguard, but they do not allow Profit-Sharing Plans. Therefore my largest account is at Fidelity.
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Re: Eggs in one basket, revisited

Postby MnD » Tue Sep 03, 2013 6:21 pm

If you have Vanguard ETF's in a Fidelity self-directed brokerage option 401-K, are those funds at Fidelity or Vanguard for the purpose of your poll?
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Re: Eggs in one basket, revisited

Postby The Wizard » Tue Sep 03, 2013 9:45 pm

Just keep a few hundred $K in a checking account at your local credit union.
Then in the event Vanguard's website goes down, you'll be able to survive for the next week or two regardless...
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