How many firms do you use?

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rzk96
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How many firms do you use?

Post by rzk96 » Sun May 14, 2017 3:03 pm

Hey All -
Due to BH, my 401k/Roth IRA/taxable account are all with VG. But I am wondering... do you guys use 2-3 firms for taxable accounts? Or just stick with 1? I know Schwab, Fidelity, etc are out there.

Why I ask: I want to retire early. Like early 50s. Before I can withdraw my 401k/Roth IRA/Etc, I want to be able to live off my taxable funds. I've heard from my friends' parents they all had a ton of nest eggs. I am 27.

My nest eggs:
401k at VG - Been maxing the past 2 years and will do the next 20+ years
RothIRA at VG - Been maxing the past 2 years and will do the next 20+ years
Savings at Ally - I think I add 20k per year
Taxable Account at VG - add 300 bucks per month to VTI (hope to reach Admiral one day!)

Not really a nest egg, but I can withdraw money as I need it. I don't plan on having kids, so....
Custom Whole Life Insurance (I'll be done with paying monthly when I'm 45)

I'm very new at investing. :) If my post sounds dumb, sorry. I'm very thankful to have found this group.
Last edited by rzk96 on Sun May 14, 2017 3:12 pm, edited 1 time in total.

ff4930
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Re: How many firms do you use?

Post by ff4930 » Sun May 14, 2017 3:06 pm

I have my IRA's with Vanguard and have taxable wih Vanguard as well. For simplicity.

avalpert
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Re: How many firms do you use?

Post by avalpert » Sun May 14, 2017 3:09 pm

You have one nest egg, one portfolio. The firms you use are conduits for investing that portfolio - the number doesn't matter but to the extent that it is necessary to achieve the goals of your portfolio - in other words, first determine your desired portfolio structure and then choose the conduits that allow you to achieve that structure at the lowest cost (with slight adaptations needed for employer 401k accounts).

More importantly, why do you have whole life insurance and how quickly can you get out of that?

bcc1234
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Re: How many firms do you use?

Post by bcc1234 » Sun May 14, 2017 3:09 pm

Everything is at VG except a local checking/savings account and my 401K at work.

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AllieTB1323
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Re: How many firms do you use?

Post by AllieTB1323 » Sun May 14, 2017 3:57 pm

Two retirement accounts and a brokerage account at Fidelity. One brokerage account at Vanguard. Two money market accounts; one is at AMEX and the other is at GS. DW isn't comfortable having everything at one firm.

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Re: How many firms do you use?

Post by Jack FFR1846 » Sun May 14, 2017 4:01 pm

4 plus US Savings Bonds. Taxable at Schwab and TDAmeritrade.
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123
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Re: How many firms do you use?

Post by 123 » Sun May 14, 2017 4:35 pm

Our primary accounts are at Fidelity, Vanguard, and Schwab. We've got checking at local banks and some CDs with Ally Bank.

For a couple it's easy to have a number of accounts, particularly with segregation by SSN for Traditional IRAs and Roths. Add in taxable investments, an inherited IRA, or two, and some college savings accounts and it almost gets to be too many to count with your fingers.

I'd like to equalize our investment positions among two or three firms with some segregation like Traditional IRAs, Roth IRAs, and Taxable but we have very top-heavy balances in Traditional IRA accounts so that kind of alignment isn't feasible. I've also thought of aligning accounts like his, hers, and ours at different firms.My problem is that I really like Schwab and I'm reluctant to move any account away from them. So I just continue to be perplexed.
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celia
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Re: How many firms do you use?

Post by celia » Sun May 14, 2017 5:01 pm

Some people have separate accounts to help with mental bookkeeping: vacation fund, Christmas spending, new car fund, house maintenance, college fund, etc. That could be what your friend's parents have. We have separate accounts for inherited taxable, TIRA, and Roth. We want to keep our inheritances separate and it is required for Inherited IRAs. We also keep separate accounts for assets we want to go to particular people.

We also had separate accounts when we were managing money for elderly relatives or our minor kids, because that is not our money. Being an executor or trustee also requires separate accounts for that.

As you go through life, you will probably encounter some of these situations. The number of accounts is not an issue. But you asked about the number of institutions. If different institutions have some advantages over others and you want to take advantage of that, so be it.

Where's our money located these days? One bank, one credit union, two brokerage/mutual fund companies, and in the hands of one slow-acting trustee (inheritance).

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Steelersfan
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Re: How many firms do you use?

Post by Steelersfan » Sun May 14, 2017 5:59 pm

95% of assets at Vanguard, both taxable and IRA. A few iBonds at Treasury Direct and a checking account and CD at a local bank.

NiceUnparticularMan
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Re: How many firms do you use?

Post by NiceUnparticularMan » Sun May 14, 2017 6:16 pm

Our IRAs are with Vanguard, but our taxable account is with TD Ameritrade, as is our investable HSA. I think it would be fine to have it all one place, but since the HSA was at TD Ameritrade anyway and we like their platform and commission-free ETF list, we just put taxable there too.

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bengal22
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Re: How many firms do you use?

Post by bengal22 » Sun May 14, 2017 6:43 pm

Fidelity 2/3
Vanguard 1/3

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Ged
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Re: How many firms do you use?

Post by Ged » Sun May 14, 2017 6:52 pm

Everything at Fidelity including my Vanguard mutual funds. The only exception is a checking account at a local bank.

It makes everything really easy to manage.

I've been using Fidelity since my first employer opened a tax deferred savings account there for me in 1976. Haven't discovered a reason to change, and over time they've won my business by not messing up.

Mr.BB
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Re: How many firms do you use?

Post by Mr.BB » Sun May 14, 2017 7:29 pm

401k (through fidelity/work)
SEP - Vanguard
My Roth - Vanguard
Her Roth - Vanguard
Taxable MF Acct - Vanguard
Traditional IRA - T. Rowe
Stocks - Scottrade
Emergency Fund - Credit Union
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Waban2000
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Re: How many firms do you use?

Post by Waban2000 » Sun May 14, 2017 7:40 pm

I believe in diversification. I use Vanguard and Fidelity.
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Helo80
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Re: How many firms do you use?

Post by Helo80 » Sun May 14, 2017 7:44 pm

Mutual Funds/IRA/Education - Vanguard
Stocks - Almost all USAA except one through MorganStanley (former employer stock)
401k-ish - TSP

rzk96
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Re: How many firms do you use?

Post by rzk96 » Sun May 14, 2017 7:46 pm

elb2000 wrote:I believe in diversification. I use Vanguard and Fidelity.
One major fiasco, lawsuit, or cyber attack can make for a make for a very bad day.
1/2 trillion was tied up in Lehman Brothers collapse
Do you think it's ok to hold TSM at both VG and Fidelity? Both need 10k to get their admiral/premium MF, but I can slowly get there.

radiowave
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Re: How many firms do you use?

Post by radiowave » Sun May 14, 2017 8:04 pm

rzk96 wrote:Hey All -
Due to BH, my 401k/Roth IRA/taxable account are all with VG. But I am wondering... do you guys use 2-3 firms for taxable accounts? Or just stick with 1? I know Schwab, Fidelity, etc are out there.

Why I ask: I want to retire early. Like early 50s. Before I can withdraw my 401k/Roth IRA/Etc, I want to be able to live off my taxable funds. I've heard from my friends' parents they all had a ton of nest eggs. I am 27.

My nest eggs:
401k at VG - Been maxing the past 2 years and will do the next 20+ years
RothIRA at VG - Been maxing the past 2 years and will do the next 20+ years
Savings at Ally - I think I add 20k per year
Taxable Account at VG - add 300 bucks per month to VTI (hope to reach Admiral one day!)

Not really a nest egg, but I can withdraw money as I need it. I don't plan on having kids, so....
Custom Whole Life Insurance (I'll be done with paying monthly when I'm 45)

I'm very new at investing. :) If my post sounds dumb, sorry. I'm very thankful to have found this group.
Nothing wrong with having everything at Vanguard - actually you are fortunate to have your 401k there, many BH have some really terrible situations for tax deferred retirement accounts in looking at prior posts.

Note, you are accumulating VTI at VG but the ETF is not exchangeable with the Admiral mutual fund VTSAX. You'll have to sell VTI then purchase VTSAX when the time comes and incur some capital gains/loss in the conversion. No big deal. Interesting, once you have the mutual funds, you can set up automated purchase each month and Vanguard will pull the funds from Ally - you won't have to move $ into the brokerage prior to sale (as you are probably doing right now with the ETFs).
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rzk96
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Re: How many firms do you use?

Post by rzk96 » Sun May 14, 2017 8:25 pm

radiowave wrote:
rzk96 wrote:Hey All -
Due to BH, my 401k/Roth IRA/taxable account are all with VG. But I am wondering... do you guys use 2-3 firms for taxable accounts? Or just stick with 1? I know Schwab, Fidelity, etc are out there.

Why I ask: I want to retire early. Like early 50s. Before I can withdraw my 401k/Roth IRA/Etc, I want to be able to live off my taxable funds. I've heard from my friends' parents they all had a ton of nest eggs. I am 27.

My nest eggs:
401k at VG - Been maxing the past 2 years and will do the next 20+ years
RothIRA at VG - Been maxing the past 2 years and will do the next 20+ years
Savings at Ally - I think I add 20k per year
Taxable Account at VG - add 300 bucks per month to VTI (hope to reach Admiral one day!)

Not really a nest egg, but I can withdraw money as I need it. I don't plan on having kids, so....
Custom Whole Life Insurance (I'll be done with paying monthly when I'm 45)

I'm very new at investing. :) If my post sounds dumb, sorry. I'm very thankful to have found this group.
Nothing wrong with having everything at Vanguard - actually you are fortunate to have your 401k there, many BH have some really terrible situations for tax deferred retirement accounts in looking at prior posts.

Note, you are accumulating VTI at VG but the ETF is not exchangeable with the Admiral mutual fund VTSAX. You'll have to sell VTI then purchase VTSAX when the time comes and incur some capital gains/loss in the conversion. No big deal. Interesting, once you have the mutual funds, you can set up automated purchase each month and Vanguard will pull the funds from Ally - you won't have to move $ into the brokerage prior to sale (as you are probably doing right now with the ETFs).
Ahh. I meant when I reach 10k threshold I'll want to convert that to admiral fund. I think it's called converting? I read on here VG gives us an option to do so. My goal is the next 2 years. Gotta pay off my car loan first haha.

TX_Man
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Re: How many firms do you use?

Post by TX_Man » Sun May 14, 2017 8:33 pm

Schwab, but I am going to open an IRA at Vanguard in 2018. I want to start spreading eggs into multiple baskets.

Helo80
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Re: How many firms do you use?

Post by Helo80 » Sun May 14, 2017 8:39 pm

rzk96 wrote:
Ahh. I meant when I reach 10k threshold I'll want to convert that to admiral fund. I think it's called converting? I read on here VG gives us an option to do so. My goal is the next 2 years. Gotta pay off my car loan first haha.

IDK what the official name is, but if you hit $10K either by putting money into it, or your investment surpassing $10K, you'll be given an option to upgrade to admiral. You'll effectively do a 100% sale of the old fund into a buy of the admiral fund.

I've heard rumors though that even if you do nothing, the fund will upgrade automatically after some period of time.

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jhfenton
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Re: How many firms do you use?

Post by jhfenton » Sun May 14, 2017 8:52 pm

We have a couple of checking accounts and savings accounts and three credit card accounts, but we maintain the absolute minimum of investment accounts: 1 x Taxable, 2 x Roth, 2 x Rollover at Vanguard; 401(k) at Fidelity; HSA at local bank brokerage through employer. None of the investment accounts are combinable.

When we eventually get to withdrawal mode, I will make sure that we have readily accessible cash in two institutions, but I don't worry about short-term access disruptions for retirement accounts during accumulation.

rzk96
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Re: How many firms do you use?

Post by rzk96 » Sun May 14, 2017 9:03 pm

AllieTB1323 wrote:Two retirement accounts and a brokerage account at Fidelity. One brokerage account at Vanguard. Two money market accounts; one is at AMEX and the other is at GS. DW isn't comfortable having everything at one firm.
Think it is wise to invest in TSM at both VG and Fidelity?

stlutz
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Re: How many firms do you use?

Post by stlutz » Sun May 14, 2017 9:20 pm

IDK what the official name is, but if you hit $10K either by putting money into it, or your investment surpassing $10K, you'll be given an option to upgrade to admiral. You'll effectively do a 100% sale of the old fund into a buy of the admiral fund.
Just to be precise, it is a share conversion to the other class. I wouldn't use the word "sale"--if you sell and buy something else, that is a taxable event. A conversion is not--your cost basis will remain the same.
I've heard rumors though that even if you do nothing, the fund will upgrade automatically after some period of time.
That is correct. It doesn't happen immediately but I think they check quarterly or something like that. If you do nothing, there will (or at least there used to be) a button you can click on to convert to Admiral for that holding.

radiowave
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Re: How many firms do you use?

Post by radiowave » Sun May 14, 2017 9:34 pm

Ahh. I meant when I reach 10k threshold I'll want to convert that to admiral fund. I think it's called converting? I read on here VG gives us an option to do so. My goal is the next 2 years. Gotta pay off my car loan first haha.
No, the conversion from Investor shares TSM VTSMX (https://personal.vanguard.com/us/funds/ ... IntExt=INT) to Admiral shares VTSAX (https://personal.vanguard.com/us/funds/ ... IntExt=INT) is only for the two mutual funds NOT for the ETF. If you have VTI, as above, you'll have to sell those shares then purchase VTSAX. If you have $3,000 now, you can purchase VTSMX then it can be converted to VTSAX when you reach $10,000.
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AllieTB1323
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Re: How many firms do you use?

Post by AllieTB1323 » Mon May 15, 2017 1:20 pm

rzk96 wrote:
AllieTB1323 wrote:Two retirement accounts and a brokerage account at Fidelity. One brokerage account at Vanguard. Two money market accounts; one is at AMEX and the other is at GS. DW isn't comfortable having everything at one firm.
Think it is wise to invest in TSM at both VG and Fidelity?
Can't see it being a problem. At VG we use the Admiral shares and at Fido the Premium shares. We do the same with their Total Bond funds. Heck in an IRA we use ITOT. My FIL lived the Lehman disaster and then during 2009 the bank my business used went belly up thus making me very risk adverse.

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Re: How many firms do you use?

Post by dcdowden » Mon May 15, 2017 1:53 pm

We have our IRA's at Fidelity which is a carryover from Fidelity being the administrator for our 401K's before we rolled them over.
We have taxable brokerage holdings all at Vanguard. We mostly invest in Vanguard ETF''s (VTI, BND, etc.) in our Fidelity account.
Fidelity has an excellent set of tools to get a Full View of all your assets. They also have a very good retirement planning tool.

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Re: How many firms do you use?

Post by Meg77 » Mon May 15, 2017 2:01 pm

I wish I could simplify more..

checking (2)- Wells Fargo
Roth IRAs (2) & brokerage - Vanguard
my 401k - Tri-ad
DH's 401k - some other company I can't recall
auto loan - Chase
DH's old 401k - a regional bank (kept there because funds have no expense ratio)
HSA - Optum Bank
HSA investment portion - TD Ameritrade (with a separate login :oops: )
rental mortgages (2) - Bank of Texas
home mortgage - Mortgage Co of America
credit cards - Citi, Amex, Chase, Nordstrom, Capital One, and a couple of retailers

That's about as short as I can make the list. I've closed/consolidated a few accounts in the last year too.
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DaftInvestor
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Re: How many firms do you use?

Post by DaftInvestor » Mon May 15, 2017 2:09 pm

I have accounts at Fidelity, Vanguard, and Schwab. One of these is my 401K at my latest company so wasn't my choice.
I've never had a need to consolidate since all 3 offer low-cost index funds. In fact - too me it almost keeps things simpler having IRA in one place, taxable in another, and 401K in another - for instance - I know at tax time that all statements from one is related to my taxable account while statements from another related to my 401K.

dos palomas
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Re: How many firms do you use?

Post by dos palomas » Mon May 15, 2017 2:16 pm

Who is the life insurance for? Your spouse?
Why whole life over term?

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Re: How many firms do you use?

Post by bloom2708 » Mon May 15, 2017 2:21 pm

Everything at Vanguard except my current 401k with Fidelity. Less is more.
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Elsebet
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Re: How many firms do you use?

Post by Elsebet » Mon May 15, 2017 2:29 pm

Roth IRA, Taxable, and Rollover IRA are with Fidelity.

Checking/Savings are with a local CU.

Current employer's 401k is out of my direct control so it's at a third firm. If I change employers it goes into the Rollover IRA at Fidelity.

In my opinion, the fewer accounts I have to manage the better.

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Re: How many firms do you use?

Post by wolf359 » Mon May 15, 2017 2:39 pm

dos palomas wrote:Who is the life insurance for? Your spouse?
Why whole life over term?
I was going to ask the same thing.

Life insurance is so that if you die, your kids or spouse can replace your income.

But you don't have kids, and don't even plan to have them.

And you picked whole life, so that you have lower amounts of coverage than term.

Why do you have life insurance? Is someone relying on you for support? Is that need for life insurance permanent (needed even after you're financially independent at 50)?

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Re: How many firms do you use?

Post by ruralavalon » Mon May 15, 2017 4:00 pm

We have just one taxable account. It's at Vanguard. All of our IRAs are also with Vanguard.

Why did you buy whole life insurance? Whole life is not a good way to invest or save. Unless you have dependents you probably don't need any life insurance. If you need life insurance it should probably be term life insurance.
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Re: How many firms do you use?

Post by Hockey10 » Mon May 15, 2017 6:04 pm

Do not put all of your eggs in one basket. Spread the wealth between at least 2 firms.

jnet2000
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Re: How many firms do you use?

Post by jnet2000 » Mon May 15, 2017 6:49 pm

We have 90% of our assets at Vanguard and 10% at T.Rowe Price. We used to use Charles Schwab, still have their checking, but we have been trying to consolidate.
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J295
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Re: How many firms do you use?

Post by J295 » Mon May 15, 2017 8:01 pm

Primarily at Fido and Vanguard.
Also have work 401k elsewhere (kept it there when I sold out), AMX high yield savings, ibonds (electronic)

rzk96
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Re: How many firms do you use?

Post by rzk96 » Mon May 15, 2017 9:29 pm

dos palomas wrote:Who is the life insurance for? Your spouse?
Why whole life over term?
I'm not married yet, ha. But I got the custom whole life due to my mother. She spoke highly of it. Said it helped her buy her house during the recession by dipping into it/pay full cash for the home my mom/dad own now(20% down). She's had it for 20 years before then and was done paying the premiums.

I also have a personal friend who USED to be in Insurance and I asked him about it. He knows a lot of people say it's a scam, but it does help you when you're done paying off the premiums. I'm planning on converting (right terminology to say this?) my policy into where I can withdraw monthly payments or something like that. I know that if I withdraw from it, it does lessen the payout for my loved ones when I die... but again, no kids.

It's also only 300 bucks per month for me. Originally the Insurance guy tried to up to 600 -- I said NO! I'm tempted to cancel the policy but my mother is begging me to keep it for future use.

Why I listen to my mother? Hmm... historically, whenever I decided to do a venture she was against, I got screwed. Whenever I did a venture she gave me a good blessing on, helped me greatly. Yeah - most people may think "What?!" but I trust her intuition. :D

rzk96
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Re: How many firms do you use?

Post by rzk96 » Mon May 15, 2017 9:30 pm

wolf359 wrote:
dos palomas wrote:Who is the life insurance for? Your spouse?
Why whole life over term?
I was going to ask the same thing.

Life insurance is so that if you die, your kids or spouse can replace your income.

But you don't have kids, and don't even plan to have them.

And you picked whole life, so that you have lower amounts of coverage than term.

Why do you have life insurance? Is someone relying on you for support? Is that need for life insurance permanent (needed even after you're financially independent at 50)?
See below :D

rzk96
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Re: How many firms do you use?

Post by rzk96 » Mon May 15, 2017 9:47 pm

AllieTB1323 wrote:
rzk96 wrote:
AllieTB1323 wrote:Two retirement accounts and a brokerage account at Fidelity. One brokerage account at Vanguard. Two money market accounts; one is at AMEX and the other is at GS. DW isn't comfortable having everything at one firm.
Think it is wise to invest in TSM at both VG and Fidelity?
Can't see it being a problem. At VG we use the Admiral shares and at Fido the Premium shares. We do the same with their Total Bond funds. Heck in an IRA we use ITOT. My FIL lived the Lehman disaster and then during 2009 the bank my business used went belly up thus making me very risk adverse.
I read somewhere ITOT was more tax efficient in taxable account? The normal TSM (FESMX?) for Fidelity was not as tax efficient... Fidelity has sooooo many choices for TSM, it hurst my head :( Thoughts??

rzk96
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Re: How many firms do you use?

Post by rzk96 » Mon May 15, 2017 10:35 pm

celia wrote:Some people have separate accounts to help with mental bookkeeping: vacation fund, Christmas spending, new car fund, house maintenance, college fund, etc. That could be what your friend's parents have. We have separate accounts for inherited taxable, TIRA, and Roth. We want to keep our inheritances separate and it is required for Inherited IRAs. We also keep separate accounts for assets we want to go to particular people.

We also had separate accounts when we were managing money for elderly relatives or our minor kids, because that is not our money. Being an executor or trustee also requires separate accounts for that.

As you go through life, you will probably encounter some of these situations. The number of accounts is not an issue. But you asked about the number of institutions. If different institutions have some advantages over others and you want to take advantage of that, so be it.

Where's our money located these days? One bank, one credit union, two brokerage/mutual fund companies, and in the hands of one slow-acting trustee (inheritance).
Hmm...this makes me want to open up 1 at Fidelity now.

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