I generally try not to create savings or investment accounts willy-nilly, yet we (my wife and I combined) have ended up with 12 accounts at 7 different institutions! My wife thinks this is hard to understand and track. I don't have that concern personally, but I am sympathetic to her concerns, of course.
The chart of accounts works out like this
- Retirement: (1) 401k for me, (2) IRAs for me (traditional and Roth), (2) IRAs for my wife
- Checking: just (1)
- Savings: (2), cushion spread equally between a local brick n' mortar for quick access and an online bank with a great rate
- College Savings: (2), one for each child
- Employee stock plan: just (1)
- Additional Savings Beyond retirement: (1) brokerage account
The question is about the latter account. It is supporting, as per my IPS, two distinct objectives right now.
- A place to invest for a long term horizon like retirement beyond what I can save in tax advantaged accounts after I max those out
- A place to park short term savings earmarked for projects like major home improvement/repairs, new vehicles, etc
What is the best practice?
Are there other issues you can see with the way I have structured our chart of accounts?