Benefits to Bundling Investments with Fewer Companies

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Colorado21a
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Benefits to Bundling Investments with Fewer Companies

Post by Colorado21a »

My wife and I both recently departed our companies and have the ability to rollover our 401k's into new accounts. We also have some ability to move some money into fewer companies, i.e., Fidelity, Vanguard, etc. I know sometimes there may be benefits to having a certain amount of money invested with one company, i.e., free advisory services, cash bonuses, etc.

Is there a good place to look to see the best current deals that are out there, if any? Are there any reasons not to do this? I obviously won't incur any negatively impacting tax transactions or fees, but other than that just wondering if there is any risk/costs associated with consolidation? FYI, I'm just talking about where the money is held, i.e., Fidelity, but we will continue to diversify across different ETF/index funds within Fidelity, etc.

Thanks!
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retired@50
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Re: Benefits to Bundling Investments with Fewer Companies

Post by retired@50 »

Colorado21a wrote: Mon Jun 10, 2024 7:19 pm
Is there a good place to look to see the best current deals that are out there, if any?
Check out the brokerage transfer bonus mega-thread.

See link: viewtopic.php?t=196884

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
jebmke
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Re: Benefits to Bundling Investments with Fewer Companies

Post by jebmke »

In my opinion, there is no reason many people can’t use just one company. Fidelity, Schwab and Vanguard are the three most often talked about. Transfer bonuses might be compelling but to me the key is whether the company meets my needs on an ongoing basis. I’m not and never will be a churner.
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Wiggums
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Re: Benefits to Bundling Investments with Fewer Companies

Post by Wiggums »

We have our portfolio split between Vanguard and Fidelity. I guess we are following the old saying, “don’t put all your eggs in one basket.” We closed all unnecessary accounts to make this manageable for our children.

Personally, we are not interested in chasing bonuses. We would much rather play catch with the dog. 🐕
"I started with nothing and I still have most of it left."
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TomatoTomahto
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Re: Benefits to Bundling Investments with Fewer Companies

Post by TomatoTomahto »

jebmke wrote: Tue Jun 11, 2024 5:54 am In my opinion, there is no reason many people can’t use just one company. Fidelity, Schwab and Vanguard are the three most often talked about. Transfer bonuses might be compelling but to me the key is whether the company meets my needs on an ongoing basis. I’m not and never will be a churner.
I’m not a churner either, but I find it reassuring to have more than one company just for the “it happens rarely but does happen” occasion where account access is denied for a while. I’ve had security account locks (failed logins) where I could regain access quickly, but I prefer having both Fidelity and Schwab accounts if one gets temporarily blocked.
I get the FI part but not the RE part of FIRE.
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ResearchMed
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Re: Benefits to Bundling Investments with Fewer Companies

Post by ResearchMed »

TomatoTomahto wrote: Tue Jun 11, 2024 6:17 am
jebmke wrote: Tue Jun 11, 2024 5:54 am In my opinion, there is no reason many people can’t use just one company. Fidelity, Schwab and Vanguard are the three most often talked about. Transfer bonuses might be compelling but to me the key is whether the company meets my needs on an ongoing basis. I’m not and never will be a churner.
I’m not a churner either, but I find it reassuring to have more than one company just for the “it happens rarely but does happen” occasion where account access is denied for a while. I’ve had security account locks (failed logins) where I could regain access quickly, but I prefer having both Fidelity and Schwab accounts if one gets temporarily blocked.

This ^^

It's not so much about having *our* account compromised, although that's always a "possibility". :annoyed

A concern is whether a financial institution will get hacked or have some ransom event.
Much better to be prepared with a backup way to pay bills and get money than to need to scramble after almost everything is locked up due to some bad actor.

We don't (or haven't yet?) churn financial vendors for transfer bonuses.

In our case, we'll always have some assets at TIAA because of money in their Traditional Annuity (at least some of which we are likely to annuitize). But we'll also have money at Schwab, in part due to their local office. That came in especially handy when we had to deal with MIL's trust documents.
And we also have a checking account at a local bank branch, where cash can also be handled. We keep very little money in that account, as transfers from the other vendors as needed are so fast.
IF the local Schwab branch handled cash, we'd probably omit that "local bank", but Schwab doesn't do that.

RM
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TomatoTomahto
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Re: Benefits to Bundling Investments with Fewer Companies

Post by TomatoTomahto »

TomatoTomahto wrote: Tue Jun 11, 2024 6:17 am I’m not a churner
Full disclosure: we had to move our accounts from Vanguard because of my wife’s employer, where Vanguard was not on the approved list. We already had accounts at Fidelity, so chose Schwab. Between the initial transfer bonus and a retention bonus, Schwab gave us a low 5 digit amount. We are happy to have received it, but won’t churn or move accounts to continue getting such bonuses. “Just pennies from heaven.”
I get the FI part but not the RE part of FIRE.
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