Originally Posted by getoutearly
I'm probably making this more complicated, in my head, than it will actually be...
Yes, like me, you probably are. But hey, this is a good time to pay attention to the details. VG will likely set you up with a few accounts:
1. Your IRA
2. Joint account
3. Individual account
4. Spouses IRA
Each account will have a money market position used for cash deposits, contributions and sweeps from dividends and gains. This cash can be invested any way you decide. Dividends and gains (and principal
) can be automatically transferred to the cash accounts and disbursed to you. IMO VG does a good job of tracking basis and average cost info once they get you setup. Prior to that you need to keep the records. When transferring I liquidated almost everything for that very reason except a few stocks that I've owned for many years. That basis info I keep.
No pitfalls that I can think of. Just keep you old buy/sell info on file and enjoy firing your FA!
OBTW assuming you are married get things setup in the beginning to allow whomever makes those decisions to trade on all accounts.