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Is it safer to use multiple fund companies?
04-30-2012, 10:02 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,519
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Is it safer to use multiple fund companies?
This question seems to come up regularly. In short, the answer is No - you're just as safe with one reputable firm.
I thought this post asks the right questions. The answers come from a Vanguard representative.
Is It Safer to Use Multiple Fund Companies?
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04-30-2012, 02:42 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2006
Location: west coast, hi there!
Posts: 8,809
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Thanks for posting this. I'll keep it in case of late night jitters.
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04-30-2012, 02:59 PM
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#3
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Full time employment: Posting here.
Join Date: Aug 2005
Location: Far NW 'burbs of Chicago
Posts: 898
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The answers are encouraging, but only to a certain point. It still appears that if Vanguard is the victim or perpetrator of a fraud, and goes broke; there may be no one with both the money and the obligation to compensate the investors.
Slightly more likely, I suspect, is the possibility of someone getting hold of your account information and draining your account before you catch it. In that case, holding your investments in more than one firm could provide a measure of protection.
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04-30-2012, 03:09 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
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Join Date: May 2005
Posts: 17,244
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One of the problems with the answers is that they still assume that major fraud is not taking place... I bet that people who asked Bernie Madoff and MF Global got the same answers...
We know that the investors in Bernie did not get their money back... I have read that is the same with MF Global, but I am not sure that they will never get it back... I just have not been keeping up with it...
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04-30-2012, 06:43 PM
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#5
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Recycles dryer sheets
Join Date: Aug 2011
Location: aberdeen
Posts: 267
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Well yes, my biggest accounts are in Vanguard, Fidelity and T. Rowe Price.
The chances that all three will be mismanaged with the same crooks is
almost impossible. Of course they can behave the same in a bad market.
I used to be a MF junkie and some of my funds have changed names, got swallowed by others, added expenses, or have dissolved. I've never completely loss principal( I hope ), but some have not performed well thru the years.
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05-02-2012, 09:55 AM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Aug 2006
Posts: 12,483
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 Quote:
Originally Posted by walkinwood
This question seems to come up regularly. In short, the answer is No - you're just as safe with one reputable firm.
I thought this post asks the right questions. The answers come from a Vanguard representative.
Is It Safer to Use Multiple Fund Companies? |
What did you expect a Vanguard rep to say: "No, I would spread my money around to several fund companies"? 
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
This Thread is USELESS without pics.........:)
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