Simplifying accounts

[SumDay]

DH's IRA & SEP are at Vanguard, and he enjoys Flagship status there. My 401(k) with my now former employer are at Transamerica. Fees are OK, and fund selection is actually pretty good. I just hate their customer service, and I have to manually download my account info into Quicken as their site doesn't support such complicated things.

I'm considering rolling over my 401(k) to Vanguard which will hopefully guarantee our total account balances stay above the Flagship threshold, and also make asset allocation a little easier for me. I don't like losing ERISA protection from my 401(k), but that's about the only drawback I can see.

I do ALL the finance chores in this household, as DH has NO interest whatsoever. However, when I ran the idea by him the first thing he mentioned was all the people who lost their rear-ends when Lehman Brothers went under. Next time I'll just move the money without discussing - he'd never know.

I found this article which appeased him somewhat, but I thought I'd ask here: do you have all your retirement assets at one firm, and do you worry about their demise? Or do you have them split up, for that reason? Looking forward to the collective wisdom of this group.

 

[COcheesehead]

I personally believe consolidation is powerful. The tools and reporting within a single brokerage are far more useful than trying to consolidate reporting from multiple sources or having to use a third party app.
A brokerage account is simply that, a broker. The investments are diversified across ETFs, funds, etc.

 

[pb4uski]

Almost all of our assets are at Vanguard (81%) other than some PenFed CDs that mature in December, a couple HSAs, an online bank account and an old whole life policy. I don't worry about Vanguard a bit.

OP, does your 401k offer a stable value fund?

 

[Carpediem]

We have the majority of our savings at VG with the remaining funds in my employer's 401K (I'm still grinding). But I plan on rolling the 401K over to VG when I retire. I've briefly thought about the exposure/risk of having everything at VG but I didn't feel the risk was great enough to split it up.

 

[Doribe]

I am consolidating everything into Fidelity. Since I retired two years ago I don't want to spend as much time managing my finances so consolidation will help save time. As COcheesehead said the assets are still diversified.

Another reason to consolidate is to have a simpler estate for the heirs.

 

[Huston55]

All our non-401k assets (except a small amount @ PFCU) are with Fidelity. We’ve kept our 401k assets with the previous employer for two primary reasons: (1) liability protection and, (2) good MF choices with low ERs.

 

[fosterscik]

We split our assets between Vanguard (65%) and Fidelity (35%). I prefer to keep them separate. I don't anticipate either of these two brokers having problems which would lead to frozen accounts and lack of access to funds, but its always possible (they could be hacked, be subject to some natural disaster,...).
I view keeping two sets of accounts as essentially free insurance.

 

[ShokWaveRider]

I thought one had to have IRAs in separate accounts for each person. So although they both would be with VG, they would be separate accounts and logins. So you would have to login to each account to see the assets, I do not think they are consolidated on one report under one login. I do not know id they add a households assets together for their Flagship Status.

 

[HillCountry]

As of today, 84% fidelity, 7% Merrill, 9% Schwab, plus several banks.

All of them have apps for easy access.

 

[mpeirce]

> So you would have to login to each account to see the assets

Not really. You can grant access to another person to your account (at various levels) at Vanguard.

My DF and I have it set up so that I can view his account when I log into my account. This makes it easier to monitor it for him.

 

[Dtail]

All our TIRA/Roth at Fidelity.
401k with Stable Value is separate, plus Ally and BOA for some cash like investments.

 

[SumDay]

I thought one had to have IRAs in separate accounts for each person. So although they both would be with VG, they would be separate accounts and logins. So you would have to login to each account to see the assets, I do not think they are consolidated on one report under one login. I do not know id they add a households assets together for their Flagship Status.

They do allow you tocombine - I asked this question today. And I have a Roth Ira there which is 'tied' to my husband's account and visa versa.

 

[COcheesehead]

Individually registered accounts for partners/couples can still be displayed together. It’s called householding. I think all brokerages offer it.

 

[audreyh1]

We filled out the paperwork and gave each other trading authority in our respective accounts, and now I see all.

 

[Jerry1]

I asked this question a number of times and therefore would like opinions on what is the possibility of a broker having a problem. fosterscik mentions a few things. Is there any real benefit or added safety in having more than one broker. What happens if Fidelity goes under/brankrupt.

 

[target2019]

Fidelity holds over $2T, and will not go under. I think the same of Vanguard, Schwab, and others.
Each investor determines what the benefit(s) may be for having multiple institutions. There's problem some comfort in continuing with Vanguard if your parents used Vanguard. Then you work for an employer that uses Fidelity for their 401K, and end up with two institutions.
In our case, Vanguard and Schwab have different features. Similar to shopping at Aldi or Wegmans, I suppose.

 

[GrayHare]

Far more likely than a firm going under is for them to lock you out of your account for whatever reason they might like, I mean, due to "security" or similar. Some people have been locked out out their account for years.

 

[FlaGator]

Consolidate. Will make your life easier.

One can hold VGD funds at Schwab at no incremental cost, for example. Purchases and sales will incur a fee, however. Reinvested divs and cap gains do not.

With a major firm, I think the benefit of convenience outweighs the tiny risk of hassle if it fails and one has to suffer through moving holdings to a different firm..

 

[audreyh1]

I asked this question a number of times and therefore would like opinions on what is the possibility of a broker having a problem. fosterscik mentions a few things. Is there any real benefit or added safety in having more than one broker. What happens if Fidelity goes under/brankrupt.

Assets in your accounts are held independently of the company's finances.

There is no pooling going on.

As a mutual fund company, brokerage firm, and provider of administrative services to retirement plans, we protect your assets by keeping them separate from Fidelity’s assets and available to you when you need them.

SafeguardingYourFidelityAccount® andAssets
http://personal.fidelity.com/misc/ekits/pdf/safeguarding_your_account.pdf

 

[Jerry1]

Assets in your accounts are held independently of the company's finances.

There is no pooling going on.



SafeguardingYourFidelityAccount® andAssets
http://personal.fidelity.com/misc/ekits/pdf/safeguarding_your_account.pdf

That’s what I’ve heard as I’ve asked the question. What does this actually mean? If a major brokerage went under, somehow these assets are distinct, identifiable and able to be accessed very quickly by a third party (like a governmental agency)?

 

[audreyh1]

That’s what I’ve heard as I’ve asked the question. What does this actually mean? If a major brokerage went under, somehow these assets are distinct, identifiable and able to be accessed very quickly by a third party (like a governmental agency)?

Yes, the assets are distinct. Should be identifiable. You should keep copies of your statements and recent trades.

Mutual fund shares are also held independently of the mutual fund company managing them.

I don't know about accessed very quickly by a third party like a governmental agency - what do you mean there? It's not like the FDIC moves in and merges one bank with another overnight..... It's a much longer process.

What Happens to Your Investments If Your Stock Broker Goes Bankrupt?
https://www.thebalance.com/stock-broker-goes-bankrupt-358091

What Happens When A Stock Broker Goes Bust?
https://www.investopedia.com/articles/investing/050515/what-happens-when-stock-broker-goes-bust.asp

 

[ShokWaveRider]

They do allow you tocombine - I asked this question today. And I have a Roth Ira there which is 'tied' to my husband's account and visa versa.

When you log into the one combined account, do you see all your assets and both of your IRA's etc. on the same report/screen?

 

[target2019]

When you log into the one combined account, do you see all your assets and both of your IRA's etc. on the same report/screen?

Yes, that is how it works.

 

[pb4uski]

They do allow you tocombine - I asked this question today. And I have a Roth Ira there which is 'tied' to my husband's account and visa versa.

To be clear though... you cannot have joint accounts for a tIRA or a Roth IRA... the I in IRA is Individual. But you can set it up so that you and your spouse accounts show up when you use your log-in.

 

[pb4uski]

Far more likely than a firm going under is for them to lock you out of your account for whatever reason they might like, I mean, due to "security" or similar. ...

+1 That would be my concern... some snafu that prevents us accessing our accounts... especially since Vanguard IME is very conservative and would likely select the most restrictive alternative available to them.