Quote:
Originally Posted by summer2007
The more that I look into investing the more I like Vanguard.
I'm tempted to just have all of my money invested with Vanguard but I have concerns of having all of my money with one brokerage.
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Tastes great, less filling. You should probably do what makes it easier for you to sleep at night.
With every passing year the seeming advantages of having our money spread out are outweighed by the hassle of dealing with multiple custodians. If Fidelity would match our CD rates from credit unions then we'd even invest our cash with them.
The pros of having all your money with
[Vanguard/Fidelity/Schwab/T. Rowe Price/E-Trade] include:
- only having to worry about one login, one batch of marketing mail, one set of tax forms, one phone number, one website to navigate, one customer-service system to deal with, and one set of everything else
- easier Roth IRA conversions or RMDs or 72(t) withdrawal calculations
- easier portfolio analysis
- easier withdrawals & rebalancing
- better "package" deals for having assets above levels like $50K, $500k, & $1M
The cons include:
- one-stop ID theft
- if customer service is bad, it's all bad
- possibly limited choices and fees designed to "lock you in" to their products
Admittedly many of the pros can be worked around with website consolidators, portfolio tracking tools, and calculators. And all of the above will carry extra insurance (above & beyone SIPC) to make their customers whole.
Can't help you with the login/ID theft fear. In that case your best bet would be to stick to paper/phone transactions. If it's any consolation, though, you're more likely to be struck by lightning while jumping a water-ski over a shark.
I hardly ever hear about brokerage ID theft. That's either because it hardly ever happens or because brokerages quickly make their customers whole to ensure their
silence satisfaction. Either way the result is the same, right?