Number of brokerage accounts

[TOOLMAN]

I have more than one brokerage account because I think it spreads my risk mainly from a firm being hacked, or going under. I have also moved money from one account to another to get promotional bucks for adding new money.

Do you think having multiple brokerage accounts is a good idea, or do you think it just unnecessary complexity?

If you have multiple brokerage accounts, at what account value do you add an additional brokerage account?.

 

[Car-Guy]

I've used several but recently I've consolidated to one. (Schwab)... IMO none are prefect but I've found the tools, options and support with Schwab to be among the best that I've used. I've had a number of account managers over the years with Schwab.... (No fee) Some were good and some not so good. If I don't like the account manager assigned to my account, I just ask for a new one. Currently I have a pretty good one. He gives me help when I ask for it and knows my likes and dislikes... Probably talk to him once or twice a year.

 

[HI Bill]

In prior discussions here on the topic, the majority held their assets at one firm. Most were unconcerned about the apparently insignificant risk of a firm such as Vanguard, Schwab or Fidelity going belly up. Others maintain accounts at several firms in part to maintain FDIC insurance on a portion of their assets, and to spread potential risk.

I have multiple brokerage accounts, but all at VG. One of these is just for the year's spending account that I'll draw from for annual expenses. Others were for 'prior assets', but this has become muddied after selling assets from this account to buy a new house. Short of a world-wide catastrophe (Black Swan event), I don't personally see the need for multiple brokerages, but some people do like to have them in the event any of their accounts become 'locked' or are compromised, so that they can still access some of their assets while things are restored to normal.

 

[PaunchyPirate]

I got tired of navigating different websites and procedures so I moved everything to one broker. I chose Vanguard because most of my investments were their funds. I’m happy. I like having one view of my holdings.

 

[jazz4cash]

One brokerage account. I tend to use Fidelity for everything they do well and use alternative financial institutions for things like fixed income, MM, CDs, etc. I wouldn't worry about losses from a major brokerage from hacking or network outage but it could hamper access for a period of time. Having some funds at a credit union or online savings account satisfies any need for funds while the broker's issue gets resolved.

 

[pb4uski]

We are split between Navy Federal CU (30%), Vanguard (26%) and Fidelity (17%)... rest is mostly in a couple other credit unions.

Not at all because of concern about a firm being hacked... it just ended up that way. No real concern about the host financial institution going under as these are fiduciary accounts... so if Vanguard or Fidelity went under the money is still there.

 

[teetee]

Four. Vanguard, Fidelity, UMB (HSA), then one that handles the Roth 401k at work (empower Retirement).

 

[O2Bfree]

I have accounts at Fidelity and Vanguard. My 401k was at Fidelity, and I opened a Vanguard account because I like some of their funds.

I used to have a National Securities account where my company had their corporate stock purchase plan, and also a Scottrade account for other stock purchases when cheap online trades were becoming a thing and an HSA account at WageWorks. Did some consolidation after I retired. I still have a Roth IRA at a local bank, but will move that to Vanguard soon so I'll have easier control of the investments.

Eventually I'll consolidate, probably to Vanguard, to simplify before my brain gets old an feeble. Also to simplify for DH in case I leave him holding all the goods.

 

[RunningBum]

A little under 90% at Vanguard. The rest is CDs and savings at 3 different banks plus my HSA at Fidelity. If disaster hit VG and it was inaccessible for awhile I'd still have cash to get to for a good long time.

 

[Doribe]

I am moving toward consolidation into Fidelity. I had money spread around due to chasing reward and employer related accounts. In addition to Fidelity I will keep a credit union account and a separate checking account.

I like the simplicity of most of the money in one place. I have found since retiring I spend less time fiddling around with spreadsheets. I like the Fidelity web interface.

 

[MRG]

Two providers for unusual situations. My career took me into a lot of datacenters when they were experiencing opportunities to improve their service. No thanks. You can't predict how someone will fail or for how long. You can have your finances with 10 different providers that all are in the same datacenter; how do you know?

Doesn't have to be related to outages either. Remember 911? The market was shut down. I've shared this one before: I was locked from withdrawaling from my Fidelity account after it was the target of a TOD from my DF's estate. The commonwealth of PA needed to determine how much I owed for estate taxes(10% of the transfered amount) so they locked my entire account.Took months before I was allowed to withdraw from my own account!

 

[Montecfo]

I'm in 3. E-Trade, Fidelity and TDA. The account at TDA is my HSA. Could see moving that to Fidelity for their HSA platform. And my DAF is at Fidelity-one of the few that support DAF.

Mostly at E-Trade (now owned by Morgan Stanley) and consolidating there. During the financial crisis I did give it a 2nd thought but not a 3rd.

Also have some CDs around town but those are moving back to E-Trade.

 

[Retireby45ish]

For those of you who consolidated...do they ship the basis and other records over? I wanted to love everything to Fidelity. But I didn’t want any tax nightmares when I went to sell anything years from
When I purchased them.

 

[audreyh1]

For those of you who consolidated...do they ship the basis and other records over? I wanted to love everything to Fidelity. But I didn’t want any tax nightmares when I went to sell anything years from
When I purchased them.

With Fidelity a customer can provide a basis if needed for transferred securities. We did that a long time ago when we transferred a stock from another broker. Much later, when I had them transfer in holdings from a mutual fund company, they got the correct basis. So, work with them on it. Get them to tell you how it will work. I bet if you have statements that show your current holdings and cost basis at the prior firm, they will make corrections if needed.

 

[RobbieB]

Three brokers, one bank.

 

[wanaberetiree]

I have more than one brokerage account because I think it spreads my risk mainly from a firm being hacked, or going under. I have also moved money from one account to another to get promotional bucks for adding new money.

Do you think having multiple brokerage accounts is a good idea, or do you think it just unnecessary complexity?

If you have multiple brokerage accounts, at what account value do you add an additional brokerage account?.

I do like you, promotional bucks in between Fido, VG and Schwab
Will end up probably with VG and Schwab. I like that Schwab has local offices and other perks and like VG for choice and low cost.

I think multiple brokerages is a way to go.

 

[OldShooter]

I vote for "just unnecessary complexity." Re banks, my checking is at Schwab, DW's is at the megabank where she used work. I moved my checking from that megabank when they came up with some creative new fees and I realized how handy the Schwab bank and Schwab brokerage integration was going to be. I am far too lazy to play promotional bucks games.

 

[MarieIG]

Not answering for accounts, but institutions. I'm in the process of slowly consolidating. I got rid of one last year; and when I retire will roll whatever is left in overpriced employer 401(k) into Vanguard.

So, I should get down to two Brokerage institutions, a few bank accounts and one credit union.