Advantages of consolidating to one broker?

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MV Nostrand
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Advantages of consolidating to one broker?

Post by MV Nostrand »

I have low six figure amounts at Schwab, Fidelity and Vanguard.

Is there a strong reason to pick one and move everything there? Do they offer perks for doing so? I would probably pick Schwab or Fidelity.
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galawdawg
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Re: Advantages of consolidating to one broker?

Post by galawdawg »

MV Nostrand wrote: Mon Aug 02, 2021 6:36 am I have low six figure amounts at Schwab, Fidelity and Vanguard.

Is there a strong reason to pick one and move everything there? Do they offer perks for doing so? I would probably pick Schwab or Fidelity.
No "perks" at Vanguard whatsoever. In fact, you may have noticed the new thread reporting that Vanguard is discontinuing the secure message feature on their website, leaving telephone support from 8am-8pm ET M-F as the ONLY method to contact them.

I am not very familiar with Fidelity but I do know that they do NOT waive mutual fund transaction fees for Vanguard funds. Even with a $2m+ portfolio.

At Schwab, a $250k portfolio gets you a dedicated financial consultant who can be your central point of contact for anything you need at Schwab. Schwab will also waive mutual fund transaction fees on one fund family (such as Vanguard) and they may offer you a cash bonus to move additional assets to them. They do for new customers, you can check with them to see if they'll do that for you as an existing customer.

I prefer one brokerage, it keeps things simple. Fewer statements to review, fewer transactions to enter into your personal finance program for dividends and such, view your entire portfolio on a single screen (without the increased risk of using an aggregator service) and I suspect that with a larger account you receive even more attentive service.
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RickBoglehead
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Re: Advantages of consolidating to one broker?

Post by RickBoglehead »

Simplicity.
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Pretzel lover
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Re: Advantages of consolidating to one broker?

Post by Pretzel lover »

I was actually thinking of going the other way. Diversifying away from one broker due to the concern of hacking and having all my eggs in one basket.

Thoughts on security risk of having one big vs. smaller investment hordes (or is that a separate thread)?
WhyNotUs
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Re: Advantages of consolidating to one broker?

Post by WhyNotUs »

Advantages:
1. Easier to track and maintain AA
2. Fewer documents, forms, internal policies to deal with
3. If unexpected happens and you die, there is less confusion and paperwork for heirs
4. Security/password threats

I used to be with Fido and VG and consolidated. It was pretty much a coin flip to choose VG. It is nice to see the pie chart with current AA and the AA that I set as goal in one simple spot.
I own the next hot stock- VTSAX
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RickBoglehead
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Re: Advantages of consolidating to one broker?

Post by RickBoglehead »

Pretzel lover wrote: Mon Aug 02, 2021 7:03 am I was actually thinking of going the other way. Diversifying away from one broker due to the concern of hacking and having all my eggs in one basket.

Thoughts on security risk of having one big vs. smaller investment hordes (or is that a separate thread)?
Many threads already discuss this.
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Wiggums
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Re: Advantages of consolidating to one broker?

Post by Wiggums »

Pretzel lover wrote: Mon Aug 02, 2021 7:03 am I was actually thinking of going the other way. Diversifying away from one broker due to the concern of hacking and having all my eggs in one basket.

Thoughts on security risk of having one big vs. smaller investment hordes (or is that a separate thread)?
+1

Don’t put all your eggs in one basket. it’s a good rule of thumb.
"I started with nothing and I still have most of it left."
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ruralavalon
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Re: Advantages of consolidating to one broker?

Post by ruralavalon »

MV Nostrand wrote: Mon Aug 02, 2021 6:36 am I have low six figure amounts at Schwab, Fidelity and Vanguard.

Is there a strong reason to pick one and move everything there? Do they offer perks for doing so? I would probably pick Schwab or Fidelity.
All three are good choices in my opinion, it's largely a matter of personal preference. My personal preference is Vanguard, but Vanguard does not offer perks.

In my opinion it is a good idea to consolidate at a single fund firm, just to simplify. All of our investing accounts (joint taxable account, two Roth IRAs, and my rollover IRA) are at Vanguard, all banking functions (joint checking account, debit cards, credit cards) are with a local bank branch near our home.
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ThereAreNoGurus
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Re: Advantages of consolidating to one broker?

Post by ThereAreNoGurus »

Wiggums wrote: Mon Aug 02, 2021 8:28 am
Pretzel lover wrote: Mon Aug 02, 2021 7:03 am I was actually thinking of going the other way. Diversifying away from one broker due to the concern of hacking and having all my eggs in one basket.

Thoughts on security risk of having one big vs. smaller investment hordes (or is that a separate thread)?
+1

Don’t put all your eggs in one basket. it’s a good rule of thumb.
I'm in this camp.

Each of these outfits have different features which I utilize as well.

If one were to have a glitch (or worse), I will have access to the other proverbial eggs.
Trade the news and you will lose.
robphoto
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Re: Advantages of consolidating to one broker?

Post by robphoto »

I keep most of my stuff at one group, and maybe 10% in taxable at another just in case the main one can't be accessed for some reason.
afan
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Re: Advantages of consolidating to one broker?

Post by afan »

I worry more about security than simplicity.
My spouse has the opposite attitude.
So we compromise and are gradually moving towards fewer accounts.
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backpacker61
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Re: Advantages of consolidating to one broker?

Post by backpacker61 »

I used to have something like 8 (mostly directly held mutual fund accounts with the fund firms from the era before brokerage accounts at fund firms became commonplace), but I consolidated down to two over a period of years. It is nice to receive fewer 1099's at tax time, and only have to keep track of 2 login/password combinations.
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OpenMinded1
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Re: Advantages of consolidating to one broker?

Post by OpenMinded1 »

ThereAreNoGurus wrote: Mon Aug 02, 2021 11:10 am
Wiggums wrote: Mon Aug 02, 2021 8:28 am
Pretzel lover wrote: Mon Aug 02, 2021 7:03 am I was actually thinking of going the other way. Diversifying away from one broker due to the concern of hacking and having all my eggs in one basket.

Thoughts on security risk of having one big vs. smaller investment hordes (or is that a separate thread)?
+1

Don’t put all your eggs in one basket. it’s a good rule of thumb.
I'm in this camp.

Each of these outfits have different features which I utilize as well.

If one were to have a glitch (or worse), I will have access to the other proverbial eggs.
I agree. Vanguard, Schwab, and Fidelity are "big fish" that bad actors (possibly state sponsored) would probably be more likely to target. If you want to use the "big fish" maybe it's best to spread your money out between several of them.
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ThereAreNoGurus
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Re: Advantages of consolidating to one broker?

Post by ThereAreNoGurus »

OpenMinded1 wrote: Mon Aug 02, 2021 10:03 pm I agree. Vanguard, Schwab, and Fidelity are "big fish" that bad actors (possibly state sponsored) would probably be more likely to target. If you want to use the "big fish" maybe it's best to spread your money out between several of them.
Exactly. That's one of the things that concerns me. An attack on the companies themselves as opposed to an individual account attack.
Trade the news and you will lose.
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