<p>Just wondering what folks are thinking and doing about having their assets at ONE place versus many places. My SIL had accounts at many different places: BofAm, Wells Fargo, Schwab, Fidelity, and others. </p>
<p>We have had accounts at various places but are considering consolidating. Any thoughts about pros & cons of consolidating? H likes our bank where we have our bank account because he likes the way the statement printout reads. He’s had that account since before we met. He also has a rental account where rental proceeds are placed at a different bank. We have some investments at Vanguard, he has some at Fidelity and the bulk at Schwab. He also has some with the government TSP program. I have a small retirement account with ING. </p>
<p>Any thoughts would be greatly appreciate. I understand there are FDIC and brokerage insurance limits. We do not have >$200K or >$500K/person in any accounts.</p>
<p>banking vs. brokerage are two different things. Hence, no reason to combine, other than convenience.</p>
<p>Combining investment accounts is helpful. But, I would not have a problem having multiple accounts, if there is a reason. If you have specific investments you want, and lower fees by having separate accounts, then that is a reason. Otherwise, you will tend to get better fees/service by having them all in one place. Easier to manage that way too.</p>
<p>Taxes are simpler, although quicken will pull it together for you if you put good data in. I think usaa let’s you watch your accounts on their very useful site, even if you don’t keep your funds there.</p>
<p>However, if there is concern about bank or brokerage failure, then having accounts in more than one may be helpful if one fails and the assets are frozen or inaccessible for some time. In addition, high net worth account holders should consider the limits of insurance against bank (FDIC) and brokerage (SIPC, additional private insurance) failure.</p>
<p>Oh yea, I forgot we are also now USAA members. Anyone with experience with them? We got auto insurance for D with them. Yes, I am thinking of keeping the bank accounts we have with our local banks and trying to decide whether to stay with Schwab because they have a bricks & mortar place as well as a good on-line presence. Somehow, it feels comforting to me when you can actually meet face-to-face with the advisor. Not sure how much we will have in which accounts.</p>
<p>OK, more to mull over. Thanks, everyone! We do have some accounts in banks, minimal credit unions and some in brokerages. Just listened to some of the videos at Schwab.com for general info–estate planning and overall about financial planning. They were interesting.</p>
<p>My mom has multiple accounts in at least 5 different banks and brokerages. Now that her cognitive abilities are beginning to falter my brother (her executor) has been trying to convince her to grant him power of attorney on the accounts. He has faced a myriad of different rules and variable enforcement at the different institutions. It has been a sobering experience, and convinced me to simplify as we get older. I’ve already closed out several credit union accounts in other states and consolidated brokerage accounts. I’m betting that neither Charles Schwab nor Fidelity will topple.</p>
<p>Just eliminated the local bank accounts, better interest at credit union.
One credit union (standard checking, savings and money market accounts) and 2 brokerages (one for investments and H’s IRA and the other my employer uses with my 403B).</p>
<p>We have been consolidating our investments with one firm. We now get a break on fees and can really see what we have. When my parents died, everything was so much easier for me, the executrix, because all the investments were in one place. My parents learned the hard way as my grandmother had some stocks here, some there. Getting her estate settled was very time consuming.</p>
<p>Every six months or so I wonder about this too. 2 banks, 4 credit unions, 2 brokerages, 4 credit cards, at least 4 different states. So far each of these things still has an argument supporting its existence. But the second that changes, zap. That one will be gone.</p>
<p>If you have a local bank and want to establish some sort of relationship for future business dealings, it is valuable to give them opportunities to make money. It doesn’t matter for big banks unless you have serious money flowing in and out.</p>
<p>So for example if you are a business and you have a depository bank, they are using your funds and you should be able to cut better lending deals - by a number of basis points. They’re just giving you back some of what they make. </p>
<p>But an individual? It helps for a home loan if they have your stuff but again not really at a big bank because you’re not even a rounding error to them.</p>
<p>" But an individual? It helps for a home loan if they have your stuff but again not really at a big bank because you’re not even a rounding error to them."</p>
<p>That is why we only deposit at credit unions (not investments, but personal and college fund). Plus the rates are better. When we did a big paydown of our mortgage and refi’d (will pay everything off once last D graduates) we went to our credit union. Having large deposits and a long history of business with them helped make refi extremely quick - I think they even bumped us up in the queue.</p>
<p>Quoting H “Your first problem is that you are using brokerages. Through them, you can only own shares in mutual funds. The fund managers decide what to buy and therefore what you own. If you want to have more control over your investments, you should go to an investment advisor.” Note that he opined that brokerages call people “advisors” who in his view really are not. I think he is talking about “fee-based investment advisors” as the way to go. And I would add that it is quite possible to find a competent firm that is associated with a regional bank, which enables you to consolidate your business to the degree to which you feel comfortable, which usually gives you more clout.</p>
<p>When my father passed away in 1998, his assets were all with Schwab. At that time, I wasn’t working, so I decided to consolidate everything with Schwab. It has been invaluable. If you have over $500,000 in assets, you can be one of their “private clients.” </p>
<p>Being a private client, I get quarterly conference calls with my advisors and they rebalance everything so I maintain my risk profile. In addition, they have a fee-free bank and I use that account to pay bills. There are fees to be paid, but IMHO it’s well worth it to get the investment advice and to keep things balanced. It eliminates the emotion and stupidity that I would offer, if I were to handle the investments myself. </p>
<p>We also have a saving account in a local branch of a Big Bad Bank, and we keep around $1,000 in there. It’s just so we have access to cash – it’s our “ATM account.”</p>
<p>ETA: The fees we pay Schwab for the investment advice are based on the amount of assets, not the number of trades. So my guys are motivated to make me money, not to churn trades.</p>
<p>I’m sure there are others who do what Schwab does, but I am familiar with Schwab and have been more than satisfied.</p>
<p>Okay, this is confusing. Schwab is considered a brokerage, but I certainly can buy individual stocks through them. Pretty much anything traded on the large exchanges is available. I mean, my dad uses a “broker” – has for 60 years. And he buys individual stocks through his broker. So not sure what this quote even means… I personally make all my own investment decisions (individual stocks, funds, bonds, etc.), and use Fidelity for most everything (a little through Schwab).</p>