Consoladate IRA'S ??

Thrif-t · #1 (**permalink**) 01-31-2012, 05:00 PM

DH and I have our IRA's split between Vanguard and American Century. For simplicity sake I'd like to move everything to Vanguard. Wasn't sure if that was "safe" having all our funds with 1 company. What are your thoughts on this?

disneysteve · #2 (**permalink**) 01-31-2012, 05:12 PM

Quote:

Originally Posted by Thrif-t

DH and I have our IRA's split between Vanguard and American Century. For simplicity sake I'd like to move everything to Vanguard. Wasn't sure if that was "safe" having all our funds with 1 company. What are your thoughts on this?

I'd have no issues with that at all.

kork13 · #3 (**permalink**) 01-31-2012, 05:26 PM

Quote:

Originally Posted by Thrif-t

DH and I have our IRA's split between Vanguard and American Century. For simplicity sake I'd like to move everything to Vanguard. Wasn't sure if that was "safe" having all our funds with 1 company. What are your thoughts on this?

There are alot of valid concerns in investing, but that's really not one to worry too much about, particularly in this case. The only reason to be worried about "company diversity" would be if there are concerns that the company could go under. Vanguard is a very well-respected, very successful, broad-based investment company. While anything's possible, most people would say that's not a pressing threat.

Beyond that, I'd personally go for Vanguard over American anyway, due to Vanguard's outstandingly low fees and expense ratios, and very wide variety of in-house funds (in addition to having access to non-Vanguard funds if desired). And of course, consolidating to a single company makes everything easier... portfolio management, taxes, record keeping, and so on. I say do it and don't look back.

jpg7n16 · #4 (**permalink**) 01-31-2012, 09:45 PM

Quote:

Originally Posted by Thrif-t

Wasn't sure if that was "safe" having all our funds with 1 company. What are your thoughts on this?

What could happen that you are afraid of? Is there a specific scenario you're concerned about?

There is a very big difference between between being completely invested in 1 company, and doing all your investing with 1 company.

photo · #5 (**permalink**) 01-31-2012, 10:43 PM

Vanguard is a member of SIPC, which doesn't protect your actual securities, but it protects those securities in case Vanguard goes broke (highly unlikely).

So, if your stock is doing well but Vanguard fails, your stock is protected against Vanguard stealing your funds.

That's oversimplified but basically how SIPC works.

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