Looking for Company to Open Roth IRA with (Not Vanguard)

[Relmiw]

I've been looking into these suggested institutions and picked out some funds I want. However, T. Rowe seems to charge a commission for non T. Rowe funds, Fidelity has transaction fees for one of the funds I'm looking at and I don't care for the layout of Schwab.

Etrade does seem to offer these funds with no charges though, or at least that I've seen. Is this a decent choice? I notice no one has recommended it. Again, if I'm demonstrating some glaring beginner misunderstanding, don't hesitate to let me know.

[MakeAStash]

MakeAStash, what makes TRow unreliable?

Making unauthorized tranactions on an account and refusing to correct them, after admitting they were responsible. I don't mean allowing a third party to make the transactions, but rather TR Price itself. If you don't want to see holdings removed from your account, you'd best avoid TR Price. A TR Price employee took many thousands from my account and though the company admitted the problem was internal TR Price refused to make it right.

[Like2Plan]

While I'd like to have it through Vanguard, I already have a Vanguard account and don't really want to put all my eggs in that basket.

I personally would not, and do not, keep all my accounts at one financial institution. Not putting all your eggs in one basket means precisely that. You can get significant diversification at one financial institution, but your eggs are still all in one basket so to speak. SIPC does not cover everything that can go wrong (mostly thinking to fraud), and does not cover an unlimited dollar amount.

This is an interesting perspective. Is there a dollar threshold that would trigger this--or do you just try to spread your assets equally over several companies? Doesn't Vanguard give you more account services (such as reduced trading fees) if you have a larger account?

[MonkeyMama]

This is an interesting perspective. Is there a dollar threshold that would trigger this--or do you just try to spread your assets equally over several companies? Doesn't Vanguard give you more account services (such as reduced trading fees) if you have a larger account?

I don't see what is so interesting about this - very basic common sense. But working in the financial industry, all of the problems mentioned above happen everywhere. Sometimes it is more difficult to get money out in a death situation. Fraud happens everywhere. One complaint I have heard about VG is that they do not have the best security. No financial institution is exempt from complaints. I think I just see a lot of fraud and problems that the average person does not see.

We've always had different financial custodians due to having different employer plans, etc. But, we've never felt comfortable with the idea of consolidating everything in one place. Obviously you would want to diversify above the SIPC insurance limits (sames as you would for FDIC).

We have enough at VG to invest in Admiral shares, and have not paid any fees *anywhere* for a while. Below $50k or so, we had a lot less opportunities to avoid fees, whether we consolidated or not. & had less choice with different employer plans and such. So, it's been kind of a moot issue. Since we had less choice and options when we were first starting out?? {We do pay stock trading fees, but just go with an inexpensive broker for that}.

[Like2Plan]

I don't see what is so interesting about this - very basic common sense. But working in the financial industry, all of the problems mentioned above happen everywhere. Sometimes it is more difficult to get money out in a death situation. Fraud happens everywhere. One complaint I have heard about VG is that they do not have the best security. No financial institution is exempt from complaints. I think I just see a lot of fraud and problems that the average person does not see.

The reason I find it interesting is because in the last 4 years I have been in the process of consolidating accounts. I have sold almost all my individual DRIP stocks and closed out all but 3 bank accounts (I guess I was a little too diversified ). With all the financial options these large investment companies offer, it didn't dawn on me to spread assets out over more than one. Apparently, this is a common held practice.

We've always had different financial custodians due to having different employer plans, etc. But, we've never felt comfortable with the idea of consolidating everything in one place. Obviously you would want to diversify above the SIPC insurance limits (same as you would for FDIC).

When considering employer plans, we have more diversification. (There is one DH could move from his old job, but I haven't wanted to move it because the fees are so low--so maybe diversification is another reason for not moving it).

[kork13]

The reason I find it interesting is because in the last 4 years I have been in the process of consolidating accounts. I have sold almost all my individual DRIP stocks and closed out all but 3 bank accounts (I guess I was a little too diversified ). With all the financial options these large investment companies offer, it didn't dawn on me to spread assets out over more than one. Apparently, this is a common held practice.

I think it's simply a personal preference. At one point, I did have investments at 3 separate investment houses, plus checking & savings accounts held by at least 5 different banks. I felt spread way too thin, and decided to consolidate. I'm now down to 1 investment house (Vanguard), and only 2 banks that I use actively. I prefer simplicity, and if that means I'm technically putting myself at risk, I view it as an acceptable one.

[tulog]

Vanguard's SIPC memberships protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Vanguard has additional insurance through Lloyd's of London up to a customer limit of $49.5 million for securities and $1.75 million for cash (Vanguard Brokerage Services Semiannual Notice).

Thus, if you have more than $49.5 million invested with Vanguard, or more than $1.75 million in cash, you should consider placing some of your funds in another brokerage. Otherwise, if you distrust Lloyd's of London's coverage, consider an account limit of $500,000.

[MonkeyMama]

I very much prefer simplicity, too. IT's just a balance. At current we don't have any employer plans, so maybe the diversication means a little bit more to me than it would to someone with a completley separate employer plan.

Beyond reasons of simplicity and costs, I have no doubt that the idea that "you should keep all your money in one place" is an idea mostly perpetuated by financial institutions.

[shaggy]

Beyond reasons of simplicity and costs, I have no doubt that the idea that "you should keep all your money in one place" is an idea mostly perpetuated by financial institutions.

I have never been pressured by any of the 5 or 6 big mutual fund companies I've dealt with to move money into their institution.

Many of us prefer to consolidate for simplicity's sake, and IMO it's not accurate to accuse us all of lacking common sense.

Agree to disagree on this one.

[MonkeyMama]

I have never been pressured by any of the 5 or 6 big mutual fund companies I've dealt with to move money into their institution.

I deal with high net worth individuals - it's the norm to be pressured to put all their money in one place. & also, to never ever use their investments for anything else (keep it all in there - take loans for everything).

Yup, will have to agree to disagree.

[MonkeyMama]

Many of us prefer to consolidate for simplicity's sake, and IMO it's not accurate to accuse us all of lacking common sense.

P.S. I did not accuse anyone of lacking common sense. ??? I think you read *way* too much into my comments. Just trying to explain my position (after a request for further clarification), albeit definitely confused why it is such a lonely position. I am sorry if my point of view offends.

[MonkeyMama]

I've been looking into these suggested institutions and picked out some funds I want. However, T. Rowe seems to charge a commission for non T. Rowe funds, Fidelity has transaction fees for one of the funds I'm looking at and I don't care for the layout of Schwab.

Etrade does seem to offer these funds with no charges though, or at least that I've seen. Is this a decent choice? I notice no one has recommended it. Again, if I'm demonstrating some glaring beginner misunderstanding, don't hesitate to let me know.

Sorry Relmiw. I was honestly trying to get your question answered early on this discussion. But things got way off track.

Historically, Etrade was pretty terrible. Kind of a "You get what you pay for." I haven't heard anything about it for years, but have heard a lot of complaints in the past. It looks like it probably hasn't improved much:

http://www.yelp.com/biz/etrade-financial-menlo-park

[shaggy]

P.S. I did not accuse anyone of lacking common sense. ??? I think you read *way* too much into my comments. Just trying to explain my position (after a request for further clarification), albeit definitely confused why it is such a lonely position. I am sorry if my point of view offends.

You said in post 19, in response to a question:

I don't see what is so interesting about this - very basic common sense.

I deal with high net worth individuals - it's the norm to be pressured to put all their money in one place. & also, to never ever use their investments for anything else (keep it all in there - take loans for everything).

That certainly isn't the behavior of Vanguard or T. Rowe Price, regardless of the net worth of the individual. I think we're confusing banks with mutual fund companies at this point.

[MonkeyMama]

That certainly isn't the behavior of Vanguard or T. Rowe Price, regardless of the net worth of the individual. I think we're confusing banks with mutual fund companies at this point.

I am talking about mutual fund companies and investment houses.

[MonkeyMama]

You said in post 19, in response to a question:

.

Yes, I did say those words. I did not mean in any way shape or form that no one else had any common sense. It was a "Gee - I hadn't really thought about it - it isn't that interesting to me" kind of way. Again, I am sorry if I offended.