InTheWoods
New Member
- Location
- Maryland
I know it's unwise to put all your eggs in one basket by having all the investments in one stock or other vehicle, and my tax deferred investments are pretty well diversified.
But do we need to also diversify the wealth management companies that handle the investments?
I am retiring in July and am setting things up. My investments have always been mainstream vehicles (not like the poor nice fellow I worked with who retired and got talked into catfish farming as his investment strategy, who lost so much he had to go back to work). They've all been professionally managed with large wealth management companies, except for my employee stock ownership program (no choice on that one). I've spent the last 42 years with one employer who has pretty good automatic investing and matching benefits I've always taken advantage of, and I've never touched any of this until less than a year ago when I cut back to a 3 day work week.
I have my largest block of investments with a wealth management company (UBS), including individual stocks, stock funds, bond funds, and even a small annuity (<10% of my total). I've dealt with them for maybe 15 years now, had regular meetings, and kept an eye on their reputation on the web. They've been in the same fancy office in the rich part of a nearby city for years, and have little staff turnover. They have serviced me very well as far as I can judge, and seem reputable.
I also have a target fund with another company (Vanguard), a 401K with a third company (Fidelity), and a bunch of stock in my employer's stock ownership program (which is too much stock in a single company and I am going to move it elsewhere quickly as soon as I'm allowed).
I think it makes sense to do some consolidation while I am moving things. Of course my largest company is suggesting it would be more convenient for me, no surprise there.
I'm also wondering if I could get some management fee reductions from them, because what I'm considering is moving much more wealth into the accounts they already manage (roughly tripling it), but not necessarily increasing the number of those different accounts they manage or the amount of service I require. I think I'm a pretty low-touch customer. They already send me monthly payments since the work week reduction. I don't think they would have to do any more work or spend any more time on me (other than transacting the consolidation once), they'd just get bigger fees because the amounts would go up. I did get some fee reductions from them a few years ago. Therefore I anticipate a specific financial benefit from the potential consolidation itself.
So, with that in mind -- is it unwise or irresponsible to have a well diversified portfolio managed by just one wealth management company? Is normal best practice to deal with multiple companies? Or is dealing with just one a mainstream approach?
Thank you!!!
But do we need to also diversify the wealth management companies that handle the investments?
I am retiring in July and am setting things up. My investments have always been mainstream vehicles (not like the poor nice fellow I worked with who retired and got talked into catfish farming as his investment strategy, who lost so much he had to go back to work). They've all been professionally managed with large wealth management companies, except for my employee stock ownership program (no choice on that one). I've spent the last 42 years with one employer who has pretty good automatic investing and matching benefits I've always taken advantage of, and I've never touched any of this until less than a year ago when I cut back to a 3 day work week.
I have my largest block of investments with a wealth management company (UBS), including individual stocks, stock funds, bond funds, and even a small annuity (<10% of my total). I've dealt with them for maybe 15 years now, had regular meetings, and kept an eye on their reputation on the web. They've been in the same fancy office in the rich part of a nearby city for years, and have little staff turnover. They have serviced me very well as far as I can judge, and seem reputable.
I also have a target fund with another company (Vanguard), a 401K with a third company (Fidelity), and a bunch of stock in my employer's stock ownership program (which is too much stock in a single company and I am going to move it elsewhere quickly as soon as I'm allowed).
I think it makes sense to do some consolidation while I am moving things. Of course my largest company is suggesting it would be more convenient for me, no surprise there.
I'm also wondering if I could get some management fee reductions from them, because what I'm considering is moving much more wealth into the accounts they already manage (roughly tripling it), but not necessarily increasing the number of those different accounts they manage or the amount of service I require. I think I'm a pretty low-touch customer. They already send me monthly payments since the work week reduction. I don't think they would have to do any more work or spend any more time on me (other than transacting the consolidation once), they'd just get bigger fees because the amounts would go up. I did get some fee reductions from them a few years ago. Therefore I anticipate a specific financial benefit from the potential consolidation itself.
So, with that in mind -- is it unwise or irresponsible to have a well diversified portfolio managed by just one wealth management company? Is normal best practice to deal with multiple companies? Or is dealing with just one a mainstream approach?
Thank you!!!