I wish to consolidate my Fidelity, Schwab, & Vanguard assets in just one brick and mortar bank, and just two brokerages – the latter for redundancy in the event of disruption in access to funds at one of the brokerages. I intend to use one of the brokerage’s cash management account for the bulk of my transactions, including checking services, and my bank for infrequent services not available at either brokerage. I will likely keep the minimum bank balance to waive fees. Both brokerages will have modest cash management account balances, with the bulk of holdings in higher earning investments in both of the brokerages’ taxable accounts. Each spouse has only one traditional IRA, inherited IRA, Roth IRA, and HSA account, some to be located at one brokerage, some at the other. By coincidence, the total assets at each of the two brokerages initially will be about even.
I anticipate the need to transfer funds between brokerages regularly, for example, moving required minimum distributions and taxable account dividends to be used for funding retirement spending to the brokerage with the better cash management account interest rate.
If the security of my accounts at one of the financial institutions were to be injured (e.g. password compromised), I would like to limit any thief’s accessibility of my assets at the others. To that end, I was conjecturing that perhaps it would be less risky to enable bank account transfers only when initiated from the (higher balance) brokerage websites. However, this impairs efficiency somewhat by requiring brokerage to brokerage transfers to pass through the bank (with attendant loss of time and earnings.)
1.) Might it be possible to enable more efficient transfers limited to only pushes from each brokerage directly to the other brokerage, without any pulls? (I haven’t discovered a way to implement this without pulls on the brokerage websites.)
2.) Am I not appreciating other risks entailed in linking brokerages?
3.) Is there a better way to manage this?
Looking forward to any helpful wisdom you might share.
I anticipate the need to transfer funds between brokerages regularly, for example, moving required minimum distributions and taxable account dividends to be used for funding retirement spending to the brokerage with the better cash management account interest rate.
If the security of my accounts at one of the financial institutions were to be injured (e.g. password compromised), I would like to limit any thief’s accessibility of my assets at the others. To that end, I was conjecturing that perhaps it would be less risky to enable bank account transfers only when initiated from the (higher balance) brokerage websites. However, this impairs efficiency somewhat by requiring brokerage to brokerage transfers to pass through the bank (with attendant loss of time and earnings.)
1.) Might it be possible to enable more efficient transfers limited to only pushes from each brokerage directly to the other brokerage, without any pulls? (I haven’t discovered a way to implement this without pulls on the brokerage websites.)
2.) Am I not appreciating other risks entailed in linking brokerages?
3.) Is there a better way to manage this?
Looking forward to any helpful wisdom you might share.
Statistics: Posted by ThriftyInvestor — Thu Jul 11, 2024 2:16 am — Replies 0 — Views 79