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Author: karenlj Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Splitting an IRA? Date: 2/20/2014 12:10 PM
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I have an IRA. I would like to split it into 2 accounts: a Motley Fool fund and a Vanguard fund.

Are there any reasons I should not split the account? Or?

Karen
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Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74296 of 75379
Subject: Re: Splitting an IRA? Date: 2/20/2014 3:03 PM
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If you are asking if you can hold two separate investment groups in an IRA...you can. Just invest $XXXX in one set of investments (the Motley Fool Fund..whatever that might be) and the rest in a Vanguard fund.

Of you may be asking if you can create a second IRA and do a rollover of part of the $$ from the first IRA to the second so you can invest in one using the Motley Fool Fund and a Vanguard fund in the other. Yes, you can do this. But then you'll be getting a second set of account statements each year. If its important to you to keep the performance separate so its easier for you to track, a second IRA will work easier.

BruceM

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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74297 of 75379
Subject: Re: Splitting an IRA? Date: 2/20/2014 3:07 PM
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Owning more than one mutual fund in your IRA is usually a decent diversification strategy. You do not necessarily have to split your IRA to do that. You merely need to find a custodian for your IRA that will accommodate both funds (or all the funds you may eventually want to own).

Brokerage accounts will often allow a mix of mutual funds and stocks, but you need to be careful which ones are allowed. Some charge fees for mutual fund transactions. Most have lists of funds that are free of those charges.

There can be good reasons to split an IRA account. For example it can be one way to take care of multiple groups of heirs in your estate planning. But it can also make more paperwork and sometimes extra fees.

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74298 of 75379
Subject: Re: Splitting an IRA? Date: 2/21/2014 9:29 AM
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Are there any reasons I should not split the account?

Simplest thing to do is have one account and invest 1/2 in one strategy and 1/2 in the other.

The reason to not have two separate accounts, at certain levels of account balances some fees get lowered/waived or you get access to other benefits.

Besides, it is easier to keep track of one account than two.

JLC

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Author: bighairymike Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 74299 of 75379
Subject: Re: Splitting an IRA? Date: 2/21/2014 1:02 PM
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>>Are there any reasons I should not split the account? <<

Simplest thing to do is have one account and invest 1/2 in one strategy and 1/2 in the other.

The reason to not have two separate accounts, at certain levels of account balances some fees get lowered/waived or you get access to other benefits.

Besides, it is easier to keep track of one account than two.

JLC

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Also easier to do periodic rebalancing when you don't have to move funds between custodians. Same day transfer is a plus too.


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