Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
If you have an IRA with $200,000 or $300,000 in it, should you open a new one or just keep adding more money to the single large account.

It may be worth breaking up between institutions if you hit the limit of the insurance for that institution ($100,000/depositor for FDIC or NCUA insured institutions, much higher for SPIC-insured institutions). Or it may make sense to break it up to pick the most appropriate custodians, e.g., a discount broker where you buy and sell individual stocks, a fund family if you have mutual funds in a specific fund family, depending on your investment plan and the instruments that best fulfill that plan.

Personally, I prefer having my assets at several different institutions. So in my case, my pension is at one organization (actually, I have no choice in this, but I lucked out on a very good pension plan!), my 403(b) is at another institution, my taxable investments and Roth IRA are at a third, and my checking and emergency fund are at a fourth. My thinking is that if there is something that happens that makes my assets inaccessable at one institution, I will probably be able to use assets from another while the problem with the first is being resolved.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.