Cyber Security of Retirement Accounts
I have 2 separate retirement accounts, Morgan Stanley and Fidelity. I keep them separate rather than combining them into one account because I fear being hacked in one account, and losing it . At least I would have the other account intact. I would prefer to move everything into Morgan Stanley because I have along-term relationship with my Advisor . My Advisor has never pressured me at all to merge both into just Morgan Stanley. When I am gone, I assume it will be much easier for my kids to deal with one account, and I am also close to RMD, and figure it would be easier to manage that with one account too. So, should I stay where I am at with both accounts or combine them? Am I overthinking this issue?
Terry Says
Yes, you are overthinking. There is no reason NOT to have two separate accounts — as long as you are aware of your total investment risk. And when you reach age 73, either of your two custodians will calculate your RMD based on your TOTAL IRA assets at the end of the previous year. Then you can take money from one of both of them, as long as you withdraw the total required. And when that time comes, be sure to have them withhold income taxes from your distribution.
