Quote:
Originally Posted by darklord700
Somewhat related to this. Do you recommend keeping all your RRSP with just one brokege firm? Currently, I have everything with RBC directinvesting which makes it easy to manage. Now BMO Investorline is offering a $300 to transfer to them. I've always been thinking I should not put all my eggs in RBC's basket in case they go under.
So I'm tempted to move some of my RRSP to BMO now and the $300 bonus is icing on top. Do you tell people to put everything with one broker or are two broker accounts too much to manage?
|
Personally I think that keeping everything together makes the most sense. I do understand the not keeping all your eggs in one basket idea, but the chances that a major bank in Canada fails is extremely small. Add to that the fact that you have a few levels of protection and you are almost surely taking very little risk! One point is that you are holding shares in your account and theoretically if the broker fails (again, incredibly tiny risk!), you still own those shares, you just have no broker.
If a bank were to fail, the fact of the matter is that we are facing much more severe economic issues. I would keep them all together and look at diversity of the investments as a more pressing concern than diversity of where they are held. It makes it easier to manage, you get one set of statements and can perhaps reduce fees when you do it this way.