I have a number of different retirement accounts. Part of this is due to job changes and part of this is due to choice. I have four different 401ks or IRAs with three different institutions. My husband has two accounts with another two different institutions. That means between the two of us there are six accounts at five separate financial institutions. This situation produces a lot of mail and a lot of extra time is spent filing.
In one sense I like that fact that the money is spread out. If something goes wrong at one place, the damage is limited. The accounts have varying degrees of money and I accept varying degrees of risk based on their balances. The higher the balance, the more conservative I am. Some I manage (I pick and chose the investments) and others are professionally managed (based on my risk tolerance and semi-annual meetings).
There is the argument that consolidation of the accounts would be a better approach. One it might save me money in fees. It would be less mail, less passwords, and less to keep track of. I would be more aware of my balances (Though I always have a good idea of where the accounts do stand.) and it would be easier for beneficiaries to deal with.
How many accounts do individuals/couples usually have? Do people tend to keep retirement funds in one or two accounts? What is the norm if there is one?
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