Should You Have Multiple Investment Accounts?

(Please note, this page may contain affiliate links and we may earn fees from qualifying purchases at no additional cost to you. See our Disclosure for more info.)

Diversification is good, right?

Well, yes, it is if it’s genuinely diversification. But it doesn’t work if your idea of being diversified is having your money in many different places.

These days, due to the volatility of the job market and the explosion of fintech, it’s easier than ever to grow the number of your investment accounts.

According to the U.S. Bureau of Labor Statistics, the average person will change jobs 12 times during their career.

That means potentially 12 different 401(k) or 403(b) accounts if you’re a good retirement saver.

Plus, investors have several opportunities to open various investment accounts outside their 401(k)s.

Maybe you gained exposure to other types of investments on a recommendation from your brother-in-law, the stockbroker.

And maybe you purchased an annuity financial product on “advice” from your cousin, the tax advisor.

Perhaps your socially conscious sister turned you on to an SRI robo-advisor with great interactive tools and calculators.