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Should I diversify between different financial institutions?

As a high net worth individual, should I diversify between financial institutions or should I just diversify within one organization such as Wells Fargo or Chase?

Personal Finance, Asset Allocation
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January 2017

It's always good to have accounts at different institutions primarily for risk, service, and product offerings.

  1. Risk-  SIPC coverage is limited to $500,000 per customer, including up to $250,000 for cash. Rights under SIPC protection. Some broker/dealers also have excess coverage from 3rd parties. Here is an example from Interactive Brokers Protection and excess coverage.
  2. Service- Although consolidation is good, it's always good to have multiple accounts in case you get bad service from one provider.  
  3. Products- The product offerings may vary at each institution which will have a factor on what type of portfolios are built out and/or products pushed.
January 2017
January 2017
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January 2017