Fidelity [Roll 401(k) to IRA]

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PinotGris
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Fidelity [Roll 401(k) to IRA]

Post by PinotGris »

my husband's 401K is administered by Fidelity. we had decided to leave it there as they have a pretty decent varieties of funds by blackrock.
now we are considering rolling it over to an IRA. he has after tax contributions in it and now we can roll over the entire 401K into an IRA and the after-tax money into a Roth without tax consequences. i believe this new guidelines were published in september.

besides this my husband has a traditional IRA in Fidelity and the rest of our investments and any new money is invested in vanguard. I have researched VG funds, and with this help of this forum, i feel very comfortable with vanguard and their philosophy, and offering.

we are meeting with a Fidelity CFA next week and we have to decide where and how we want all is this rolled over. this makes me very nervous.

our current portfolio
BONDS REIT EQUITY TOTAL
TAXABLE 35% 3% 61% 100%
TAX DEFERRED 41% 1% 58% 100%
TOTAL 39% 2% 59% 100%

401K is 98% of Tax deferred which is 68% of total assets.
I would appreciate any suggestions and recommendation as to specific funds to locate the funds in the Roth and TIRA with Fidelity and with Vanguard. i don't know if i have provided adequate information.
thank you
bloom2708
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Re: Fidelity

Post by bloom2708 »

I did this not too long ago from Fidelity. It was pretty easy and painless.

Create a Rollover IRA at Vanguard. Based on the amount, Vanguard's Concierge service will do most of the paperwork/legwork for you.

If you have a Roth 401k portion (after tax), that can be rolled over to a Roth IRA. Mine merged in with my existing Vanguard Roth IRA.

I did a 65 stocks/35 bonds "3 fund portfolio" (VTSAX, VTIAX and VBTLX). International is 25% of my stock allocation.

Base your Asset Allocation on your husbands age (Age in bonds or Age - 10 in bonds or somewhere in that general spectrum)

Fidelity will of course want you to roll it to Fidelity funds. Which you could do. There are some Bogleheads who prefer the Fidelity Spartan funds. A majority would move to Vanguard now.

Diversification, super low costs, appropriate AA, risk, reward, stay the course, etc. etc. Good luck!
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Ged
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Re: Fidelity

Post by Ged »

It really doesn't matter much if you rollover to Vanguard or rollover to a Fidelity IRA. Both offer good low cost index funds. You can also buy Vanguard ETFs from Fidelity for a nominal trading fee.

For historical reasons I have my investments at Fidelity however they are mostly in Vanguard ETFs.

In my opinion Fidelity offers somewhat better customer service, including potentially a local office and definitely a nicer web site. On the downside they will try to sell you their management services which a Boglehead investor would not want.
livesoft
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Re: Fidelity

Post by livesoft »

I have a 401(k) with Fidelity. As mentioned the Spartan index funds are decent and I use them. They have a Spartan Advantage set of funds with low-expense ratios and no commissions. In addition, Fidelity has a set of no-commission ETFs from iShares available.

Here is a link to the Bogleheads wiki about some of this: http://www.bogleheads.org/wiki/Fidelity

Just about every Vanguard index fund that one would want to own has an equivalent at Fidelity.
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PinotGris
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Re: Fidelity

Post by PinotGris »

thank you for the responses. makes me feel good that there is positive feelings about fidelity funds. i will see how our meeting goes.
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TheTimeLord
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Re: Fidelity

Post by TheTimeLord »

My money is split between Vanguard and Fidelity. Besides the Wellington Fund, I cannot think of any real advantage Vanguard holds over Fidelity. On the other hand Fidelity has better customer service and a better web site imho.
Besides low cost mutual funds Fidelity also offers 70 commission free iShares ETFs to help you diversify to your heart content.

https://www.fidelity.com/etfs/ishares
Last edited by TheTimeLord on Sun Oct 26, 2014 4:11 pm, edited 3 times in total.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]
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Re: Fidelity

Post by placeholder »

Vanguard has a broader selection of low cost funds so if you're into slicing or tilting you can do better but if you just need the basics either will do pretty well.
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retiredjg
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Re: Fidelity

Post by retiredjg »

chabil, it is possible that advisor is going to try to steer you to the Fidelity Advisor Funds. If you value the Vanguard approach or the Boglehead approach, moving into the Fidelity Advisor Funds (or any other actively managed fund at Fido) would be a huge mistake.

If you like Vanguard, the only Fidelity funds you should consider are the Fidelity Spartan Index Funds https://www.fidelity.com/mutual-funds/i ... y-fidelity or the Fidelity Freedom Index Funds.



You have funds in your taxable account that probably should not be there. In order to fix that, you need to see if those funds have large capital gains and if the gains are long term (shares held more than one year) or short term.

In order to help you figure out what you want and where to put it, you need to post all the information suggested in the link at the bottom of this message. This can be pretty quick or it may take several days. It is possible that you won't have the answer you need before the meeting with the advisor. If that occurs, I'd suggest that you not do anything with your money until you actually have a comprehensive plan that accounts for all your money.
LeeMKE
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Re: Fidelity

Post by LeeMKE »

We have Fidelity accounts and use Spartan funds for our Boglehead portfolio.

The tools Fidelity offers are excellent and anchoring us with them for the majority of our portfolio. The customer service and advisors at the local office have given me very good advice, saving me many thousands in taxes.
The mightiest Oak is just a nut who stayed the course.
92irish
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Re: Fidelity

Post by 92irish »

Ged wrote:definitely a nicer web site
I used to agree with you on this point. However, Fidelity is rolling out a completely redesigned website - it is a total cluttered mess. I think they must have hired Yahoo's webdesigners.
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Ged
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Re: Fidelity

Post by Ged »

92irish wrote:
Ged wrote:definitely a nicer web site
I used to agree with you on this point. However, Fidelity is rolling out a completely redesigned website - it is a total cluttered mess. I think they must have hired Yahoo's webdesigners.
I actually like the new web design. It requires fewer clicks for me to find what I want because the things I normally do are more accessible.
2beachcombers
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Re: Fidelity

Post by 2beachcombers »

Ged wrote:
92irish wrote:
Ged wrote:definitely a nicer web site
I used to agree with you on this point. However, Fidelity is rolling out a completely redesigned website - it is a total cluttered mess. I think they must have hired Yahoo's webdesigners.
I actually like the new web design. It requires fewer clicks for me to find what I want because the things I normally do are more accessible.

+1 And not only is the web site excellent, their 24/7 answering crew knows the answers; and $$ Xfers between accounts is a snap.
PS --have 100% Spartan funds + Ishares + Vanguard etfs.

jerry
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BL
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Re: Fidelity

Post by BL »

Fidelity is fine if you only stick with Spartan funds and have no trouble warding off people who want you to pay more either with the funds themselves or advising/managing. I wouldn't want to be constantly on my guard against the salespeople, especially as I get older and more vulnerable.
grokzilla
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Re: Fidelity

Post by grokzilla »

Both are good choices. Most of our various vehicles are with Fidelity, but my wife's 401K and some of the kid stuff is with Vanguard.

I respect Vanguard more for the philosophy, pushing the envelope, etc., but I definitely prefer Fidelity from a pure customer standpoint.

Their customer service is absolutely fantastic - never a single problem and a multitude of instances over two decades of significant help. I always notice the companies I have really good CS experiences with and Fidelity has been consistently one of the best, for me at least. Some folks here have had some issues, particularly with the "Store" staff.

Their website is really good...though it's being changed again as we speak to be what seems to be more tablet-friendly. I used to love Full View, but it's pretty clunky now.

And, I really like having the local investment stores. I go in exactly once per year to hand over a couple checks and talk to the adviser...totally unnecessary but I like having the option.

You can't really go wrong with either. But if you stick with Fidelity make sure to use the Spartan and iShare funds - they don't have the selection that Vanguard does, but more than enough if you just want the core boglehead portfolio.
grokzilla
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Re: Fidelity

Post by grokzilla »

92irish wrote:
Ged wrote:definitely a nicer web site
I used to agree with you on this point. However, Fidelity is rolling out a completely redesigned website - it is a total cluttered mess. I think they must have hired Yahoo's webdesigners.
It seems to be going for tablet or mobile-friendly? Which is strange since they have the apps?

I dunno, but I don't mind it - there seems to be more information easily accessible now.
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TheTimeLord
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Re: Fidelity

Post by TheTimeLord »

92irish wrote:
Ged wrote:definitely a nicer web site
I used to agree with you on this point. However, Fidelity is rolling out a completely redesigned website - it is a total cluttered mess. I think they must have hired Yahoo's webdesigners.
I worked for years for a megecorp doing websites and Vanguard's is frankly embarrassing. Now their mobile apps have been quite improved over the last year. On the other hand I have always found Fidelity's web site to be good and functional but not quite great. But if you like Vanguard's site I can see why you would find Fidelity's busy. Web sites can be like beer, an acquired taste.
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PinotGris
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Re: Fidelity

Post by PinotGris »

all advice duly noted, and thank you.
my experience with fidelity is yes, great customer service, but poor in substance. they forgot to do the very first MRD after my husband retired. while we were able to avert the penalty, it was still unnerving to find out we missed it.
i find the vanguard web site sufficient and once i establish contact with the analysts, they are knowledgeable and helpful.
anyway, we will listen in good faith. we have let them know we are fans of vanguard index funds and philosophy and hopefully that helps in how they present the portfolio for our rollover. we have never done ETF so that will be something new to look at.
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TheTimeLord
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Re: Fidelity

Post by TheTimeLord »

chabil wrote:all advice duly noted, and thank you.
my experience with fidelity is yes, great customer service, but poor in substance. they forgot to do the very first MRD after my husband retired. while we were able to avert the penalty, it was still unnerving to find out we missed it.
i find the vanguard web site sufficient and once i establish contact with the analysts, they are knowledgeable and helpful.
anyway, we will listen in good faith. we have let them know we are fans of vanguard index funds and philosophy and hopefully that helps in how they present the portfolio for our rollover. we have never done ETF so that will be something new to look at.
Did you have the RMD set up to be automatically distributed?
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BL
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Re: Fidelity

Post by BL »

You really have no need to use ETFs, although no harm in doing so. They are usually the same cost as Admiral funds, which usually require $10,000.

You can sign up for RMDs and distributions if you choose. It is up to you to direct them to do it.
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SpringMan
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Re: Fidelity

Post by SpringMan »

StarbuxInvestor wrote:My money is split between Vanguard and Fidelity. Besides the Wellington Fund, I cannot think of any real advantage Vanguard holds over Fidelity. On the other hand Fidelity has better customer service and a better web site imho.
Besides low cost mutual funds Vanguard also offers 70 commission free iShares ETFs to help you diversify to your heart content.

https://www.fidelity.com/etfs/ishares
I believe you meant Fidelity offers 70 commission free iShares ETFs, not Vanguard.
Best Wishes, SpringMan
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TheTimeLord
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Re: Fidelity

Post by TheTimeLord »

SpringMan wrote:
StarbuxInvestor wrote:My money is split between Vanguard and Fidelity. Besides the Wellington Fund, I cannot think of any real advantage Vanguard holds over Fidelity. On the other hand Fidelity has better customer service and a better web site imho.
Besides low cost mutual funds Vanguard also offers 70 commission free iShares ETFs to help you diversify to your heart content.

https://www.fidelity.com/etfs/ishares
I believe you meant Fidelity offers 70 commission free iShares ETFs, not Vanguard.
Ooops.

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PinotGris
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Re: Fidelity

Post by PinotGris »

Did you have the RMD set up to be automatically distributed?
well they have my husband's age information and our accounts. i expect them to alert us to the fact that and send us a check by the last date which they did not do. we now have it automated.
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BL
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Re: Fidelity

Post by BL »

chabil wrote:
Did you have the RMD set up to be automatically distributed?
well they have my husband's age information and our accounts. i expect them to alert us to the fact that and send us a check by the last date which they did not do. we now have it automated.
Would you be angry if they took out the RMD and sent you a check, and you had already done it from another IRA held elsewhere? This could cost you tax money and it might be too late to undo it. They don't know what else you have so there could be serious mistakes if they did it without your direction. I agree that they could at least remind you, but that is not required, AFAIK.
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PinotGris
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Re: Fidelity

Post by PinotGris »

BL wrote:
chabil wrote:
Did you have the RMD set up to be automatically distributed?
well they have my husband's age information and our accounts. i expect them to alert us to the fact that and send us a check by the last date which they did not do. we now have it automated.
Would you be angry if they took out the RMD and sent you a check, and you had already done it from another IRA held elsewhere? This could cost you tax money and it might be too late to undo it. They don't know what else you have so there could be serious mistakes if they did it without your direction. I agree that they could at least remind you, but that is not required, AFAIK.
This was a distribution from a 401k that fidelity administers!
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