Consolidate nest egg at Vanguard?

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catdude
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Consolidate nest egg at Vanguard?

Post by catdude » Tue Mar 22, 2016 1:09 am

Right off the bat, I have to apologize in advance if I've brought up this subject before. I think I may have, but I did a search and didn't come up with any threads that I'd started. I can't recall for sure... Anyway, I need to determine the wisdom (or lack thereof) in moving my Fidelity money to Vanguard. It's something I've been thinking about quite a bit lately. I've currently got about $250K with Vanguard (about $140K in IRA's and $110K in a taxable account), and about $375K with Fido (in a rollover IRA). If I move the Fidelity $$$ to Vanguard, that'll give me about $625K with them. Question: Does having that much money with Vanguard give me any special benefits, e.g. access to specialized investment advice, etc. etc.? Basically, I just like the idea of having all of my portfolio in one place, with one account statement to review... in seems more neat & tidy... But if anyone thinks it would be a big mistake to consolidate my nest egg, please let me know.
catdude | | "I yield to the gentleman for a few feeble remarks." (Congressman Thaddeus Stevens)

southbay
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Re: Consolidate nest egg at Vanguard?

Post by southbay » Tue Mar 22, 2016 1:18 am

I have $ at both. I will never keep all $ in one place.

Leeraar
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Re: Consolidate nest egg at Vanguard?

Post by Leeraar » Tue Mar 22, 2016 2:09 am

Consolidate. Simplify.

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")

JoinToday
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Re: Consolidate nest egg at Vanguard?

Post by JoinToday » Tue Mar 22, 2016 5:36 am

Leeraar wrote:Consolidate. Simplify.

L.
+1; i agree 100%

simplify, simplify, simplify.
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Da5id
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Re: Consolidate nest egg at Vanguard?

Post by Da5id » Tue Mar 22, 2016 6:59 am

johnny wrote:Right off the bat, I have to apologize in advance if I've brought up this subject before. I think I may have, but I did a search and didn't come up with any threads that I'd started. I can't recall for sure... Anyway, I need to determine the wisdom (or lack thereof) in moving my Fidelity money to Vanguard. It's something I've been thinking about quite a bit lately. I've currently got about $250K with Vanguard (about $140K in IRA's and $110K in a taxable account), and about $375K with Fido (in a rollover IRA). If I move the Fidelity $$$ to Vanguard, that'll give me about $625K with them. Question: Does having that much money with Vanguard give me any special benefits, e.g. access to specialized investment advice, etc. etc.? Basically, I just like the idea of having all of my portfolio in one place, with one account statement to review... in seems more neat & tidy... But if anyone thinks it would be a big mistake to consolidate my nest egg, please let me know.
$500000 at Vanguard gets you "Voyager Select" service, https://investor.vanguard.com/what-we-o ... t-services. Have a look a the link and see if you think those are of value to you.

I personally did consolidate from Fidelity to Vanguard, mostly for the simplicity as my Spartan funds had similar expenses.

jimkinny
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Re: Consolidate nest egg at Vanguard?

Post by jimkinny » Tue Mar 22, 2016 7:29 am

I like Vanguard's ownership model that has resulted in cost savings for me and other Vanguard's investors but has likely driven down the cost for investors that use other companies.

I am pretty sure there is a Boglehead Wiki article that addresses the issue of the need (or lack thereof) of splitting assets over different investment companies.

jjface
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Re: Consolidate nest egg at Vanguard?

Post by jjface » Tue Mar 22, 2016 8:15 am

You could use one of fidelity's transfer offers and get yourself a few hundred dollars to move the other way. Plus fidelity will charge you $75 to transfer a full account to vanguard so you would avoid that. Just a thought. I'd pick the one you are happier with though.

eg https://rewards.fidelity.com/offers/depositbonus

Jack FFR1846
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Re: Consolidate nest egg at Vanguard?

Post by Jack FFR1846 » Tue Mar 22, 2016 8:22 am

I guess I would ask "what services do you want that you don't currently have?". I have both Vanguard and Fidelity accounts. I am at Vanguard only for developed International because the ER is lower than at Fidelity. I've got spartan advantage bond and US stock market funds at Fidelity and the ERs are exactly the same as the admiral funds at Vanguard. The vastly superior website at Fidelity combined with the ability to do anything 24/7 that I need to do, including phone, chat and do nearly everything online keep me with Fidelity. On top of all that, as mentioned, if you roll an account into Fidelity, you can claim bonus money. I changed jobs recently and did this by rolling over my 401k to my rollover IRA.

I could attain some grand pubah status at Vanguard if I moved everything there, but still....nobody's going to answer my questions at 8pm on a Sunday night. Even with pion status at Fidelity, I can do this. (I have a private client rep at Fido and he knows to leave me alone).
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in_reality
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Re: Consolidate nest egg at Vanguard?

Post by in_reality » Tue Mar 22, 2016 8:24 am

Personally I wouldn't.

Vanguard's IT is a little dicey or dodgey or iffy or however you want to put it. That's my experience anyway. I didn't like my money ending up in someone else's estate and an IRA joining someone's trust. Got it all back of course. My experience is likely worse case. To think it all started with their confusion over what (+) meant vs. (-). That's the a plus sign and a minus sign. Not something that should ever cause trouble I think ...

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Re: Consolidate nest egg at Vanguard?

Post by angelescrest » Tue Mar 22, 2016 8:25 am

Jack FFR1846 wrote:I guess I would ask "what services do you want that you don't currently have?". I have both Vanguard and Fidelity accounts. I am at Vanguard only for developed International because the ER is lower than at Fidelity. I've got spartan advantage bond and US stock market funds at Fidelity and the ERs are exactly the same as the admiral funds at Vanguard. The vastly superior website at Fidelity combined with the ability to do anything 24/7 that I need to do, including phone, chat and do nearly everything online keep me with Fidelity. On top of all that, as mentioned, if you roll an account into Fidelity, you can claim bonus money. I changed jobs recently and did this by rolling over my 401k to my rollover IRA.

I could attain some grand pubah status at Vanguard if I moved everything there, but still....nobody's going to answer my questions at 8pm on a Sunday night. Even with pion status at Fidelity, I can do this. (I have a private client rep at Fido and he knows to leave me alone).
Service matters. I'd have all my money at Vanguard, too, if I didn't care so much for interface usability. That's why I'm still with TDAmeritrade and buy Vanguard ETFs for free, albeit at a higher ER. That said I don't have 7 digits in there.

keystone
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Re: Consolidate nest egg at Vanguard?

Post by keystone » Tue Mar 22, 2016 8:32 am

I don't think it would be a big mistake to consolidate, but I think you will find many people on this site who are happy to have accounts at both places. My wife and I are split be between Vanguard and Fidelity (75% Vanguard, 25% Fidelity) and we have no plans to consolidate. One argument I have seen in favor of not consolidating is to keep accounts at multiple institutions in the event that one of your accounts gets hacked and access to the funds is temporarily unavailable. It's a small risk, but I know this is a consideration for some.

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Re: Consolidate nest egg at Vanguard?

Post by Wagnerjb » Tue Mar 22, 2016 9:17 am

southbay wrote:I have $ at both. I will never keep all $ in one place.

I agree.
Andy

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mhc
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Re: Consolidate nest egg at Vanguard?

Post by mhc » Tue Mar 22, 2016 9:21 am

All my personal accounts are at Vanguard and my work accounts are at Fidelity. I prefer Vanguard for many reasons:

1. More good options for TLH.
2. Not for profit company. They are not trying to transfer my money to their pockets.
3. Website. I use to like the Fidelity website, but I hate the new mobile/desktop website that came out a couple of years ago.
4. I can find fund information easier at Vanguard.

The only advantage I have seen at Fidelity is the retirement tools. Vanguard is far behind Fidelity in this area.

I have always had great customer support from both companies.

I would simplify to Vanguard.

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bengal22
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Re: Consolidate nest egg at Vanguard?

Post by bengal22 » Tue Mar 22, 2016 9:24 am

Vanguard and Fidelity are equally good. I like having monies split between the two. I do not see it as a complication.
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goingup
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Re: Consolidate nest egg at Vanguard?

Post by goingup » Tue Mar 22, 2016 10:40 am

I like consolidation. You'll be able to view your portfolio (all accounts) together, and utilize portfolio tools. The selection of low cost funds is larger than Fidelity's, especially for bonds. Fewer statements, tax forms, and logins to keep track of. Not everyone places a high value on simplification, but many do!

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Re: Consolidate nest egg at Vanguard?

Post by mhalley » Tue Mar 22, 2016 11:14 am

In these days of portfolio aggregators, spreadsheets, etc, it is not that complicated to have accounts at both. While it may be simpler, I like diversification of accounts in addition to my portfolio. When I pass my wife is instructed to consolidate, but until my brain can no longer easily manage the multiple accounts, I will maintain them.

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Re: Consolidate nest egg at Vanguard?

Post by sport » Tue Mar 22, 2016 11:20 am

jimkinny wrote:I like Vanguard's ownership model that has resulted in cost savings for me and other Vanguard's investors but has likely driven down the cost for investors that use other companies.
I feel this way too. IMO, the only reason Fidelity (and others) have low cost options is to compete with Vanguard. Accordingly, I want to reward Vanguard with my business. I also have no concern that Vanguard will try to take advantage of my family after my demise.

whadyaknow
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Re: Consolidate nest egg at Vanguard?

Post by whadyaknow » Tue Mar 22, 2016 1:09 pm

Wagnerjb wrote:
southbay wrote:I have $ at both. I will never keep all $ in one place.

I agree.
+1
I split mine across Vanguard and Schwab. I hold Vanguard ETFs in my Schwab account and don't mind paying a commission while buying them.
80/20 Stock/Bond

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Re: Consolidate nest egg at Vanguard?

Post by gkaplan » Tue Mar 22, 2016 1:12 pm

I am a retired federal employee. I have my nest egg split between my TSP and Vanguard; however, if I didn't have funds in my TSP where I'm taking RMDs, I wouldn't hesitate to consolidate all my funds with Vanguard.
Gordon

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kingsnake
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Re: Consolidate nest egg at Vanguard?

Post by kingsnake » Tue Mar 22, 2016 1:19 pm

I would consolidate if could.

taxable account, Roth, 529s, solo 401k are at Vanguard

other 401k, HSA, are at other instituitions :beer

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Re: Consolidate nest egg at Vanguard?

Post by HueyLD » Tue Mar 22, 2016 2:05 pm

Wagnerjb wrote:
southbay wrote:I have $ at both. I will never keep all $ in one place.

I agree.
Do do I.

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catdude
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Re: Consolidate nest egg at Vanguard?

Post by catdude » Tue Mar 22, 2016 4:21 pm

Hi All -- OP here. Thank you all for your responses to my question. Seems like y'all are split down the middle. Some of you think I should consolidate... an equal number think I shouldn't. I need more folks to vote to break the tie. :)
catdude | | "I yield to the gentleman for a few feeble remarks." (Congressman Thaddeus Stevens)

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theduke
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Re: Consolidate nest egg at Vanguard?

Post by theduke » Tue Mar 22, 2016 4:37 pm

I believe in KISS, especially for a spouse or heirs who may not be investments savy. But I don't think a person would go wrong in having investments at Vanguard and Fidelity.

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Re: Consolidate nest egg at Vanguard?

Post by xjz » Tue Mar 22, 2016 4:44 pm

in_reality wrote:Personally I wouldn't.

Vanguard's IT is a little dicey or dodgey or iffy or however you want to put it. That's my experience anyway. I didn't like my money ending up in someone else's estate and an IRA joining someone's trust. Got it all back of course. My experience is likely worse case. To think it all started with their confusion over what (+) meant vs. (-). That's the a plus sign and a minus sign. Not something that should ever cause trouble I think ...
Yeah, I've had a couple issues as well from Vanguard. In particular, my employer offers an after-tax 401k through Vanguard that is eligible for the "mega backdoor Roth", and twice this year the 401k-to-IRA rollover simply disappeared (no pending transactions, no deposit corresponding to the withdrawal) rather than completing successfully. The first time was resolved with a quick phone call; the second time, I lost the customer service roulette, and ended up needing an email and two phone calls with over half an hour of hold time to resolve.

So maybe my recommendation to OP would be: consolidate if you have no unusual circumstances, keep it separate if you do. And on the bright side, in tax-sheltered accounts, there's usually relatively little friction with moving money around, since you don't have to worry about accidentally triggering capital gains and all that--so if you pick a strategy and end up unhappy with it, it probably wouldn't be too hard to revert.

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Re: Consolidate nest egg at Vanguard?

Post by bondsr4me » Tue Mar 22, 2016 4:49 pm

johnny wrote:Hi All -- OP here. Thank you all for your responses to my question. Seems like y'all are split down the middle. Some of you think I should consolidate... an equal number think I shouldn't. I need more folks to vote to break the tie. :)
Ok..my 2 cents worth.

I like both. I have accounts at both....for now.

Fidelity's website/tools are much better if you are into owning individual securities and like to trade.

If you are a fund or ETF's person and you are a buy and hold person, then Vanguard is the best IMO.

That is what I may do eventually.

But you can't go wrong using either one or both.

Don

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Re: Consolidate nest egg at Vanguard?

Post by Dale_G » Tue Mar 22, 2016 4:54 pm

If you are interested in diversifying on the bond front (likely in tax-deferred), Vanguard has a variety of low cost bond funds. Most bond funds at Fido are considerably more expensive than the comparable Vanguard funds.

I have no beef with Fido. From 1987 to 2001 my 401k was at Fido. When the time came, I had no misgivings about moving the 401k to an IRA at Vanguard. I appreciate having everything at one fund company - and my wife will if she has to take over.

If and when I kick the bucket, I have a lot more confidence in what Vanguard may offer than the Fido "solution".

Dale
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Re: Consolidate nest egg at Vanguard?

Post by GerryL » Tue Mar 22, 2016 7:39 pm

I have chosen to consolidate and simplify. A few years before retirement I moved the bulk of my 401k $$$ from Fidelity to VG and attained Voyager Select status. Since retirement I have moved the rest of the $$$ in Fidelity employer plans to VG. I also moved my Dodge & Cox fund IRA to my VG Brokerage IRA and intend to eventually trade the D&C shares for Total Stock Market shares. D&C has done good by me, but the ER is wildly out of whack with the rest of my portfolio.

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Re: Consolidate nest egg at Vanguard?

Post by scotthal » Tue Mar 22, 2016 10:13 pm

I've consolidated all of my accounts (sans banking & money market) @Vanguard - interface is a bit clunky, but I appreciate the diversity of choice and low costs. That said, have been thinking about opening a donor directed charitable trust @Fidelity - costs are similar, but Fidelity has significantly better disbursement options.
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GerryL
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Re: Consolidate nest egg at Vanguard?

Post by GerryL » Wed Mar 23, 2016 11:27 am

scotthal wrote:I've consolidated all of my accounts (sans banking & money market) @Vanguard - interface is a bit clunky, but I appreciate the diversity of choice and low costs. That said, have been thinking about opening a donor directed charitable trust @Fidelity - costs are similar, but Fidelity has significantly better disbursement options.
That's what I did. Investments at VG and DAF at Fidelity. Minimums at VG Charitable are too high for where I am right now in my charitable giving.

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FelixTheCat
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Re: Consolidate nest egg at Vanguard?

Post by FelixTheCat » Wed Mar 23, 2016 11:28 am

GerryL wrote:
scotthal wrote:I've consolidated all of my accounts (sans banking & money market) @Vanguard - interface is a bit clunky, but I appreciate the diversity of choice and low costs. That said, have been thinking about opening a donor directed charitable trust @Fidelity - costs are similar, but Fidelity has significantly better disbursement options.
That's what I did. Investments at VG and DAF at Fidelity. Minimums at VG Charitable are too high for where I am right now in my charitable giving.
+1 on Fidelity DAF. I would prefer to be at Vanguard but the minimums are too much for me.
Felix is a wonderful, wonderful cat.

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