I need help with our Fidelity accounts

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Ahdah
Posts: 9
Joined: Tue Sep 26, 2017 10:12 am

I need help with our Fidelity accounts

Post by Ahdah » Tue Oct 17, 2017 10:01 pm

Good evening,
I am 78 and my husband is 94 and has Alzheimer's. We have been with Fidelity for over 20 years. My husband is no longer able to decide what to do with his portfolio and I have several important decisions to make. I am very new with Bogleheads, I googled a question about Fidelity Personal Advisor and something came up on Bogleheads.....it was god sent.

Our first Fidelity advisor was helpful, but moved up to a higher position, the second just left a couple of months ago. With her I put half of my IRA into an Annuity and now the new advisor is sounding like a used car salesman. Talking about how to get to school (I am a retired teacher), saying now I am walking to school, I could put my funds in a Fidelity Freedom Fund2020 and then I would be riding the bus or I could take a limo with a managed account. I have $93,764.20 in a Traditional IRA, 74% bonds,18% stocks and 2% in foreign stocks. I am way to conservative and I know that I must get rid of some of the bond funds.
Here is my portfolio:
Fidelity Cash Reserve $385.25
Fidelity Investment Grade Bond $14,668.77
Fidelity New Markets Income $3032.16
Fidelity Short Term Bonds $7,874.25
Fidelity Total Bond $15,647.96
Primecap Odyssey Growth Fund $6,568.42
Royce Special equity Investment CL $6,332.13
Fidelity High Income $8,853.77
Vanguard Wellesley Income Investor $17,146.08
Weitz Short Duration Income Fund $7,366.73

My husband has an IRA account of $89,270.98 with 32% domestic stock, 3% foreign stock and 61% in bonds,
My husband's portfolio:
Fidelity Cash Reserve $4.22
Fidelity Contrafund $18,531.51
Fidelity GNMA Fund $15,797.49
Fidelity New Markets Income $18,715.80
Fidelity Puritan $17,480.81
Fidelity Total Bond $18, 741.15

He has a TOD with a value of $53,117.84
his portfolio:
Cash $17,415.54
Fidelity Low Price Stock $10,628.12
Fidelity New Millennium $25,074.18

Joint TOD
Fidelity Cash $20,005.64
Fidelity Gov. Cash Reserve $2,730.55

I also have $84,000 in T.R. Price.

As this point I am not wanting to go with a Fidelity Managed Account. I had the feeling he was trying to make the most money off of our accounts. He suggested we put all of our accounts in a Managed Account. The fee for the year would be $2,640,

This is a second marriage and my step children will inherit 52% of my husbands accounts.

I want to learn what to do so that I am able to manage our money and have it last as long as it can.
If you think a Managed Account is what we need. Do you think Vanguard is better than Fidelity. I have no problem going with the Investment company that will help us the most.

Thanks in advance for any help you can give us. As you can see by the numbers, we need help.

pkcrafter
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Joined: Sun Mar 04, 2007 12:19 pm
Location: CA
Contact:

Re: I need help with our Fidelity accounts

Post by pkcrafter » Wed Oct 18, 2017 8:34 pm

Welcome Ahdah,

You listed "my portfolio," is that a taxable account?
He has a TOD with a value of $53,117.84
his portfolio:
Cash $17,415.54
Fidelity Low Price Stock $10,628.12
Fidelity New Millennium $25,074.18
Is this a taxable account? How about joint TOD?
I also have $84,000 in T.R. Price.
taxable?

After we figure what all the accounts are, we can make some recommendations.
I am way to conservative and I know that I must get rid of some of the bond funds.
Do you know what overall asset allocation you would like to have? Would the TOD accounts be different than the other accounts?

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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onthecusp
Posts: 513
Joined: Mon Aug 29, 2016 3:25 pm

Re: I need help with our Fidelity accounts

Post by onthecusp » Wed Oct 18, 2017 9:24 pm

Oh my. The managed account sounds terrible. I have all my accounts at Fidelity but I do it myself.

If you are ok with doing things yourself, Fidelity can be fine. You have to insist that nothing goes to a managed account. Normally I just do everything on the internet, but the guy I see at the local Fidelity office has moved some things around for me at my direction and it didn't cost anything. Mostly helped consolidate some other 401k and IRA into my Fidelity accounts, so I'm sure he got some sort of internal bonus/kudos for that. If this guy helps you this way he is keeping the assets at Fidelity and that is better than nothing for him.

You should answer the questions in the other replies.
I have a TOD (transfer on death) account and mine is taxable. I think all TOD are taxable accounts.

Your current mix of investments is very complicated and has some high fees built in. I think after a little discussion here you could simplify within Fidelity to one or two funds in each of the accounts, get better more predictable returns and have something that is easy to monitor.

JBTX
Posts: 4262
Joined: Wed Jul 26, 2017 12:46 pm

Re: I need help with our Fidelity accounts

Post by JBTX » Wed Oct 18, 2017 9:28 pm

Ahdah wrote:
Tue Oct 17, 2017 10:01 pm
Good evening,
I am 78 and my husband is 94 and has Alzheimer's. We have been with Fidelity for over 20 years. My husband is no longer able to decide what to do with his portfolio and I have several important decisions to make. I am very new with Bogleheads, I googled a question about Fidelity Personal Advisor and something came up on Bogleheads.....it was god sent.

Our first Fidelity advisor was helpful, but moved up to a higher position, the second just left a couple of months ago. With her I put half of my IRA into an Annuity and now the new advisor is sounding like a used car salesman. Talking about how to get to school (I am a retired teacher), saying now I am walking to school, I could put my funds in a Fidelity Freedom Fund2020 and then I would be riding the bus or I could take a limo with a managed account.
This is really disappointing to hear from Fidelity. That is just blatant salesman ship, and it is B.S. I have a substantial amount with Fidelity, but I self manage it all. If somebody at Fidelity were to EVER say something like that to me I would be on the phone complaining all the way up the chain.

I think a target date fund would be very appropriate for you. However, Fidelity Freedom funds have a bit higher funds compared to Vanguard. I would consider putting most or all of it in this:

https://personal.vanguard.com/us/funds/ ... IntExt=INT

I am guessing you have a brokerage account, and you would have to pay a one time fee of $75.00. I don't like having to pay any upfront fees, but IMO it is worth it to pay the $75 if most of the money will go into that fund. Do that once, and then never touch it. Given what you have below, I'd probably keep your Vanguard Wellesley Income of $17,146, sell the rest and buy approx $75,000 of Vanguard Target 2020.

Alternatively, you can move the IRA to Vanguard, and avoid the $75.00 fee. Whether it is worth the hassle of moving it is up to you.

I have $93,764.20 in a Traditional IRA, 74% bonds,18% stocks and 2% in foreign stocks. I am way to conservative and I know that I must get rid of some of the bond funds.
Here is my portfolio:
Fidelity Cash Reserve $385.25
Fidelity Investment Grade Bond $14,668.77
Fidelity New Markets Income $3032.16
Fidelity Short Term Bonds $7,874.25
Fidelity Total Bond $15,647.96
Primecap Odyssey Growth Fund $6,568.42
Royce Special equity Investment CL $6,332.13
Fidelity High Income $8,853.77
Vanguard Wellesley Income Investor $17,146.08
Weitz Short Duration Income Fund $7,366.73
At 78 you should be conservative. Usual recommendations for somebody your age will be somewhere between 30% stocks and 50% stocks.

Like I said, I'd go with Vanguard Target 2020 and keep the Wellesley Income. Vanguard 2020 is 50% stock.

http://portfolios.morningstar.com/fund/ ... ture=en_US

f you want to go more conservative go Vanguard Target 2015, which is a little more than 40% stock,

http://portfolios.morningstar.com/fund/ ... ture=en_US


My husband has an IRA account of $89,270.98 with 32% domestic stock, 3% foreign stock and 61% in bonds,
My husband's portfolio:
Fidelity Cash Reserve $4.22
Fidelity Contrafund $18,531.51
Fidelity GNMA Fund $15,797.49
Fidelity New Markets Income $18,715.80
Fidelity Puritan $17,480.81
Fidelity Total Bond $18, 741.15
Some of those aren't bad funds. But still I'd move it all to Vanguard 2015 Target, and pay the fee, unless you wish to move it to Vanguard to avoid the Fee.
He has a TOD with a value of $53,117.84
his portfolio:
Cash $17,415.54
Fidelity Low Price Stock $10,628.12
Fidelity New Millennium $25,074.18

Joint TOD
Fidelity Cash $20,005.64
Fidelity Gov. Cash Reserve $2,730.55
Fid LP stock has been a good fund, but its a tad risky for a retired couple. I see no compelling reason for you to be in Fidelity New Millenium. Frankly, I would probably look to move those to some form of cash or cash equivalent. Maybe an online bank savings account. Or maybe some CD's. Or a little bit in Ibonds (you can put in $20k per year). However, if the equity funds have appreciated a lot, you may have some capital gains, and you probably figure out how much they are and when you want to realize those gains. You may want a tax advisor help with that.
I also have $84,000 in T.R. Price.
Is this a taxable account? Not really sure what to recommend not knowing what it is and what is in there. My gut reaction is you are probably better off at Vanguard, but again, if you have capital gains, you have to think about that.
As this point I am not wanting to go with a Fidelity Managed Account. I had the feeling he was trying to make the most money off of our accounts. He suggested we put all of our accounts in a Managed Account. The fee for the year would be $2,640,
Your instinct is correct.
This is a second marriage and my step children will inherit 52% of my husbands accounts.

I want to learn what to do so that I am able to manage our money and have it last as long as it can.
If you think a Managed Account is what we need. Do you think Vanguard is better than Fidelity. I have no problem going with the Investment company that will help us the most.

Thanks in advance for any help you can give us. As you can see by the numbers, we need help.
Do not go with the Fidelity managed account. If you leave it in fidelity, use a self managed account, and just go with funds like I described. Keep it simple. Or you can switch some or all of it to vanguard. Vanguard has vanguard advisory services which is pretty reasonable with modest fees, but I have never used it so I don't know much about it. I think others here have said positive things about it. Or you can just go with self managed.

In spite of what some may tell you, there is ZERO value in investing in a lot of different funds, and especially higher fee funds.

pkcrafter
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Location: CA
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Re: I need help with our Fidelity accounts

Post by pkcrafter » Wed Oct 18, 2017 9:55 pm

onthecusp wrote:
I think all TOD are taxable accounts.
I think you are correct, but I wanted to check and confirm.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Ahdah
Posts: 9
Joined: Tue Sep 26, 2017 10:12 am

Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 7:26 am

pkcrafter wrote:
Wed Oct 18, 2017 8:34 pm
Welcome Ahdah,

You listed "my portfolio," is that a taxable account?
He has a TOD with a value of $53,117.84
his portfolio:
Cash $17,415.54
Fidelity Low Price Stock $10,628.12
Fidelity New Millennium $25,074.18
Is this a taxable account? How about joint TOD?
I also have $84,000 in T.R. Price.
taxable?

After we figure what all the accounts are, we can make some recommendations.
I am way to conservative and I know that I must get rid of some of the bond funds.
Do you know what overall asset allocation you would like to have? Would the TOD accounts be different than the other accounts?

Paul
Paul, I just figured out how to reply to your questions. Sorry about that.....
All of our accounts are taxable, except our two IRA accounts. I do appreciate any help I can get.
Thanks,
Ginny

Ahdah
Posts: 9
Joined: Tue Sep 26, 2017 10:12 am

Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 7:30 am

onthecusp wrote:
Wed Oct 18, 2017 9:24 pm
Oh my. The managed account sounds terrible. I have all my accounts at Fidelity but I do it myself.

If you are ok with doing things yourself, Fidelity can be fine. You have to insist that nothing goes to a managed account. Normally I just do everything on the internet, but the guy I see at the local Fidelity office has moved some things around for me at my direction and it didn't cost anything. Mostly helped consolidate some other 401k and IRA into my Fidelity accounts, so I'm sure he got some sort of internal bonus/kudos for that. If this guy helps you this way he is keeping the assets at Fidelity and that is better than nothing for him.

You should answer the questions in the other replies.
I have a TOD (transfer on death) account and mine is taxable. I think all TOD are taxable accounts.

Your current mix of investments is very complicated and has some high fees built in. I think after a little discussion here you could simplify within Fidelity to one or two funds in each of the accounts, get better more predictable returns and have something that is easy to monitor.
I am hoping with further discussion that I will be able to find a place for our funds that will be easy to monitor without pay such a high price for a managed account. Please bear with me as I am learning how to navigate Bogleheads. Thanks for your help

Ahdah
Posts: 9
Joined: Tue Sep 26, 2017 10:12 am

Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 7:41 am

JBTX wrote:
Wed Oct 18, 2017 9:28 pm
Ahdah wrote:
Tue Oct 17, 2017 10:01 pm
Good evening,
I am 78 and my husband is 94 and has Alzheimer's. We have been with Fidelity for over 20 years. My husband is no longer able to decide what to do with his portfolio and I have several important decisions to make. I am very new with Bogleheads, I googled a question about Fidelity Personal Advisor and something came up on Bogleheads.....it was god sent.

Our first Fidelity advisor was helpful, but moved up to a higher position, the second just left a couple of months ago. With her I put half of my IRA into an Annuity and now the new advisor is sounding like a used car salesman. Talking about how to get to school (I am a retired teacher), saying now I am walking to school, I could put my funds in a Fidelity Freedom Fund2020 and then I would be riding the bus or I could take a limo with a managed account.
This is really disappointing to hear from Fidelity. That is just blatant salesman ship, and it is B.S. I have a substantial amount with Fidelity, but I self manage it all. If somebody at Fidelity were to EVER say something like that to me I would be on the phone complaining all the way up the chain.

I think a target date fund would be very appropriate for you. However, Fidelity Freedom funds have a bit higher funds compared to Vanguard. I would consider putting most or all of it in this:

https://personal.vanguard.com/us/funds/ ... IntExt=INT

I am guessing you have a brokerage account, and you would have to pay a one time fee of $75.00. I don't like having to pay any upfront fees, but IMO it is worth it to pay the $75 if most of the money will go into that fund. Do that once, and then never touch it. Given what you have below, I'd probably keep your Vanguard Wellesley Income of $17,146, sell the rest and buy approx $75,000 of Vanguard Target 2020.

Alternatively, you can move the IRA to Vanguard, and avoid the $75.00 fee. Whether it is worth the hassle of moving it is up to you.

I have $93,764.20 in a Traditional IRA, 74% bonds,18% stocks and 2% in foreign stocks. I am way to conservative and I know that I must get rid of some of the bond funds.
Here is my portfolio:
Fidelity Cash Reserve $385.25
Fidelity Investment Grade Bond $14,668.77
Fidelity New Markets Income $3032.16
Fidelity Short Term Bonds $7,874.25
Fidelity Total Bond $15,647.96
Primecap Odyssey Growth Fund $6,568.42
Royce Special equity Investment CL $6,332.13
Fidelity High Income $8,853.77
Vanguard Wellesley Income Investor $17,146.08
Weitz Short Duration Income Fund $7,366.73
At 78 you should be conservative. Usual recommendations for somebody your age will be somewhere between 30% stocks and 50% stocks.

Like I said, I'd go with Vanguard Target 2020 and keep the Wellesley Income. Vanguard 2020 is 50% stock.

http://portfolios.morningstar.com/fund/ ... ture=en_US

f you want to go more conservative go Vanguard Target 2015, which is a little more than 40% stock,

http://portfolios.morningstar.com/fund/ ... ture=en_US


My husband has an IRA account of $89,270.98 with 32% domestic stock, 3% foreign stock and 61% in bonds,
My husband's portfolio:
Fidelity Cash Reserve $4.22
Fidelity Contrafund $18,531.51
Fidelity GNMA Fund $15,797.49
Fidelity New Markets Income $18,715.80
Fidelity Puritan $17,480.81
Fidelity Total Bond $18, 741.15
Some of those aren't bad funds. But still I'd move it all to Vanguard 2015 Target, and pay the fee, unless you wish to move it to Vanguard to avoid the Fee.
He has a TOD with a value of $53,117.84
his portfolio:
Cash $17,415.54
Fidelity Low Price Stock $10,628.12
Fidelity New Millennium $25,074.18

Joint TOD
Fidelity Cash $20,005.64
Fidelity Gov. Cash Reserve $2,730.55
Fid LP stock has been a good fund, but its a tad risky for a retired couple. I see no compelling reason for you to be in Fidelity New Millenium. Frankly, I would probably look to move those to some form of cash or cash equivalent. Maybe an online bank savings account. Or maybe some CD's. Or a little bit in Ibonds (you can put in $20k per year). However, if the equity funds have appreciated a lot, you may have some capital gains, and you probably figure out how much they are and when you want to realize those gains. You may want a tax advisor help with that.
I also have $84,000 in T.R. Price.
Is this a taxable account? Not really sure what to recommend not knowing what it is and what is in there. My gut reaction is you are probably better off at Vanguard, but again, if you have capital gains, you have to think about that.
As this point I am not wanting to go with a Fidelity Managed Account. I had the feeling he was trying to make the most money off of our accounts. He suggested we put all of our accounts in a Managed Account. The fee for the year would be $2,640,
Your instinct is correct.
This is a second marriage and my step children will inherit 52% of my husbands accounts.

I want to learn what to do so that I am able to manage our money and have it last as long as it can.
If you think a Managed Account is what we need. Do you think Vanguard is better than Fidelity. I have no problem going with the Investment company that will help us the most.

Thanks in advance for any help you can give us. As you can see by the numbers, we need help.
Do not go with the Fidelity managed account. If you leave it in fidelity, use a self managed account, and just go with funds like I described. Keep it simple. Or you can switch some or all of it to vanguard. Vanguard has vanguard advisory services which is pretty reasonable with modest fees, but I have never used it so I don't know much about it. I think others here have said positive things about it. Or you can just go with self managed.

In spite of what some may tell you, there is ZERO value in investing in a lot of different funds, and especially higher fee funds.
Thanks, I have a lot to digest, I will go to the Vanguard site and read and try and understand. I am NOT going to go to a Fidelity Managed Account, that I know. Thanks again, Ginny

beebog
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Joined: Sun Aug 27, 2017 9:51 am

Re: I need help with our Fidelity accounts

Post by beebog » Thu Oct 19, 2017 9:00 am

Ahdah wrote:
Thu Oct 19, 2017 7:41 am
Thanks, I have a lot to digest, I will go to the Vanguard site and read and try and understand. I am NOT going to go to a Fidelity Managed Account, that I know. Thanks again, Ginny
I just wanted to chime in that Fidelity also has a lot of low cost index funds. I have almost all of my money at Fidelity and have for many years and I am very happy with them.

I personally do the three fund portfolio
FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS
FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL
FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL

But, for example, I think Vanguard Target Retirement 2015 Fund (VTXVX) recommended above is very similar to FLIFX Fidelity Freedom® Index 2015. Someone correct me if I am wrong.
http://www.morningstar.com/funds/XNAS/FLIFX/quote.html

If you decide to stay at Fidelity self-directed and are interesting in target date funds, just be careful to look at the Freedom Index Funds. There are also regular target date funds, but they have higher expense ratios. I unfortunately invested in the non-index ones for several years. Lesson learned.

I am not saying Vanguard isn't great. I have no experience with them at all. I just know personally that I wouldn't want to go through the hassle of moving my accounts.

The Boglehead wiki on Fidelity has a section on Balanced Funds that links out to the different comparable Vanguard and Fidelity target date funds. I don't see much a different expense-wise.
https://www.bogleheads.org/wiki/Fidelity

pkcrafter
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Re: I need help with our Fidelity accounts

Post by pkcrafter » Thu Oct 19, 2017 10:08 am

Ginny, do you know what asset allocation you want? I would suggest a min. of 25% stock and a max of about 40% stock.

Fidelity has some Freedom Index funds (target date all-in-one funds) with expense ratios of 0.15%, and I would suggest Freedom Index 2005 (33% stock) or Freedom Index 2010 (~42% stock) for all tax-deferred accounts. Be sure you specify Freedom Index because it's easy to get confused with the regular Freedom funds. Fidelity does offer the Index version, but they don't promote them.

Freedom Index 2010

https://fundresearch.fidelity.com/mutua ... /315793307

Freedom Index 2005

https://fundresearch.fidelity.com/mutua ... /315793208

For all the taxable accounts, maybe you could use Fidelity total stock market FSTVX and a bond fund. Bond choice would depend on your tax bracket.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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F150HD
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Re: I need help with our Fidelity accounts

Post by F150HD » Thu Oct 19, 2017 10:28 am

JBTX wrote:
Wed Oct 18, 2017 9:28 pm
I think a target date fund would be very appropriate for you. However, Fidelity Freedom funds have a bit higher funds compared to Vanguard. I would consider putting most or all of it in this:

https://personal.vanguard.com/us/funds/ ... IntExt=INT

I am guessing you have a brokerage account, and you would have to pay a one time fee of $75.00.
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class

ER of 0.16 versus 0.14 for the VGuard fund which costs $75 to buy.

In the worst case, maybe somewhere to park all the funds while one learns more about how to proceed.

JBTX
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Re: I need help with our Fidelity accounts

Post by JBTX » Thu Oct 19, 2017 10:31 am

F150HD wrote:
Thu Oct 19, 2017 10:28 am
JBTX wrote:
Wed Oct 18, 2017 9:28 pm
I think a target date fund would be very appropriate for you. However, Fidelity Freedom funds have a bit higher funds compared to Vanguard. I would consider putting most or all of it in this:

https://personal.vanguard.com/us/funds/ ... IntExt=INT

I am guessing you have a brokerage account, and you would have to pay a one time fee of $75.00.
Fidelity Freedom® Index 2020 Fund - Institutional Premium Class

ER of 0.16 versus 0.14 for the VGuard fund which costs $75 to buy.

In the worst case, maybe somewhere to park all the funds while one learns more about how to proceed.
Agree. That is a much better choice. Hopefully OP sees this.

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onthecusp
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Re: I need help with our Fidelity accounts

Post by onthecusp » Thu Oct 19, 2017 10:35 am

Ahdah wrote:
Thu Oct 19, 2017 7:30 am
onthecusp wrote:
Wed Oct 18, 2017 9:24 pm
Oh my. The managed account sounds terrible. I have all my accounts at Fidelity but I do it myself.

If you are ok with doing things yourself, Fidelity can be fine. You have to insist that nothing goes to a managed account. Normally I just do everything on the internet, but the guy I see at the local Fidelity office has moved some things around for me at my direction and it didn't cost anything. Mostly helped consolidate some other 401k and IRA into my Fidelity accounts, so I'm sure he got some sort of internal bonus/kudos for that. If this guy helps you this way he is keeping the assets at Fidelity and that is better than nothing for him.

You should answer the questions in the other replies.
I have a TOD (transfer on death) account and mine is taxable. I think all TOD are taxable accounts.

Your current mix of investments is very complicated and has some high fees built in. I think after a little discussion here you could simplify within Fidelity to one or two funds in each of the accounts, get better more predictable returns and have something that is easy to monitor.
I am hoping with further discussion that I will be able to find a place for our funds that will be easy to monitor without pay such a high price for a managed account. Please bear with me as I am learning how to navigate Bogleheads. Thanks for your help
So I have a follow up question for you. You found your way here so you are clearly net savvy. Are you comfortable looking at and doing most of the management of your Fidelity accounts on-line?

My Fidelity accounts (not managed) cost me nothing except the expense ratios for each fund. If you go with the suggestions from beebog above those expense ratios will be very low, probably one quarter to one tenth of the expense ratios of the funds you now have, overall the performance should be better. You could, on-line, sell your current funds, buy the simple 3 fund portfolio in an appropriate allocation between US, International, and Bonds. The purchase (and later sale) of those funds will cost nothing because they are in the Fidelity family of funds. The sale of the other funds may cost a small transaction fee for each fund but the savings in expense ratio is likely to pay that back in a few months.

You could start slow, for example, sell the Weitz short duration Income fund in your IRA and the Fidelity Short Term Bonds, buy FSITX the Fidelity US Bond Index. You will need $10,000 to get this premium class fund to start with so although the Fidelity Short Term Bonds might be OK we are going for simplification in one Bond fund. The Weitz fund has an expense ratio of about 0.7%. FSITX has an expense ratio of 0.04%. So just on the $7366 in Weitz you will be saving $7366(0.007-0.0004)=$49 per year. The short term bond fund won't cost anything to sell (it is a Fidelity fund) the Weitz might cost $5 or $15 to sell. FSTIX has outperformed the more complicated and expensive Weitz fund on the 1, 5, and 10 year returns.

That is the mechanics and it is pretty easy to stay with Fidelity if you are comfortable doing things like that. All the accounts stay the same, you will need access to your husband's accounts to make similar changes on his and your step children's behalf.

If your are not comfortable with that then the conversation continues. If you are, I think the next step in the conversation with the wider bogleheads community is establishing your asset allocation and getting advice with explanation on what to sell and what to buy. Then discuss what to do in the taxable accounts. Good luck, step by step you can do this, simplify, and probably improve your results.

mhalley
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Re: I need help with our Fidelity accounts

Post by mhalley » Thu Oct 19, 2017 11:02 am

I think that this is one of the reasons that bogleheads are such Vanguard diehards. We all know that you can create a great portfolio at both Schwab and Fidelity, but they also have a “dark” side that can lead to high fees. And even if you go with the vanguard management, the most you will be out is about .45%.

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onthecusp
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Re: I need help with our Fidelity accounts

Post by onthecusp » Thu Oct 19, 2017 11:31 am

mhalley wrote:
Thu Oct 19, 2017 11:02 am
I think that this is one of the reasons that bogleheads are such Vanguard diehards. We all know that you can create a great portfolio at both Schwab and Fidelity, but they also have a “dark” side that can lead to high fees. And even if you go with the vanguard management, the most you will be out is about .45%.
Agree completely, anyone starting out I'm now telling them to go to Vanguard. But I'm with Fidelity because multiple 401ks were there, and if I ignore the low pressure sales pitch I get good value and an easy to use web site. Similarly the OP has multiple accounts in her and her husband's names, with different ultimate goals (her husband is much older and much of the balance will go to his children). Staying with Fidelity looks like the easiest course for now. If later the OP wants to move her own accounts to Vanguard and sign up for their reasonable management help for a more hands off approach that would probably be a great idea. I'm thinking something similar after I retire as dementia runs in the family and my spouse has low interest in financials.

Slothmeister
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Re: I need help with our Fidelity accounts

Post by Slothmeister » Thu Oct 19, 2017 2:52 pm

I would stay at Fidelity and consolidate all of your taxed accounts into:

FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS
FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CLASS

These have super low expense ratios. At your age, I would go 50/50.

Ahdah
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Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 3:23 pm

beebog wrote:
Thu Oct 19, 2017 9:00 am
Ahdah wrote:
Thu Oct 19, 2017 7:41 am
Thanks, I have a lot to digest, I will go to the Vanguard site and read and try and understand. I am NOT going to go to a Fidelity Managed Account, that I know. Thanks again, Ginny
I just wanted to chime in that Fidelity also has a lot of low cost index funds. I have almost all of my money at Fidelity and have for many years and I am very happy with them.

I personally do the three fund portfolio
FSITX FIDELITY U.S. BOND INDEX PREMIUM CLASS
FSTVX FIDELITY TOTAL MKT INDEX PREMIUM CL
FTIPX FIDELITY TOTAL INTL INDEX FD PREMIUM CL

But, for example, I think Vanguard Target Retirement 2015 Fund (VTXVX) recommended above is very similar to FLIFX Fidelity Freedom® Index 2015. Someone correct me if I am wrong.
http://www.morningstar.com/funds/XNAS/FLIFX/quote.html

If you decide to stay at Fidelity self-directed and are interesting in target date funds, just be careful to look at the Freedom Index Funds. There are also regular target date funds, but they have higher expense ratios. I unfortunately invested in the non-index ones for several years. Lesson learned.

I am not saying Vanguard isn't great. I have no experience with them at all. I just know personally that I wouldn't want to go through the hassle of moving my accounts.

The Boglehead wiki on Fidelity has a section on Balanced Funds that links out to the different comparable Vanguard and Fidelity target date funds. I don't see much a different expense-wise.
https://www.bogleheads.org/wiki/Fidelit


[/quote
Beebog, I have made a list of the funds at Fidelity and I am looking in MorningStar Fund Investor to check the differences in the funds. I will call Vanguard and ask them a few questions once I know more about what to ask.I have also checked out Fidelity index funds. This still may not be the way I am supposed to respond.

Ahdah
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Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 3:42 pm

Thanks so much for all of the suggestions. I will continue to look at the suggested funds in MorningStar. At this point in my life I need to get the money into two or three top funds and leave it there for a while. I am leaning toward moving my money to Vanguard and keeping George's at Fidelity. I have all of the responsibility of taking care of home, car, cooking, cleaning etc. I know I could use the computer to research and stay on top, but I don't have the time (and probably energy) I will continue to work on this until I have a solution. Thanks again for the suggestions. I will call Vanguard tomorrow after doing more research tonight.

Interesting the Fidelity advisor had an assistant call today to set up an apt. to talk about what I am going to do. I will be telling him I am not investing in a Fidelity Managed Account.

pkcrafter
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Re: I need help with our Fidelity accounts

Post by pkcrafter » Thu Oct 19, 2017 3:55 pm

Ahdah wrote:
Thu Oct 19, 2017 3:42 pm
Thanks so much for all of the suggestions. I will continue to look at the suggested funds in MorningStar. At this point in my life I need to get the money into two or three top funds and leave it there for a while. I am leaning toward moving my money to Vanguard and keeping George's at Fidelity. I have all of the responsibility of taking care of home, car, cooking, cleaning etc. I know I could use the computer to research and stay on top, but I don't have the time (and probably energy) I will continue to work on this until I have a solution. Thanks again for the suggestions. I will call Vanguard tomorrow after doing more research tonight.

Interesting the Fidelity advisor had an assistant call today to set up an apt. to talk about what I am going to do. I will be telling him I am not investing in a Fidelity Managed Account.
I don't know if this has been mentioned, but if you do move to Vangaurd, another choice with be the robo-advisor at 0.3%. If you do decide to move, do a custodian to custodian transfer (Vanguard will initiate the transfer). Do not do a roll-over, which is quit different.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

Ahdah
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Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 4:01 pm

Thanks, I have written that all down so I won't do the wrong thing.

Ahdah
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Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 4:18 pm

What is the robo advisor at Vanguard?

Katietsu
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Re: I need help with our Fidelity accounts

Post by Katietsu » Thu Oct 19, 2017 4:58 pm

I would really consider leaving the accounts at Fidelity for now. You can get advice here to help you choose the best investments and to simplify your portfolio. If the advisor does not want to help you implement the recommendations made here, you can ask for a new advisor. Moving accounts doed not always go smoothly and you are dealing with a lot of learning and other responsibilities right now.

First though, tell your current advisor that you have been on the Bogleheads forum and thinking about moving to Vanguard. Then give him your desired fund allocations based on the recommendations of this forum and your research. I think the advisor will probably stop pushing the managed account and help implement your choices.

In your situation, I would not want to switch everything to Vanguard unless I was unable to work through things with Fidelity. Fidelity has excellent options, physical locations and very good customer service. Vanguard, arguably, may trail in two out of three of these.

mhalley
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Re: I need help with our Fidelity accounts

Post by mhalley » Thu Oct 19, 2017 6:32 pm

The advisor at Vanguard is called Personal Advisory Service (PAS). As mentioned, they charge 0.3 percent.
They give you a portfolio that is very similar to their target reirement funds, with occ small variations.. 50k minimum to start I believe. Multiple threads here.

https://investor.vanguard.com/financial ... mpgn=PS:PA

Ahdah
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Re: I need help with our Fidelity accounts

Post by Ahdah » Thu Oct 19, 2017 8:18 pm

I think I will pass on the robo advisor at Vanguard and I will continue to read and will call the Fidelity advisor and tell him what I am thinking about doing. I am sure if he is not pleasant, then I could ask for another advisor. I have not had a problem with the two previous advisors.

Thanks so much.

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