Fidelity BrokerageLink in 401k

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AndroAsc
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Joined: Sat Nov 21, 2009 7:39 am

Fidelity BrokerageLink in 401k

Post by AndroAsc » Tue Jan 22, 2019 10:30 am

Looks like my new employer has the ability to setup Fidelity BrokerageLink inside a 401k. However, it looks like the no-load MF or no-commission ETFs are only limited to iShares and Fidelity (amongst the more usable options).

Does anyone have a similar 401k Fidelity BrokerageLink? What products do you recommend, or do you go with Vanguard and just pay the fees/commissions for it?

ryman554
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Re: Fidelity BrokerageLink in 401k

Post by ryman554 » Tue Jan 22, 2019 10:35 am

Just use the fidelity ex-spartan funds.

Low cost. Free. And in a 401(k), what's the advantage of trading ETF vs. mutual fund? What's not to like?

I personally own:
FUAMX
FXAIX
FSMAX
FTIHX
FPADX

Flyer24
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Re: Fidelity BrokerageLink in 401k

Post by Flyer24 » Tue Jan 22, 2019 10:38 am

I have the same setup. Just buy the Fidelity funds and avoid the extra fees.

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ruralavalon
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Location: Illinois

Re: Fidelity BrokerageLink in 401k

Post by ruralavalon » Tue Jan 22, 2019 11:15 am

AndroAsc wrote:
Tue Jan 22, 2019 10:30 am
Looks like my new employer has the ability to setup Fidelity BrokerageLink inside a 401k. However, it looks like the no-load MF or no-commission ETFs are only limited to iShares and Fidelity (amongst the more usable options).
Only Fidelity and iShares is not very "limited". That gives you a very broad range of good fund choices.


AndroAsc wrote:Does anyone have a similar 401k Fidelity BrokerageLink? What products do you recommend, or do you go with Vanguard and just pay the fees/commissions for it?
I don't have a 401k or BrokerageLink.

I suggest just using Fidelity index funds. There is no need to pay an extra fee to use Vanguard funds.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Retired1809
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Location: North Carolina, USA

Re: Fidelity BrokerageLink in 401k

Post by Retired1809 » Tue Jan 22, 2019 11:27 am

ryman554:

What is FUAMX (the first symbol you posted)? Thanks.

altruist
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Re: Fidelity BrokerageLink in 401k

Post by altruist » Tue Jan 22, 2019 11:58 am

Flyer24 wrote:
Tue Jan 22, 2019 10:38 am
I have the same setup. Just buy the Fidelity funds and avoid the extra fees.
Still have to pay $25 per quarter to have the BrokerageLink in the first place, no? Assume that might make a difference depending on the amount of assets you want to invest.

onourway
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Re: Fidelity BrokerageLink in 401k

Post by onourway » Tue Jan 22, 2019 12:10 pm

What options are available within the 401k without going the BrokerageLink route (which as noted, likely has an ongoing fee)?

My wife's plan has this option but there is no reason for us to use it because there are excellent low cost funds available in the main offering.

squidfather
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Re: Fidelity BrokerageLink in 401k

Post by squidfather » Tue Jan 22, 2019 12:17 pm

I have Fidelity brokeragelink set up through my 403(b), at no additional cost. Our plan doesn't allow for ETF purchase, but Fidelity has plenty of low fee index mutual funds. It can be helpful for getting access to asset classes that might not be available (or only available at a high fee) through your regular plan. In my case, there weren't any funds with emerging market exposure through either my or my wife's 403b, so I use the brokeragelink for International Developed (FSPSX, ER 0.045%) and Emerging (FPADX, ER 0.08%).

There are plenty of other low cost index funds available (Total US, S&P 500, REIT, etc). You may have access to the Fidelity Zero funds for total US and total international. One hole is the lack of a Small Value fund, but that may or may not be important to you. As others mentioned, the key question is what do you feel is missing from the standard offerings in your plan?

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dunkmachine
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Re: Fidelity BrokerageLink in 401k

Post by dunkmachine » Tue Jan 22, 2019 12:28 pm

You may want to verify that there isn't a fee associated for using BrokerageLink. This information will be in the Plan Fact Sheet. Also, with mine, I'm only allowed to purchase mutual funds and not ETF's.

I have BrokerageLink through my employer and it works pretty seamlessly. I only started using it to get access to both US and Int'l small cap value-y funds. My 401k is much larger than my Roth IRA, HSA and taxable, so this was the only way to get to my desired asset allocation. Now, the funds I am using (SFILX and SFSNX) each came with a load fee of $49.95 each, but I was able to justify this one-time purchase because I just bought a big chuck of each. I don't need to purchase anymore shares of these funds thru my 401k (automatic investments are $5) because I'm able to purchase a much smaller quantity from a much wider selection of SVC mutual funds and ETF's inside my HSA and Roth IRA to maintain my desired allocations without any transaction fees.

If BrokerageLink is free or if you have a poor selection of funds in your 401k, then it can be beneficial to open up an account.

Flyer24
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Re: Fidelity BrokerageLink in 401k

Post by Flyer24 » Tue Jan 22, 2019 12:49 pm

altruist wrote:
Tue Jan 22, 2019 11:58 am
Flyer24 wrote:
Tue Jan 22, 2019 10:38 am
I have the same setup. Just buy the Fidelity funds and avoid the extra fees.
Still have to pay $25 per quarter to have the BrokerageLink in the first place, no? Assume that might make a difference depending on the amount of assets you want to invest.
My BrokerageLink is free. If there is a fee then you could just do a comparison to what is available in your 401K. Having access to all the Index funds in a brokerage might save more than the access fee.

Gadget
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Re: Fidelity BrokerageLink in 401k

Post by Gadget » Wed Jan 23, 2019 2:31 pm

My Fidelity Brokeragelink is free.

For a 3 fund portfolio, you want:
FSKAX: Fidelity Total US (.02% ER)
FTIHX: Fidelity Total Int (.06% ER)
FXNAX: Fidelity Total Bond (.02% ER)

Mine doesn't have access to the new Fidelity zero funds in my 401k via Brokeragelink. I can only get those in taxable where they wouldn't be very tax efficient. Not sure if that differs among participants.

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ruralavalon
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Re: Fidelity BrokerageLink in 401k

Post by ruralavalon » Wed Jan 23, 2019 2:41 pm

Gadget wrote:
Wed Jan 23, 2019 2:31 pm
My Fidelity Brokeragelink is free.

For a 3 fund portfolio, you want:
FSKAX: Fidelity Total US (.02% ER)
FTIHX: Fidelity Total Int (.06% ER)
FXNAX: Fidelity Total Bond (.02% ER)

Mine doesn't have access to the new Fidelity zero funds in my 401k via Brokeragelink. I can only get those in taxable where they wouldn't be very tax efficient. Not sure if that differs among participants.
According the the prospectus, the new Fidelity ZERO funds are available only in individual accounts like IRAs and taxable brokerage accounts.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Flyer24
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Re: Fidelity BrokerageLink in 401k

Post by Flyer24 » Wed Jan 23, 2019 2:57 pm

ruralavalon wrote:
Wed Jan 23, 2019 2:41 pm
Gadget wrote:
Wed Jan 23, 2019 2:31 pm
My Fidelity Brokeragelink is free.

For a 3 fund portfolio, you want:
FSKAX: Fidelity Total US (.02% ER)
FTIHX: Fidelity Total Int (.06% ER)
FXNAX: Fidelity Total Bond (.02% ER)

Mine doesn't have access to the new Fidelity zero funds in my 401k via Brokeragelink. I can only get those in taxable where they wouldn't be very tax efficient. Not sure if that differs among participants.
According the the prospectus, the new Fidelity ZERO funds are available only in individual accounts like IRAs and taxable brokerage accounts.
It is available in my brokerage link of my 401k.

nix4me
Posts: 326
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Re: Fidelity BrokerageLink in 401k

Post by nix4me » Wed Jan 23, 2019 6:37 pm

My brokerage link allowed me to put 20% in FZROX

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