401k fidelity brokeragelink

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VT0909
Posts: 1
Joined: Thu Feb 07, 2019 12:41 am

401k fidelity brokeragelink

Post by VT0909 » Thu Feb 07, 2019 12:59 am

Hello,
I have some questions about my company 401k plan. My company 401k plan offered by Fidelity has a limited number of funds available. There is also the option of using Brokeragelink to access a wider variety of funds which allows me to asset allocate a bit better.

Specific questions for forum members:
- Can I auto invest a percent from my paycheck into specific Brokeragelink funds? If yes is there a minimum $$ amount?
- does this auto invested money sit in cash or can i auto invest into funds available in brokeragelink?
- Vanguard funds are a $75 fee per fund - is this just an initial fee and something i dont have to pay when i keep buying into this fund every paycheck.

Appreciate any responses.
VT

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dunkmachine
Posts: 41
Joined: Sat Jan 06, 2018 12:48 pm

Re: 401k fidelity brokeragelink

Post by dunkmachine » Thu Feb 07, 2019 9:41 am

Be sure to read your Plan Fact Sheet and Commission Schedule.

I have Brokeragelink through my employer as well. I believe that it is possible that not all Brokeragelink's are set up the same. For me, I can do automatic investments with no minimum amount. There's a minimum to set up the initial account but no requirements after that. You can just set up your investments to direct a certain % into your Brokeragelink account. Then inside your Brokeragelink account, you then can then allocate which funds your contribution goes to.
does this auto invested money sit in cash or can i auto invest into funds available in brokeragelink?
From what I wrote above, if you just do the first part, only directing a % into Brokeragelink, yes it will settle in your core position (Fidelity Government Cash Reserves). You must go into your BrokerageLink account and allocate where to invest.
Vanguard funds are a $75 fee per fund - is this just an initial fee and something i dont have to pay when i keep buying into this fund every paycheck.
Read the fund Commission Schedule and fund prospectus. For me, for non-FundsNetwork funds, the cost is $49.95 for the initial fee and then $5 per transaction afterwards.

Also, I can only exchange Mutual funds. ETF's are not allowed in my BrokerageLink.

squidfather
Posts: 37
Joined: Tue Mar 13, 2018 6:35 pm

Re: 401k fidelity brokeragelink

Post by squidfather » Thu Feb 07, 2019 2:36 pm

VT0909 wrote:
Thu Feb 07, 2019 12:59 am
- Can I auto invest a percent from my paycheck into specific Brokeragelink funds? If yes is there a minimum $$ amount?
- does this auto invested money sit in cash or can i auto invest into funds available in brokeragelink?
- Vanguard funds are a $75 fee per fund - is this just an initial fee and something i dont have to pay when i keep buying into this fund every paycheck.
BrokerageLink rules can vary based on the employer, so this may differ for you, but here is my experience:

1. You typically designate what proportion of your contribution goes to Brokeragelink. Your employer may set limits on this. For example, I can only direct 98% of contributions to Brokeragelink.

2. You can set up automatic investments within BrokerageLink, any new money will be automatically invested in the proportion you designate. This usually takes 1 day (i.e. funds deposit on day 1 into cash, next day auto-invested into funds).

3. The $75 fee is likely per purchase, so each time you buy vanguard funds you will incur this fee. Why not just use Fidelity funds? They have no transaction costs and no minimums, which gets around your first question about minimum amount. You can't buy Vanguard admiral shares at Fidelity either, so you'll definitely have lower expenses with Fidelity funds.

nix4me
Posts: 326
Joined: Sat Oct 13, 2018 9:32 am

Re: 401k fidelity brokeragelink

Post by nix4me » Thu Feb 07, 2019 2:41 pm

Mine is no fee. Automatic into sweep account. 20% cap of total. So I put 20% in FZROX - allowed for me, your mileage my vary.

mcraepat9
Posts: 1364
Joined: Thu Jul 16, 2015 11:46 am

Re: 401k fidelity brokeragelink

Post by mcraepat9 » Thu Feb 07, 2019 2:46 pm

VT0909 wrote:
Thu Feb 07, 2019 12:59 am
Hello,
I have some questions about my company 401k plan. My company 401k plan offered by Fidelity has a limited number of funds available. There is also the option of using Brokeragelink to access a wider variety of funds which allows me to asset allocate a bit better.

Specific questions for forum members:
- Can I auto invest a percent from my paycheck into specific Brokeragelink funds? If yes is there a minimum $$ amount? yes you auto send it to Brokeragelink and it autoinvests when it gets there - but it can be done (i do it myself)
- does this auto invested money sit in cash or can i auto invest into funds available in brokeragelink? see above
- Vanguard funds are a $75 fee per fund - is this just an initial fee and something i dont have to pay when i keep buying into this fund every paycheck. why would you buy vanguard funds for $75 if you can buy Fidelity funds (and certain ETFs) for free?

Appreciate any responses.
VT
Amateur investors are not cool-headed logicians.

fennewaldaj
Posts: 795
Joined: Sun Oct 22, 2017 11:30 pm

Re: 401k fidelity brokeragelink

Post by fennewaldaj » Sat Feb 09, 2019 1:41 am

VT0909 wrote:
Thu Feb 07, 2019 12:59 am
Hello,
I have some questions about my company 401k plan. My company 401k plan offered by Fidelity has a limited number of funds available. There is also the option of using Brokeragelink to access a wider variety of funds which allows me to asset allocate a bit better.

Specific questions for forum members:
- Can I auto invest a percent from my paycheck into specific Brokeragelink funds? If yes is there a minimum $$ amount?
- does this auto invested money sit in cash or can i auto invest into funds available in brokeragelink?
- Vanguard funds are a $75 fee per fund - is this just an initial fee and something i dont have to pay when i keep buying into this fund every paycheck.

Appreciate any responses.
VT
I don't think all brokerage links are the same. That said I can tell you some details from mine. Once I set up my initial investment I could do auto investments. For the initial investment you will need to pick a transaction free fund or pay the transaction fee. After that to do auto investments you have to direct a portion to the brokeragelink in net benefits and then in the brokeragelink you set up auto investments. My account will let me auto invest (fee free) in some funds that have transaction fees (including vanguard funds and some institutional shares of active funds). In any case once you have a position you can auto invest. All auto invest are transaction free (I am pretty sure this is the case in all brokerage links). So if you elect to pay the fee to start a position auto invest are free in any case. I would still use fidelity funds for asset classes they cover as it makes re-balancing easier (any non auto investment purchases require the transaction fee)

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