Transferring Fidelity Total Market Index Fund (FSKAX) from Fidelity to Vanguard

[abracadabra11]

1. Has anyone transferred Fidelity Total Market Index Fund (FSKAX) in kind from Fidelity to Vanguard?
2. How long did it take?
3. Did cost basis information transfer over properly?
4. If not, were you able to forward cost basis information to Vanguard and have them input it?
5. If you were using specification identification of shares at Fidelity, did that carryover properly?
6. How was the experience (i.e. Given what you know now, would you have been better off maintaining the funds at Fidelity? Or perhaps transferred your Vanguard assets to Fidelity instead?)

While I await for feedback on others' experience, I'll also use this thread to chronicle my own.

6/15/2020
Spoke with Vanguard representatives twice today about possibly transferring account in kind from Fidelity to Vanguard. Account has a single index fund, FSKAX. Quick summary of their responses to my queries:
- FSKAX is eligible to transfer in kind
- Cost basis information will carryover. Fidelity typically provides it in most cases, but Vanguard can input it if I maintain the records.
- FSKAX can be elected as Specific Identification for cost basis tracking. But it will default to Average Cost, so I'll need to manually make this change.
- No fees associated with selling FSKAX once in a Vanguard account

[02nz]

What are you trying to accomplish by transferring to Vanguard? As a brokerage operation, Fidelity probably has better service and IT. Vanguard regularly screws up basic stuff like cost basis or rollovers. I transferred out after they credited my rollover from TSP (federal government's 401k equivalent) to a taxable account. Not saying Fidelity or anyone else is perfect, but in my experience Vanguard ranks dead last among the half dozen or so brokerages I've used. I still hold Vanguard ETFs, just not at Vanguard.

[1789]

It is a personal choice where you hold your account but still wonder what is the reason for you to transfer? Do you have your other accounts with Vanguard? All my accounts invested in FSKAX (except 401k which is invested in sp500) and they are all at Fidelity. Can’t complain with the service i am getting.

[abracadabra11]

What are you trying to accomplish by transferring to Vanguard? As a brokerage operation, Fidelity probably has better service and IT. Vanguard regularly screws up basic stuff like cost basis or rollovers. I transferred out after they credited my rollover from TSP (federal government's 401k equivalent) to a taxable account. Not saying Fidelity or anyone else is perfect, but in my experience Vanguard ranks dead last among the half dozen or so brokerages I've used. I still hold Vanguard ETFs, just not at Vanguard.

Consolidation of accounts. Majority of funds and all new investments have been directed to Vanguard for many years. I've seen the many complaints presented on this forum relating to Vanguard customer service, but have not experienced this myself.

I do have some concerns with Vanguard related to their security (would prefer a different 2FA method than defaulting to SMS when Yubikey isn't available) and the lack of 24/7 customer service, but I'll use the next several years as a test bed leading up to early retirement to gauge whether I should consider another brokerage.

[abracadabra11]

It is a personal choice where you hold your account but still wonder what is the reason for you to transfer? Do you have your other accounts with Vanguard? All my accounts invested in FSKAX (except 401k which is invested in sp500) and they are all at Fidelity. Can’t complain with the service i am getting.

Indeed - majority of accounts are at Vanguard.

[02nz]

In your shoes, I wouldn't do it just to consolidate. Rollovers and cost basis are two of the most error-prone things with Vanguard, and you're tempting fate if you've had no problems with Vanguard for years.

An extra logon and 1099 at end of the year is a very minor hassle.

[Taylor Larimore]

It is a personal choice where you hold your account but still wonder what is the reason for you to transfer? Do you have your other accounts with Vanguard? All my accounts invested in FSKAX (except 401k which is invested in sp500) and they are all at Fidelity. Can’t complain with the service i am getting.

Indeed - majority of accounts are at Vanguard.

abracadabra11:

In my opinion it is important to hold all investments in one good fund family like Fidelity or Vanguard for these reasons:

1. One familiar statement.
2. Less paperwork.
3. Easier tax preparation.
4. Avoidance of low-balance and other small fees.
5. It's much easier to learn only one company's policies, fees, regulations, etc.
6. With larger holdings it may be possible to qualify for lower costs and premium services (Voyager, Admiral, Flagship).
7. Rebalancing and exchanges are easier.
8. A loyal customer is appreciated and usually treated better.
9. Less chance of errors.
10. More free time for ourselves.
11. In event of death or disability, it will be much easier for others.

Best wishes.
Taylor

Jack Bogle's Words of Wisdom: "Never underrate either the majesty of simplicity or its proven effectiveness as a long-term strategy for productive investing."

[dbr]

The other side of the discussion is whether or not one would want to divide assets over two institutions in case of some operational glitch for a time. People do have accounts frozen or something happen on rare occasions. But to each their own.

I don't know the details about how lots, etc. will be tracked, but I would be prepared for all the information being lost just as a precaution.

[rgs92]

I would just sell it in Fidelity, transfer the funds to my checking account, and then buy the Vanguard Total Stock Market fund.

[anon_investor]

I would just sell it in Fidelity, transfer the funds to my checking account, and then buy the Vanguard Total Stock Market fund.

I don't think the OP wants to realize capital gains and have to pay tax...

[Almost there]

I moved my portfolio from Fidelity to Vanguard about 14 years ago and happy I did. I would never recommend Fidelity since they made a number of mistakes with my account. Have done well with Vanguard and at that time, their ER were so much cheaper and I’m happy I did the transfer also from my 401k to Vanguard when I retired. Remember Vanguard is owned by shareholders whereas the Johnson family owns Fidelity.

[ruralavalon]

What are you trying to accomplish by transferring to Vanguard? As a brokerage operation, Fidelity probably has better service and IT. Vanguard regularly screws up basic stuff like cost basis or rollovers. I transferred out after they credited my rollover from TSP (federal government's 401k equivalent) to a taxable account. Not saying Fidelity or anyone else is perfect, but in my experience Vanguard ranks dead last among the half dozen or so brokerages I've used. I still hold Vanguard ETFs, just not at Vanguard.

Consolidation of accounts. Majority of funds and all new investments have been directed to Vanguard for many years. I've seen the many complaints presented on this forum relating to Vanguard customer service, but have not experienced this myself.

I do have some concerns with Vanguard related to their security (would prefer a different 2FA method than defaulting to SMS when Yubikey isn't available) and the lack of 24/7 customer service, but I'll use the next several years as a test bed leading up to early retirement to gauge whether I should consider another brokerage.

In my opinion consolidation of accounts at a single fund firm is a good reason for such a move.

We consolidated all of our accounts at Vanguard in 2011 when I retired. I have had no problems with customer service at Vanguard.

[abracadabra11]

I would just sell it in Fidelity, transfer the funds to my checking account, and then buy the Vanguard Total Stock Market fund.

I don't think the OP wants to realize capital gains and have to pay tax...

[UpperNwGuy]

I would keep my FSKAX in a Fidelity account. Consolidation is overrated.

[MrJedi]

1. Has anyone transferred Fidelity Total Market Index Fund (FSKAX) in kind from Fidelity to Vanguard?
2. How long did it take?
3. Did cost basis information transfer over properly?
4. If not, were you able to forward cost basis information to Vanguard and have them input it?
5. If you were using specification identification of shares at Fidelity, did that carryover properly?
6. How was the experience (i.e. Given what you know now, would you have been better off maintaining the funds at Fidelity? Or perhaps transferred your Vanguard assets to Fidelity instead?)

While I await for feedback on others' experience, I'll also use this thread to chronicle my own.

6/15/2020
Spoke with Vanguard representatives twice today about possibly transferring account in kind from Fidelity to Vanguard. Account has a single index fund, FSKAX. Quick summary of their responses to my queries:
- FSKAX is eligible to transfer in kind
- Cost basis information will carryover. Fidelity typically provides it in most cases, but Vanguard can input it if I maintain the records.
- FSKAX can be elected as Specific Identification for cost basis tracking. But it will default to Average Cost, so I'll need to manually make this change.
- No fees associated with selling FSKAX once in a Vanguard account

Did you end up executing this? I am interested in doing the same thing, except with an IRA that's currently 100% invested in FZROX (Fidelity Zero US TSM). My plan was to exchange FZROX for FSKAX at Fidelity, transfer in kind to Vanguard, and then exchange FSKAX for VTSAX. I was under the impression that selling FSKAX at Vanguard would incur a $20 fee though as per:
https://investor.vanguard.com/investing ... tual-funds . Did you experience this?

As for the discussion on why to move: I don't personally have an issue with Fidelity, however I have a plan in place for my wife on how to run our investments should I pass or otherwise be incapacitated. I'm having her invest everything into the 60/40 life strategy VSMGX as a one fund portfolio, and the simpler bare bones interface at Vanguard is better for her to navigate. There's a lot of extra fluff, trading jargon, and advertisements for costly funds/services at Fidelity. I can navigate through that stuff fine but I'd rather it be simple for her if it came down to it.

[abracadabra11]

Did you end up executing this? I am interested in doing the same thing, except with an IRA that's currently 100% invested in FZROX (Fidelity Zero US TSM). My plan was to exchange FZROX for FSKAX at Fidelity, transfer in kind to Vanguard, and then exchange FSKAX for VTSAX. I was under the impression that selling FSKAX at Vanguard would incur a $20 fee though as per:
https://investor.vanguard.com/investing ... tual-funds . Did you experience this?

As for the discussion on why to move: I don't personally have an issue with Fidelity, however I have a plan in place for my wife on how to run our investments should I pass or otherwise be incapacitated. I'm having her invest everything into the 60/40 life strategy VSMGX as a one fund portfolio, and the simpler bare bones interface at Vanguard is better for her to navigate. There's a lot of extra fluff, trading jargon, and advertisements for costly funds/services at Fidelity. I can navigate through that stuff fine but I'd rather it be simple for her if it came down to it.

I did end up transferring assets, but not to Vanguard. Instead, I transferred assets from Fidelity and Vanguard to Schwab. Why the change of heart? Well, Schwab offered to match brokerage transfer bonus being offered by other brokerages and waive fees on Vanguard funds. I may ultimately move funds back to Vanguard down the line, but figured I would give Schwab a shot considering how much praise they receive on this board and the transfer bonus they offered. Biggest downside thus far is that the Vanguard funds are not eligible for automatic monthly investments at Schwab, so one would need to manually purchase the securities. I expected some unforeseen issues with the transfer, so I left funds at Vanguard and the automatic investments on those funds active.