Will you take this Fidelity bait ?

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Rajsx
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Will you take this Fidelity bait ?

Post by Rajsx »

I went in to the Fidelity Center in our city to meet with their Financial Planner.
As I do most of the Portfolio decisions myself I wanted another set of eyes to look over my Vanguard investments for an objective(??) opinion. I have little money still left with Fidelity apart from a 529 . We transferred all our investments(in kind) to Vanguard about 11 years back.

Anyway, he reaffirmed my present asset allocation & answered a few other questions about when to start the SS payments....etc...., suggested active management for the Bond & International Mutual Funds with a pitch for the Fidelity, their CDs Program all of which I fully expected going in.

And then this bait ....Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity & I left the meeting with a few new ideas to ponder but nothing earth shaking .

I am comfortable with Vanguard and am not going anywhere else but I did not expect that offer of $5 grand. I do not know other conditions of this offer which I am sure there are.

Would you take on this offer ??
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livesoft
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Re: Will you take this Fidelity bait ?

Post by livesoft »

I would not for $5 MM, but I might for a 6-figure sum. I have a Fidelity account already and have never made a trade in it. I transferred into it a Vanguard ETF and collected the bonus. I will transfer the shares out whenever I need to sell them.

Bonuses used to be 0.25% and higher, so a 0.1% bonus is chicken feed.
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nedsaid
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Re: Will you take this Fidelity bait ?

Post by nedsaid »

livesoft wrote: Thu Dec 21, 2017 8:33 pm I would not for $5 MM, but I might for a 6-figure sum. I have a Fidelity account already and have never made a trade in it. I transferred into it a Vanguard ETF and collected the bonus. I will transfer the shares out whenever I need to sell them.

Bonuses used to be 0.25% and higher, so a 0.1% bonus is chicken feed.
I'll take the $5,000,000 portfolio. :wink:
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sambb
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Re: Will you take this Fidelity bait ?

Post by sambb »

i would split 50/50 with vanguard and fidelity, regardless of bonus.
MrPotatoHead
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Re: Will you take this Fidelity bait ?

Post by MrPotatoHead »

I would in a heartbeat. Superior customer service, lower cost ETFs, a great cash management system, the best fixed income desk in the industry (my opinion),a 2% cash back credit card,comfortable offices to conduct business in.

Nothing against Vanguard, but in my experience they are also-rans. Schwab and Fidelity are simply head and shoulders above them. I do not see them in the same league based on my personal interaction with all 3. In fact when I include brokers such as FirstTrade of Scottrade in the mix, suddenly Vanguard appears to be a third tier firm to me in terms of service.

I think with 5 million is assets you may find value in the experts Fidelity makes available to you. For one you should be private client.

But, as in many things, it depends on what you are looking for.
sambb
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Re: Will you take this Fidelity bait ?

Post by sambb »

MrPotatoHead wrote: Thu Dec 21, 2017 8:58 pm I would in a heartbeat. Superior customer service, lower cost ETFs, a great cash management system, the best fixed income desk in the industry (my opinion),a 2% cash back credit card,comfortable offices to conduct business in.

Nothing against Vanguard, but in my experience they are also-rans. Schwab and Fidelity are simply head and shoulders above them. I do not see them in the same league based on my personal interaction with all 3. In fact when I include brokers such as FirstTrade of Scottrade in the mix, suddenly Vanguard appears to be a third tier firm to me in terms of service.

I think with 5 million is assets you may find value in the experts Fidelity makes available to you. For one you should be private client.

But, as in many things, it depends on what you are looking for.
accurate assessment in many ways
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Wildebeest
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Re: Will you take this Fidelity bait ?

Post by Wildebeest »

No, we got $ 5 K for 2 million. We transferred in kind and transferred out in kind after 9 month ( Vanguard ETFs).

Never talked or emailed with a Fidelity Advisor.

Please check Earl Lemongrab's thread.
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Ostentatious
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Re: Will you take this Fidelity bait ?

Post by Ostentatious »

sambb wrote: Thu Dec 21, 2017 9:09 pm
MrPotatoHead wrote: Thu Dec 21, 2017 8:58 pm I would in a heartbeat. Superior customer service, lower cost ETFs, a great cash management system, the best fixed income desk in the industry (my opinion),a 2% cash back credit card,comfortable offices to conduct business in.

Nothing against Vanguard, but in my experience they are also-rans. Schwab and Fidelity are simply head and shoulders above them. I do not see them in the same league based on my personal interaction with all 3. In fact when I include brokers such as FirstTrade of Scottrade in the mix, suddenly Vanguard appears to be a third tier firm to me in terms of service.

I think with 5 million is assets you may find value in the experts Fidelity makes available to you. For one you should be private client.

But, as in many things, it depends on what you are looking for.
accurate assessment in many ways
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StevieG72
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Re: Will you take this Fidelity bait ?

Post by StevieG72 »

No

If I were so inclined, there are better offers.

It is not uncommon to see $2500 for 1 Million in assets invested.
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Wildebeest
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Re: Will you take this Fidelity bait ?

Post by Wildebeest »

sambb wrote: Thu Dec 21, 2017 9:09 pm
MrPotatoHead wrote: Thu Dec 21, 2017 8:58 pm I would in a heartbeat. Superior customer service, lower cost ETFs, a great cash management system, the best fixed income desk in the industry (my opinion),a 2% cash back credit card,comfortable offices to conduct business in.

Nothing against Vanguard, but in my experience they are also-rans. Schwab and Fidelity are simply head and shoulders above them. I do not see them in the same league based on my personal interaction with all 3. In fact when I include brokers such as FirstTrade of Scottrade in the mix, suddenly Vanguard appears to be a third tier firm to me in terms of service.

I think with 5 million is assets you may find value in the experts Fidelity makes available to you. For one you should be private client.

But, as in many things, it depends on what you are looking for.
accurate assessment in many ways
I love Vanguard. I have not seen the superior Fidelity service. I am much more impressed with Etrade. I will never give up on Vanguard. If there had been no Jack Bogle and Vanguard there would have been "no low cost Index funds".

I have trust in Robert T. at Bogleheads, I have no trust in any "experts" at Fidelity. I feel better about any experts at Vanguard than Fidelity but I trust the wisdom at Bogleheads more.
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Re: Will you take this Fidelity bait ?

Post by Lynette »

.....
Last edited by Lynette on Wed Jan 09, 2019 10:29 pm, edited 1 time in total.
radiowave
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Re: Will you take this Fidelity bait ?

Post by radiowave »

If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
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dwickenh
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Re: Will you take this Fidelity bait ?

Post by dwickenh »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm I went in to the Fidelity Center in our city to meet with their Financial Planner.
As I do most of the Portfolio decisions myself I wanted another set of eyes to look over my Vanguard investments for an objective(??) opinion. I have little money still left with Fidelity apart from a 529 . We transferred all our investments(in kind) to Vanguard about 11 years back.

Anyway, he reaffirmed my present asset allocation & answered a few other questions about when to start the SS payments....etc...., suggested active management for the Bond & International Mutual Funds with a pitch for the Fidelity, their CDs Program all of which I fully expected going in.

And then this bait ....Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity & I left the meeting with a few new ideas to ponder but nothing earth shaking .

I am comfortable with Vanguard and am not going anywhere else but I did not expect that offer of $5 grand. I do not know other conditions of this offer which I am sure there are.

Would you take on this offer ??
I would love to take this deal, I just need the 5 mil to move to them:)
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Rajsx
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Re: Will you take this Fidelity bait ?

Post by Rajsx »

Interesting opinions on the Pros & Cons of the transfer between the two major investment funds.

To clarify a few points -
My Total portfolio including Retirement & Taxable accounts is a mostly index Mutual Fund portfolio, no Etfs or any individual stocks.

The advisor did say it will be a in kind transfer meaning no Cap Gains on Taxable accounts upon transfer, I do not know if later on Fidelity may add a penalty for carrying non Fidelity Mutual Funds.

$5000 on a $5000000 transfer is 0.1% bonus, Fidelity may easily recoup that as their Funds usually have a higher expense ratios when compared to Vanguard
Last edited by Rajsx on Thu Dec 21, 2017 10:10 pm, edited 1 time in total.
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livesoft
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Re: Will you take this Fidelity bait ?

Post by livesoft »

You should know that you can negotiate the bonus payment. A 0.1% bonus is a non-starter and they are chumping you which shows how much they respect you.
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J295
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Re: Will you take this Fidelity bait ?

Post by J295 »

We have accounts at both VG and Fido and find Fido customer service significantly better. Having said that, if you prefer VG stay there .... I wouldn't move $5 million to obtain $5k (taxable).
HJG0989
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Re: Will you take this Fidelity bait ?

Post by HJG0989 »

radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
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FIREchief
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Re: Will you take this Fidelity bait ?

Post by FIREchief »

HJG0989 wrote: Thu Dec 21, 2017 11:03 pm
radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
Why didn't you convert them to ETF shares, which have the same ER as admiral shares?
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
SimplicityNow
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Re: Will you take this Fidelity bait ?

Post by SimplicityNow »

My opinion is that if you are happy where you are then stay, if not move. But for 5k? Your portfolio moves more then that in a day!
PFInterest
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Re: Will you take this Fidelity bait ?

Post by PFInterest »

You have a 5MM portfolio and are swayed by 5k??
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Re: Will you take this Fidelity bait ?

Post by MrPotatoHead »

PFInterest wrote: Thu Dec 21, 2017 11:25 pm You have a 5MM portfolio and are swayed by 5k??
That attitude is probably why he/she has 5 million.
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Re: Will you take this Fidelity bait ?

Post by HJG0989 »

FIREchief wrote: Thu Dec 21, 2017 11:21 pm
HJG0989 wrote: Thu Dec 21, 2017 11:03 pm
radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
Why didn't you convert them to ETF shares, which have the same ER as admiral shares?
They didn't offer ETFs for Wellseley and balanced index.
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FIREchief
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Re: Will you take this Fidelity bait ?

Post by FIREchief »

HJG0989 wrote: Thu Dec 21, 2017 11:50 pm
FIREchief wrote: Thu Dec 21, 2017 11:21 pm
HJG0989 wrote: Thu Dec 21, 2017 11:03 pm
radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
Why didn't you convert them to ETF shares, which have the same ER as admiral shares?
They didn't offer ETFs for Wellseley and balanced index.
That makes sense. Hopefully your ER didn't increase too much.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
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Re: Will you take this Fidelity bait ?

Post by daveydoo »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm
Would you take on this offer ??
I got this same 0.1% "signing bonus" from Schwab a few years back when I initiated a transfer. I moved the money back to Schwab, took the cash bonus, and kept it there for maybe a year. It was a log smaller than your transaction, but the 0.1% was still real money.
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Re: Will you take this Fidelity bait ?

Post by radiowave »

HJG0989 wrote: Thu Dec 21, 2017 11:03 pm
radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
You went from an expense ratio of 0.04% with VTSAX (admiral shares) to 0.15% with VTSMX (investor shares).
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munemaker
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Re: Will you take this Fidelity bait ?

Post by munemaker »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm
Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity.

Would you take on this offer ??
No. $5,000 is only 0.1% of $5,000,000. It is negligible. Your portfolio probably moves this much in 30 minutes. It would take a lot more bait than that for me to move.
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Re: Will you take this Fidelity bait ?

Post by Jack FFR1846 »

Rajsx wrote: Thu Dec 21, 2017 10:00 pm
$5000 on a $5000000 transfer is 0.1% bonus, Fidelity may easily recoup that as their Funds usually have a higher expense ratios when compared to Vanguard
2 years ago, perhaps. Today, every 3 fund type investment at Fidelity has a lower ER than Vanguard does. Schwab beats both of them.

I have accounts at all 3 of these plus TDAmeritrade. My highest ERs are in Vanguard funds and ETFs. Everyone these days has undercut Vanguard on pricing.

I don't have $5M, so can't really comment honestly. If I had $10M outside of Fidelity, I'd move $5M for that bonus in a heartbeat.
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Re: Will you take this Fidelity bait ?

Post by mak1277 »

Several people mentioned better customer service at Fidelity. It makes me wonder...how often do people use customer service? I have never once had to call or inquire of anything at Vanguard. I've had to use customer service at Fidelity several times. To me, that's a point in Vanguard's favor. My expectation is that I never EVER have to make a call to customer service. Simply doing so is a failure on the vendor's part.
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munemaker
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Re: Will you take this Fidelity bait ?

Post by munemaker »

mak1277 wrote: Fri Dec 22, 2017 10:41 am Several people mentioned better customer service at Fidelity. It makes me wonder...how often do people use customer service? I have never once had to call or inquire of anything at Vanguard. I've had to use customer service at Fidelity several times. To me, that's a point in Vanguard's favor. My expectation is that I never EVER have to make a call to customer service. Simply doing so is a failure on the vendor's part.
I seldom need customer service, but on the few occasions when I have, Vanguard has totally botched it. I am staying with them because they are the drivers of low cost investing. Their customer service stinks. I told them that in one of their surveys and I did receive a response from some executive with the statement that if I wanted to discuss it, call my Flagship customer service agent. haha! Now that is humorous.

Examples:

I filled out a form to authorize my wife to access my accounts. The form was notarized. They notified me that I forgot to check a box on the form. I told them to just check it. No, they are not allowed to do that. Return it to me and I will check it. No, they are not allowed to do that. Have to start all over with a new form and get it re-notarized.

Another example. Elderly & frail mother in law has a flagship account there. Deposited stock certificates there. Was told the forms only need notarized because she is flagship. Pack up grandma and take her to a notary. Notary says...form says notary is not acceptable...need a medallion stamp. I say...don't worry about that. Send it in. The guy who told me it only needs a notary calls me and tells me I made a mistake and it needs a medallion stamp. I told him to go back and listen to the taped conversation, and it was him who told me that. He then admitted his mistake and apologized but still made us get the medallion stamp. And it was a real hassle, finding a bank that would do it, and packing up this frail woman.

There were other cases, but those are two that come to mind. This is over a period of decades, so it is not like there is a problem every day.

They forget we are on the same team, and seem to want to make things harder for you rather than try to help you solve the problem.
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Re: Will you take this Fidelity bait ?

Post by HJG0989 »

radiowave wrote: Fri Dec 22, 2017 10:16 am
HJG0989 wrote: Thu Dec 21, 2017 11:03 pm
radiowave wrote: Thu Dec 21, 2017 9:36 pm If you have Vanguard Admiral mutual funds and this is a transfer from a VG taxable account, you may not be able hold Admiral or other VG mutual funds in a Fidelity taxable account. So you have to contend with capital gains in converting the funds which could far outstrip any $5K gain from Fidelity - again assuming you are taking about a taxable account.
We are in the process I've moving about $2 million from Vanguard to a Fidelity. We are getting a $2,500 transfer bonus.

The Fido rep called Vanguard and had them convert our Admiral shares to Investor shares in our non tax sheltered accounts. This is not a taxable event so there are no capital gains.
You went from an expense ratio of 0.04% with VTSAX (admiral shares) to 0.15% with VTSMX (investor shares).
Yes, I think John Bogle is a hero and I will forever be grateful for his work, but I find Vanguard cumbersome to deal with and I find Fidelity's website to be far superior. I am willing to pay more for that.
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Re: Will you take this Fidelity bait ?

Post by AZAttorney11 »

HJG0989 wrote: Fri Dec 22, 2017 11:46 amYes, I think John Bogle is a hero and I will forever be grateful for his work, but I find Vanguard cumbersome to deal with and I find Fidelity's website to be far superior. I am willing to pay more for that.
Here's the great news, you don't have to pay more to invest with Fidelity. As other posters noted, Fidelity's ER on many funds are lower than Vanguard.
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Re: Will you take this Fidelity bait ?

Post by HJG0989 »

munemaker wrote: Fri Dec 22, 2017 10:58 am
mak1277 wrote: Fri Dec 22, 2017 10:41 am Several people mentioned better customer service at Fidelity. It makes me wonder...how often do people use customer service? I have never once had to call or inquire of anything at Vanguard. I've had to use customer service at Fidelity several times. To me, that's a point in Vanguard's favor. My expectation is that I never EVER have to make a call to customer service. Simply doing so is a failure on the vendor's part.
I seldom need customer service, but on the few occasions when I have, Vanguard has totally botched it. I am staying with them because they are the drivers of low cost investing. Their customer service stinks. I told them that in one of their surveys and I did receive a response from some executive with the statement that if I wanted to discuss it, call my Flagship customer service agent. haha! Now that is humorous.

Examples:

I filled out a form to authorize my wife to access my accounts. The form was notarized. They notified me that I forgot to check a box on the form. I told them to just check it. No, they are not allowed to do that. Return it to me and I will check it. No, they are not allowed to do that. Have to start all over with a new form and get it re-notarized.

Another example. Elderly & frail mother in law has a flagship account there. Deposited stock certificates there. Was told the forms only need notarized because she is flagship. Pack up grandma and take her to a notary. Notary says...form says notary is not acceptable...need a medallion stamp. I say...don't worry about that. Send it in. The guy who told me it only needs a notary calls me and tells me I made a mistake and it needs a medallion stamp. I told him to go back and listen to the taped conversation, and it was him who told me that. He then admitted his mistake and apologized but still made us get the medallion stamp. And it was a real hassle, finding a bank that would do it, and packing up this frail woman.

There were other cases, but those are two that come to mind. This is over a period of decades, so it is not like there is a problem every day.

They forget we are on the same team, and seem to want to make things harder for you rather than try to help you solve the problem.
This is the type of thing that I experienced as well. I needed to link a new checking account to my Fidelity and Vanguard accounts. The Fido account went through with very little effort. With Vanguard I had to fill out a form then wait for them to make two small deposits. I then had to enter the value of the two deposits, but the software keep telling me the amounts I entered were wrong. For a long time I sneaker netted checks around to get money into Vanguard. Finally I called them and the Vanguard guy tried entering the amounts from his end but that didn't work either. So, I had to print off a form, go to the bank and have it notarized, then mail it in. A week later I received an email saying information was missing from my form and to call Vanguard. That was the proverbial last straw. I called Fido instead.
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Re: Will you take this Fidelity bait ?

Post by FiveK »

MrPotatoHead wrote: Thu Dec 21, 2017 11:41 pm
PFInterest wrote: Thu Dec 21, 2017 11:25 pm You have a 5MM portfolio and are swayed by 5k??
That attitude is probably why he/she has 5 million.
And human nature being what it is, people are attracted to sparkly things: see Fidelity free Turbotax - Bogleheads.org.
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Re: Will you take this Fidelity bait ?

Post by radiowave »

HJG0989 wrote: Fri Dec 22, 2017 11:46 am . . .
Yes, I think John Bogle is a hero and I will forever be grateful for his work, but I find Vanguard cumbersome to deal with and I find Fidelity's website to be far superior. I am willing to pay more for that.
Actually you don't have to pay more if you are willing to use the ETF version of the VG mutual fund (VTI in the case of total stock) rather than the investor class of the mutual fund.
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Re: Will you take this Fidelity bait ?

Post by bondsr4me »

I, like many other BH'ers, greatly admire Jack Bogle. He has done more for the individual investor than anyone.

I have to agree with many of the posters on this thread that Fidelity and Schwab customer service is much better the Vanguard's.
Vanguard is a very good, low-cost company which extends the low cost to the investors via low ER's.
Low cost, IMHO, is NOT the ONLY factor when choosing who/where to invest.
I look at the "total" package (customer service, website, costs, investments available, tax and financial forms).

Fidelity and Schwab far exceed VG, at least to me. I am still in the process of simplifying my investments, but
I must say I will probably end up at Schwab and Fidelity. I may leave a small balance at VG just in case I have a change later on.

Everyone has to do what allows them to sleep well at night, including the choice of broker.

Whoever you choose, Good Luck to you.

Merry Christmas,

Don
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Re: Will you take this Fidelity bait ?

Post by sport »

Jack FFR1846 wrote: Fri Dec 22, 2017 10:40 am
Rajsx wrote: Thu Dec 21, 2017 10:00 pm
$5000 on a $5000000 transfer is 0.1% bonus, Fidelity may easily recoup that as their Funds usually have a higher expense ratios when compared to Vanguard
2 years ago, perhaps. Today, every 3 fund type investment at Fidelity has a lower ER than Vanguard does. Schwab beats both of them.

I have accounts at all 3 of these plus TDAmeritrade. My highest ERs are in Vanguard funds and ETFs. Everyone these days has undercut Vanguard on pricing.

I don't have $5M, so can't really comment honestly. If I had $10M outside of Fidelity, I'd move $5M for that bonus in a heartbeat.
Expense ratios may not tell the whole story. These funds also lend securities and get paid for doing this. What happens to the lending fees? Vanguard puts them all into the fund. How to the other companies handle this? If you want to make an accurate comparison, you need to look at the tracking error by comparing the fund performance with the index, or by comparing the funds' investment results with each of the other companies. You may find that Vanguard is actually the lowest cost after all. Keep in mind that the other companies are in business to make a profit; Vanguard is not.
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new2bogle2
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Re: Will you take this Fidelity bait ?

Post by new2bogle2 »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm I went in to the Fidelity Center in our city to meet with their Financial Planner.
As I do most of the Portfolio decisions myself I wanted another set of eyes to look over my Vanguard investments for an objective(??) opinion. I have little money still left with Fidelity apart from a 529 . We transferred all our investments(in kind) to Vanguard about 11 years back.

Anyway, he reaffirmed my present asset allocation & answered a few other questions about when to start the SS payments....etc...., suggested active management for the Bond & International Mutual Funds with a pitch for the Fidelity, their CDs Program all of which I fully expected going in.

And then this bait ....Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity & I left the meeting with a few new ideas to ponder but nothing earth shaking .

I am comfortable with Vanguard and am not going anywhere else but I did not expect that offer of $5 grand. I do not know other conditions of this offer which I am sure there are.

Would you take on this offer ??
I have some money with fidelity. Good index fees at low cost. Why not take the free money?
voodoo72
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Re: Will you take this Fidelity bait ?

Post by voodoo72 »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm I went in to the Fidelity Center in our city to meet with their Financial Planner.
As I do most of the Portfolio decisions myself I wanted another set of eyes to look over my Vanguard investments for an objective(??) opinion. I have little money still left with Fidelity apart from a 529 . We transferred all our investments(in kind) to Vanguard about 11 years back.

Anyway, he reaffirmed my present asset allocation & answered a few other questions about when to start the SS payments....etc...., suggested active management for the Bond & International Mutual Funds with a pitch for the Fidelity, their CDs Program all of which I fully expected going in.

And then this bait ....Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity & I left the meeting with a few new ideas to ponder but nothing earth shaking .

I am comfortable with Vanguard and am not going anywhere else but I did not expect that offer of $5 grand. I do not know other conditions of this offer which I am sure there are.

Would you take on this offer ??.

I ve never been the type of brotha to overlook free money but if you already have 5 million, I don't think you are hard up for money. :P I have been with Fidelity for 20 years and they have always had top notch service, and their index funds pretty much a wash. The devil is in the details I'm sure there are some potential strings, maybe? 5000 is a really nice welcome gift though, can finally get that half a bitcoin Ive always wanted.lol
daveydoo
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Re: Will you take this Fidelity bait ?

Post by daveydoo »

munemaker wrote: Fri Dec 22, 2017 10:30 am ...$5,000 is only 0.1% of $5,000,000. It is negligible.
If $5,000 in cash to you is negligible, please send it my way. That's a lovely European vacation for two.
munemaker wrote: Fri Dec 22, 2017 10:30 am Your portfolio probably moves this much in 30 minutes. It would take a lot more bait than that for me to move.
Of course, but my checking account does not. The "percent of total assets" makes sense when you think about market fluctuations. But when my car needs $1,000 service I don't wave it away as a meaningless fraction of my net worth. Same when I see I'm double-charged for something on my credit card. And if I saw a $100 bill on the ground, I'd pick it up (old economist joke notwithstanding). This is money lying on the ground -- I'm not too proud to take it. :D
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"
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TinkerPDX
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Re: Will you take this Fidelity bait ?

Post by TinkerPDX »

Rajsx wrote: Thu Dec 21, 2017 8:29 pm I went in to the Fidelity Center in our city to meet with their Financial Planner.
As I do most of the Portfolio decisions myself I wanted another set of eyes to look over my Vanguard investments for an objective(??) opinion. I have little money still left with Fidelity apart from a 529 . We transferred all our investments(in kind) to Vanguard about 11 years back.

Anyway, he reaffirmed my present asset allocation & answered a few other questions about when to start the SS payments....etc...., suggested active management for the Bond & International Mutual Funds with a pitch for the Fidelity, their CDs Program all of which I fully expected going in.

And then this bait ....Fidelity would be pay $5000 if anyone moves a 5 million Portfolio to Fidelity & I left the meeting with a few new ideas to ponder but nothing earth shaking .

I am comfortable with Vanguard and am not going anywhere else but I did not expect that offer of $5 grand. I do not know other conditions of this offer which I am sure there are.

Would you take on this offer ??
If my portfolio were worth five million dollars I wouldn't bother with things like transfer bonuses, or meeting with Fidelity advisors.
TheAncientOne
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Re: Will you take this Fidelity bait ?

Post by TheAncientOne »

One easily forgotten benefit of Fidelity or Schwab is that most of us have an office nearby that we can go to when a problem arises. That's been useful for me, especially when managing my mother's account in her last couple of years and after her death. Even for my account, I've had a couple issues such as the need to wire funds where it's been much simpler to deal with someone from Fidelity face to face rather than having to rely upon a call center.
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flamesabers
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Re: Will you take this Fidelity bait ?

Post by flamesabers »

livesoft wrote: Thu Dec 21, 2017 10:01 pm A 0.1% bonus is a non-starter and they are chumping you which shows how much they respect you.
+1.

If I had a $5 million portfolio and I received a bonus offer, I would expect it to be higher then the fixed rate the Treasury currently pays on EE-Bonds.
MrPotatoHead
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Re: Will you take this Fidelity bait ?

Post by MrPotatoHead »

TinkerPDX wrote: Fri Dec 22, 2017 4:39 pm
If my portfolio were worth five million dollars I wouldn't bother with things like transfer bonuses, or meeting with Fidelity advisors.
I could be that is why you do not have the 5 million. Just sayin'. One thing I have learned is wealthy people tend not to view monetary matters the way the common man does. I am defining wealth as those with 5 million on up.
daveydoo
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Re: Will you take this Fidelity bait ?

Post by daveydoo »

TinkerPDX wrote: Fri Dec 22, 2017 4:39 pm
If my portfolio were worth five million dollars I wouldn't bother with things like transfer bonuses, or meeting with Fidelity advisors.
But would you take it now? Because you'll be pretty much the same person after you've accumulated a $5 million portfolio. Pretty sure even Bill Gates doesn't buy the most expensive bottle on the wine list. :D
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"
technovelist
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Re: Will you take this Fidelity bait ?

Post by technovelist »

mak1277 wrote: Fri Dec 22, 2017 10:41 am Several people mentioned better customer service at Fidelity. It makes me wonder...how often do people use customer service? I have never once had to call or inquire of anything at Vanguard. I've had to use customer service at Fidelity several times. To me, that's a point in Vanguard's favor. My expectation is that I never EVER have to make a call to customer service. Simply doing so is a failure on the vendor's part.
I haven't used Fidelity's customer service very many times, but the dozen or so times I have called them it has been very good. And they are open 24/7, although the specialists (e.g., international wire transfer experts) are only there during business hours.
In theory, theory and practice are identical. In practice, they often differ.
daveydoo
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Re: Will you take this Fidelity bait ?

Post by daveydoo »

flamesabers wrote: Fri Dec 22, 2017 5:17 pm
If I had a $5 million portfolio and I received a bonus offer, I would expect it to be higher then the fixed rate the Treasury currently pays on EE-Bonds.
And how much would you expect 15 minutes of interest to be? This is a one-time payment. Not sure where the Treasury benchmark came in...
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"
bantam222
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Re: Will you take this Fidelity bait ?

Post by bantam222 »

Do you have to sell in Vanguard, move cash to Fidelity, then re-buy?

The taxes this would likely trigger on a 5M portfolio may not make this not worth it.
samsmith
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Re: Will you take this Fidelity bait ?

Post by samsmith »

Not sure I would move all $5M, but I would strongly consider moving a portion.
The going rate is normally $2500 for $1M. Thus, I would transfer that amount of assets in kind to FIDO. To me the benefits of this are:

1. Diversify holdings so not all at one brokerage.
2. Better customer service at FIDO
3. Get $2500 (.25% return)

To be honest, it would be worth it to me to pay $2500 not to have all assets in one brokerage.
And after moving, $1M to FIDO - I would be calling Schwab next.
I have done similar things (on a smaller scale) since, other than Vanguard, the other discount brokers all seem to have similar incentive programs.
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flamesabers
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Re: Will you take this Fidelity bait ?

Post by flamesabers »

daveydoo wrote: Fri Dec 22, 2017 6:01 pm
flamesabers wrote: Fri Dec 22, 2017 5:17 pm
If I had a $5 million portfolio and I received a bonus offer, I would expect it to be higher then the fixed rate the Treasury currently pays on EE-Bonds.
And how much would you expect 15 minutes of interest to be? This is a one-time payment. Not sure where the Treasury benchmark came in...
The reason I referenced the rate of EE-Bonds was to illustrate how misleading raw numbers can be in comparison to rate of returns. A $5k transfer bonus sounds impressive no doubt. However, a 0.10% balance bonus isn't as impressive I think. If Fidelity made the 0.10% balance bonus available for anyone, (regardless of how large or how small your portfolio is) would you take it?
flyingaway
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Re: Will you take this Fidelity bait ?

Post by flyingaway »

If I had $5MM, I would not be bothered with the $5k bonus. It is small compared with any one day swing in the market.
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