vested1 wrote: ↑
Mon Dec 25, 2017 9:52 am
Two opposing viewpoints from four members:
Taylor Larimore wrote: ↑
Fri Dec 22, 2017 8:53 pm
Fidelity and nearly all other mutual fund companies (except Vanguard) serve two masters: Their investors and their stockholders. Who is likely to come first?
I will continue to keep all my securities with Vanguard (since 1986).
sport wrote:I am also concerned that if/when I become older and not mentally sharp, that Fidelity would be able to talk me into some of their expensive options. Similarly, I don't know if my heirs will be sharp enough to avoid the Fidelity solicitations. I am confident that I do not need to worry about this at Vanguard. They don't have any expensive products to sell me. Their employees also do not work on commission, so they have no incentive to lead me, or my heirs, astray. In short, I trust Vanguard and I do not trust Fidelity. As one gets older, these concerns become more important.
MrPotatoHead wrote: ↑
Sat Dec 23, 2017 2:49 pm
In reviewing this, and analogous threads is appears, for some, there is not only a fiscal investment in in the financial services firm they use but an emotional investment as well.
AZAttorney11 wrote:If we are using expense ratios to determine which companies are putting their customers first, Fidelity and Schwab both have index funds that beat Vanguard in an apples to apples comparison. I do not find the ownership structure of Vanguard, Fidelity, or Schwab relevant to my investment decisions. I evaluate products individually and then make a choice. And Fidelity and Schwab have products that are better for their customers than what Vanguard currently offers.
I was offered a retention bonus in the .2% range to stay with Fidelity after initiating a move to Vanguard. This, after being an unwitting victim of Fido PAS for 5 years, so put me firmly in the camp of the first two members at the top of this post. The telling moment for me was when my two advisors at Fido were speechless when I asked them detailed questions about how I was taken advantage of, and why they personally did so. They were speechless because they had no good answers. Their retention bonus was a fraction of what they had bled from my portfolio in that five year learning curve.
Having led an ethical life to the best of my ability, I tend to reward ethics in others, even at a slight disadvantage to myself. One of the ways we can reward outstanding ethics in others is with our wallets. There may come a time when doing business with Vanguard becomes too cumbersome, but for this self-directed investor, that time has not yet arrived. I freely admit that holding a grudge is emotional; an unavoidable consequence of being human.
Nice summary. This thread is nutty to me.
I have 7 figure portfolios at both firms, Fidelity due to company plans. One day I will consolidate, highly likely with Vanguard.
Choosing a financial institution to me is a very important long term decision, up there with spouses, buying a home, kids schools etc. A $5,000 bonus would not influence my decision.
While I have respect for Jack Bogle and Vanguard’s history, I would not hesitate to leave them in a New York minute if I didn’t think they were the best long term choice for me. My decision is not emotionally based.
My experience is that both Fido and Vanguard have excellent technology and customer service. I don’t know where the grump toward Vanguard is coming from.
The ONLY reason Fido, Blackrock and others have become competitive is Vanguard. I am confident they will return to trying to pick investors pockets, given the opportunity.
In my view, Vanguard’s ownership structure is inherently superior and they take fewer risks with my money when it comes to security lending and other fund operations. At this stage of fund history, expense ratios are less relevant because they are going close to zero.
Concerns about Vanguard’s growth are unfounded, in my view. Size in this business is not inherently bad and provides many advantages.
There are aspects of Fido that are quite good, but I doubt they will be my choice when I consolidate accounts.
Whatever I do, it will not be because someone dangles a bonus in front of me.
If your out-go is greater than your income, your upkeep will be your DOWNFALL.