Vanguard vs. Fidelity??

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Doug007
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Vanguard vs. Fidelity??

Post by Doug007 »

I am about to deposit a significant sum into either Vanguard or Fidelity. I am FIRE and like to keep my finances as simple as possible, while also maximizing return, minimizing expenses. I plan to use a 2 fund portfolio probably around 85/15 (85 being S+P or total market/ 15 for bonds+cash). I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
By the way this is for taxable investments.
Thanks.
Last edited by Doug007 on Mon Aug 19, 2019 9:43 pm, edited 2 times in total.
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Tyler Aspect
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Re: Vanguard vs. Fidelity??

Post by Tyler Aspect »

Fidelity has a better web site, better donor advised fund. Local offices are situated in many cities.

Vanguard has better money market funds and balanced funds. Fund selection is more complete.
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sawhorse
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Re: Vanguard vs. Fidelity??

Post by sawhorse »

There are a lot of threads on this topic, and the overwhelming consensus is that both are fine. As are Schwab and brokerages such as Merrill Edge that offer free trades on index ETFs.

Fidelity can be a trap for those who are less knowledgeable as they might try to sell you on active management, but as long as you resist that then it's not an issue.

Fidelity customer service is overall better. There are quite a few threads/posts on people who have had bad experiences with Vanguard customer service. I personally have had multiple bad experiences - not rudeness but complete incompetence and disorganization . It seems that the hit rate with Fidelity customer service is better.

If you're interested in holding some of your money in active funds, Vanguard has some excellent active funds. Fidelity not so much. I and many other Bogleheads hold Vanguard Wellesley and/or Vanguard Wellington.
Last edited by sawhorse on Mon Aug 19, 2019 9:38 pm, edited 1 time in total.
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Re: Vanguard vs. Fidelity??

Post by dru808 »

Either one will work, I have my ira at vanguard my wife has a rollover at fidelity. Fidelity would be the cheaper route if you invest in their zero fee funds.
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Re: Vanguard vs. Fidelity??

Post by whodidntante »

Brokers have given me thousands of compelling reasons to use their platforms.
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Re: Vanguard vs. Fidelity??

Post by Cuervo_loco »

Doug007 wrote: Mon Aug 19, 2019 9:26 pm ... and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
Thanks.
Does having an accessible branch and a Cash Management Account and card appeal to you? Otherwise I’d argue the differences are subjective and the companies are directly competing with their investment products. You’ll find plenty this vs. that (ex: higher MF on Fidelity’s sweep accounts vs Vanguard or Favorable UI at Fidelity, etc...) if you search.
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Re: Vanguard vs. Fidelity??

Post by Ferdinand2014 »

I have used Fidelity for over 20 years for my rollover IRA, SEP, 529 accounts, brokerage and CMA accounts. Excellent customer service. Lowest ER on their mutual funds. 53 index fund choices. Good website. Brick and mortar offices. I have never used Vanguard so I have no opinion.
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Re: Vanguard vs. Fidelity??

Post by nguy44 »

I have both, and I am happy with both. Fideliey was driven via my employer, I chose Vanguard for more/cheaper fund options at the time (Fidelity has come down in fees since then). My investments are simple, so both work for me.
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Re: Vanguard vs. Fidelity??

Post by mhalley »

I think fidelity has an edge during drawdown by using its cash management account plus cc. See the fidelity as a one stop shop thread.
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Re: Vanguard vs. Fidelity??

Post by JW-Retired »

Doug007 wrote: Mon Aug 19, 2019 9:26 pm I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
Nothing compelling. Wife and I have had fairly similar sized accounts at both places since the 1980's. Always have felt that if we ever become unhappy with one company we could easily jump to the other, but doesn't look like that will ever happen.

Fidelity has local offices and that sometimes speeds things up. In lieu of mailing in a notarized form, you can just show them your driver license at the desk and hand in the Fidelity form over the counter.

Fido also has a notary at their local office if needed, so several times I've had them notarize something I needed to mail to Vanguard. They seemed happy to do it. :P
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Re: Vanguard vs. Fidelity??

Post by StealthRabbit »

I have had both for 30 yrs, but consolidating to Fidelity as Vanguard becomes much less user friendly (for international travelers / expat living).

Fidelity has more comprehensive services (as banking / billpay / access / referrals to consultants (free) / aggregated accounts and customizable dashboard (great for daily cash management), I just moved my DAF from Vanguard to Fidelity and set up my recurring contributions today. (Simple).

I have an excellent Fidelity service person 20 min away with an superb admin (previous Financial Analyst position 'downsizing' for pre- retirement / PT employment). I have not always had top knotch admins, at either. But Vanguard became way too difficult when they REQUIRED txt (2 device) security, and my USA cell phone was stuck in USA for 8 months until I returned home to USA. (I use regional SIMs when living overseas). Sometimes changing countries every few weeks. Vanguard could not accommodate that.
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Re: Vanguard vs. Fidelity??

Post by peterinjapan »

I love my Fidelity, but remember how hostile they are (and TD Ameritrade) to Vanguard mutual funds, charging $75 per trade. Not good for some users here. They are also hostile to any American who dares to live abroad. Anyone who does should hide this fact from them vigorously.
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Re: Vanguard vs. Fidelity??

Post by DippityDoo »

I have taxable accounts at both Fidelity and Vanguard. At Fidelity, I experienced one account error that was swiftly corrected. At Vanguard, I have experienced several account errors (at least 3 that come to mind immediately), each of which was exasperating to resolve. Also, Vanguard has tech issues that I have not experienced at Fidelity. If you decide to go with Fidelity, you'll find they have commission-free iShares ETFs that will work well in a taxable account if you don't want low- or no-cost mutual funds in taxable. Also, if you're transferring in any Vanguard funds, you can try to negotiate some free trades or a cash bonus to offset any fees you may have for selling later in a Fido account.

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Re: Vanguard vs. Fidelity??

Post by student »

Both are good as mentioned by others. If I have to choose one, I will pick Fidelity due to its cash management account and 24/7 customers service.
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Re: Vanguard vs. Fidelity??

Post by abuss368 »

Either is fine and it probably would not make much difference. Vanguard is however the only client owned company in the industry.
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Re: Vanguard vs. Fidelity??

Post by abuss368 »

Moving our portfolio to Vanguard was simply the best financial decision we ever made.

Thank you Jack Bogle!
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Re: Vanguard vs. Fidelity??

Post by anon_investor »

At least right now Vanguard has slightly better rates (~30 basis points) on their money market accounts than Fidelity, a consideration as you mentioned you may hold some cash. As others have alluded to, and discussed in many threads, Fidelity has an excellent cash management account, Vanguard has nothing comparable (they used to but got rid of that service), which may make draw down easier. Fidelity's cash management account basically acts like a checking account (checks, ACH, debit, ATM, deposits, etc.) but can draw from your Fidelity money market funds (which means you will get a decent interest rate on your funds that may otherwise sit in a checking account earning next to nothing). Fidelity also has physical locations in many areas and Vanguard does not.

If you want Vanguard funds, just stick with Vanguard. If you have no preference on the funds, Fidelity may offer some more flexibility with their cash management account, but in order to avoid unnecessary commissions you would need to stick with Fidelity funds/ETFs or iShare ETFs which trade commission free.
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Re: Vanguard vs. Fidelity??

Post by bengal22 »

Both are excellent choices. I have had them both since the '80's. I am about 70/30 Fidelity.
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Re: Vanguard vs. Fidelity??

Post by bondsr4me »

If you want a "compelling" reason, the biggest one IMHO is Customer Service.
Fidelity wins this one hands down....as would Schwab also.
I really like the real-time chat Fidelity (Schwab) offers....not likely Vanguard will ever offer this.
BTW, I have accounts at Vanguard, Fidelity, Schwab and TDAmeritrade(minimal balance).
I guess if I had to pick just one, it probably would be Fidelity....nothing against VG or Schwab.

You already have an account with VG, so why not open one with Fidelity and compare them.
Compare the customer service you get; the website access/tools/account reporting; the statements you get from each one; the tax information/timetable you get from each one.

Dare to compare; then make a decision to keep one or maybe even both.

Good Luck!
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Re: Vanguard vs. Fidelity??

Post by abuss368 »

bondsr4me wrote: Tue Aug 20, 2019 8:08 am If you want a "compelling" reason, the biggest one IMHO is Customer Service.
Fidelity wins this one hands down....as would Schwab also.
I really like the real-time chat Fidelity (Schwab) offers....not likely Vanguard will ever offer this.
BTW, I have accounts at Vanguard, Fidelity, Schwab and TDAmeritrade(minimal balance).
I guess if I had to pick just one, it probably would be Fidelity....nothing against VG or Schwab.

You already have an account with VG, so why not open one with Fidelity and compare them.
Compare the customer service you get; the website access/tools/account reporting; the statements you get from each one; the tax information/timetable you get from each one.

Dare to compare; then make a decision to keep one or maybe even both.

Good Luck!
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Re: Vanguard vs. Fidelity??

Post by abuss368 »

Wish Vanguard would offer or enter banking and have an all in one website! Too bad advantage program did not expand.
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Re: Vanguard vs. Fidelity??

Post by frugaltigris »

I am myself in similar dilemma. Have accounts at both and I am wondering whether I should consolidate to just one. I like Fidelity instead of Vanguard, but isn't it true that Fidelity index funds are not tax efficient? For those who wish to have automatic investments and not ETFs, then isn't Vanguard better?
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Re: Vanguard vs. Fidelity??

Post by PhilosophyAndrew »

For many years I used both Vanguard and Fidelity, and either one could work fine for your needs.

That said, Vanguard egregiously messes up the cost basis of my holdings and took weeks to acknowledge the problem and months to correct it. Fidelity, by contrast, has been Completely reliable and has offered me far superior customer service. So, I now exclusively use a Fidelity for my taxable, tax-advantages, and DAF accounts.

I also prefer Fidelity’s web site, although that may be a purely personal preference.

Andy.
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Re: Vanguard vs. Fidelity??

Post by bondsr4me »

abuss368 wrote: Tue Aug 20, 2019 8:16 am
bondsr4me wrote: Tue Aug 20, 2019 8:08 am If you want a "compelling" reason, the biggest one IMHO is Customer Service.
Fidelity wins this one hands down....as would Schwab also.
I really like the real-time chat Fidelity (Schwab) offers....not likely Vanguard will ever offer this.
BTW, I have accounts at Vanguard, Fidelity, Schwab and TDAmeritrade(minimal balance).
I guess if I had to pick just one, it probably would be Fidelity....nothing against VG or Schwab.

You already have an account with VG, so why not open one with Fidelity and compare them.
Compare the customer service you get; the website access/tools/account reporting; the statements you get from each one; the tax information/timetable you get from each one.

Dare to compare; then make a decision to keep one or maybe even both.

Good Luck!
Is it a challenge to manage all the different accounts?
No, not for me; but I am not all that active anymore.
I enjoy financial markets and investing.
Have done it many years personally and professionally (before I retired).
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Re: Vanguard vs. Fidelity??

Post by FrugalInvestor »

I'm retired. I've held my investments with Vanguard for decades with the exception of my HSA which is with Fidelity for low cost and convenience. I find Fidelity's website to be more flexible and feature laden but more complicated as a result. I don't need or use the added features so prefer Vanguard's site.

I find that the simplicity and low fees of Vanguard for investments (3-fund) coupled with my free bank checking account (with minimum balance) for spending cash and billpay services to be very convenient at very low cost which are my top priorities.
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Re: Vanguard vs. Fidelity??

Post by Sandtrap »

Shop for your funds then the brokerage that has them.🏝

I use both.
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Re: Vanguard vs. Fidelity??

Post by anon_investor »

frugaltigris wrote: Tue Aug 20, 2019 8:22 am I am myself in similar dilemma. Have accounts at both and I am wondering whether I should consolidate to just one. I like Fidelity instead of Vanguard, but isn't it true that Fidelity index funds are not tax efficient? For those who wish to have automatic investments and not ETFs, then isn't Vanguard better?
That is a great point. Because of Vanguards admiral class/ETF class structure of some of their funds (e.g. VTSAX/VTI) their mutual funds are more tax efficient (generally 0 capital distributions) than Fidelity's, so that is a definite consideration (no a concern if your funds are in a traditional/Roth IRA).
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Re: Vanguard vs. Fidelity??

Post by 1789 »

I have 401k with Fidelity and had Roth IRA with Vanguard. I recently consolidated Roth IRA to Fidelity. As mentioned, Fidelity customer service and online chat option are superior. My own experience with VG is that they have great mutual funds but they are slow in resolving account issues.
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Re: Vanguard vs. Fidelity??

Post by sport »

For each of us, there comes a time when we will be unable to manage our financial accounts. Either we become incompetent, or we are no longer alive. When either of these events come to pass, someone else will be managing these assets. While Bogleheads are wise to the ways of financial salespeople, our successors may not be. Fidelity has a lot of expensive products to sell, which no Boglehead would ever consider buying. However our successors might not be so astute. Vanguard, OTOH, does not have such products and is much less likely to take advantage of an unsuspecting client. IMO, this is sufficient reason to choose Vanguard over Fidelity.
Topic Author
Doug007
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Re: Vanguard vs. Fidelity??

Post by Doug007 »

..."Because of Vanguards admiral class/ETF class structure of some of their funds (e.g. VTSAX/VTI) their mutual funds are more tax efficient (generally 0 capital distributions) than Fidelity's"...

Is this true? Can you elaborate on that? In what way does this impact return? Doesn't Fidelity have a comparable fund/ETF?
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Re: Vanguard vs. Fidelity??

Post by abuss368 »

bondsr4me wrote: Tue Aug 20, 2019 8:27 am
abuss368 wrote: Tue Aug 20, 2019 8:16 am
bondsr4me wrote: Tue Aug 20, 2019 8:08 am If you want a "compelling" reason, the biggest one IMHO is Customer Service.
Fidelity wins this one hands down....as would Schwab also.
I really like the real-time chat Fidelity (Schwab) offers....not likely Vanguard will ever offer this.
BTW, I have accounts at Vanguard, Fidelity, Schwab and TDAmeritrade(minimal balance).
I guess if I had to pick just one, it probably would be Fidelity....nothing against VG or Schwab.

You already have an account with VG, so why not open one with Fidelity and compare them.
Compare the customer service you get; the website access/tools/account reporting; the statements you get from each one; the tax information/timetable you get from each one.

Dare to compare; then make a decision to keep one or maybe even both.

Good Luck!
Is it a challenge to manage all the different accounts?
No, not for me; but I am not all that active anymore.
I enjoy financial markets and investing.
Have done it many years personally and professionally (before I retired).
:sharebeer
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Re: Vanguard vs. Fidelity??

Post by Vulcan »

Doug007 wrote: Mon Aug 19, 2019 9:26 pm I am about to deposit a significant sum into either Vanguard or Fidelity. I am FIRE and like to keep my finances as simple as possible, while also maximizing return, minimizing expenses. I plan to use a 2 fund portfolio probably around 85/15 (85 being S+P or total market/ 15 for bonds+cash). I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
By the way this is for taxable investments.
Thanks.
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Fidelty has nothing of the sort.
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Re: Vanguard vs. Fidelity??

Post by William4u »

Doug007 wrote: Tue Aug 20, 2019 10:38 am ..."Because of Vanguards admiral class/ETF class structure of some of their funds (e.g. VTSAX/VTI) their mutual funds are more tax efficient (generally 0 capital distributions) than Fidelity's"...

Is this true? Can you elaborate on that? In what way does this impact return? Doesn't Fidelity have a comparable fund/ETF?
In general the Vanguard Mutual Funds are much more tax efficient.

https://www.bloomberg.com/graphics/2019 ... tax-dodge/

As an experiment, I held the same amount in taxable accounts at both firms in their respective Total Market Index mutual funds for 5 years. I paid significantly more in taxes on the fidelity fund.

But you can just hold the free-to-trade iShare ETFs at fidelity and avoid this issue.
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Re: Vanguard vs. Fidelity??

Post by FrugalInvestor »

Doug007 wrote: Tue Aug 20, 2019 10:38 am ..."Because of Vanguards admiral class/ETF class structure of some of their funds (e.g. VTSAX/VTI) their mutual funds are more tax efficient (generally 0 capital distributions) than Fidelity's"...

Is this true? Can you elaborate on that? In what way does this impact return? Doesn't Fidelity have a comparable fund/ETF?
I use Vanguard Total Stock Market for my taxable equity fund. The following article explains the patented process that Vanguard has used to eliminate capital gain distributions from that and other funds.

https://www.bloomberg.com/graphics/2019 ... tax-dodge/
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Re: Vanguard vs. Fidelity??

Post by BUBear29 »

frugaltigris wrote: Tue Aug 20, 2019 8:22 am I am myself in similar dilemma. Have accounts at both and I am wondering whether I should consolidate to just one. I like Fidelity instead of Vanguard, but isn't it true that Fidelity index funds are not tax efficient? For those who wish to have automatic investments and not ETFs, then isn't Vanguard better?
I decided to transfer everything from Vanguard to Fidelity.
I hold Fidelity index funds in my roths and VTI (Vanguard ETF) in my taxable and limit my taxable purchases to 1 or 2 times a year. This limits my transaction cost to a max of $9.90 a year.
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Re: Vanguard vs. Fidelity??

Post by Casimir »

We have used both and prefer Vanguard. We like to use the written checks; the ease of transfers to linked bank accounts; and tax witholding features.
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Re: Vanguard vs. Fidelity??

Post by sport »

BUBear29 wrote: Tue Aug 20, 2019 3:35 pm This limits my transaction cost to a max of $9.90 a year.
What is a transaction cost? :greedy
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Re: Vanguard vs. Fidelity??

Post by bondsr4me »

sport wrote: Tue Aug 20, 2019 3:51 pm
BUBear29 wrote: Tue Aug 20, 2019 3:35 pm This limits my transaction cost to a max of $9.90 a year.
What is a transaction cost? :greedy
2 Fidelity commissionable trades @ $4.95/trade.
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Re: Vanguard vs. Fidelity??

Post by sport »

bondsr4me wrote: Tue Aug 20, 2019 4:10 pm
sport wrote: Tue Aug 20, 2019 3:51 pm
BUBear29 wrote: Tue Aug 20, 2019 3:35 pm This limits my transaction cost to a max of $9.90 a year.
What is a transaction cost? :greedy
2 Fidelity commissionable trades @ $4.95/trade.
It's been so many years since I have seen one of those I forgot what they were. :twisted:
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Re: Vanguard vs. Fidelity??

Post by BUBear29 »

sport wrote: Tue Aug 20, 2019 4:36 pm
bondsr4me wrote: Tue Aug 20, 2019 4:10 pm
sport wrote: Tue Aug 20, 2019 3:51 pm
BUBear29 wrote: Tue Aug 20, 2019 3:35 pm This limits my transaction cost to a max of $9.90 a year.
What is a transaction cost? :greedy
2 Fidelity commissionable trades @ $4.95/trade.
It's been so many years since I have seen one of those I forgot what they were. :twisted:
If I wanted to avoid them I would just buy iShares.

Also, I should add that a Vanguard rep mentioned to me the other day that all PAS clients were going to be moved to Vanguard index ETFs by 2021. Wonder if vanguard is moving away from the index mutual fund class
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Re: Vanguard vs. Fidelity??

Post by bayview »

Vanguard funds are more tax-efficient (you said this would be for taxable.) Their MMF rates are better.

But you should keep your own set of clear and organized records, especially cost basis, if you go with Vanguard. Save your monthly statements. Vanguard’s IT issues are starting to make me feel a bit like a settler on the edge of the wilderness, responsible for my own welfare.

Actually, everyone should do this, rather than entrusting all record-keeping to their banks and brokerages...

Edit to add: you can write checks off of Vanguard accounts for $250 or more. I’m moving my mom’s trust assets there, as I can pay her assisted living bills with a Vanguard check (there is no danger that they will ever be less than $250!)
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Re: Vanguard vs. Fidelity??

Post by Ferdinand2014 »

Vulcan wrote: Tue Aug 20, 2019 12:13 pm
Doug007 wrote: Mon Aug 19, 2019 9:26 pm I am about to deposit a significant sum into either Vanguard or Fidelity. I am FIRE and like to keep my finances as simple as possible, while also maximizing return, minimizing expenses. I plan to use a 2 fund portfolio probably around 85/15 (85 being S+P or total market/ 15 for bonds+cash). I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
By the way this is for taxable investments.
Thanks.
Vanguard has VTWAX.
Fidelty has nothing of the sort.
They have VT. 4.95/trade or free depending on wether you acquired free trades on transfer consolidation.
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Re: Vanguard vs. Fidelity??

Post by Ferdinand2014 »

Doug007 wrote: Mon Aug 19, 2019 9:26 pm I am about to deposit a significant sum into either Vanguard or Fidelity. I am FIRE and like to keep my finances as simple as possible, while also maximizing return, minimizing expenses. I plan to use a 2 fund portfolio probably around 85/15 (85 being S+P or total market/ 15 for bonds+cash). I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
By the way this is for taxable investments.
Thanks.
A great all in one 85/15 fund at Fidelity is FFNOX (Fidelity Four In One). Static allocation at an ER of .11
FXAIX (Fidelity 500 index) 48%
FSMAX (Fidelity Extended market index) 12%
FSPSX (Fidelity International Index) 25%
FXNAX (Fidelity total bond Index) 15%
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett
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Vulcan
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Re: Vanguard vs. Fidelity??

Post by Vulcan »

Ferdinand2014 wrote: Tue Aug 20, 2019 6:54 pm
Vulcan wrote: Tue Aug 20, 2019 12:13 pm
Doug007 wrote: Mon Aug 19, 2019 9:26 pm I am about to deposit a significant sum into either Vanguard or Fidelity. I am FIRE and like to keep my finances as simple as possible, while also maximizing return, minimizing expenses. I plan to use a 2 fund portfolio probably around 85/15 (85 being S+P or total market/ 15 for bonds+cash). I won't be doing any trades, so the brokerage aspect is not at all important to me. Nor am I interested in any actively managed funds. I really am just looking to park it and draw down on it as needed to live.
I currently have a smaller size account at Vanguard, but have not been particularly impressed with anything there really and I have heard good things about Fidelity.
Can you offer a compelling reason to use one vs. the other?
By the way this is for taxable investments.
Thanks.
Vanguard has VTWAX.
Fidelty has nothing of the sort.
They have VT. 4.95/trade or free depending on wether you acquired free trades on transfer consolidation.
No, thanks
If you torture the data long enough, it will confess to anything. ~Ronald Coase
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anon_investor
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Re: Vanguard vs. Fidelity??

Post by anon_investor »

bayview wrote: Tue Aug 20, 2019 5:01 pm Vanguard funds are more tax-efficient (you said this would be for taxable.) Their MMF rates are better.

But you should keep your own set of clear and organized records, especially cost basis, if you go with Vanguard. Save your monthly statements. Vanguard’s IT issues are starting to make me feel a bit like a settler on the edge of the wilderness, responsible for my own welfare.

Actually, everyone should do this, rather than entrusting all record-keeping to their banks and brokerages...

Edit to add: you can write checks off of Vanguard accounts for $250 or more. I’m moving my mom’s trust assets there, as I can pay her assisted living bills with a Vanguard check (there is no danger that they will ever be less than $250!)
Do you have a lot of older uncovered purchases? I have had no issue with my Vanguard cost basis for any purchases all post 2011 when they were required by law to record. All my uncovered shares at Vanguard were transferred from other brokerages.
PhilosophyAndrew
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Re: Vanguard vs. Fidelity??

Post by PhilosophyAndrew »

In 2016, Vanguard messed up the cost basis for finds I purchased in 2016. The mistake was evident to me, and I reported it within 24 hours. It took the company months to correct their error.

This is why I no longer use Vanguard.

Andy.
anon_investor wrote: Tue Aug 20, 2019 7:08 pm
bayview wrote: Tue Aug 20, 2019 5:01 pm Vanguard funds are more tax-efficient (you said this would be for taxable.) Their MMF rates are better.

But you should keep your own set of clear and organized records, especially cost basis, if you go with Vanguard. Save your monthly statements. Vanguard’s IT issues are starting to make me feel a bit like a settler on the edge of the wilderness, responsible for my own welfare.

Actually, everyone should do this, rather than entrusting all record-keeping to their banks and brokerages...

Edit to add: you can write checks off of Vanguard accounts for $250 or more. I’m moving my mom’s trust assets there, as I can pay her assisted living bills with a Vanguard check (there is no danger that they will ever be less than $250!)
Do you have a lot of older uncovered purchases? I have had no issue with my Vanguard cost basis for any purchases all post 2011 when they were required by law to record. All my uncovered shares at Vanguard were transferred from other brokerages.
bayview
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Re: Vanguard vs. Fidelity??

Post by bayview »

anon_investor wrote: Tue Aug 20, 2019 7:08 pm
bayview wrote: Tue Aug 20, 2019 5:01 pm Vanguard funds are more tax-efficient (you said this would be for taxable.) Their MMF rates are better.

But you should keep your own set of clear and organized records, especially cost basis, if you go with Vanguard. Save your monthly statements. Vanguard’s IT issues are starting to make me feel a bit like a settler on the edge of the wilderness, responsible for my own welfare.

Actually, everyone should do this, rather than entrusting all record-keeping to their banks and brokerages...

Edit to add: you can write checks off of Vanguard accounts for $250 or more. I’m moving my mom’s trust assets there, as I can pay her assisted living bills with a Vanguard check (there is no danger that they will ever be less than $250!)
Do you have a lot of older uncovered purchases? I have had no issue with my Vanguard cost basis for any purchases all post 2011 when they were required by law to record. All my uncovered shares at Vanguard were transferred from other brokerages.
We have very little in taxable at this point. I was noting what others have reported, including in this thread. Trying to establish original cost basis is no fun at all, and I think it’s wise to proceed on the basis that no one cares as much about your savings and investments as you do.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri
BuddyJet
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Re: Vanguard vs. Fidelity??

Post by BuddyJet »

There is no reason it has to be one or the other. I have accounts at both places to allow me to buy at the firm where i think they have a better offering

That said, i find Fidelity often has lower expense ratios for roughly the same index.
People say nothing is impossible. I do nothing all day.
dardeninvestor
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Re: Vanguard vs. Fidelity??

Post by dardeninvestor »

PhilosophyAndrew wrote: Tue Aug 20, 2019 7:15 pm In 2016, Vanguard messed up the cost basis for finds I purchased in 2016. The mistake was evident to me, and I reported it within 24 hours. It took the company months to correct their error.

This is why I no longer use Vanguard.

Andy.
anon_investor wrote: Tue Aug 20, 2019 7:08 pm
bayview wrote: Tue Aug 20, 2019 5:01 pm Vanguard funds are more tax-efficient (you said this would be for taxable.) Their MMF rates are better.

But you should keep your own set of clear and organized records, especially cost basis, if you go with Vanguard. Save your monthly statements. Vanguard’s IT issues are starting to make me feel a bit like a settler on the edge of the wilderness, responsible for my own welfare.

Actually, everyone should do this, rather than entrusting all record-keeping to their banks and brokerages...

Edit to add: you can write checks off of Vanguard accounts for $250 or more. I’m moving my mom’s trust assets there, as I can pay her assisted living bills with a Vanguard check (there is no danger that they will ever be less than $250!)
Do you have a lot of older uncovered purchases? I have had no issue with my Vanguard cost basis for any purchases all post 2011 when they were required by law to record. All my uncovered shares at Vanguard were transferred from other brokerages.
Similar issue. Why I left Vanguard.
moneywise3
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Re: Vanguard vs. Fidelity??

Post by moneywise3 »

Fidelity - Zero expense funds
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