Vanguard vs. EJ vs. Fidelity

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Jarisma180
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Joined: Mon Sep 17, 2018 11:33 am

Vanguard vs. EJ vs. Fidelity

Post by Jarisma180 »

Afternoon,

I am looking to roll my Roth 401k and Traditional 401K to IRA’s. I’ve been doing some research on EJ, Vanguard & Fidelity. It is all very confusing to me. My gut says go with Vanguard. Targeted retirement funds which will make things easier.

I am 55 and currently out of work. EJ seems to LOADED with fees, whether they are wealth mgmt, up front load fees or activity managed fees. I spoke with Fidelity and they want to give me a wealth mgmt account and also manage the money for me. With Vanguard I know I am on my own.


Any ideas, suggestions are greatly appreciated.

Thank you
PFInterest
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Joined: Sun Jan 08, 2017 12:25 pm

Re: Vanguard vs. EJ vs. Fidelity

Post by PFInterest »

why are you moving your work plans in the first place?
EJ is always the wrong answer.

vanguard or fidelity are fine.
both can manage your accounts.
ExitStageLeft
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Re: Vanguard vs. EJ vs. Fidelity

Post by ExitStageLeft »

Welcome to the forum! You can also go it yourself with Fidelity, you are not obliged to pay for an advisor. Your take on EJ is correct, they will sell you products that may be good for your, but the commission and fees will always be good fro EJ. With Vanguard you can go it alone or you could pay 0.3% for their Personal Advisor Service (PAS). It may be worth the cost to move to Vanguard PAS initially and then cancel that service when you are comfortable managing the portfolio on your own.
Topic Author
Jarisma180
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Joined: Mon Sep 17, 2018 11:33 am

Re: Vanguard vs. EJ vs. Fidelity

Post by Jarisma180 »

The company is moving the 401k plan to another company to manage it. I’ve read and heard nothing good about Empower Retirement services. The company was paying all fees on the account, now all the fees are being passed onto us. Based on everything I read, I am not comfortable with Empower.
Jack FFR1846
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Re: Vanguard vs. EJ vs. Fidelity

Post by Jack FFR1846 »

The fact that your company is moving the 401k doesn't mean that you can move your account anywhere. Have you been given the option to move it? If not, you may have to quit to get that option.
Bogle: Smart Beta is stupid
nolesrule
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Re: Vanguard vs. EJ vs. Fidelity

Post by nolesrule »

Jack FFR1846 wrote: Mon Sep 17, 2018 12:57 pm The fact that your company is moving the 401k doesn't mean that you can move your account anywhere. Have you been given the option to move it? If not, you may have to quit to get that option.
OP is not currently employed.
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nisiprius
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Re: Vanguard vs. EJ vs. Fidelity

Post by nisiprius »

I had a rollover IRA account with Fidelity for about eight years, as well as a Fidelity-managed 401(k) at work.

Fidelity seems to be pretty good at everything. I decided I wanted to consolidate my Fidelity and Vanguard accounts at a single firm and it was almost a coin-flip decision. That's because I only needed services that both firms offer. If you want services that only firm X provides--for example, if there is a convenient Fidelity storefront near you and you want a storefront--then I'd go with the firm that provides that service.

I have had an account at Vanguard for, I dunno, something like twenty years. I think Vanguard is fine, and I haven't noticed any difference in customer service between Vanguard and Fidelity. I'd give 'em both A-. I have stories about both of them that fell short of A+ service.

Fidelity will try to get you to come to seminars and so forth, but in my experience they have not been pushy about it.

I have had no personal experiences with Edward Jones so it would not be proper to express my strong opinion about them.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Katietsu
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Re: Vanguard vs. EJ vs. Fidelity

Post by Katietsu »

Do you have a Fidelity off ice nearby? Some people appreciate being able to go to the office in person when forms need completed etc. This would be an advantage for Fidelity. You could simply tell Fidelity you want everything to go to the Fidelity Freedom Target date Index fund of your choosing. (Make sure you choose the one with Index in the title if you want low fees.) You do not need to pay for them to mange it. But there will likely be offers for management and you will need to say No. This would be the downside.

I believe Vanguard has less than a handful of physical offices. So face to face would probably not be an option. As said by others, you could have Vanguard help with management for 0.3%. But, if you are comfortable with target date funds, you could just continue to use them. It is harder to make a truly bad choice at Vanguard compared to the other options.
retiredjg
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Re: Vanguard vs. EJ vs. Fidelity

Post by retiredjg »

Jarisma180 wrote: Mon Sep 17, 2018 11:38 am I am looking to roll my Roth 401k and Traditional 401K to IRA’s. I’ve been doing some research on EJ, Vanguard & Fidelity. It is all very confusing to me. My gut says go with Vanguard. Targeted retirement funds which will make things easier.
EJ is truly loaded with fees. Do not use them.

You can get a low cost target retirement fund at either Vanguard or Fidelity. Vanguard does not have offices to go to - you do the transfer by phone and mail. After that you can do most things on the internet.

Fidelity does have offices and they will help you get your money moved. However, be prepared for a nice kindly salesperson to try to convince you to use their management service. This could also be loaded with fees so do not let the nice person sell you this poor idea.

Fidelity has more than one series of Target Retirement funds - you want the Fidelity Freedom Index funds, not the ordinary Fidelity Freedom funds which are much higher priced.
billfromct
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Re: Vanguard vs. EJ vs. Fidelity

Post by billfromct »

I have been with Vanguard for 36 or 37 years. My company 401k was with Fidelity.

Fidelity is good, but you have to leary about them trying to gently push you to higher cost funds/services. They have to pay their expenses & I'm sure the advisors are evaluated on bringing more expense ratio/fee revenue into the company.

After I left my company earlier this year, I moved my Fidelity 401k money into my Vanguard rollover IRA.

I want 2 investment companies, my credit union & Vanguard, to have all my financial assets as I start SS & RMD next year.

bill
Kevin8696
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Re: Vanguard vs. EJ vs. Fidelity

Post by Kevin8696 »

Jarisma180 wrote: Mon Sep 17, 2018 11:38 am Afternoon,

I am looking to roll my Roth 401k and Traditional 401K to IRA’s. I’ve been doing some research on EJ, Vanguard & Fidelity. It is all very confusing to me. My gut says go with Vanguard. Targeted retirement funds which will make things easier.

I am 55 and currently out of work. EJ seems to LOADED with fees, whether they are wealth mgmt, up front load fees or activity managed fees. I spoke with Fidelity and they want to give me a wealth mgmt account and also manage the money for me. With Vanguard I know I am on my own.


Any ideas, suggestions are greatly appreciated.

Thank you
OP,

1. No Way on EJ... they hold you up and shake until all the nickels are out of your jeans.

2. Fidelity does not want to "give" you anything. They just want you to think that you can't do it yourself.

3. With Vanguard you are never on your own... you found us didn't you ? ? ? :happy
inbox788
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Re: Vanguard vs. EJ vs. Fidelity

Post by inbox788 »

Jarisma180 wrote: Mon Sep 17, 2018 12:53 pm The company is moving the 401k plan to another company to manage it. I’ve read and heard nothing good about Empower Retirement services. The company was paying all fees on the account, now all the fees are being passed onto us. Based on everything I read, I am not comfortable with Empower.
Your concern is well place. They're owned by $30B market cap Canadian insurance company Great-West Lifeco. Company has done well, but not doing so well last year or two. There's concern whether they do well or not. Plus do they have agreements to push their insurance products?

https://www.google.com/search?q=TSE%3A+GWO

Fidelity or Vanguard are good places, but both have bad funds and advisors, so stay vigilant no matter where you wind up. Fidelity is trying zero fee funds, but that goes counter to transparency. We all love a free lunch, but someone is paying, and we don't know who or how much.

Vanguard Advisor suggesting 7 Bond funds for my 40%
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dave_k
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Re: Vanguard vs. EJ vs. Fidelity

Post by dave_k »

Jarisma180 wrote: Mon Sep 17, 2018 12:53 pm The company is moving the 401k plan to another company to manage it. I’ve read and heard nothing good about Empower Retirement services. The company was paying all fees on the account, now all the fees are being passed onto us. Based on everything I read, I am not comfortable with Empower.
I don't think the fees being paid by the company vs. the employees has anything to do with Empower. My small company uses Empower (through an agency), and we decided to pay the fees as a company expense. We had been paying them from the employee accounts previously, but it was our decision to change that. It sounds like your company is trying to save money, both by changing to having employees pay the fees, and possibly by moving to a less expensive provider. We haven't had any problems with Empower, but we may move to another agency that can set us up with Vanguard, and also lower the administrative fees. However, we would have the same (mostly Vanguard index) funds available through both Empower and Vanguard.

Regardless of Empower, since you'd be paying the administrative fees, I would go ahead and roll the accounts over to Fidelity or Vanguard. I've had good experience with both, but more experience with Fidelity. Fidelity's customer service has been great.
WhyNotUs
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Re: Vanguard vs. EJ vs. Fidelity

Post by WhyNotUs »

VG or Fido would be fine. If there is a walk-in office for Fidelity in your town, that might be the easiest way to move forward. Both offer low cost target retirement date funds that are great.
I own the next hot stock- VTSAX
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