Vanguard vs. Fidelity

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backpacker61
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Joined: Wed May 20, 2020 6:36 am

Re: Vanguard vs. Fidelity

Post by backpacker61 » Sat Jun 13, 2020 3:02 pm

ronin wrote:
Sat Jun 13, 2020 12:36 pm
I could see that as a possibility except for the difference in MM fund rates between Fido and Vanguard, where Vanguard has a clear edge.
It's particularly exaggerated right now with overall rates being so low; the expense ratio makes an outsize difference.

----------------------------------------------------------------- 7 day yield
SPRXX - Fidelity® Money Market Fund (Prime) - 0.01%
VMMXX - Vanguard Prime Money Market Fund - 0.26%

The difference between an expense ration of 0.42% and 0.26%.
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ChrisBenn
Posts: 331
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Re: Vanguard vs. Fidelity

Post by ChrisBenn » Sat Jun 13, 2020 4:25 pm

backpacker61 wrote:
Sat Jun 13, 2020 3:02 pm
ronin wrote:
Sat Jun 13, 2020 12:36 pm
I could see that as a possibility except for the difference in MM fund rates between Fido and Vanguard, where Vanguard has a clear edge.
It's particularly exaggerated right now with overall rates being so low; the expense ratio makes an outsize difference.

----------------------------------------------------------------- 7 day yield
SPRXX - Fidelity® Money Market Fund (Prime) - 0.01%
VMMXX - Vanguard Prime Money Market Fund - 0.26%

The difference between an expense ration of 0.42% and 0.26%.
Vanguard def has best in class MM funds, but with returns so low I think that difference is somewhat devalued.

If I need to hold a significant amount of cash or cash equivalents, say 100k, thats 260 bucks a year in interest for vmmxx. I think at that point holding it in a HYSA , with a yield of a bit over 1% makes sense. I just mostly keep float for my monthly purchases in cash/mm at fidelity, so the interest isn't super material.

I did used to keep an EF fund tier @ vanguard just for the MM, but currently HYSA is the no brainer.

I don't think vanguard is bad, far from it - they are completely fine. It's just as a custodian Fidelity has really nailed the customer interface part.

To some of the other points though, if I were, say, referring a family member to an advisor, and they would likely just do whatever the advisor suggested (no interest/willingness to learn a bit about it). I think vanguard PAS would be the only one I would trust to not soak them too hard. 0.3% is way better than 1+% (on top of the fund ER's).

ronin
Posts: 123
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Re: Vanguard vs. Fidelity

Post by ronin » Sat Jun 13, 2020 4:48 pm

ChrisBenn wrote:
Sat Jun 13, 2020 4:25 pm
backpacker61 wrote:
Sat Jun 13, 2020 3:02 pm
ronin wrote:
Sat Jun 13, 2020 12:36 pm
I could see that as a possibility except for the difference in MM fund rates between Fido and Vanguard, where Vanguard has a clear edge.
It's particularly exaggerated right now with overall rates being so low; the expense ratio makes an outsize difference.

----------------------------------------------------------------- 7 day yield
SPRXX - Fidelity® Money Market Fund (Prime) - 0.01%
VMMXX - Vanguard Prime Money Market Fund - 0.26%

The difference between an expense ration of 0.42% and 0.26%.
Vanguard def has best in class MM funds, but with returns so low I think that difference is somewhat devalued.

If I need to hold a significant amount of cash or cash equivalents, say 100k, thats 260 bucks a year in interest for vmmxx. I think at that point holding it in a HYSA , with a yield of a bit over 1% makes sense. I just mostly keep float for my monthly purchases in cash/mm at fidelity, so the interest isn't super material.

I did used to keep an EF fund tier @ vanguard just for the MM, but currently HYSA is the no brainer.

I don't think vanguard is bad, far from it - they are completely fine. It's just as a custodian Fidelity has really nailed the customer interface part.

To some of the other points though, if I were, say, referring a family member to an advisor, and they would likely just do whatever the advisor suggested (no interest/willingness to learn a bit about it). I think vanguard PAS would be the only one I would trust to not soak them too hard. 0.3% is way better than 1+% (on top of the fund ER's).
At today's rates, you raise a good point about HYSAs as being the better making the Fido vs. VG MM fund differences a moot point. That being said, in a rising rate environment -- who knows when we'll see that again -- I gather MM funds tend to be more competitive than HYSAs as they start to increase faster that HYSAs.

Your second point regarding less biased advisory support for a survivor not wanting or comfortable with delving into the weeds carries some weight in my own decision whether to steer away from VG towards Fido or not. I have a lot less faith that Fido would honor the low-cost approach I subscribe if left to their own devices.

Like others above, I hope to not need to rely much on customer service interactions regardless of who the custodian is. I don't intend to engage them much but recognize there will be times when this is necessary. Will these few times be 'doable' with Vanguard's questionable service level or will my potential lack of patience with nonsense cause my frustration level to rise that perhaps otherwise would not occur with the potential 'better' service of Fido?

Like most things in life, it seems there are multiple trade offs to be made...

jay4u
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Re: Vanguard vs. Fidelity

Post by jay4u » Tue Jun 16, 2020 7:28 pm

Elysium wrote:
Sat Jun 06, 2020 2:36 pm
jay4u wrote:
Fri Jun 05, 2020 9:57 pm
I would stay as far away from Vanguard as I could if I were you. They messed up a trade I was trying to do thru their web site, which ended up costing me a lot of money ($40k). After calling and emailing their basic answer to me was that I should not rely on their web site, I should call in transactions! [OT comment removed by admin LadyGeek] I moved all my money to Schwab and have been very happy with their services and web site.,
[OT comment removed by admin LadyGeek] We don't know exact nature of your trade and what all happened. I have been with Vanguard over 20 years, and have done multiple rollovers, transactions, conversions, within accounts and between accounts, as well as from external sources into Vg. Never had anything messed up, hopefully it will remain so.
[Response to OT comment removed by admin LadyGeek] Here is an exact quote from the email they sent back to me-
"To update, I did confirm with our senior management groups that our systems were working properly on March 4, 2020. With this said, I recognize that
pasting the ticker symbol within the exchange pathway did not pull up an
associated list of funds, causing you to miss the 4 p.m., Eastern cutoff
timeframe. This is something that has been well documented and noted by our
senior management groups.
However, please understand that Vanguard is not considering this to be
Vanguard or system error. In the future, we would recommend placing
transactions with our representatives over the phone...""

Again, I heartily recommend people choosing Schwab [over Vanguard-- admin LadyGeek]. They told me themselves, don't trust our web site!!

Elysium
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Re: Vanguard vs. Fidelity

Post by Elysium » Tue Jun 16, 2020 10:21 pm

jay4u wrote:
Tue Jun 16, 2020 7:28 pm
Elysium wrote:
Sat Jun 06, 2020 2:36 pm
jay4u wrote:
Fri Jun 05, 2020 9:57 pm
I would stay as far away from Vanguard as I could if I were you. They messed up a trade I was trying to do thru their web site, which ended up costing me a lot of money ($40k). After calling and emailing their basic answer to me was that I should not rely on their web site, I should call in transactions! [OT comment removed by admin LadyGeek] I moved all my money to Schwab and have been very happy with their services and web site.,
[OT comment removed by admin LadyGeek] We don't know exact nature of your trade and what all happened. I have been with Vanguard over 20 years, and have done multiple rollovers, transactions, conversions, within accounts and between accounts, as well as from external sources into Vg. Never had anything messed up, hopefully it will remain so.
[Response to OT comment removed by admin LadyGeek] Here is an exact quote from the email they sent back to me-
"To update, I did confirm with our senior management groups that our systems were working properly on March 4, 2020. With this said, I recognize that
pasting the ticker symbol within the exchange pathway did not pull up an
associated list of funds, causing you to miss the 4 p.m., Eastern cutoff
timeframe. This is something that has been well documented and noted by our
senior management groups.
However, please understand that Vanguard is not considering this to be
Vanguard or system error. In the future, we would recommend placing
transactions with our representatives over the phone...""

Again, I heartily recommend people choosing Schwab [over Vanguard-- admin LadyGeek]. They told me themselves, don't trust our web site!!
The mistake was on your side too when you did not verify the order was placed correctly, and did not follow up by phone if it was important to you. Looks like you missed a 4pm cut off and you were just expecting tech to take care of it all without doing due diligence.

CodeMaster
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Re: Vanguard vs. Fidelity

Post by CodeMaster » Tue Jun 16, 2020 10:42 pm

There both about same... Fidelity has amazing tech mutual funds that Im fan of.

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LadyGeek
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Re: Vanguard vs. Fidelity

Post by LadyGeek » Wed Jun 17, 2020 7:07 am

I removed some off-topic comments. As a reminder, see: General Etiquette
At all times we must conduct ourselves in a respectful manner to other posters.
(This includes companies.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

dansmail26
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Re: Vanguard vs. Fidelity

Post by dansmail26 » Wed Jun 17, 2020 8:26 am

Elysium wrote:
Tue Jun 16, 2020 10:21 pm
jay4u wrote:
Tue Jun 16, 2020 7:28 pm
Elysium wrote:
Sat Jun 06, 2020 2:36 pm
jay4u wrote:
Fri Jun 05, 2020 9:57 pm
I would stay as far away from Vanguard as I could if I were you. They messed up a trade I was trying to do thru their web site, which ended up costing me a lot of money ($40k). After calling and emailing their basic answer to me was that I should not rely on their web site, I should call in transactions! [OT comment removed by admin LadyGeek] I moved all my money to Schwab and have been very happy with their services and web site.,
[OT comment removed by admin LadyGeek] We don't know exact nature of your trade and what all happened. I have been with Vanguard over 20 years, and have done multiple rollovers, transactions, conversions, within accounts and between accounts, as well as from external sources into Vg. Never had anything messed up, hopefully it will remain so.
[Response to OT comment removed by admin LadyGeek] Here is an exact quote from the email they sent back to me-
"To update, I did confirm with our senior management groups that our systems were working properly on March 4, 2020. With this said, I recognize that
pasting the ticker symbol within the exchange pathway did not pull up an
associated list of funds, causing you to miss the 4 p.m., Eastern cutoff
timeframe. This is something that has been well documented and noted by our
senior management groups.
However, please understand that Vanguard is not considering this to be
Vanguard or system error. In the future, we would recommend placing
transactions with our representatives over the phone...""

Again, I heartily recommend people choosing Schwab [over Vanguard-- admin LadyGeek]. They told me themselves, don't trust our web site!!
The mistake was on your side too when you did not verify the order was placed correctly, and did not follow up by phone if it was important to you. Looks like you missed a 4pm cut off and you were just expecting tech to take care of it all without doing due diligence.
Their technology screwed up and did not allow me to complete the transaction in time. They admitted it was a "problem", but LOL wouldn't say it was a system error, they went into the CYA mode! And it's ridiculous in this day and age to tell people not to trust their computers, but to call transactions in.... Just something for people considering Vanguard vs Fidelity or Schwab to consider, go with a company that trusts their computer systems!

Interesting side note too, after I snail mailed the CEO of Vanguard about this situation with a copy of this email response, all of a sudden the email response they gave me was erased from my account messages... I still have a copy that I had cut/pasted into my own documents though.

space needle
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Re: Vanguard vs. Fidelity

Post by space needle » Sun Jun 21, 2020 1:21 am

I have been a Vanguard customer for 4 years, when I transferred my 401K over when I retired. I have a Roth, a Traditional, and a Taxable account, and do little to no trading other than re-balancing.

Service has been fine, but as others have noted, the website is outdated, and does not have the tools or calculators I wanted. As an example, their Portfolio Analyzer only has models through 2015. That's 5 years ago, and I emailed them to ask when it might be updated. The representative said he would pass my question along. Right. Doesn't seem at all urgent to them, but it's important to me.

Second, I was looking for RMD information on the V site, along with info on inherited IRA's. Spent 20 minutes on the V site and couldn't find either.
Went to the Fidelity site, and everything I wanted was right there.

It's weird to get what you need and want from a competitor's site. To some degree, I guess we get what we pay for. Yes, V may be low-cost, but they don't seem to have the means (or desire) to invest in a robust, easy to use, up-to-date, and informative website. It's as if they are a big warehouse which has most of what you need, but there are no employees in the warehouse and the signage is poor. You save a few bucks, but you waste time walking through a giant, football-field sized warehouse. Then, at check-out it's self-service, then back out to the parking lot.

I'm disappointed. I have very few needs - my assets just sit there and I rarely have questions. But today I asked myself whether I should move the entire portfolio to another firm - one that has invested in services, information, and customer interface, rather than retaining a 1995 experience in a 2020 world.
Enjoy what Mother Nature has given you before Father Time takes it away.

FizzyWomack
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Re: Vanguard vs. Fidelity

Post by FizzyWomack » Sun Jun 21, 2020 6:19 am

I'm at both and use each for different things...

Vanguard: Wife and I each have IRAs here that buy their Target Date fund. I login a few times a year just to check in on those, and nothing has ever been amiss. Since my needs from Vanguard are pretty simple, I don't really need anything from them and haven't given them a chance to mess anything up really. I can think of a few innovations I'd like to see from them or some features that Fidelity has, but overall it's a great platform for boring/buy and hold investing. If you care about such things, the mobile app and website don't look great and are kind of old school...but functional.

Fidelity: I use the 2% credit card from them so I'm on their site more to pay the balance of that + I keep a taxable account there. A few months ago they released fractional investing as a feature and that has worked really really well. Schwab recently released a (seemingly) less expansive version of fractional investing...Fidelity lets you buy fractional shares of ETFs even. Never had a problem with buying at Fidelity or moving money around. The mobile app is decent. Fidelity has a ton of offerings and in my few years with them seems to try new things (0% funds, no min funds, fractional) which I do appreciate even if I don't take advantage of each new feature they release.

I like being at both places because our IRA balances at Vanguard are higher than our taxable account at Fidelity and keeping them separate helps me keep a more level head and more motivated to save into the taxable since the IRA money (hopefully) won't be touched for another 30 years.

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Cheez-It Guy
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Re: Vanguard vs. Fidelity

Post by Cheez-It Guy » Sun Jun 21, 2020 9:06 am

dansmail26 wrote:
Wed Jun 17, 2020 8:26 am
Elysium wrote:
Tue Jun 16, 2020 10:21 pm
jay4u wrote:
Tue Jun 16, 2020 7:28 pm
Elysium wrote:
Sat Jun 06, 2020 2:36 pm
jay4u wrote:
Fri Jun 05, 2020 9:57 pm
I would stay as far away from Vanguard as I could if I were you. They messed up a trade I was trying to do thru their web site, which ended up costing me a lot of money ($40k). After calling and emailing their basic answer to me was that I should not rely on their web site, I should call in transactions! [OT comment removed by admin LadyGeek] I moved all my money to Schwab and have been very happy with their services and web site.,
[OT comment removed by admin LadyGeek] We don't know exact nature of your trade and what all happened. I have been with Vanguard over 20 years, and have done multiple rollovers, transactions, conversions, within accounts and between accounts, as well as from external sources into Vg. Never had anything messed up, hopefully it will remain so.
[Response to OT comment removed by admin LadyGeek] Here is an exact quote from the email they sent back to me-
"To update, I did confirm with our senior management groups that our systems were working properly on March 4, 2020. With this said, I recognize that
pasting the ticker symbol within the exchange pathway did not pull up an
associated list of funds, causing you to miss the 4 p.m., Eastern cutoff
timeframe. This is something that has been well documented and noted by our
senior management groups.
However, please understand that Vanguard is not considering this to be
Vanguard or system error. In the future, we would recommend placing
transactions with our representatives over the phone...""

Again, I heartily recommend people choosing Schwab [over Vanguard-- admin LadyGeek]. They told me themselves, don't trust our web site!!
The mistake was on your side too when you did not verify the order was placed correctly, and did not follow up by phone if it was important to you. Looks like you missed a 4pm cut off and you were just expecting tech to take care of it all without doing due diligence.
Their technology screwed up and did not allow me to complete the transaction in time. They admitted it was a "problem", but LOL wouldn't say it was a system error, they went into the CYA mode! And it's ridiculous in this day and age to tell people not to trust their computers, but to call transactions in.... Just something for people considering Vanguard vs Fidelity or Schwab to consider, go with a company that trusts their computer systems!

Interesting side note too, after I snail mailed the CEO of Vanguard about this situation with a copy of this email response, all of a sudden the email response they gave me was erased from my account messages... I still have a copy that I had cut/pasted into my own documents though.
1. Did you switch usernames? jay4u?

2. Not to further extend discussion on a ridiculous topic, but this eventual disappearing of secure messages is standard functionality. I'm not sure about the specific retention period (possibly 30 days?), but they all disappear no matter how benign. This had nothing to do with a postal letter you sent the CEO or any CYA actions on Vanguard's part.

sport
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Re: Vanguard vs. Fidelity

Post by sport » Sun Jun 21, 2020 9:52 am

space needle wrote:
Sun Jun 21, 2020 1:21 am
I'm disappointed. I have very few needs - my assets just sit there and I rarely have questions. But today I asked myself whether I should move the entire portfolio to another firm - one that has invested in services, information, and customer interface, rather than retaining a 1995 experience in a 2020 world.
There is another important consideration you have not addressed: All Vanguard funds are low cost. At Fidelity, there are some low cost funds, but there are also many expensive funds and other expensive products/services. You probably know enough about investing to avoid the expensive options. HOWEVER, there will come a time when you are no longer able to manage your accounts. Either you will be disabled, or your heirs will be managing them. At Fidelity, there are commissioned sales people would like nothing more than to sell these expensive products to your successors. Vanguard has no commissioned sales people nor expensive products to sell. Are you sure your successors are sufficiently astute to avoid a good sales pitch? In short, I trust Vanguard will not try to take advantage of my successors. I would not want to place such trust with Fidelity.

criticalmass
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Re: Vanguard vs. Fidelity

Post by criticalmass » Sun Jun 21, 2020 11:03 am

abuss368 wrote:
Thu Jun 04, 2020 6:33 pm
You would be fine with either. Vanguard is the only "mutual" mutual fund company and that is a difference. That is, the funds own Vanguard and the shareholders own the funds.
That's a nice attribute in theory, but in practice a 0.04% expense ratio index fund in Fidelity matches the performance of a 0.04 expense ratio index fund in Vanguard tracking the same index. I've found that the Fidelity website is much easier to deal with, the customer service is more helpful, and the friction of doing simple transactions like consolidating finances, changing names, etc. is far easier at Fidelity. Vanguard's customer service is no less friendly than Fidelity, but it can just take a lot more effort to get things setup and accomplished.

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ruralavalon
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Re: Vanguard vs. Fidelity

Post by ruralavalon » Sun Jun 21, 2020 11:21 am

space needle wrote:
Sun Jun 21, 2020 1:21 am


Second, I was looking for RMD information on the V site, along with info on inherited IRA's. Spent 20 minutes on the V site and couldn't find either.
Went to the Fidelity site, and everything I wanted was right there.
I do not have any inherited IRAs, so never had to look for that.

But I do take Required Minimum (RMDs), and that's easy to locate. Vanguard 's RMD service has been very helpful and easy to use.

1) Log on
2) use drop down menu
3) Advice & retirement
4) Required Minimum Distributions
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

dansmail26
Posts: 71
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Re: Vanguard vs. Fidelity

Post by dansmail26 » Mon Jun 29, 2020 2:22 pm

Cheez-It Guy wrote:
Sun Jun 21, 2020 9:06 am
dansmail26 wrote:
Wed Jun 17, 2020 8:26 am
Elysium wrote:
Tue Jun 16, 2020 10:21 pm
jay4u wrote:
Tue Jun 16, 2020 7:28 pm
Elysium wrote:
Sat Jun 06, 2020 2:36 pm


[OT comment removed by admin LadyGeek] We don't know exact nature of your trade and what all happened. I have been with Vanguard over 20 years, and have done multiple rollovers, transactions, conversions, within accounts and between accounts, as well as from external sources into Vg. Never had anything messed up, hopefully it will remain so.
[Response to OT comment removed by admin LadyGeek] Here is an exact quote from the email they sent back to me-
"To update, I did confirm with our senior management groups that our systems were working properly on March 4, 2020. With this said, I recognize that
pasting the ticker symbol within the exchange pathway did not pull up an
associated list of funds, causing you to miss the 4 p.m., Eastern cutoff
timeframe. This is something that has been well documented and noted by our
senior management groups.
However, please understand that Vanguard is not considering this to be
Vanguard or system error. In the future, we would recommend placing
transactions with our representatives over the phone...""

Again, I heartily recommend people choosing Schwab [over Vanguard-- admin LadyGeek]. They told me themselves, don't trust our web site!!
The mistake was on your side too when you did not verify the order was placed correctly, and did not follow up by phone if it was important to you. Looks like you missed a 4pm cut off and you were just expecting tech to take care of it all without doing due diligence.
Their technology screwed up and did not allow me to complete the transaction in time. They admitted it was a "problem", but LOL wouldn't say it was a system error, they went into the CYA mode! And it's ridiculous in this day and age to tell people not to trust their computers, but to call transactions in.... Just something for people considering Vanguard vs Fidelity or Schwab to consider, go with a company that trusts their computer systems!

Interesting side note too, after I snail mailed the CEO of Vanguard about this situation with a copy of this email response, all of a sudden the email response they gave me was erased from my account messages... I still have a copy that I had cut/pasted into my own documents though.
1. Did you switch usernames? jay4u?

2. Not to further extend discussion on a ridiculous topic, but this eventual disappearing of secure messages is standard functionality. I'm not sure about the specific retention period (possibly 30 days?), but they all disappear no matter how benign. This had nothing to do with a postal letter you sent the CEO or any CYA actions on Vanguard's part.
-Yes, I had a password issue and had to get a second account which is now gone.
-good information on the secure messages, I guess people should know to save them then.

and maybe to you this is a ridiculous topic, but losing $30k to me due to a Vanguard computer problem was a big deal to me, especially when they sent a message to me basically saying I was correct.. that is why I moved my money out of there.

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Cheez-It Guy
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Re: Vanguard vs. Fidelity

Post by Cheez-It Guy » Mon Jun 29, 2020 2:55 pm

I would also have been upset, but I tend to blame myself first, within reason.

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Re: Vanguard vs. Fidelity

Post by mervinj7 » Mon Jun 29, 2020 3:01 pm

mike_in_ny wrote:
Fri Jun 05, 2020 9:37 pm
Does anyone else have any input on difference between the "big 3" companies (Schwab,
Vanguard, Fidelity) in terms of their distribution of capital gains?

I NEVER get capital gains distributions on my Vanguard funds (all core index). In contrast,
I get ~0.5% distribution on my Schwab S&P500 fund each year. I do not know about Fidelity.
This starts to add up and contributes to AGI and current year tax bill.

My understanding is Vanguard is different because of this:
https://www.bloomberg.com/graphics/2019 ... tax-dodge/
Vanguard's tax advantage for their mutual funds has been discussed at length in this forum. I avoid capital gains in my Fidelity taxable brokerage account by using only ETFs. For example, my primary equity holding is VTI but I also use ITOT for TLH purposes. Neither will have any taxable capital gains and they have exceptionally low ERs.

retired@50
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Re: Vanguard vs. Fidelity

Post by retired@50 » Mon Jun 29, 2020 3:30 pm

space needle wrote:
Sun Jun 21, 2020 1:21 am
I have been a Vanguard customer for 4 years
...
does not have the tools or calculators I wanted.
Maybe here: https://retirementplans.vanguard.com/VG ... /?gh_sec=n#!/

Regards,
This is one person's opinion. Nothing more.

Northern Flicker
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Re: Vanguard vs. Fidelity

Post by Northern Flicker » Mon Jun 29, 2020 4:32 pm

ruralavalon wrote:
Sat Jun 06, 2020 12:46 pm
CardioMD wrote:
Sat Jun 06, 2020 12:04 pm
So when the parent expires the field will most likely be leveled.
I am not so sure about that, nobody so far has bothered to use that ETF/fund structure under license.
There are downsides to the Vanguard structure. Heartbeat trades use to manage capital gains in ETFs increase trading cost. The fund structure pushes those through to the mutual fund as well. You get no benefit for these extra costs when the fund (ETF or mutual fund share class) is held in a tax-qualified account.

On the other hand, Vanguard does a good job of minimizing foreign taxes paid by international stock index funds, and advantage if holding in a tax-qualified account.
Last edited by Northern Flicker on Tue Jun 30, 2020 12:47 am, edited 1 time in total.
Risk is not a guarantor of return.

Chrono Triggered
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Re: Vanguard vs. Fidelity

Post by Chrono Triggered » Mon Jun 29, 2020 4:58 pm

I have accounts at both. Each have their pros, but I prefer Fidelity overall. 2% cash back credit card, checking account that can be invested in a money market fund, the best HSA out there, and fractional ETF share purchases is an impressive combination.

nanameg
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Re: Vanguard vs. Fidelity

Post by nanameg » Mon Jun 29, 2020 6:18 pm

Chrono Triggered wrote:
Mon Jun 29, 2020 4:58 pm
I have accounts at both. Each have their pros, but I prefer Fidelity overall. 2% cash back credit card, checking account that can be invested in a money market fund, the best HSA out there, and fractional ETF share purchases is an impressive combination.
Great to know! Thanks

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Re: Vanguard vs. Fidelity

Post by LadyGeek » Mon Jun 29, 2020 6:24 pm

nanameg - Please don't get misdirected by the information in this thread. While it's helpful and accurate for the OP, you may get overloaded if you try and mix Fidelity into your own situation.

You're doing fine with Vanguard, so try and focus on the help provided in your thread: PAS advisor portfolio [Why did they setup my accounts like this?].
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

nanameg
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Re: Vanguard vs. Fidelity

Post by nanameg » Mon Jun 29, 2020 6:35 pm

LadyGeek wrote:
Mon Jun 29, 2020 6:24 pm
nanameg - Please don't get misdirected by the information in this thread. While it's helpful and accurate for the OP, you may get overloaded if you try and mix Fidelity into your own situation.

You're doing fine with Vanguard, so try and focus on the help provided in your thread: PAS advisor portfolio [Why did they setup my accounts like this?].
Thanks.

I was thinking of Fidelity since I have an HSA that with a small bank that charges multiple fees. It’s on my list to change over to fidelity now since we can no longer contribute to the HSA this year with beginning Medicare.

But yes, too much stirring the already turbulent pot to switch everything to Fidelity now.

There is a local financial management firm that I had emailed last fall after asking around for an advisor but I didn’t pursue it because it because it seemed a little “ swanky “ if you know what I mean by that. They deal in Fidelity funds and at the time I felt wedded to Vanguard.

I may have saved myself 100’s of thousands if I had followed up with the guy...i mean hand holding ...but I didn’t.

And he just reached out to me again last week. I was tempted to compare and contrast with PAS but I don’t need more confusion right now for sure. Thanks Lady Geek

backpacker61
Posts: 23
Joined: Wed May 20, 2020 6:36 am

Re: Vanguard vs. Fidelity

Post by backpacker61 » Mon Jun 29, 2020 9:46 pm

sport wrote:
Sun Jun 21, 2020 9:52 am
space needle wrote:
Sun Jun 21, 2020 1:21 am
I'm disappointed. I have very few needs - my assets just sit there and I rarely have questions. But today I asked myself whether I should move the entire portfolio to another firm - one that has invested in services, information, and customer interface, rather than retaining a 1995 experience in a 2020 world.
There is another important consideration you have not addressed: All Vanguard funds are low cost. At Fidelity, there are some low cost funds, but there are also many expensive funds and other expensive products/services. You probably know enough about investing to avoid the expensive options. HOWEVER, there will come a time when you are no longer able to manage your accounts. Either you will be disabled, or your heirs will be managing them. At Fidelity, there are commissioned sales people would like nothing more than to sell these expensive products to your successors. Vanguard has no commissioned sales people nor expensive products to sell. Are you sure your successors are sufficiently astute to avoid a good sales pitch? In short, I trust Vanguard will not try to take advantage of my successors. I would not want to place such trust with Fidelity.
This is a worthwhile point and one I am reminded of, as my 92 year old mother has experienced cognitive decline. She reconciled her checkbook monthly to the penny for decades, but cannot even for one month now (I have done it for her during my regular monthly visits, until these have been interrupted by COVID 19).

At some point, many of us are likely to experience this to varying degrees. While I am congnizant to avoid financial services firm's high cost products now, at some point I may not be capable of recognizing them. At a provider like Vanguard, I wouldn't be able to stray too far because they just don't push high cost products.
“Now shall I walk or shall I ride? | 'Ride,' Pleasure said; | 'Walk,' Joy replied.” | | ― W.H. Davies

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