All Vanguard or Vanguard AND Fidelity?

[nwsteve]

We also have our assets split between VG and Fido--about 25/75 respectfully. Bias also with Fido for significantly better customer service and responsiveness when dealing with issues.
If you are looking for another reason, consider SIPC guarantees 500k, 250k cash.
Both Fido and VG have supplemental insurance with Lloyds of London but it more designed for their overall exposure rather individual customers. VG caps theirs at 49.5 Mil on securities and 1.9 Mil on cash for clients whereas Fido does not have an individual client limit. See Fidelity Investments: Site Search for Fido and https://personal.vanguard.com/us/wha...ountprotection for VG
Nwsteve

[FIREd]

My wife's 401K is at Fidelity, the rest is at Vanguard. When she retires, we will probably roll over her 401K into her Vanguard IRA for simplicity sake.

[Major Tom]

Quote:

Originally Posted by REWahoo Vanguard touts this arrangement on their website as "Vanguarding", something supposedly unique in the investment world.

When they changed their main page to reflect this "Vanguarding" concept, it bugged me. I don't like it when companies start using cutesy lines in order to promote themselves - especially an investment company. The first thought that came to my mind was "I hope they didn't pay some media group a large sum of money to come up with this idea."

As long as the low fees for their index funds remain the same and they don't show too many signs of trying to market themselves as cool, it's still Vanguard all the way for me.

Edit: Let me amend that. I don't mind cutesy sell lines, just not from a financial company.

[km4hr]

Quote:

Originally Posted by W2R I would put it all in Vanguard. Other than my TSP, all of mine is at Vanguard. I do worry sometimes about what would happen if someone got my password to Vanguard.

They could make a mess of your account but they couldn't get their hands on your assets. Vanguard accounts are set up to transfer assets to specific places, such as your checking account at your bank. The only way to change where your money can go is by filling out a form and mailing it in with your signature, a process that takes several days. It can't be done online. So other than moving things around within your account or sending your money to the places you designated there's nothing an intruder could do, AFAIK. If you want to know for sure then call Vanguard and ask for an explanation.

[foxfirev5]

My wife and I use Vanguard for our IRA's and investment accounts. Both of our 401k/403b accounts are with Fidelity. However, the bulk of the Fidelity accounts consist of institutional class Vanguard index funds. With the low cost I doubt I would roll them over. Also, my 401k allows early penalty free withdrawals if you retire after 55. Using simple investment choices its no hassle to track both Fido and VG accounts.

[misanman]

We have consolidated almost everything to Fidelity. Like the way their site is set up, the service, and the local office. I have no experience with Vanguard but I'm sure they are fine as well. Nice to have everything in one place as far as I am concerned.

[Tw90663]

We only use vanguard. It is low-cost, owned by fund holders, no hidden charges.

[rescueme]

Quote:

Originally Posted by Tw90663 ...no hidden charges.

Such as?

[Tw90663]

Quote:

Originally Posted by rescueme Such as?

Large bid-ask spread, management fee, 102b fee, loads, high turn over creating higher transaction fee and taxes.

[youbet]

Quote:

Originally Posted by Tw90663 Large bid-ask spread, management fee, 102b fee, loads, high turn over creating higher transaction fee and taxes.

I don't understand the high turn over comment. We are talking about Vanguard as a financial institution, not about a paticular Vanguard fund. Are you saying that Vanguard's TSM fund has a meaningfully different turnover ratio than, say, Schwab's TSM fund? I don't think so......

[rescueme]

Quote:

Originally Posted by Tw90663 Large bid-ask spread, management fee, 102b fee, loads, high turn over creating higher transaction fee and taxes.

I don't think so.

Do an analysis of any fund/investment company via M* (assuming you are a Morningstar preimum member - which I am, BTW).

I don't think (other than the fund management/overhead expenses, which are shown) you will find total cost is not out of line vs. what is "advertised".

If you chose a fund/fund company based upon "advertised overhead", so be it. However if you allude to some "hidden fees", I'm not going to agree with you.

(Please return to the BH forum ; your "two minues of fame" <heck, I don't even allow 15 minutes> are up, here)...

[Tw90663]

Guess I'm commenting on in comparison to my old ameriprise portfolios. I now own only vanguard index funds and am very happy with the decision.

[Tw90663]

That is a harsh comment there rescue me. Im not seeking any "fame" of any sort.

[youbet]

Quote:

Originally Posted by Tw90663 Guess I'm commenting on in comparison to my old ameriprise portfolios. I now own only vanguard index funds and am very happy with the decision.

Thanks for clarifying. You completely changed the subject of the thread without mention so it's not surprising some of us were confused by your statement.

[rescueme]

Quote:

Originally Posted by Tw90663 That is a harsh comment there rescue me. Im not seeking any "fame" of any sort.

Well, with your mention of "Ameriprise", it is now evident of your comarison with a company of questionable worth.

When you enter of a discussion of FIDO vs. VG, (the title of the OP's thread) you must be careful of what you are speaking of.

I would not include A* in any serious discussions of options available....

[Tractor guy]

I've got all of my investment accounts at Vanguard. Used to have them at 4 institutions. Much cheaper & simpler now. Consolidating accounts bumped me up to Flagship so am getting those benefits.

I do NOT have my bank accounts at Vanguard. Between my banking, savings, & CD's (at 2 different banks) I have a couple of years living expenses so don't have any worries about Vanguard locking me out.

Lorne

[ziggy29]

Quote:

Originally Posted by Tw90663 Guess I'm commenting on in comparison to my old ameriprise portfolios. I now own only vanguard index funds and am very happy with the decision.

Glad you came to the light.

Seriously, as to the original question, whether Vanguard only or moving some to Fido, there are really only two considerations I see:

1) If you really think your capital is at additional single-point failure risk if Vanguard somehow "failed" (and keep in mind that a custodian failing doesn't mean the underlying securities failed), then by all means, nothing wrong with adding a Fidelity account.

2) If there is a particular fund, a particular investment option, a particular service Fidelity may offer that you can't get with Vanguard only, by all means open a Fido account as you need it.

[nwsteve]

Quote:

Originally Posted by ziggy29 Glad you came to the light. Seriously, as to the original question, whether Vanguard only or moving some to Fido, there are really only two considerations I see:

The two reasons given are certainly on target. IMHO, a third consideration is the breadth and quality of tools available for the investor. Fidelity wins this one hands down.

For me the fourth one, is responsiveness and engagement of customer service. Having done business with both companies, my experience clearly favors Fidelity especially if your issue is out of the daily routine.
Nwsteve

[Spanky]

Our situation:
1/3 Fido
2/3 Vanguard

Both companies are fine. We have limited contact with their customer service and therefore cannot comment about responsiveness. My biggest complain about Vanguard is that it takes a while (about a week or more) to clear direct deposit from another bank or even its own brokerage service to our money market account.

[Katsmeow]

Quote:

Originally Posted by W2R I do worry sometimes about what would happen if someone got my password to Vanguard.

I have thought of this. My safeguard against this is that I log into the account at least every other day and usually every day. My experience is that transfers take awhile so if I couldn't log in (because someone got in and changed the password) or if I logged in and saw a pending transfer then I could stop it.

The other thing I've wondered about (not with regard to Vanguard or Fidelity where we have the rest of our money...) is this. I know that Vanguard doesn't own the index funds so I'm not worried that if Vanguard goes under that all my money will be gone. But in general (again not so much with Vanguard) I have wondered how you guard against the possibility that you think you own an index fund...but really don't. That is, you give someone money (such as Vanguard or Fidelity or whoever) and they tell you they bought the Wellesley with it (or whatever). And they send you a confirmation to Wellesley...but they really didn't buy Wellesley. Instead, someone took your money and absconded with it or gambled it away, etc. And they get found out and you think you are OK since you own the index fund but then Wellesley (or whatever) says you don't...that it was never purchased...