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Old 08-31-2015, 06:14 PM   #21
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Originally Posted by LOL! View Post
I've never seen Fidelity-recommended portfolio that didn't have a whole bunch of high-expense-ratio actively-managed funds in it. While one may not pay an obvious fee, those 12b-1 fees and high expense ratios will keep tamping down your returns each and every single year.

If you do get a recommendation for an asset allocation that you can live with, be sure to fulfill the asset allocation only with low-expense-ratio, passively-managed index funds. Fidelity has them and they all have "Spartan Advantage" in their name. If that ain't in the fund name, then you do not want to own it.

But Fidelity reps are good at getting one away from index funds as in, "Sure, we have index funds for folks who want them, but if you get could a better return from an actively-managed fund, wouldn't you want to own it? I can show you which funds have better returns." They will not use "risk-adjusted returns" though. Nor will they typically use tax-adjusted returns for folks with taxable account investments.

Full disclosure: I have an account at Fidelity, but I only use an index fund and Vanguard index ETF in it.
I have been with Fidelity for over 20 years and never had a conversation like this with any of my reps. Yes, they will recommend Fido funds but never any pressure to take only those options for meeting an asset allocation.
As you already indicated, you can buy any ETF including Vanguard's through the Fidelity brokerage at 7.95. Like any vendor, the buyer needs to use the options that offer the most value for their particular situation.
Nwsteve
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Old 08-31-2015, 07:59 PM   #22
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My rep told me they do get compensated for selling annuities. I think he told me he gets about $40 for a 100k annuity... so not much to convince them to push it. If I told them I wanted more index funds, they provided a mostly index portfolio. They offered both fidelity funds and non-fidelity funds. I've had them recommend non-NTF funds at times because they thought he fund was worth the TF. If you have a preference as the underlying structure, I think they will try to provide within you requirements.
They offer CDs... brokered CDs primarily. These are usually issued by banks and CU... not fidelity as the issuer.
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Old 08-31-2015, 09:38 PM   #23
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This was the big benefit for me of sitting down with my Fidelity rep. I had used their RIP (very unfortunate acronym) but he showed me that I could do quite a lot more with it and customize it more than I realized. Very worthwhile.
If you use Fidelity's Fullview, it brings in data into RIP.

I have been in the office twice to discuss retirement plans. Learned a lot of tricks with RIP.

Here's one tip I learned
If I am going to retire at 56, and live solely on rental income until 61, key in retirement of 61 and $1 in salary income. RIP will not touch investments until 61.

A previous time I was shown how RIP calculates healthcare and LTC costs. While it may overstate the expense, it is based on some real formula. I include it now as I want to be so solid in retirement I can make some mistakes and not worry about it.

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Originally Posted by nwsteve View Post
As you already indicated, you can buy any ETF including Vanguard's through the Fidelity brokerage at $7.95. Like any vendor, the buyer needs to use the options that offer the most value for their particular situation. Nwsteve
And many Ishares are commission free. IVV, DVY, IVW are some I use.
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Old 09-01-2015, 08:09 AM   #24
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Originally Posted by LOL! View Post
I've never seen Fidelity-recommended portfolio that didn't have a whole bunch of high-expense-ratio actively-managed funds in it. While one may not pay an obvious fee, those 12b-1 fees and high expense ratios will keep tamping down your returns each and every single year.
If you do get a recommendation for an asset allocation that you can live with, be sure to fulfill the asset allocation only with low-expense-ratio, passively-managed index funds. Fidelity has them and they all have "Spartan Advantage" in their name. If that ain't in the fund name, then you do not want to own it.

But Fidelity reps are good at getting one away from index funds as in, "Sure, we have index funds for folks who want them, but if you get could a better return from an actively-managed fund, wouldn't you want to own it? I can show you which funds have better returns." They will not use "risk-adjusted returns" though. Nor will they typically use tax-adjusted returns for folks with taxable account investments

Check fcntx and flpsx. I've owned them for almost 10 years. I hate to be the one to tell you this but there are funds that beat their index CONSISTENTLY
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