Fidelity Private Client vs Schwab Intelligent Portfolio Service

[sakowitzm]

In full agreement with the majority sentiment here -- "no" to Vanguard wrt personal services, Schwab and Fidelity both fine. I've been with Fidelity for more than 30 years, and I can say w/o reservation, their customer service is second to none. You simply can't do better.

 

[Scuba]

I agree that Fidelity's service is excellent, especially to help you execute what you already know you want.

For those that rely on investment advice from Fidelity, how did you get someone you felt was appropriately seasoned? When we hired an FA in 2013, we moved most of our self-managed portfolio out of Fidelity. The "advisor" Fido had assigned to us for free was very young and I felt I knew quite a bit more than he did about investing. I went for free portfolio review meetings a couple of times but didn't feel they were that valuable.

 

[skibum]

Years ago I met a Fidelity adviser in the local office, and didn't click. A colleague had an adviser in the same office he liked, and they were happy to set me up with another appointment with this fellow who I enjoyed working with.

Several years and accounts later, I suppose I grew to private client status, and now meet with the office lead when something comes up or an annual checkup. I am pleased with the level of engagement, they usually reach out once a year our during market turbulence. Never pushy or selling services. It's obvious I have my own low cost investment philosophy, and am adept at using their retirement planning projections, but the discussions usually yield some productive insights or useful suggestions.

I prefer Fidelity over the other options for the reasons noted. I suggest calling the office for an appointment to discuss opening a private client account and hopefully you meet with the A team. Don't hesitate to ask for another adviser if you have any concerns with personality or approach.

I'm not sure if they're still offering a transfer bonus, it was $2,500 for 1MM+ new accounts a year ago. Kind of hard to find on the Fidelity web site, check other google sites.

 

[foxfirev5]

I'm a Fidelity Private Client and I haven't heard from my assigned representative in over 2 years. He used to call twice a year for a review. I do my own thing so maybe that is why he stopped calling. I do get a free Turbo Tax download so that is something I guess. Ha.

Likewise I only get a few emails a year from my FPC REP. The only time I've used the local office and met with my rep was to do a transfer in kind rollover of my 401k. The transaction was flawless. Perhaps it was my demeanor but there was no pressure to buy anything. At this point the free turbo tax is the only perk I use. The Fido website is another big plus.

Now, on the other hand I need to call VG as they are showing 2017 IRA distributions for this year that are 2x the actual amt. At some point I'll probably move out but really don't look forward to the hassle.

 

[OldShooter]

... how did you get someone you felt was appropriately seasoned? ... I felt I knew quite a bit more than he did about investing. ...

I think the solution here is the same as for other professionals; never accept people at random. Check background (brokercheck.com, linkedin, etc.) and do other research to a degree that reflects the importance of the relationship. While it's certainly true that young brokers need to start somewhere, I have never felt that it was my responsibility to start them.

Think about it this way: If you take "random" you are very likely to be taking "below average." The top people are busy and probably won't be taking random new customers. It's the newbies and the unsuccessful who are most likely to need new customers and are most likely to be given to the next uncritical customer coming through the door.

So, I suggest that you simply call the branch manager, tell him of your unhappiness, and ask to interview a couple other reps who might be a better fit for you, including age, investment interests, etc. I would also specify at least 15 years of experience, which would mean that they started before the 2007-8 excitement and hence at least have some dim idea of what a normal interest rate environment looks like and hopefully have also lived through the tech bubble. ("Bubble experience" is going to be of increasing importance here soon, IMO.)

 

[H2ODude]

Happy Fido private client here. They switched reps on us about a year ago and much happier with new guy. Go in once a year, office is 3 miles from here which is a huge plus. I know most stuff can be handled by phone, but we've had some tricky international transfers to son in Africa that dealing with in person was made quite convenient.

DW is totally ambivalent about how it all gets invested but as I've drug her in for the annual meeting I'm pretty confident that Fido PC service would be all she needs to keep her solvent. Right now we get all the service we do or don't want, whatever the case is.

 

[Huston55]

+1

Either Fidelity or Schwab would be fine choices. Just don't sign up for any fee-based advisory service, especially since you stated:



With $1M, you'll get access to senior reps for free when/if needed.

We've been very happy with Fidelity's service over the years. The website and other tools are perfect for our DIY style of investing, planning, and money management. Our portfolio is a 50/50 mix of iShares and Vanguard ETFs.

Our PCG rep is there if needed. I email him once or twice a year with questions or issues. He's very helpful and responsive. He typically contacts me once a year for a "portfolio review", but last few years I usually decline.

+2

I will say though that I didn’t like the first PCG rep assigned to me. But, ended that relationship and the current one is great.

 

[gayl]

I don't like Schwab's robot trading service but I still prefer Schwab advisers over Fidelity's.

 

[Scuba]

I think the solution here is the same as for other professionals; never accept people at random. Check background (brokercheck.com, linkedin, etc.) and do other research to a degree that reflects the importance of the relationship. While it's certainly true that young brokers need to start somewhere, I have never felt that it was my responsibility to start them.

Think about it this way: If you take "random" you are very likely to be taking "below average." The top people are busy and probably won't be taking random new customers. It's the newbies and the unsuccessful who are most likely to need new customers and are most likely to be given to the next uncritical customer coming through the door.

So, I suggest that you simply call the branch manager, tell him of your unhappiness, and ask to interview a couple other reps who might be a better fit for you, including age, investment interests, etc. I would also specify at least 15 years of experience, which would mean that they started before the 2007-8 excitement and hence at least have some dim idea of what a normal interest rate environment looks like and hopefully have also lived through the tech bubble. ("Bubble experience" is going to be of increasing importance here soon, IMO.)

Great approach, thank you.

 

[wenglish]

...At Vanguard, Fido, and Schwab you will be dealing with fiduciaries...

Is this likely to remain the case, now that financial institutions are no longer required to be fiduciaries? (or am I misunderstanding? - quite possible)

 

[gayl]

Just found out that my advisor has moved to the Oakland office and I really don't want to go any farther than my local office which is in Walnut Creek. So they transferred me upstairs to an A Team Advisor. Actually they told me I was supposed to be there five years ago when my account crossed a certain level. I really wish I didn't have to get used to somebody new all the time.

 

[OldShooter]

Is this likely to remain the case, now that financial institutions are no longer required to be fiduciaries? (or am I misunderstanding? - quite possible)

I think you are referring to the June 9 initial Dept. of Labor rule mandating that investment salespeople act as fiduciaries when selling retirement-related investments.

1) The industry is fighting this tooth and nail. It will probably stick but that is not a certainty.

2) It applies only to retirement money, so the same sales guy who is required to be a fiduciary for your retirement accounts can rape and pillage as he likes for your non-retirement accounts.

3) IMHO all those sales people who have been raping and pillaging with load funds, 12b1 fees, and high cost products like indexed annuities, private investment "opportunities," etc. are not going to suddenly and magically be clothed in white raiment and become St. Francis of Assisi. Tigers don't change their stripes that easily.

4) DOL allows a thing called a "Best Interest Contract Exemption" that I don't understand but it appears to be a way that an FA can get a customer to waive the fiduciary requirement.

So my advice to the few people who ask is to avoid brokerages that are on the fiduciary bandwagon only because of the DOL rule and to insist they have it in writing that their relationship with their FA is a fiduciary relationship. IOW a piece of paper that you can show the judge if necessary.

 

[HarveyS]

It seems that I am an exception, but I have been very happy with VG customer service. I am at the Flagship level so perhaps the better reps. work at that level. I do agree with the frequent changing of "my" advisor being an issue. It seems that frrequent moves are to be expected in these businesses.

 

[Helen]

I am meeting with a Fido rep on Monday. I've had an account with both Fidelity and Vanguard for years. I finally got fed up with having to get medallion signatures and notary stamps to transfer money or link to bank accounts.

It will be interesting to see if they still have a transfer bonus and to see if he try's to sell anything.

I have never met with a Fido rep, I ignored their requests in the past. At this point we are sitting on too much capital gains to move things around, so I will just let him do the paperwork of moving and merging accounts.

 

[nwsteve]

I have never met with a Fido rep, I ignored their requests in the past. At this point we are sitting on too much capital gains to move things around, so I will just let him do the paperwork of moving and merging accounts.

Keep in mind that in most cases you can transfer your positions "in kind" and have no taxable event to report. About the only thing Fido will not take are thinly traded positions, and proprietary funds that some hedge funds use,

 

[youbet]

Schwab is fine, especially if you want to fool with individual stocks and trading, but for the buy and hold indexer, Fidelity is much better.

Why? I'm a long time Schwab customer but recently investigated Fidelity as a place to roll over my 401k and give myself some diversity from Schwab. I didn't find anything about Fidelity that made them "much better" for the buy and hold indexer.

What did I miss?

 

[TrvlBug]

...
It will be interesting to see if they still have a transfer bonus and to see if he try's to sell anything.
.

I googled Fido promotions and only 2 'free trades' promotions are being offered depending on the $ amount transferred. Do some research to see if others are offering transfer bonuses. When I retired 6 years ago, Fido was not offering any bonuses but another firm was and I got Fido to match...$600 of free $ . When DH retired last year and transferred his 401K to Fido, we got the $2,500 being offered, however, we had to request it, it wasn't offered to us.

 

[Helen]

I googled Fido promotions and only 2 'free trades' promotions are being offered depending on the $ amount transferred. Do some research to see if others are offering transfer bonuses. When I retired 6 years ago, Fido was not offering any bonuses but another firm was and I got Fido to match...$600 of free $ . When DH retired last year and transferred his 401K to Fido, we got the $2,500 being offered, however, we had to request it, it wasn't offered to us.

Thank you. I found a link that lists out the various promotions available. It's pretty slim pickings right now.

http://www.moneysmylife.com/stock-broker-promotions/#Charles_Schwab

 

[OldShooter]

Why? I'm a long time Schwab customer but recently investigated Fidelity as a place to roll over my 401k and give myself some diversity from Schwab. I didn't find anything about Fidelity that made them "much better" for the buy and hold indexer.

What did I miss?

My guess: nothing. I've been with Schwab for a long time but recently did some Fido due diligence while helping a friend shop for a broker/escape plan from Eddie Jones.

My conclusion was that the big 3, Vanguard, Fido, and Schwab are much more alike than different. The differences between reps are far larger than the differences between companies. So I remain a believer in interviewing reps as the most important thing prior to making a move.

That said, there may be small differences that are important to a particular situation. I learned, for example, that Fido offers inexpensive term life insurance, apparently directly. Kind of a surprise. per Google, Schwab offers insurance too but via an outside company. Something like that may make a difference to some. That kind of thing can be checked during an interview.

 

[Another Reader]

Why? I'm a long time Schwab customer but recently investigated Fidelity as a place to roll over my 401k and give myself some diversity from Schwab. I didn't find anything about Fidelity that made them "much better" for the buy and hold indexer.

What did I miss?

Better selection of low cost mutual funds and commission-free ETF's, better website, and the 2 percent cash back Visa from Elan.

 

[Helen]

Thank you. I found a link that lists out the various promotions available. It's pretty slim pickings right now.

http://www.moneysmylife.com/stock-broker-promotions/#Charles_Schwab

I met with the broker/advisor at Fido yesterday. My spouse did not have an existing account there and we transferred her individual accounts and our joint accounts from Vanguard. I mentioned the $2,500 transfer bonus that was offered last year and he said we would qualify for it this year.

I will be watching to make sure we receive it.

 

[bingybear]

Better selection of low cost mutual funds and commission-free ETF's, better website, and the 2 percent cash back Visa from Elan.

I like the fido credit card, but Elan seems to be worse than fia from my experience. I think schwab's research is better. I'm not sure I would say fido website is better.
Both have no commission ETF. schwab in house ETF are good, some of the others I wouldn't touch. Fido likely has more no commission ETFs with some good choices, but be careful some are very thinly traded.

I have accounts at both fido and schwab. I think both are good brokerages.

 

[gayl]

Just found out that my advisor has moved to the Oakland office and I really don't want to go any farther than my local office which is in Walnut Creek. So they transferred me upstairs to an A Team Advisor. Actually they told me I was supposed to be there five years ago when my account crossed a certain level. I really wish I didn't have to get used to somebody new all the time.

frustrated .... met with new advisor who input updates (gave her what spending / income actually was 1st yr in retirement) and sent me the projection. Problem is that every number is wrong -- pension understated with no COLA entered, expenses not what I gave her, she decided I get a new car every 3 yrs (my car is 3 yrs old with 38k miles so why would I replace?), and underestimated tax rate (asked to use 28% but she entered 22%). Not worth paper it's printed on

 

[Helen]

frustrated .... met with new advisor who input updates (gave her what spending / income actually was 1st yr in retirement) and sent me the projection. Problem is that every number is wrong -- pension understated with no COLA entered, expenses not what I gave her, she decided I get a new car every 3 yrs (my car is 3 yrs old with 38k miles so why would I replace?), and underestimated tax rate (asked to use 28% but she entered 22%). Not worth paper it's printed on

I paid a flat fee of I think $2,300 to have a financial plan put together by a NAPFA advisor and received the same kind of errors. She was off by about $10k on our social security even though I had provided her with the statements from SS, she had the wrong amount for our pensions, she mixed pre tax and post tax dollars, she had columns with no headers, and on and on. I took a red marker to the paper and sent it back requesting a refund. She fixed most of the errors that I had pointed out and sent it back stating she felt she had fulfilled her end of the deal. I wrote back and politely pointed out that I had lost confidence in her and the report had no use to me. I received a refund.

 

[nwsteve]

frustrated .... met with new advisor who input updates (gave her what spending / income actually was 1st yr in retirement) and sent me the projection. Problem is that every number is wrong -- pension understated with no COLA entered, expenses not what I gave her, she decided I get a new car every 3 yrs (my car is 3 yrs old with 38k miles so why would I replace?), and underestimated tax rate (asked to use 28% but she entered 22%). Not worth paper it's printed on

y\
Suggest you share the report you got with branch mgr and request a new rep.
I have been fortunate to never have an experience like yours in over 20 years with Fido even before I qualified for "A team" talent.
No acceptable excuse IMHO.