|
|
All Vanguard or Vanguard AND Fidelity?
06-18-2011, 09:08 AM
|
#1
|
Full time employment: Posting here.
Join Date: Mar 2008
Posts: 968
|
All Vanguard or Vanguard AND Fidelity?
Now that DH has retired, we have access to a defined contribution plan that can be rolled over. That balance represents about 35% of our retirement savings. We have about 45% of retirement savings with Vanguard. The rest is in traditional IRA's (10%); and banks and smaller amounts in mutual funds which we will access prior to 59 1/2. (Pension and mostly equal amounts of social security will also fund retirement)
For simplicity, we would prefer to rollover his funds to Vanguard. But my mind says diversification, and therefore thinks it might be better to put his in Fidelity. I know both are solid--but what do the rest of you do with your holdings and/or what would you advise?
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
06-18-2011, 09:35 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
|
My opinion placing all or most of your nest egg with Vanguard is it is largely a matter of personal preference and convenience, not a diversification concern.
Here are a couple of other discussions:
http://www.early-retirement.org/foru...ard-14525.html
http://www.early-retirement.org/foru...ing-48115.html
Note that Vanguard is structured so that the individual funds own Vanguard, not the other way around:
Quote:
Originally Posted by FD
Vanguard is owned by its funds, and the funds are themselves owned by the people who invest in them. So, each Vanguard fund is a separate entity and even if one were to get in trouble, the other funds should be fine (although funds of funds could still be impacted).
|
Vanguard touts this arrangement on their website as "Vanguarding", something supposedly unique in the investment world.
With the exception of a few stragglers I've been too lazy to move, all my investments are with Vanguard.
__________________
Numbers is hard
|
|
|
06-18-2011, 09:39 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
My 401(k) is with Fidelity. We have some stuff at Vanguard. But we prefer to use ETFs without commission at WellsFargo and TDAmeritrade. In other words, we diversify across many financial institutions.
I don't buy the idea of simplicity in one vendor because most of my accounts are "set-and-forget" where I do not need to rebalance or make any trades at all. Instead, I use one vendor for all the trades. The other vendors are just kept in the background. Besides, everthing looks the same if you use the same web browser to access all your accounts anyways.
Mutliple vendors lets you avoid restrictions such as "cannot buy back into a fund after selling for 60 or 90 days" as well. You just do the deed at another vendor.
With all our financial institutions, we are using very low expense ratio index funds in the 0.07% to 0.22% range.
|
|
|
06-18-2011, 10:07 AM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
|
I use both. Fido has an office near me and it has been useful to have a face to face occasionally on more complicated moves like rollovers.
|
|
|
06-18-2011, 10:30 AM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2009
Posts: 5,307
|
We have about 2/3 at Vanguard (IRA). The other third is in 401ks at Fidelity.
|
|
|
06-18-2011, 12:54 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,671
|
I don't see that splitting up your stash between Fido and VG gives you any more protection or diversity. They invest in the same companies, after all. I have no problem with sleeping now that I'm 100% in VG. Pick the one that works best for you and go 100%.
__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
|
|
|
06-18-2011, 01:06 PM
|
#7
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,474
|
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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
|
|
|
06-18-2011, 01:33 PM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 5,072
|
We have our money spread across several financial service companies partly because of 401ks and qualified accounts. They provide access to some investments (stable value funds) that are not normally available through mutual funds.
I would be reluctant to put all (or most) of our investment assets under the control of one company. If I consider all of our assets, I do not think I would put more than 1/3 under the control of any one organization.
While I think the chances of something really bad happening (at one of the very large mutual fund companies) is low.... If something did happen, we might be in trouble everything wound up in jeopardy, or even a major portion of it.... for that matter, even if our money was tied up for an extended period of time because of some sort of legal problem.
While managing the money at multiple companies is a bit of a hassle, I will probably continue to do it as a precaution.
|
|
|
06-18-2011, 01:39 PM
|
#9
|
Recycles dryer sheets
Join Date: Nov 2010
Location: Houston/Galveston area
Posts: 163
|
I moved my Fidelity holdings (401K) to Vanguard when I retired. I did it for convenience. It's easier for me to keep track when it's all in one place.
__________________
Retired 3/1/2011
|
|
|
06-18-2011, 01:47 PM
|
#10
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2004
Location: SW Ohio
Posts: 14,404
|
Our funds are split between VGD and Fido, but only because Vanguard didn't offer Solo 401Ks when I needed one (now they do). I intend to consolidate everything at Vanguard when I get around to it.
I bank with USAA. I might open a small bank account at a local bank or CU. It's sometimes handy to have an account at a real physical bank (to get a signature guarantee, cash in paper savings bonds, get coin change for a garage sale, rent a safe deposit box, get a cashier's check, etc).
|
|
|
06-18-2011, 01:54 PM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Oct 2002
Location: Chattanooga
Posts: 3,878
|
Have tax deferred accounts with Fido and after tax accounts with VG.
I would not have a problem with having all my eggs with either of them.
__________________
Earning money is an action, saving money is a behavior, growing money takes a well diversified portfolio and the discipline to ignore market swings.
|
|
|
06-18-2011, 01:58 PM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
|
I've never dealt with Fideleity, so I cannot give an opinion.
After years of fixing my beginner's mistake of dealing with individual MF companies and opening way too many fund accounts , I have all of my portfolio investments and Roth IRA accounts with Vanguard. I have 1 non-VG fund left over in my Roth brokerage account. I'll deal with that when I turn 59 1/2.
It is simple to keep track of everything under 1 roof, with extremely good service, and no problems whatsoever.
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
|
|
|
06-18-2011, 02:09 PM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,067
|
Fidelity guy here and completely happy with their service. But if your pro VG, I would just roll everything there. Having it all under one roof is convenient.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
|
|
|
06-18-2011, 06:59 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 4,366
|
I'd make sure you have some funds accessible from somewhere besides Vanguard. You never know when their computer system may go down for a week, not that it ever has.
There will be some differences in the available funds, with and without transaction fees, and minimum balances. I like the commission-free ETF's at Fidelity, and holding mutual funds and ETF's/stocks in the same account. I can also trade specific shares of mutual funds, which can help taxes.
|
|
|
06-18-2011, 08:41 PM
|
#15
|
Full time employment: Posting here.
Join Date: Sep 2008
Location: Southeast USA
Posts: 548
|
My Megacorp's 401K was with Fidelity. When I retired, Fidelity and Megacorp greased the skids to roll my lump sum pension into Fidelity. They would handle everything with blinding electronic speed. Instead I opted to do a rollover IRA to Vanguard. DW and I already had Roth IRA's and an after tax joint account at Vanguard. So, even though I pre-arranged the lump sum pension rollover to Vanguard, Megacorp mailed me a paper check via USPS which I had to forward to Vanguard. I also mailed my severance check to our Vanguard joint after tax account. Back then (2007) the Vanguard MM account was paying a worthwhile return.
I rolled over my 401K to an IRA which remains at Fidelity. Our retirement accounts are now about 50-50 Fidelity-Vanguard. The fact is I compare Fidelity and Vanguard often and, so far, I am happy with this arrangement.
|
|
|
06-19-2011, 06:41 AM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,691
|
Quote:
Originally Posted by W2R
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.
|
Exactly, does anybody know what would happen if your account was drained and how long it would take to get your money back if you could. At the very least, I would keep enough cash in the local bank for 6 months expenses, just in case...
TJ
|
|
|
06-19-2011, 06:51 AM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,132
|
Before I retired, my 401K was in Fidelity. When I retired, I moved it all into my Vanguard IRA. Nothing against Fidelity, but I like the simplicity of one place. I trust that the odds are that Vanguard will be around longer than I will, so I'm comfortable with my choice.
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
|
|
|
06-19-2011, 06:54 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2008
Posts: 13,132
|
Quote:
Originally Posted by freebird5825
I've never dealt with Fideleity, so I cannot give an opinion.
After years of fixing my beginner's mistake of dealing with individual MF companies and opening way too many fund accounts , I have all of my portfolio investments and Roth IRA accounts with Vanguard. I have 1 non-VG fund left over in my Roth brokerage account. I'll deal with that when I turn 59 1/2.
It is simple to keep track of everything under 1 roof, with extremely good service, and no problems whatsoever.
|
Ah..brings back memories. Been there, done that too early on about opening way too many fund accounts .
__________________
Have you ever seen a headstone with these words
"If only I had spent more time at work" ... from "Busy Man" sung by Billy Ray Cyrus
|
|
|
06-19-2011, 07:06 AM
|
#19
|
gone traveling
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
|
I'm retired (DW will soon be). We have a current ratio of around 60% FIDO 40% VG.
There are a lot of reasons why we stay with FIDO, and I won't debate anything on cost alone (which is what VG advertises). If you feel you need to be exclusively with them (or FIDO) so be it; it's your decision.
However, our combined slice/dice retirement portfolio, along with a cost of around .45 (combined for both companies), in addition to the superior tools (IMHO) of FIDO over VG keep us there.
We're Private Client with FIDO, Flagship status with VG. I guess you can say that we've "voted with our money" (although we've found that either company's "preimum service" is really of little value in our specific situation since we don't need "hand holding"), and we are not frequent traders so the free trades we could make don't make any financial sense, in our situation.
Also, since I withdraw monthly to fund my retirement expenses, from FIDO (and transfer from VG, to "restock" our retirement income cash buckets, held on the FIDO side), I'm more familiar with their monthly withdrawl tools (where taxes are paid, and my personal checking/savings accounts are updated). Why learn two different "systems" on the withdrawl side (something else, you will learn when you are retired).
Like our investments, our selected investment companies are "diversified". Why does it need to be all or nothing?
BTW, we also hold an SPIA through FIDO based upon our contract requirements and return rates based upon the decision, back in 2007. They met our "needs", along with offering the best monthly payment at the time over other companies (including VG).
I/DW like having "options". Having more than one company suits our specific need/desire. If you feel differently? So be it...
Just our story...
|
|
|
06-19-2011, 10:53 AM
|
#20
|
Recycles dryer sheets
Join Date: Mar 2007
Posts: 92
|
I'm about 50/50. I don't know how much risk there is in not diversifiying, but it's really no big deal from a simplicity standpoint to deal with two sets of statements and a little extra work at tax time. I like vangards index fund selection, but fidelity also has some low fee index funds.
I've actually had much better customer service from Fidelity and plan to eventually most all my 401k with them and much of my personal accounts with vangard.
__________________
"I’d like to live as a poor man with lots of money." Pablo Picasso
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|