Fidelity Instead...

[StillHacking]

I'd strongly encourage you to talk to Schwab too. In both cases start by talking to the branch manager. Even if you are sure about Fidelity, you might be able to run the two off against each other. Alternatively you might find Schwab offers a better deal.

Also, wherever you go, be sure to interview at least a couple of reps. Explain to the branch manager what kind of rep you are looking for -- all aspects. Experience, sex, investing interests, etc. and have him/her pick out a couple of candidates for you to talk to. Make sure you click with the rep. brokercheck, too.

To get the best goodies you may have to transfer more than a portion of your portfolio. But maybe the carrot of getting everything will be enough.

Good luck; keep us posted.

I guess I should speak to them as well. Maybe some others. The new contact at Stifle seems OK. Now that I've been given a reason, splitting not necessarily evenly could be a good learning experience.

 

[Closet_Gamer]

As others have said, I would move it and consider both Fido and Schwab. Either will roll out the red carpet for an 8 figure account.

We don't have that much at Schwab but do have an assigned person who is very attentive and good at getting things done/fixed when needed but stays out of the way in the 98% of the time I don't need her.

Definitely talk to them before moving to ensure they entice you with incentives.

Good luck.

 

[Winemaker]

I would dump the American Funds yesterday.

 

[OldShooter]

I would dump the American Funds yesterday.

Well, the OP can't unwind history so even if they were load funds that is all sunk cost. The forward-looking question is whether there are capital gains imbedded in the positions and whether the funds are likely to be so terrible that it is worth taking a tax hit to escape. OP has done well so far so I'm sure he can figure it out.

(I'm not a fan of American or of any fund company that sells load funds. I'm in maybe a minority that thinks loads and 12b-1 fees are unethical.)

 

[Qs Laptop]

I would dump the American Funds yesterday.

Well, the OP can't unwind history so even if they were load funds that is all sunk cost. The forward-looking question is whether there are capital gains imbedded in the positions and whether the funds are likely to be so terrible that it is worth taking a tax hit to escape. OP has done well so far so I'm sure he can figure it out.

This was my dilemma when I switched to self-directed investing at Fidelity vs. when I was at Edward Jones. Ed Jones primarily uses American Funds. There are only two or three good funds in their offerings. Fidelity has superior funds across the full spectrum. No load, no transaction fees with lower expense ratio fees as well. Win-win-win.

When I made the "in kind" transfer from Ed Jones to Fidelity I knew I had capital gains and I knew I was going to take some capital gains hits if I were to liquidate. However, most of my biggest gainers were in my IRA's. I switched out the American Funds rather quickly in my IRAs. In my taxable account I made the moves when it made the most sense, but I'm now finally completely rid of the bloated, underperforming American Funds.

 

[StillHacking]

I'm in the process of reassessing my holdings. I've used Quicken and now Personal Capital/Empower. The Empower link to Stifel has an issue updating. I believe with Yodlee.

I hope to have this resolved this week, as well as speak with Schwab and Fidelity. Do either of these have the ability to track performance and cost? Can they do so with assets not held there?

The bulk of my holdings are common stock. My grandfather would never hold any mutual funds. Perhaps I need to revisit this plan.

 

[Qs Laptop]

I hope to have this resolved this week, as well as speak with Schwab and Fidelity. Do either of these have the ability to track performance and cost? Can they do so with assets not held there?

The ability to create reports that tracks performance and cost is extensive at both Fidelity and Schwab. As to tracking performance of assets not held there you could create a watchlist portfolio. You simply enter the ticker symbols of each security, the buy price and date of purchase. There may be a way to import this information into their watchlists, but I've never explored that option.

Before you decide which one to move your assets I strongly suggest spending some time on Fidelity and Schwab's websites to get a feel for how to use them. Check out which site is easier to understand and use, and has the best help. Which site do you feel comfortable navigating and using?

The bulk of my holdings are common stock. My grandfather would never hold any mutual funds. Perhaps I need to revisit this plan.

Generally speaking mutual funds are less risky than stocks. But then again, the reward will not be as great either. It's the classic question--how much risk are you willing to take for the amount of reward you are seeking?

 

[Jeffman52]

DW and I use both Fidelity and Stifel, although not nearly as much in my nest egg in total. Here are my percentages.



28% Pension
44% Stifel
20% Fidelity
8% Cash and CD's

 

[olyveoil]

Why does it make a difference what he's invested in right now?

From the OP:

His current lowest management fee at the new place is .25% plus an additional advisory fee detailed in their WMA.

Why give someone .25% in fees to manage an index fund??!!

You answered your own question.

 

[StillHacking]

I created accounts at Schwab and Fidelity. Neither funded. Schwab is extensive but if it can track assets outside, I cannot find how to pull in or manually enter. I'll continue to explore. Fidelity doesn't let me into any of their tools with a zero balance. Currently playing phone tag with them. Schwab actually answered their phone. Nice!

My Stifel accounts aren't syncing with Empower. Trying to resolve. Recommendations on other analysis software paid or free would be appreciated. I tried Quicken, didn't care for it.

 

[DrRoy]

I have been with Fido for over 40 years. I have all my investments there except for my 401K.

 

[OldShooter]

I created accounts at Schwab and Fidelity. Neither funded. Schwab is extensive but if it can track assets outside, I cannot find how to pull in or manually enter. I'll continue to explore. Fidelity doesn't let me into any of their tools with a zero balance. Currently playing phone tag with them. Schwab actually answered their phone. Nice! ...

If the web sites are important to you, navigating the web sites might be a good exercise when you are interviewing reps. Can they easily help you with the things you'd like to see?

Re Schwab, in years past I had a small experimental portfolio with an FA who had access to DFA funds. He was using Fido and I remember being able to add my Fido/DFA account to the Schwab account summary screen easily. I don't know what analytical capabilities might have been available, though, as that is not something that interests me.

 

[big-papa]

I've been DIY'ing since Day 1 and except when various 401K's, deferred compensation, and HSA's were held elsewhere due to my employers' choices, I've pretty much always been at Fidelity. Retired now and everything has been moved to Fidelity.

They probably don't like me all that much. Except for some MM funds that usually don't hold much at any given time, nothing I hold is a Fidelity product.

Cheers.

 

[Koolau]

I was at Edward Jones for about 10 years, starting in 2007. A taxable account and two IRA accounts. Going into 2017 they announced they were starting a 1.35% annual fee on managing IRA's. That was the kick in the butt I needed to leave. I wasn't going to give them piles of money to collect fees on top of the fees for front-load mutual funds.

I moved everything to Fidelity. Fidelity has a cash bonus payment for moving accounts there. I did not say a word to Edward Jones about it (there is no need to do this, Fidelity will handle everything.)

I moved all my assets at Edward Jones to Fidelity "in kind", meaning I moved the holdings over as they were, retaining the same investments. In other words, I didn't cash them out at Edward Jones, then move the cash to Fidelity and start over. Once everything was transferred I began the process of switching investments into something else at Fidelity, with an eye on tax consequences.

I also had an two accounts at TD Ameritrade--one was a small account, maybe $12,000, mostly stocks that I played with and the other was my mother's account that was invested in safe stuff. I also managed my sister's account at E*Trade. Having been exposed to three different brokerage firm's websites I can say that Fidelity's is the most comprehensive and easiest to use. Also, they have stellar support via phone and in most large cities they have offices you can go to for free help and advice.

I eventually moved my sister's account to Fidelity, and I also moved my TD Ameritrade money to Fidelity. (My mom passed away in 2019.)

Overall, the best thing I've done in my investing career was moving my accounts to Fidelity. Do it, you won't regret it!

If they sold tickets to watch your EJ "advisor"'s reaction when s/he found out you had pulled your money - I'd have bought the ticket! Good on you!

 

[meleana]

I keep everything in mutual funds in accounts at TRowe Price- brokerage and retail. I like simplicity and set it and forget it for the most part.

 

[triangle]

Many mention Fidelity and Schwab. I would also include Etrade (now Morgan Stanley) in the list of potential firms to consider if you plan to manage everything yourself. IMO they are very similar in terms of fees and services for a self-directed investor. You will get assigned an advisor but you don't need to contact or interact with them. So far Morgan Stanley has not changed operations very much. The reason to contact Etrade is that in the past they would periodically offer $ bonus for transferring a certain about of assets or cash into a brokerage account. It was advantageous to do this in stages, to get the bonus every 6 months or so as it was offered. I have not seen that offer as much recently.

In short I think all of these firms are good as well as others not mentioned, as competition between brokers has driven down costs for consumers. In that aspect I like Schwab the best as they have led the industry in lowering trading costs for decades. Fidelity quickly matched $0 trades and have a nice credit card offering but you probably have that covered. With no cost trades and near real time execution there is less to worry about between the large and otherwise competent firms.

I am not sure what was written into the tax law but I would double check with my potential new brokerage choice to make sure cost basis can also be transferred over and recorded. Even a long term investor occasionally sells or is forced to via a buyout. While it is your responsibility if there has been multiple purchases, spinoffs, mergers, ROC, cash-in-lieu, the math can get messy and be a time waster to determine during tax filing season.

 

[pc95]

Echo the sentiment -> would not leave $10,000,000+ in one place.
Would separate it into at least several brockerages to start.
Vanguard, Schwab, Fidelity, Etrade. There seem to be some medium size bank investment sites - Ally Investing and Sofi are a couple that seem ok at 1st glance.

 

[pb4uski]

WOW! Great input here. I'll try to sum things up. I've been in the market and learning since 1977 or so. I've always been a tightwad like my father before me. For the longest time, Dad's investment strategy was to buy and hold solid companies that paid a dividend and keep the stock certificates in his sock drawer. He apologized for the lack of diversification. He did eventually move to a broker and continued to invest as well.

XOM, CVX, BP, WM, JPM, MRK, VZ, T are some of the blue-chip stocks I continue to
own. I have a basket of American funds as well and currently, a large cash component earning 5%. Smaller Roth and conventional IRA accounts too.

I'm comfortably uncomfortable with the market's ups and downs. That last big dip did pucker my sphincter a bit though. I never called my broker, he always called me to check my pulse. When you have stock in solid companies that pay a dividend the storm is easier to weather. My portfolio increased by 9M by just waiting over the years. Spending some of the dividends and reinvesting some as well. It's really just conservative dumb luck and being too heavy in energy.

I did not know there would be any perks by moving a large sum over to Fidelity. I guess I should actually speak with someone as opposed to just sign up online. Thanks for that! I will most likely continue to do business with Stifel and move some things over, as well as start with some cash.

As I repeatedly would tell my broker, I'm not a trader, I'm an investor. Buy and hold like Warren Buffett. I don't like spending a great deal of time obsessing over the market. Yes, set it and forget is a good plan.


I told my broker, maybe I should just get the certificates and keep them in my sock drawer.

Maybe I'll just make Fidelity my sock drawer, with a little free advice now and then.

I'm in the process of reassessing my holdings. I've used Quicken and now Personal Capital/Empower. The Empower link to Stifel has an issue updating. I believe with Yodlee.

I hope to have this resolved this week, as well as speak with Schwab and Fidelity. Do either of these have the ability to track performance and cost? Can they do so with assets not held there?

The bulk of my holdings are common stock. My grandfather would never hold any mutual funds. Perhaps I need to revisit this plan.

Good info. Another thing that you might do is to compare your portfolio performance with the performance of an equity index fund and a bond fund with a similar AA. You can use Portfolio Visualizer to this. You could input your portfolio as of 5 years ago and then input a index fund portfolio with the same asset allocation, run it for a 5 year period and compare the results. Repeat for other periods.

Or alternatively, simply compare the total return of your portfolio to a mix of equity and bond index funds that approximate your AA for the period being looked at... so if for 2020-2023 your AA was ~ 80/20 then compare your portfolio total return to the total return of a 80/20 index fund portfolio for the same period using Portfolio Visualier.

If the adviser fund outperforms the indx fund then you have a winner, if not then you should consider changes.

 

[StillHacking]

So I moved some cash to Schwab. I went with them for a number of reasons and we will continue this experiment and see what I move over. For now I'm in their SWVXX till I decide to purchase some dividend stocks. I never really try to time the market but buying at a market high just doesn't make sense right now.
The transition to the new advisor at Stifel has been gut-wrenching. I had set up trust accounts for my daughters, and my wife has her own brokerage account as well. My wife is the trustee for my daughters and they moved daughter #2 to a new advisor. He promptly gave her a sales pitch on a managed account geared for "total return." At 1% fee.
Since setting up these trusts, they have increased in value by 34% in two years. While throwing off 20K or so income yearly. My previous stockbroker knew I was opposed to managed accounts and I constantly impressed this on my daughters.
Since daughter #2 never really developed an interest in the market, a managed account might be best for her. I'm looking into a robo-investor at Schwab. I think that would most likely produce the same result minus the 1%. Does anyone here have any experience with them? I think they just use ETF's which could be a solution. I don't want to do it for her. I want her to at least understand the how and why of it so when I'm no longer here she won't get taken advantage of by some fly by night annuity bandit.
I'm really steamed over this.

 

[HarveyS]

Why not back test the results and report back? What would you have invested in back at the same time in 2020, and what would that result have been? Don't forget to account for the $20k +/- yearly.
I'm not a fan of managed accounts, but I do know some managers can do better than an all index fund portfolio. Robbie B (of the BTD fame) always had good results with his managed accounts.

 

[NanoSour]

I would suggest looking deeper into the Schwab robo investing before going there. Due to the relatively high cash positions, coupled with the pittance they pay on cash (that's how they make their money), they consistently under-perform the market for any given asset allocation.


https://www.schwab.com/intelligent-portfolios/historical-performance


Compare the performance of the US Based/Moderate Growth 5-year returns to let's say Fidelity Balanced Fund and you'll see 9.23% vs 11.65%.



I took a deep dive in the Schwab Intelligent Portfolios and said "no thank you"

 

[StillHacking]

DW just visited DD. Nobody is happy. Daughter wants a managed account and she likes the guy they paired her with. Meanwhile, my wife and I as well as daughter #1 all have the same new advisor. Having two different points of contact for DW as trustee makes no sense.

 

[LateToFIRE]

FYI, just about done with moving portfolio to Fido - several $MM between taxable, tIRA, Roth IRA, Inherited IRA, 401K rollover, RSU's, etc., some of everything - so I'm in their Private Client program. Quite seamless, Fido handled everything from their end, led me step by step with all the account openings, they handled the transfer forms and paperwork. Trickiest part was moving 401k from last employer - very manual process, but Fido rep coordinated and conferenced me into all the phone calls needed. Everything moved in-kind, so no tax triggers. Very happy with the service level, very happy with the website and phone app. Best of all, No AUM fees, which would have come to tens of 000's annually under old firm. First class outfit all the way! Now begins the process of reassessing all my positions, asset allocations, etc. Want to move from high fee funds into lower cost Fido funds and ETFs.

 

[Dtail]

FYI, just about done with moving portfolio to Fido - several $MM between taxable, tIRA, Roth IRA, Inherited IRA, 401K rollover, RSU's, etc., some of everything - so I'm in their Private Client program. Quite seamless, Fido handled everything from their end, led me step by step with all the account openings, they handled the transfer forms and paperwork. Trickiest part was moving 401k from last employer - very manual process, but Fido rep coordinated and conferenced me into all the phone calls needed. Everything moved in-kind, so no tax triggers. Very happy with the service level, very happy with the website and phone app. Best of all, No AUM fees, which would have come to tens of 000's annually under old firm. First class outfit all the way! Now begins the process of reassessing all my positions, asset allocations, etc. Want to move from high fee funds into lower cost Fido funds and ETFs.

Did they give a bonus for the move?

 

[LateToFIRE]

Did they give a bonus for the move?

No, they did not offer, but I'll inquire. Could be that I already had a couple of existing accounts at Fido holding ~$500K of stocks.

My leverage to squeeze one out of them is probably diminished given most of the transfers are complete, but there's still another chunk of portfolio pending other transactions they have not gotten their hands on yet.

How much $$ should I be looking to get?

Thx