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Fidelity offers buyouts to 3,000 older workers
02-28-2017, 09:24 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,305
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Fidelity offers buyouts to 3,000 older workers
Looks like (even) discount brokers are cutting costs?
Fidelity offers buyouts to 3,000 older workers - MarketWatch
Quote:
The packages were offered to 6.7% of Fidelity’s 45,000 employees globally.
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__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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02-28-2017, 09:31 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
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More ranks added to the early retired.
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02-28-2017, 09:32 AM
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#3
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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Interesting. Maybe this is how they're funding their new lower commissions. (as learned in another thread here.)
http://www.early-retirement.org/foru...ml#post1844772
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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02-28-2017, 01:47 PM
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#4
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Recycles dryer sheets
Join Date: Oct 2010
Posts: 392
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More profit for Abby!
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03-01-2017, 04:55 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2012
Location: Georgia
Posts: 2,240
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Quote:
Originally Posted by rodi
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That was my thought... as brokerages are forced to lower their prices to compete with cut-rate competitors, it's prompting a wholesale rush to the bottom.
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03-01-2017, 05:08 AM
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#6
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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All the money going into ETFs and passive funds instead of active must also be hurting Fidelity.
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03-01-2017, 05:11 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Dec 2012
Location: Georgia
Posts: 2,240
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Quote:
Originally Posted by MichaelB
All the money going into ETFs and passive funds instead of active must also be hurting Fidelity.
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Or at least be hurting their fund managers. Figure that Vanguard makes money off their passive funds and discount brokers make money off of transaction fees for ETFs and such - so can Fidelity, if they simply stop paying for financial expertise that their customers no longer value.
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03-01-2017, 06:24 AM
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#8
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,726
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Fidelity has $2T AUM and around 450K comissionable brokerage transactions per day. Brokerage income from the 450K trades would be around $900M per year. That equals around 4.5 basis points for the assets under management. It is safe to say that Fidelity makes much more money managing assets in their funds than from brokerage services, and the shift away from actively managed funds into passive / ETFs must be pointing to a serious decline in future revenue streams.
This looks like double bad news for them. Projecting a declining revenue stream from their core business, then needing to sharply reduce the price to stay competitive in the business that should benefit from that shift. I'd bet this is not the last RIF we see from Fidelity.
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03-01-2017, 10:14 AM
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#9
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gone traveling
Join Date: Sep 2003
Location: DFW
Posts: 7,586
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It doesn't really say if this is a RIF or a voluntary program for a pool of eligible workers. Anyhow, welcome to the club of companies that try to replace older higher paid employees with younger lower paid ones.
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03-01-2017, 01:19 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Voluntary as I read it for age 55 with 10 yrs. also says they will backfill the positions.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-02-2017, 04:09 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Dec 2012
Location: Georgia
Posts: 2,240
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Quote:
Originally Posted by DFW_M5
It doesn't really say if this is a RIF or a voluntary program for a pool of eligible workers. Anyhow, welcome to the club of companies that try to replace older higher paid employees with younger lower paid ones.
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Good point. I have no pretensions that anyone would hire me after this job I have now. There are hordes of youngsters who can do 80% of what I do for 50% of the cost. I check my company mail every day expecting to see a RIF.
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03-02-2017, 07:50 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2012
Posts: 6,181
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If my Megacorp offer me a buyout on those terms, I'd jump on it in a nanosecond.
__________________
FIREd date: June 26, 2018 - "This Happy Feeling, Going Round and Round!" (GQ)
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