Reasons not to like Fidelity

[retirementguy1]

I've never been a fan of Fidelity and here is another reason.

How the owners of Fidelity get richer at everyday investors' expense

 

[travelover]

The Johnsons are smart, very smart.

 

[Olbidness]

My 401k is with Fidelity and the expense ratio on my investment is 0.02 %. They're not getting rich off of me.


Sent from my iPad using Early Retirement Forum

 

[eytonxav]

Thats right, try to throw shade by their being good business people

 

[MRG]

If you know what happens inside of 249 other fund companies maybe Fidelity wouldn't look too bad.

Let's not get me started on the insurance companies.

 

[ERD50]

I just skimmed, but it sounds like they are saying the Johnsons are getting rich off of IPOs.

I really don't expect the ETF/funds that I invest in to chase IPOs, so it doesn't strike me as a conflict. I don't see a problem with this.

It might actually help me - by funding the IPO, these companies come to market, and may someday be big enough to be in one of the indexes?

Or did I miss something relevant to investors like us?

-ERD50

 

[COcheesehead]

I can see why you're upset. The give me 0 ATM fees worldwide. 0 commission ETF's, free checks, $7.95 stock trades, a .25% annuity fee, a non commission advisor, some of the best retirement planning tools in the industry and lots of other stuff. I feel fleeced.

 

[jazz4cash]

Without singling out Fido, there's a lot to be concerned with regarding corporate governance these days. Megacorp chose Fido for our 401k and they have earned my trust with their customer support. I'm not likely to have any funds that are competing for IPOs anyway and I'm grateful to Vanguard for their impact on the mutual fund industry.


Sent from my iPhone using Early Retirement Forum

 

[ERD50]

So after these replies, can the OP (retirementguy1) give us a little more background on why they see this as such a negative for investors like us?

-ERD50

 

[Bamaman]

My 401k is with Fidelity and the expense ratio on my investment is 0.02 %. They're not getting rich off of me.

Most of my Fidelity old 401K rolled over to IRA's are costing me about .7% expenses. My new money went into ETF's at about .15%.

When I worked, MegaCorp was paying the expenses. As soon as retirement came, they required us to move our accounts.

My only problem with Fidelity is that many of their funds are not in the top echelon of ROE--vs. other investment companies. With their resources and size, they should be one of the top dogs every year.

 

[foxfirev5]

If I wasn't against having all my eggs in one basket I definitely would have all my accounts with Fidelity. Quick efficient transactions, low costs, superior website tools and above all a great customer service team. If they make money all the better.
And yes I have significant accounts with the Walmart of investing. However the few times I've contacted their customer service I've been underwhelmed. IRA rollovers were the worst.

 

[REWahoo]

My only problem with Fidelity is that many of their funds are not in the top echelon of ROE--vs. other investment companies. With their resources and size, they should be one of the top dogs every year.

What you are seeing may be a result of the article being discussed on this thread - at least in part. Here is another article questioning Fidelity's behavior:

Fidelity insiders chip away at customers' yachts

Interesting also that a recent survey of investment company customers with $500,000 or more in assets showed Fidelity ranked at a relatively poor #13 (out of 31). The top three companies: Vanguard, T. Rowe Price and USAA.

 

[COcheesehead]

What you are seeing may be a result of the article being discussed on this thread - at least in part. Here is another article questioning Fidelity's behavior:

Fidelity insiders chip away at customers' yachts

Interesting also that a recent survey of investment company customers with $500,000 or more in assets showed Fidelity ranked at a relatively poor #13 (out of 31). The top three companies: Vanguard, T. Rowe Price and USAA.

Source?

 

[COcheesehead]

What you are seeing may be a result of the article being discussed on this thread - at least in part. Here is another article questioning Fidelity's behavior:

Fidelity insiders chip away at customers' yachts

Interesting also that a recent survey of investment company customers with $500,000 or more in assets showed Fidelity ranked at a relatively poor #13 (out of 31). The top three companies: Vanguard, T. Rowe Price and USAA.

LOL, it's basically the same story that the OP posted. Both from Reuters. Wonder what Fidelity did to them to warrant two takes on essentially the same story.

 

[hlfo718]

The recent trend has been for mutual funds to invest in pre-ipo stocks or late stage VC type investments. This is not unusual as indicated in the article and even conservative Vanguard has done so. But the screw up thing about Fido is they are not doing it for the mutual funds but their own private fund, which screws the mutual fund investors.

I am glad I have no active funds with Fido. My 401k are all index so less harm can be done with Fido's self dealing.

 

[REWahoo]

Source?

Oops. Consumer Reports September issue.

 

[FIREchief]

One more reason to stick with simple index funds (at Fido or elsewhere).

 

[Olbidness]

Most of my Fidelity old 401K rolled over to IRA's are costing me about .7% expenses. My new money went into ETF's at about .15%.

When I worked, MegaCorp was paying the expenses. As soon as retirement came, they required us to move our accounts.

My only problem with Fidelity is that many of their funds are not in the top echelon of ROE--vs. other investment companies. With their resources and size, they should be one of the top dogs every year.

My 401K will stay at FIDO when I retire. I'm 55 now so I can access it penalty free, not so in an IRA. MY account is electronically linked to my checking account so a few clicks on a computer anywhere in the world and I'm in business.

Nothing but good service from FIDO.

 

[45th Birthday]

I didn't read the whole hit piece, but I do wonder what kind of funds allow investments in pre-IPO shares. Sounds pretty risky and very opaque. At any rate, nearly all my equity investments are in non-managed ETF's like SPY DVY EFA etc. Overall, I find Fidelity to be pretty good. Their website is a little clunky, but they have great tools, and I can get personal service from a small team of people I know whenever I need it.

 

[TallTim]

I have had a Fidelity 401k and Rollover/Roth IRAs since sometime in the early 90s. Eventually added UTMA college accts for DD and DS as well as an IRA that I inherited from DM on per passing. I moved all of our personal brokerage to TDA b/c of issues w FIDO trading platform, trading commissions and sales pressure.

I have been hesitant to move the other funds b/c of the hassle of selling all the FIDO mutual funds and picking analogs in TDA or Vanguard or wherever ... I'll likely leave it where it is until the UTMAs are exhausted by tuition bills and/or transferred to the kids after school is over for them.

But after that we will consolidate to one shop and get on with it.

 

[Free To Canoe]

"Your broker is not your friend. Neither is your mutual fund company." Written by one of those well known finance authors whose name I cannot remember.


I could go on about beefs that I have had with Fido (sales attempts, bad advice) but I have had mostly good to excellent service over the years so I will be sticking with them as my primary asset holder. I still like Vanguard funds better though.

 

[jazz4cash]

Based on all the drama on Seeking Alpha between longs and shorts of Tesla I hesitate to bring it up, but Fido is often criticized for holding a large stake. I wonder it that holding is on the fund or private equity side or both. This is another reason for me to avoid Fido's actively managed funds.


Sent from my iPhone using Early Retirement Forum

 

[COcheesehead]

I think what's getting lost here is that some have issues with Fidelity managed funds, but many love Fidelity as a broker. No one is forcing you to put money into their funds. They offer the universe of investment options.

 

[braumeister]

For every valid reason to not like Fidelity, there will be a valid reason to not like any of its competitors. The converse also applies.

I'm a happy customer of Fidelity, Vanguard, and Schwab. They have all treated me very well in recent years (although not always in the past).

 

[FIREchief]

I think what's getting lost here is that some have issues with Fidelity managed funds, but many love Fidelity as a broker. No one is forcing you to put money into their funds. They offer the universe of investment options.

Excellent point.