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Old 02-03-2020, 05:41 AM   #241
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More than two years later, Vanguard has yet to follow suit by offering its own HSA product. The reasons for a shift to Fidelity are increasing.
Or at least to diversify to FIDO.

DW and I both have our 401ks in FIDO, which is darn near 1/2 our savings. So, we don't have all our eggs in one basket. And no need to do any moving to VG as VG has growing pains.

Nice thing is I can move my HSA (currently at some small firm) to FIDO since I have an account there. This is currently in process.
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Old 02-03-2020, 06:46 AM   #242
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Or at least to diversify to FIDO.

DW and I both have our 401ks in FIDO, which is darn near 1/2 our savings. So, we don't have all our eggs in one basket. And no need to do any moving to VG as VG has growing pains.

Nice thing is I can move my HSA (currently at some small firm) to FIDO since I have an account there. This is currently in process.
Pretty much exactly what we do. At the moment all Roths and HSA at Fidelity (1/3), the rest at Vanguard. No plans to change. I like the idea of having distributed accounts to cover any black swan events at either of these two investment houses.
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Old 02-03-2020, 07:21 AM   #243
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More than two years later, Vanguard has yet to follow suit by offering its own HSA product. The reasons for a shift to Fidelity are increasing.
Fidelity had already offered HSAs, just not to the individual investor directly- only through an employer.
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Old 02-11-2020, 08:20 AM   #244
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So I started the process of opening up an HSA on FIDO and transferring from HealthEquity.

The process so far has been fairly easy. I was previously a 401k only member on FIDO from multiple Megacorps. I didn't find an easy way to open the HSA from netbenefits (their portal for Megacorp 401ks). However, I opened a tab in netbenefits. Then, I followed a link on this thread about opening an HSA and, bingo, I was logged in.

So I did the very easy process of opening an HSA. Unfortunately, my HSA transfer from HealthEquity requires sending in a paper form. I could not do it all electronically. However, as I wrote on a different thread about Vanguard, the actual process of opening the HSA at zero balance opened up the entire regular FIDO web site to me. Much nicer than Netbenefits. It took a few days for the full FIDO site to open up to me.

I'm awaiting the paper transfer progress and will update later.
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Old 02-11-2020, 08:35 AM   #245
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More than two years later, Vanguard has yet to follow suit by offering its own HSA product. The reasons for a shift to Fidelity are increasing.
+1 We were true blue to Vanguard but have been drifting away as there are certain areas where they don't meet our needs. No HSA is one. Another is while they offer brokered CDs they are not competitive with CD credit union specials.

I saw in the news last week that they are planning on opening a private equity mutual fund... but at least initially it will only be offered to institutional and HNW clients.

I'm afraid that their focus on expanding advisory services and a private equity fund and not doing HSA is indicative of their drift away from retail investors and they they will eventually kill the golden goose.

If Fidelity can do a HSA then Vanguard should be able to.
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Old 02-12-2020, 12:36 AM   #246
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+1 We were true blue to Vanguard but have been drifting away as there are certain areas where they don't meet our needs. No HSA is one. Another is while they offer brokered CDs they are not competitive with CD credit union specials.

I saw in the news last week that they are planning on opening a private equity mutual fund... but at least initially it will only be offered to institutional and HNW clients.

I'm afraid that their focus on expanding advisory services and a private equity fund and not doing HSA is indicative of their drift away from retail investors and they they will eventually kill the golden goose.

If Fidelity can do a HSA then Vanguard should be able to.
Absolutely. The HSA issue is only one of several that have popped up with Vanguard lately.

I'm starting to put my money where my mouth is. I've opened an HSA with Fidelity and am going through the process (involving printing a form and sending it via snail mail, unfortunately) of transferring my funds from UMB Bank, which has been less than stellar.

Next, I'll start looking at rolling over my Vanguard IRAs. I may have to stop there, since I don't want to convert my 401(k) into an IRA or trigger a taxable event with my taxable account funds.
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Old 02-12-2020, 07:00 AM   #247
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Next, I'll start looking at rolling over my Vanguard IRAs. I may have to stop there, since I don't want to convert my 401(k) into an IRA or trigger a taxable event with my taxable account funds.
You won't trigger a taxable event if you can transfer the securities in kind.
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Old 02-12-2020, 11:31 PM   #248
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You won't trigger a taxable event if you can transfer the securities in kind.
If, say, it remains in kind to transfer Vanguard Total Stock Market Index savings to Fidelity Total Market Index, then I'll definitely consider it. If on the other hand I'd have to hold my current Vanguard funds at Fidelity, then I'd rather not complicate things by doing that -- unless Fidelity is offering an incentive, which to my knowledge they aren't right now.
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Old 02-13-2020, 01:57 AM   #249
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If, say, it remains in kind to transfer Vanguard Total Stock Market Index savings to Fidelity Total Market Index, then I'll definitely consider it. If on the other hand I'd have to hold my current Vanguard funds at Fidelity, then I'd rather not complicate things by doing that -- unless Fidelity is offering an incentive, which to my knowledge they aren't right now.
That’s not how transfer in kind works. You transfer the Vanguard shares to Fidelity, and it may be possible now that you can own Admiral shares outside Vanguard.
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Old 02-13-2020, 01:15 PM   #250
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If, say, it remains in kind to transfer Vanguard Total Stock Market Index savings to Fidelity Total Market Index, then I'll definitely consider it. If on the other hand I'd have to hold my current Vanguard funds at Fidelity, then I'd rather not complicate things by doing that -- unless Fidelity is offering an incentive, which to my knowledge they aren't right now.
No, that's not an in kind transfer. See audreyh1's response below. I've also heard of Vanguard customers converting their mutual funds to ETFs before transferring the subsequent ETF shares to another broker.

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That’s not how transfer in kind works. You transfer the Vanguard shares to Fidelity, and it may be possible now that you can own Admiral shares outside Vanguard.
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Old 02-13-2020, 10:18 PM   #251
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That’s not how transfer in kind works. You transfer the Vanguard shares to Fidelity, and it may be possible now that you can own Admiral shares outside Vanguard.
That's what I assumed, which is why I said earlier that I wasn't planning to transfer those funds. What's the advantage of holding the same Vanguard funds at Fidelity?
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Old 02-14-2020, 03:32 AM   #252
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If you wanted to consolidate at Fidelity. Both companies are fund supermarkets. It no longer really matters which of the two brokerages hold your funds - it’s a matter of convenience and customer service.
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Old 02-14-2020, 07:34 AM   #253
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That's what I assumed, which is why I said earlier that I wasn't planning to transfer those funds. What's the advantage of holding the same Vanguard funds at Fidelity?
In a taxable account since it is a transfer in-kind is a transfer of the securities and not a sale, it isn't a taxable event. It is just having a different custodian for your Vanguard shares.... now Fidelity and previously Vanguard.
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Old 02-15-2020, 01:21 AM   #254
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If you wanted to consolidate at Fidelity. Both companies are fund supermarkets. It no longer really matters which of the two brokerages hold your funds - it’s a matter of convenience and customer service.
Thanks. I'll look into it to ensure that it's not detrimental financially in any way. Interestingly, came across this article: Vanguard Keeps Some of Its Cheapest Funds Out of Reach for Fidelity Customers (Barron's)

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Vanguard, it turns out, is keeping some of its lowest-cost products off the shelves of fund “supermarkets” like Fidelity and Schwab. While investors can purchase most Vanguard mutual funds at these firms, they will have to buy directly from Vanguard if they want the lowest-cost Admiral shares of its actively managed funds....

“Vanguard doesn’t compensate us for the services we provide,” a Fidelity spokeswoman told Barron’s. “That’s why there’s a higher transaction fee for its funds,” she added, referring to the $75 fee that Fidelity charges to buy a Vanguard fund, well above its normal $49.95 rate.
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Old 02-15-2020, 03:26 AM   #255
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Well that’s true, you can move your index fund admiral shares in kind to Fidelity now, but buying more of any Vanguard fund will cost you a $75 transaction fee (not including automatically reinvested dividends), so you would end up buying the Fidelity index fund instead to avoid that fee. Selling a Vanguard fund at Fidelity - there is no transaction fee. So that would probably be the main reason for continuing to hold such funds through Vanguard if you wanted to be able to continue to add to them without transaction fees.

I’ve owned the Vanguard short-term bond index fund for a long time in my Fidelity account. Fidelity had no equivalent. I had to pay $75 for each purchase. I simply did purchases in large amounts such that the transaction fee hit didn’t add that much to the very low ER, at least when compared to my other funds at the time. Eventually, a couple of years ago, Fidelity finally came out with their own short-term bond index fund, so I switched to buying that instead, but still hold the legacy Vanguard equivalent. Lo and behold last year my Vanguard short-term bond index was automatically switched to Admiral shares! A non taxable event. It won’t cost me any transaction fee to sell from my Vanguard fund holdings at Fidelity but I’m in no hurry.
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Old 02-15-2020, 08:11 AM   #256
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Well that’s true, you can move your index fund admiral shares in kind to Fidelity now, but buying more of any Vanguard fund will cost you a $75 transaction fee (not including automatically reinvested dividends), so you would end up buying the Fidelity index fund instead to avoid that fee. Selling a Vanguard fund at Fidelity - there is no transaction fee. So that would probably be the main reason for continuing to hold such funds through Vanguard if you wanted to be able to continue to add to them without transaction fees.

I’ve owned the Vanguard short-term bond index fund for a long time in my Fidelity account. Fidelity had no equivalent. I had to pay $75 for each purchase. I simply did purchases in large amounts such that the transaction fee hit didn’t add that much to the very low ER, at least when compared to my other funds at the time. Eventually, a couple of years ago, Fidelity finally came out with their own short-term bond index fund, so I switched to buying that instead, but still hold the legacy Vanguard equivalent. Lo and behold last year my Vanguard short-term bond index was automatically switched to Admiral shares! A non taxable event. It won’t cost me any transaction fee to sell from my Vanguard fund holdings at Fidelity but I’m in no hurry.
Similar issue here for me in that I needed an ultra-short bond fund and couldn't find anything. But iShares ICSH fit the bill and I could trade it commission-free at Fidelity. And now with commission free online trades on just about everything, there are even more options....
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Old 02-15-2020, 09:28 AM   #257
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Similar issue here for me in that I needed an ultra-short bond fund and couldn't find anything. But iShares ICSH fit the bill and I could trade it commission-free at Fidelity. And now with commission free online trades on just about everything, there are even more options....
It’s true - you could start using the Vanguard ETFs for their index funds at Fidelity commission free.

In fact, I think at Vanguard you can convert the index fund to the ETF. Transfer that in kind to Fidelity, and then you can continue commission free!
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