Fidelity as one stop shop for life?

[copyright1997reloaded]

Do we have multiple insurance carriers for our home or auto? What if they don’t pay a claim? Do you have a second home in case yours burns down?
If you have access to local checking/cash, good access to credit, I see no reason to add another level of complexity to investing.

If they allowed for stacking, I would be tempted to do this...at least for umbrella policies.

Just because it makes no economic sense to have multiple insurance carriers for home/auto, doesn't mean it doesn't make sense to reasonably spread investment accounts. I worked 30+ years in I/T and a number of years with a top tier financial institution - great, smart, but still things happen.

In addition, different firms have differing advantages. I have both Schwab and Fidelity accounts, both private client. Schwab's "Think or Swim" is superior to anything Fidelity has. Fidelity was better on my SPCX IPO (by far) over Schwab.

But yes, simplification and consolidation does have advantages - and I've been slowly consolidating across those two platforms.

 

[Al18]

Fidelity has a LOT of coverage on their accounts. They carry excess SIPC coverage for $1 Billion per investor, plus $1.9 Million of cash awaiting investment according to Financial Security: Account Protection | Why Fidelity

 

[tizod]

Not even close to applying here. They went under based on their connection with mortgage backed securities. We’re talking brokerages here.

I could have named many companies gone bankrupt or gov't bailout or whatever. and you can, of course, tell me why they don't matter. I can only point to the risk you decide to take and you obviously inisit there is no risk in any given company, loss of money for a period of time or it is post insured. So we disagree, although I agree it hasn't happened specifically to the folks we are dealng with...until it does. No brokerage yet has dealt with quantum encryption, Great Depression or more. You can prove it hasn;t happened, and I can prove it isnt prudent to believe it wont. Good luck to all!

 

[Al18]

Info from Vanguard Wellington fund:
Founded in 1929, Wellington™ Fund is Vanguard’s oldest mutual fund and the nation’s oldest balanced fund.

 

[COcheesehead]

I could have named many companies gone bankrupt or gov't bailout or whatever. and you can, of course, tell me why they don't matter. I can only point to the risk you decide to take and you obviously inisit there is no risk in any given company, loss of money for a period of time or it is post insured. So we disagree, although I agree it hasn't happened specifically to the folks we are dealng with...until it does. No brokerage yet has dealt with quantum encryption, Great Depression or more. You can prove it hasn;t happened, and I can prove it isnt prudent to believe it wont. Good luck to all!

I didn’t say there is no risk. Your words, not mine. I said the risk can be easily mitigated - without complicating your life with multiple brokerages. Belt and suspenders vs properly tailored fit.

 

[COcheesehead]

If they allowed for stacking, I would be tempted to do this...at least for umbrella policies.

Just because it makes no economic sense to have multiple insurance carriers for home/auto, doesn't mean it doesn't make sense to reasonably spread investment accounts. I worked 30+ years in I/T and a number of years with a top tier financial institution - great, smart, but still things happen.

In addition, different firms have differing advantages. I have both Schwab and Fidelity accounts, both private client. Schwab's "Think or Swim" is superior to anything Fidelity has. Fidelity was better on my SPCX IPO (by far) over Schwab.

But yes, simplification and consolidation does have advantages - and I've been slowly consolidating across those two platforms.

Has anyone ever permanently lost their funds due to an IT error?. Temporarily sure. I’ve read about those. Keep a local checking account, high credit limits on your cards. If you need access to your entire account, you probably have bigger issues.

 

[dobig]

Yes, we have all our accounts at Fidelity along with a local checking account.

Perks? If you have a million or two at three brokerages, you are looked at as a million or two dollar customer, but if you have 3 - 6 million at a single brokerage, you’ll be at a different client service level.

What are the perks?
I received everything from free estate planning, dedicated customer service phone number, access to specialists at no charge (very helpful when my wife set up an non profit), Apple gift cards, transfer bonuses, free tax software, and a few other freebies.

We have everything at Fidelity. $3.2 million. We've never got or have been offered any of that.

I will say if any of the big three ever get to the point where they can use Ai to do taxes I'd have no problem migrating to a different brokerage. And if they do I bet it will get to a point where you could see, at any given time, your YTD taxes owed calculations. Would come in very handy for us income investors who focus on qualified dividends and ROC distributions. Otherwise Fidelity is and will be our home as we find everything there easy and convenient. And with around $6 trillion under management I feel pretty secure (famous last words).

 

[VanWinkle]

I like Fidelity's Cash management Account and use it as my only Bank account. My investments are all at Vanguard as I appreciate their history with Jack Bogle and being a mutual company. I know this is "old school" thinking, but then I am mostly old school. I had breakfast with Jack years ago at a Boglehead convention and never forget what an honorable man he was.

 

[FREE866]

Simplicity is key for me as I age and for our kids when we die.

Yep. Keeping it simple for the beneficiaries is huge. I have Schwab and they have offices you can walk into and talk to a live person. When my BIL died he had his money at Vanguard and having to deal with only people on the phone was absolutely maddening and made a very stressful situation almost unbearable to deal with. Awful experience.

 

[COcheesehead]

We have everything at Fidelity. $3.2 million. We've never got or have been offered any of that.

Fidelity used to have a designation of our level on their account page. I can’t find it now. Over the years we progressed from preferred client to private client to active trader to active trader vip to whatever we are now. Our assets are considerably higher then yours, but you still should get something at that level.

 

[jazz4cash]

I have significant separation since my 401k is not at Fidelity. But we just got notified that the company is moving the 401k to Fidelity. I must admit, I was happy to hear that because the current admin is not very good. I still have a good bit separate from Fidelity. Just a little with Vanguard, but hold a lot of Vanguard ETF's. Nothing at Schwab.

Fidelity has been a fantastic 401k custodian for me but it really depends on the size of the plan in aggregate and the details set by the employer. I believe employers pay a bit more to use Fidelity (or similar custodians) compared to others.

 

[copyright1997reloaded]

Yep. Keeping it simple for the beneficiaries is huge. I have Schwab and they have offices you can walk into and talk to a live person. When my BIL died he had his money at Vanguard and having to deal with only people on the phone was absolutely maddening and made a very stressful situation almost unbearable to deal with. Awful experience.

This is the biggest area of concern which IS pushing me to consolidation. I want my child and other heirs to have as smooth as possible an experience - right now things are far from that.

 

[jazz4cash]

And also I gotta push back on the 'for life' part of the question. I am all-in at Fidelity right now but if they change, so will I. We do have some legacy accounts with other providers and a local B&M bank.

 

[big-papa]

Fidelity used to have a designation of our level on their account page. I can’t find it now. Over the years we progressed from preferred client to private client to active trader to active trader vip to whatever we are now. Our assets are considerably higher then yours, but you still should get something at that level.

It's still there. Make sure you have "all accounts" on the left selected when you first log in. On the upper right hand is "contact your team". Click on it and a pull down will appear that says "Private Client Group" and a phone number.

I tend to ignore it because I've never used them nor ever plan to.

Years ago, clicking on it wasn't needed and it also noted the name of the person assigned to me.

Cheers.

 

[COcheesehead]

It's still there. Make sure you have "all accounts" on the left selected when you first log in. On the upper right hand is "contact your team". Click on it and a pull down will appear that says "Private Client Group" and a phone number.

I tend to ignore it because I've never used them nor ever plan to.

Years ago, clicking on it wasn't needed and it also noted the name of the person assigned to me.

Cheers.

There is no client level designation on my account. It used to be there, but not anymore.

 

[big-papa]

There is no client level designation on my account. It used to be there, but not anymore.

Interesting. If it was at all worth my time, I'd try and find a way to have that removed from my account.

 

[COcheesehead]

Interesting. If it was at all worth my time, I'd try and find a way to have that removed from my account.

I show no rep name or account designation though I had both at one time.

 

[audreyh1]

Agree. I worked for Lehman in 2006 and saw the whole buildup leading to the fall. The leading trader in the MBS dept who made 37m in bonuses in 2006 said this game will never end.
P.S. I was not there in 2008.

Had you changed to another company by then?

 

[Koolau]

I didn’t say there is no risk. Your words, not mine. I said the risk can be easily mitigated - without complicating your life with multiple brokerages. Belt and suspenders vs properly tailored fit.

I'll take belt and suspenders but I never was much of a dresser. you can ask DW.

ETA: Sometimes elastic waist band.

 

[PatrickA5]

We have everything at Fidelity but a very small amount at Chase. Every now and then, I have a need to go to an actual bank. We've been very pleased with Fidelity as a one-stop-shop.

 

[big-papa]

I'll take belt and suspenders but I never was much of a dresser. you can ask DW.

ETA: Sometimes elastic waist band.

No Velcro?

 

[Aggie1999]

Review some of the "horror" stories on the Fidelity Reddit about accounts getting locked because of security reasons and it being months before a resolution, without Fidelity giving the customer any info, other than the account is locked. Not saying this is unique to Fidelity. Saying this is one reason to have accounts spread out over multiple financial firms.

 

[audreyh1]

We will always have at least a local bank account (checking) and an online bank high yield savings account in addition to the bulk of our investments at Fidelity. The main issue is ready access to cash or transfers if something happens to an account. We are OK with a single brokerage company. We have multiple accounts at Fidelity.

The Fidelity incident from 2024 was interesting, and well worth reading about because there was some widespread check deposit or transfer fraud going on at the time spurred on by social media. There was a run on Chase and then Fidelity. Fidelity had to clamp down on their overly generous funds availability in the CMA via ATM or transfers out but in some cases it also ended up affecting billpay and other transfers or withdrawals. It didn’t affect us or our established bill pay from the CMA but I became more careful about transfers/pulling funds into the CMA, I push funds there as needed from other Fidelity accounts instead.

 

[jazz4cash]

Review some of the "horror" stories on the Fidelity Reddit about accounts getting locked because of security reasons and it being months before a resolution, without Fidelity giving the customer any info, other than the account is locked. Not saying this is unique to Fidelity. Saying this is one reason to have accounts spread out over multiple financial firms.

Not sure what to make of those stories because we never hear of a resolution from either side. I'm sure the account holder has some responsibility in some cases but we just never hear.

 

[jazz4cash]

We will always have at least a local bank account (checking) and an online bank high yield savings account in addition to the bulk of our investments at Fidelity. The main issue is ready access to cash or transfers if something happens to an account. We are OK with a single brokerage company. We have multiple accounts at Fidelity.

The Fidelity incident from 2024 was interesting, and well worth reading about because there was some widespread check deposit or transfer fraud going on at the time spurred on by social media. There was a run on Chase and then Fidelity. Fidelity had to clamp down on their overly generous funds availability in the CMA via ATM or transfers out but in some cases it also ended up affecting billpay and other transfers or withdrawals. It didn’t affect us or our established bill pay from the CMA but I became more careful about transfers/pulling funds into the CMA, I push funds there as needed from other Fidelity accounts instead.

Do you have a link to those details? I only ever heard speculation why Fidelity responded so aggressively. Not that it impacted me, just curious.