Fidelity/Vanguard fees and minimum invstment

Time2

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This morning I was answering a question and looked up minimum starting investment. I found Fidelity is $0 and Vanguard is $3,000. Then I went on to find for Total Stock Market Funds, Fidelity has a 0.015% management fee vs 0.04% for Vanguard. Both are low, but I was surprised to see Fidelity less than 1/2 of Vanguards fees. I'm a 30+ years user of Vanguard, but their lack of good customer service is showing. I have stated, I would pay a higher fee, for good service. Just something I learned today.
 
This morning I was answering a question and looked up minimum starting investment. I found Fidelity is $0 and Vanguard is $3,000. Then I went on to find for Total Stock Market Funds, Fidelity has a 0.015% management fee vs 0.04% for Vanguard. Both are low, but I was surprised to see Fidelity less than 1/2 of Vanguards fees. I'm a 30+ years user of Vanguard, but their lack of good customer service is showing. I have stated, I would pay a higher fee, for good service. Just something I learned today.

Actually, there are a small handful of Fidelity funds with 0.0% management fees. After being a decades long Vanguard customer, I switched to Fidelity (and a small portion to Schwab) some 5+ years ago. Same concerns: no longer had an edge as far as loads/fees/etc and noticeably inferior customer service as well as in inferior website. To be clear, I don't think Vanguard is a terrible choice by any means - it just isn't the clear frontrunner that it definitely used to be for investors like myself.
 
I keep reading about switching. Many of our posters have switched from VG to Fidelity. Can you switch your entire portfolio all at once?
 
I keep reading about switching. Many of our posters have switched from VG to Fidelity. Can you switch your entire portfolio all at once?

If you do, be sure to phone Fidelity and ask if they will reward you for switching, some brokerages do, and an extra few hundred to thousands is worth the call.
 
I keep reading about switching. Many of our posters have switched from VG to Fidelity. Can you switch your entire portfolio all at once?

Yes, I but usually would switch 1 thing at a time, meaning if I had IRA, Roth, regular taxable accnt.
I'd pick one of the three and move it (entirely) as IN KIND , so nothing is sold/bought.

Once it made it and I confirmed it was all there, I'd move another.
 
I dumped Vanguard due to their crappy web interface, policy on what investments you are able to buy, and policy on being "too active". I could understand if you are in their mutual funds being too active can disturb the fund, but they apply it to ETFs which makes no sense at all.

They rested on their laurels and got complacent. They know most people are just too lazy to make the move.
 
Yes, I but usually would switch 1 thing at a time, meaning if I had IRA, Roth, regular taxable accnt.
I'd pick one of the three and move it (entirely) as IN KIND , so nothing is sold/bought.

Once it made it and I confirmed it was all there, I'd move another.

Thanks, we must consider that. It's not that we're lazy, we've been with VG for 30+ years. It's hard to change when you're familiar with everything.
 
Is there a timing risk if you switch? What if the market tanks while you are uninvested while making the switch? I am seriously thinking of switching from Vanguard to Fidelity.
 
This morning I was answering a question and looked up minimum starting investment. I found Fidelity is $0 and Vanguard is $3,000. Then I went on to find for Total Stock Market Funds, Fidelity has a 0.015% management fee vs 0.04% for Vanguard. Both are low, but I was surprised to see Fidelity less than 1/2 of Vanguards fees. I'm a 30+ years user of Vanguard, but their lack of good customer service is showing. I have stated, I would pay a higher fee, for good service. Just something I learned today.
Vanguard ETFs have no specified minimum, just one share, typically a few hundred dollars.
Actually, I think you can buy fractional shares of ETFs now, say $100 of VTI, but it has to be a market order, not a limit order.

And VTI is their total stock market index fund, with an ER of 0.03%.

I find Vanguard's customer service to be just fine for what I need, which is basically nothing. No hand holding or silly questions...
 
Is there a timing risk if you switch? What if the market tanks while you are uninvested while making the switch? I am seriously thinking of switching from Vanguard to Fidelity.


That would be what you want, sell at the high price and buy back a lower price when the market tanked. But I know what you meant.
 
Is there a timing risk if you switch? What if the market tanks while you are uninvested while making the switch? I am seriously thinking of switching from Vanguard to Fidelity.

That's why we're saying to switch investments IN KIND to the extent possible so that you're never uninvested...
 
That's why we're saying to switch investments IN KIND to the extent possible so that you're never uninvested...
But isn't there a time lapse from the day the money is withdrawn from Vanguard to the day it actually gets reinvested at Fidelity?
 
Fidelity vs vanguard

My family was with Vnguard for so many years. We had a special person to contact and we still began having problems with service. My mither's estate was also with Vanguard and it was one mess up after another. They did not correct their mistakes and it would be weeks before they would even get back to you.i enjoyed the educational opportunities with Fidelity which we had dealt with in the past but like so many we wanted to consolidate to just one institution.
Enough mess ups I called Fidelity on a Tuesday and within a week or less everything was moved and I have been very happy. I did move things in kind so I have some Vanguard funds but the dividends and capital gains can be reinvested but I may just gradually switch to a lesser fee Fidelity fund.
My sister has switched and so have all my children. The people manning the phones at vanguard sometimes give you different answers depending on when you call during the day or early evening.
I am very picky and I am very happy and it has been over a year since I changed. Hated the new Vanguard app what a waste of time and money. Very pleased with Fidelity and I use the full web site not the app.
 
But isn't there a time lapse from the day the money is withdrawn from Vanguard to the day it actually gets reinvested at Fidelity?

"In kind" means that brokerage #1 transfers your investment to brokerage #2. You still own it the entire time of the transfer, and are therefore invested in the market the entire time of the transfer.
 
"In kind" means that brokerage #1 transfers your investment to brokerage #2. You still own it the entire time of the transfer, and are therefore invested in the market the entire time of the transfer.
So in Kind means that the investments are still in the Vanguard funds even though they are managed by Fidelity?
 
But isn't there a time lapse from the day the money is withdrawn from Vanguard to the day it actually gets reinvested at Fidelity?

If moving IN KIND there is no effect from any time lapse. The share price is the share price. If unable to transfer IN KIND and the market tanks you will benefit from buying more shares at the lower price. If unable to transfer IN KIND and the markets jumps higher you will lose a bit but it is unlikely to be significant in the long run. If it is a huge concern you could move it in chunks over a few months
 
Vanguard vs tideli

IN kind means the funds that were at my vanguard brokerage account which I self directed. These funds were just held in the account at Vanguard. Also had other funds In my Vanguard accounts that were neither Vanguard or Fidelity.
So everything was moved in kind, which means just as it was at Vanguard into a Fidelity Bokerage account. Did this with trust accounts as well as retirement accounts.

When.I moved I did not know they gave you money if you moved enough assets. They informed me when I was moving. My sister got a similar deal. I moved everything in one day or started the move for all our accounts.

You can keep your vanguard funds and without cost of commissions you can reinvest dividends and capital gains. If I decide to purchase additional shares in my same or different vanguard accounts I will have to pay a fee. I do not foresee that happening because I can find alternatives with Fidelity.

Hope this helps. If you are going to change over call them at one of their regional offices and have your questions,account numbers and statements ready, you will be pleasantly surprised how quickly things are done and how well they take care of their clients.

I have self directed accounts.
 
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If you hold VTSAX in a Vanguard Brokerage account they can convert it to VTI ETF without any tax consequences. VTI is easier to manage since it is an ETF and not a mutual fund.
 
So in Kind means that the investments are still in the Vanguard funds even though they are managed by Fidelity?

Yes, if the investment was a Vanguard fund and brokerage #2 was Fidelity.

"In kind" just means that instead of:

(A) sell investment at brokerage #1, move cash from brokerage #1 to brokerage #2, then buy investment

it is just

(B) move investment from brokerage #1 to brokerage #2

It separates the selling and buying process from the moving process.

It can be done as long as brokerage #2 is willing to accept the investment, which most of the time they are.

You can hold Vanguard funds at Fidelity, or (I'm fairly certain) vice versa. There are some limitations but not many. Sometimes there can be higher transaction costs with "non-native" investments, or at least there used to be.

"In kind" is particularly nice for taxable accounts; if you do (A) above then the sale at brokerage #1 will be a taxable event which often is not desirable.
 
But isn't there a time lapse from the day the money is withdrawn from Vanguard to the day it actually gets reinvested at Fidelity?

No, that's not how "in kind" works.

Imagine you have 100 shares of Microsoft in your Vanguard account. Now, you instruct Vanguard to transfer the shares "in kind" to Fidelity. Basically, Vanguard takes those 100 shares and sends them over to Fidelity. They are never sold for cash and therefore do not have to be re-bought. They just transfer (essentially the actual shares) from Vanguard to Fidelity.

The same is true for (almost) every other type of investment product such as bonds, mutual funds, ETFs, etc. The only exception if if the receiving institution does not want to deal with a particular stock, mutual fund, ETF, etc. THEN, you may have to cash out that position at the old brokerage and transfer the cash over to the new brokerage. In this case only, you run the risk of missing out (or being punished) by market movement. In addition, unless you are dealing with retirement accounts, the cashing out will be a taxable event, so that is usually a very undesirable aspect. In short, with very few exceptions, in kind is the best way to go.
 
We moved our portfolio to Fidelity and received $3K in bonuses for each of us.
 
Does anyone know if Institutional Shares can be transferred in kind? DH has them in his 401K that he wants to roll over. The expense ratios are better with the institutional shares.
 
Does anyone know if Institutional Shares can be transferred in kind? DH has them in his 401K that he wants to roll over. The expense ratios are better with the institutional shares.

Probably not. At least I couldn't, when faced with the same situation. Since I did not have access to those institutional VG tickers in my IRA, then I could not transfer them in kind from the 403(b).
 
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