Good Bye (Free) Fidelity Advisor

[Bruno]

I got an email from a Vanguard guy wanting to let me know he would be calling. I dont have a paid advisor. In the past i have not been taking his calls but this time i did and I let him have it about VG service and by the time i was done he was glad to hang up.

 

[jazz4cash]

So, I think upselling paid services is in the water at Fido.

Exactly. Reminds me of when Megacorp required us to pester customers for info that was sure to annoy them.

I wonder what this relationship looks like if i cant or wont use all the great planning tools and investment resources on Fido’s website. I have all our details entered into the Guided Portfolio Service and Retirement Income Planner.

 

[OldShooter]

... So, I think upselling paid services is in the water at Fido.

No surprise, really. When Schwab organized the circular firing squad that took everyone's trading fees to zero, it was obvious that the revenue would have to be replaced or costs would have to be cut. Advisor fees are an obvious source of revenue and cuts to customer support call centers are an obvious move too. One of Schwab's moves was to change the cash sweep from the money market fund to an account at Schwab Bank that pays nearly zero. Probably they (Schwab, VG, Fido) are cutting back on fully licensed and trained reps and backfilling with less expensive assistants, too. I certainly would be.

They are businesses and they have to make money. Even VG has to generate enough profits to allow investing in the business. As customers, we just have to keep an eye out for fees and other costs that we can avoid.

 

[Markola]

Makes sense. Now that senseless profits have been squeezed from the 1%+ ER bad old days for anyone who isn’t not a Fast Eddie-type mark, one wonders when the pendulum might swing back to charging a few basis points in exchange for winning on service again.

 

[PatrickA5]

I get the occasional call from the Fido assistant (not even in the same city). I ignore it. I've had a couple of discussion with my assigned rep and he's pretty good. Doesn't try to sell anything. I moved everything to Fido a few years ago mainly so DW would have an office to go to once I've moved on. I've been very pleased with Fidelity, so far.

 

[GravitySucks]

My FIDO guy's assistant emails me to setup a meeting every 6 months. If I don't respond he'll call to try to schedule a call. I usually take the 45 minutes to talk with the FA as I usually have a question or two that I get a informed answer too. I've also initiated calls when I've had questions. The assistant has helped with technical issues via email, saving a call. There have been a few low key sales pitches for Fixed Income services that I may go for one of these days.
I'm happy with most of the advice I've gotten and very happy with the service he's provided.
To be honest these free FAs are really retention managers. Without his couple hours of time a year and the free TurboTax I might jump to Chuck when they run a open an account get some cash deal.