Author Topic: Pension rollover into Fidelity, Vanguard or Both?  (Read 429 times)

NiaHopeFire

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Pension rollover into Fidelity, Vanguard or Both?
« on: February 05, 2019, 08:55:20 AM »
Ok, I have been "retired" for 3 days now from MegaTelco Corp.  I am 49 y/o, 4 courses away from a Master of Info Sys and not ready to go fishing or start gardening.  I will take a break living off of severance and rental income.

My 401K ($576K) is with Fidelity with a small Trad. IRA ($4,500).  I have 2 pensions ($367K, $134K) and am preparing to do a lump sum pension rollovers.  I will purchase large cap dividend payers to generate income.  Initially, I will reinvest the dividends, but have those dividends distributed to me if I don't unretire myself in the next 1 1/2 years. 

My question is would you rollover both pensions to my current brokerage Fidelity or rollover the largest to Fidelity and open up a Vanguard IRA to make a purchase of a "buy it and forget it" fund like VTSAX with the smaller pension?   I am comfortable self directing my portfolio, but wanted to weigh the success of VTSAX versus what I could do for myself.

Dragonswan

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Re: Pension rollover into Fidelity, Vanguard or Both?
« Reply #1 on: February 05, 2019, 10:17:55 AM »
I can't advise you on where to roll over your money.  But I can tell you that Fidelity's FSAX fund is equivalent to VTSAX as they are both Total Market Funds.

Aggie1999

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Re: Pension rollover into Fidelity, Vanguard or Both?
« Reply #2 on: February 05, 2019, 10:32:51 AM »
OP: Note that SIPC coverage is limited to $500k per account type. Relevant depending on how paranoid you are.

https://www.sipc.org/for-investors/investors-with-multiple-accounts

nereo

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Re: Pension rollover into Fidelity, Vanguard or Both?
« Reply #3 on: February 05, 2019, 04:26:59 PM »
"Both" only makes sense if you are worried about SIPC - otherwise it needlessly adds complexity

Vanguard is client-owned, which I like. 
Fidelity has managed to offer the same funds at marginally lower fees.

Coin flip.  Either will work.