Author Topic: Our 401Ks are moving to Fidelity...what do I need to know?  (Read 1591 times)

MVal

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Anyone have any experience with retirement accounts at Fidelity? Our company is moving all of our 401Ks from the current bank (Fifth Third) to Fidelity. I have no idea if this is going to be a good thing or not, as I don't know anything about their fee structure. Anyone know of some good funds there or how I should allocate my investments there?

MDM

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Re: Our 401Ks are moving to Fidelity...what do I need to know?
« Reply #1 on: May 19, 2017, 03:56:39 PM »
There is a good chance (trust but verify...) that you will be better off at Fidelity.

E.g., see Fidelity - Bogleheads.

markpst

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Re: Our 401Ks are moving to Fidelity...what do I need to know?
« Reply #2 on: May 19, 2017, 04:45:00 PM »
Your investment options will depend on what your employer works out with Fidelity. With my employer, I only have one low cost option at Fidelity, FSKTX (Fidelity Total Market Index Fund - Institutional Class) which has an expense ratio of 0.035% This is where 100% of my 401k resides.

My only other reasonable option is VFTNX (Vanguard - Social Responsible) at 0.12%. After that, you are talking 0.37% for small cap.

Our management fees are charged separately, and are $17.50 per quarter year.

BrendanJ45

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Re: Our 401Ks are moving to Fidelity...what do I need to know?
« Reply #3 on: May 19, 2017, 04:45:38 PM »
I've been with Fidelity for about 5 years in my 401k with 2 different companies. Both had really good low cost index funds. They were limited in international and bonds, but better than average in my opinion overall.

Frankies Girl

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Re: Our 401Ks are moving to Fidelity...what do I need to know?
« Reply #4 on: May 19, 2017, 04:56:56 PM »
Agree with MDM, and actually prefer Fido to Vanguard because I like their customer service and interface stuff much better.

I have my entire portfolio with Fido, and invest only in their extremely low cost index funds (see MDM's link for the comparisons to Vanguard funds). My company set our plan up so there were zero management fees charged, so it was a super awesome deal. I had the option in my 401k to invest in their Fidelity Total Market Index Fund (FSTVX), so that's where 100% of my 401k contribution went.

Fidelity is a for-profit company, but they also are trying to be tops in terms of customer service and offerings, and because of that, they are constantly improving things like apps, website development, ease of use and being extremely helpful. They have index funds just as good and as cheap as Vanguard, AND better apps, better reps, more perks. They do this in the hopes that you'll be tempted to also invest in some of their managed funds and form a long term relationship with them, but if you stick with the low cost stuff (which is super great) you get the best of both worlds: great customer service and great, low cost funds.

I am not knocking Vanguard, but Fido, if your plan allows you to invest in their index funds and doesn't end up charging you insanely high management fees for the plan administratin, is a stellar offering.