No matter how simple or complex, you can ask it here. From my understanding, there is close to no difference between Vanguard offering and Fidelity, but I want to know if there is any difference in the brokerage account holder selected Vanguard vs Fidelity. Will I get any advantages by opening another brokerage account at Vanguard to hold my portfolio or I can simply use Fidelity without any disadvantages?
Thanks in advance! Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by galawdawg » Tue Aug 03, am Welcome to Bogleheads! Fidelity is a much, much better brokerage, hands down. Just look at the many Vanguard threads, including the current thread discussing Vanguard discontinuing secure messaging for most clients, leaving only telephone support M-F 8a-8p ET as the ONLY way to contact them.
Using the Fidelity funds for your three-fund portfolio will be fine. I didn't look up the three Fidelity funds you propose using, others who are more familiar with Fidelity can probably note any reasons to select the three you listed or the three listed here.
Good luck! There is only one success - to be able to spend your life in your own way. Christopher Morley. Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by retiredjg » Tue Aug 03, am Welcome to the forum. If you already have an account at Fidelity and like Fidelity, there is no reason to open an account at Vanguard. However, you should not buy Vanguard mutual funds at Fidelity because of the high transaction fees.
Either use the similar Fidelity mutual funds or buy Vanguard ETFs which do not have a transaction fee. If you actually have a preference for opening an account at a different place, go ahead with Vanguard. Link to Asking Portfolio Questions. Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by backpacker61 » Tue Aug 03, pm If you see yourself wanting to buy tax exempt bond funds state- or duration-specific at some point, Vanguard has the edge there, with VWIUX, VWLUX, and a series of low cost, state-specific tax exempt bond funds that you won't find adequate competition for anywhere else.
Be aware that Fidelity has something of a "minefield" of expensive mutual funds on offer; double check that you are really buying what you think you're buying. While they have many funds that are attractive and competitive with those at Vanguard, the fact remains that the lion's share of what they have on offer are expensive actively managed funds. Tread carefully. Everything on offer at Vanguard is at or very near the lowest cost available.
I have accounts at both Fidelity and Vanguard, and use them for somewhat different purposes. Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by tashnewbie » Tue Aug 03, pm If you already have an account at Fidelity, it'd probably be easier to stick with Fidelity. I would probably use ETFs instead of mutual funds in a taxable account at Fidelity, but it's not a huge deal. Depending on my tax brackets, I wouldn't be using a taxable bond fund in a taxable account. See: Tax-Efficient Fund Placement.
Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by Cody » Tue Aug 03, pm Are you certain that the Fedility website and company is better the Vanguard? I hear about Ally this and that too but still like Ally as a website and company. How can you actually track down there track record?
I'm not saying you shouldn't use them but I always ask "how solid is the information" and is it anecdotal based on some complains or is it 's of legitimate complains and peer reviewed if possible. I'd love to know. Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by ruralavalon » Tue Aug 03, pm Both Vanguard and Fidelity are good choices. If satisfied with Fidelity stay there.
If dissatisfied consider Vanguard. Those accounts go back forty years but not ETFs then. I had a different broker in addition for a long time but eventually everything taxable was consolidated at Fidelity. The k assets remain with the plan, mostly in Vanguard and Fidelity funds in a directed account at Schwab. I see no reason whatsoever to open a Vanguard account.
Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by alex » Wed Aug 04, am Wow, thank you all for such an active discussion and your suggestions! I'm glad that my book brought me here to this forum. I do enjoy Fidelity and based on your feedback I don't see any reason to switch to Vanguard. I didn't know about the transaction fees while buying Vanguard mutual funds at Fidelity, so this is great learning! Also, having the ability to trade ETF across brokerage accounts without extra fees, I think I like this flexibility and will go with exchange-traded funds.
Based on your feedback I'm thinking about the following: 1. Brokerage account at Fidelity keep my current account 2. I could have that wrong. What did you end up doing? Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by huzaing » Wed Aug 04, pm I think there's a miniscule difference between the two. If you do a coin toss and select one, and then move on and never look back - you will be fine. If there was a BIG difference between the two, everybody would already know about it.
So it's not worth your time to spend any significant amount of energy on this question. Best wishes! Could you hold more bonds in there? Fidelity does not have its own ETFs. Is that your experience also? If that is the result of your investing practices instead of something beyond your control that needs to change.
The IRS yearly limit for k is Did I get it correctly? Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by cjcerny » Fri Aug 06, pm If this money is in a taxable account, I would choose Vanguard over Fidelity. Fidelity stock index funds have a history of occasionally having to distribute capital gains, which would leave you with a higher tax burden, despite their lower expenses.
Re: Vanguard vs Fidelity brokerage account for my three-fund portfolio Post by JoMoney » Fri Aug 06, pm Vanguard seems to have gotten a larger amount of "poor customer service" complaints lately. I haven't had an account with Vanguard in over a year, and I never had much need for "customer service" to begin with, but I never had a problem with Vanguard across several decades of an account with them. People also complain about Vanguard's web page interface, I don't know what they're talking about, I found it very easy and intuitive to use as well as have all the functionality I needed.
If I was going to have a 3-Fund Portfolio starting from scratch today, I would open it as mutual fund accounts at Vanguard. Here are a couple of methods to think about:. From what I understand both of these methods will lead to percentages of stocks that are pretty conservative, and will actually be lower than amount of stocks held in, for example, a target retirement date fund from Vanguard. What it comes down to, however, is you have to figure out what your personal risk tolerance is, what your retirement time horizon is, and adjust your percentages accordingly.
Again, it comes down to how much international weighting you want to give your portfolio. If you want to get some recommendations of funds to choose, along with how to weight your three-fund portfolio, check out this calculator found at Vanguard, which will give you suggestions of funds to choose, and how much to allocate based on your answers to a simple questionnaire. My personal recommendation is to go with Vanguard because they have some of the best low cost funds available, and you can buy in at relatively low amounts as compared to some other companies.
On the Bogleheads forum, they suggest the following from the core funds at Vanguard as the best funds for a three-fund portfolio. The idea is just to make sure that you are investing in low expense ratio index mutual funds or ETFs. For more examples of three-fund portfolios at other mutual fund companies, check out this post on three-fund portfolios. Three-fund portfolios are a great way for investors to keep their investments simple, low cost and diversified across both domestic and international markets.
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Interesting and hard to argue. In fact when my 24 year old daughter started her first job I suggested the three Vanguard index funds you mentioned for her b , in her case primarily skewed to the equity side.
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