# Which brokerage, Fidelity, Vanguard, or Schwab?



## DaleD (Oct 28, 2021)

I have a 401k with Fidelity. I'll be retiring next year. So far, Schwab looks really good to me. The fees are similar between the three, but Schwab offers a CFP to advise and make a plan for $300. If I like the advisor, I can have access to him or her for $30/month. I've contacted all three brokerages, and Schwab is by far the most interested and communicative.


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## HarryHawk (Oct 28, 2021)

In terms of which company holds and trades your assets, all three of those firms are probably pretty close.

Regarding advisors, I personally found you pretty much get what you pay for.


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## Aunt Bea (Oct 28, 2021)

I chose Vanguard but IMO they have strayed from their original mission and core beliefs.

IMO there is not enough difference to worry about.


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## Jackie23 (Oct 28, 2021)

I've used Fidelity for many years, I like them, especially their web site...best I can remember they charge a percentage of your holdings for a personal advisor.
I have one mutual fund with Vanguard, their maintenance fees can't be beat but their web site is lacking in IMO.  I have a friend that uses Schwab and he has been very pleased with them.


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## Knight (Oct 28, 2021)

We use Fidelity. Because retiring early at 54 had some unique features relating to our 401k's. The free Fidelity advisor explained that if I began drawing on my 401k @ 59 1/2 it would have to be depleted in 15 years. The 401k was converted to a self directed IRA. We didn't need any money so at 70 1/2 I was forced to begin withdrawing on that IRA.

Didn't need an advisor but can meet with one for free if I chose to.  For taxes we only pay taxes on the money deducted for Mandatory Required Distribution. Good initial advice & good choices over the years for self directed  IRA has benefitted us.


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## Jackie23 (Oct 28, 2021)

....as in all things, there are different kinds of 'advisers'..
the one I was referring to are 'personal management advisers' that charge 1% of your portfolio.


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## Aunt Bea (Oct 28, 2021)

I don’t use a paid advisor but I do read and listen to everything available to me.

IMO the free or low fee advisors are just pushing the company agenda or conventional logic of their organization.

It’s difficult and expensive to find a competent advisor that will act as a fiduciary and not a paid salesman representing their companies products.


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## MrPants (Oct 28, 2021)

Aunt Bea said:


> IMO the free or low fee advisors are just pushing the company agenda or conventional logic of their organization.
> 
> It’s difficult and expensive to find a competent advisor that will act as a fiduciary and not a paid salesman representing their companies products.


This is absolutely true!

You can do well with the cheap trade options available out there but you better know what you're doing and have the time and ability to do your own market research because if you don't, you're just plain gambling.

That's why I have a very good, independent advisor who I pay very well because he has access to data I don't and knows how to interpret it. Works out well for both of us!


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## fmdog44 (Oct 29, 2021)

I have been with Vanguard and no complaints but the other Fidelity and Schwab are probably similar. I get most of my advice or hints from CNBC and other stuff. It helps when all your money is doing well. I had my 401K with Merrill Lynch through my company and the were horrible so I dumped them after I retired. I looked in to their qualifications and they basically had none.


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## mathjak107 (Oct 29, 2021)

I pulled my money away from vanguard …worst customer experience I ever had when I needed them to answer a question .

I found them also to have poor customer service as well as  policys they come up with .

they have studies and company policy hat try’s  to promote whatever they get in to in a sneaky way .

I have had zero problems  with fidelity in 35 years


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## Liberty (Oct 29, 2021)

We use Schwab and love them. Love their funds, too. They are so responsive and incredibly economical. I don't know how much money you have to transfer but you might want to check and see if they are giving out a bonus for moving your funds there. I heard for $100,000 it was $500.


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## HarryHawk (Oct 29, 2021)

MrPants said:


> This is absolutely true!
> 
> You can do well with the cheap trade options available out there but you better know what you're doing and have the time and ability to do your own market research because if you don't, you're just plain gambling.
> 
> That's why I have a very good, independent advisor who I pay very well because he has access to data I don't and knows how to interpret it. Works out well for both of us!


I also use a very good independent advisor who is not cheap.  I also get a very good return on the money I have invested.  I have found that by the time you hear about an event on the evening news, the market has already reacted. 

If heaven forbid I ever went on trail for murder, I don't think I would choose to go with a public defender since it was the cheapest option.

All that being said, it is hard to find a good advisor.  I went through several that were ok but not great.  My current advisor has consistently increase my returns and limited my losses by a significant margin when compared with the other advisors I've previously used. There is absolutely no way that I could generate the same level of performance if I was managing my own affairs.


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## HoneyNut (Oct 29, 2021)

I have Fidelity and there are things I like about it (the website and its features, and the 24/7 phone line with helpful people, and their no-fee zero cost choices), but I am not happy with the free advisors they provide.  In my experience (admittedly limited), the free advisor basically runs the tools that I can do myself, that for example tell me my stock-to-bond ratio.  What they don't do that would have been a lot more helpful, is look at every investment in each account and determine what would be better.  For example, I had a Roth IRA and the small amount in it sat for several years in the 'core' position not growing at all.  I'm sure I had at least one free advisor session during those years.  It would have helped so much if they had noticed that and explained to me what the Roth IRA was and how the money could be better invested.  Once I finally noticed the lack of growth and called Fidelity in the middle of the night on a weekend, the advisor I happened to reach was useful (after I overcame his initial reluctance to help because my account total was above what he was qualified to advise on, but I pointed out the one account I was asking about was within his qualifications) and the money was invested in a not-bad way but still below optimal (he recommended an age appropriate fund but I feel now that since it was a Roth he should have recommended a more aggressive growth option).
My parents did very well with Edward Jones and so have some wealthy connections of mine.  I think I shied away from them because I felt like they had high fees but now I think maybe the fees would more than cover themselves by the better quality advice.


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## mathjak107 (Oct 29, 2021)

HoneyNut said:


> I have Fidelity and there are things I like about it (the website and its features, and the 24/7 phone line with helpful people, and their no-fee zero cost choices), but I am not happy with the free advisors they provide.  In my experience (admittedly limited), the free advisor basically runs the tools that I can do myself, that for example tell me my stock-to-bond ratio.  What they don't do that would have been a lot more helpful, is look at every investment in each account and determine what would be better.  For example, I had a Roth IRA and the small amount in it sat for several years in the 'core' position not growing at all.  I'm sure I had at least one free advisor session during those years.  It would have helped so much if they had noticed that and explained to me what the Roth IRA was and how the money could be better invested.  Once I finally noticed the lack of growth and called Fidelity in the middle of the night on a weekend, the advisor I happened to reach was useful (after I overcame his initial reluctance to help because my account total was above what he was qualified to advise on, but I pointed out the one account I was asking about was within his qualifications) and the money was invested in a not-bad way but still below optimal (he recommended an age appropriate fund but I feel now that since it was a Roth he should have recommended a more aggressive growth option).
> My parents did very well with Edward Jones and so have some wealthy connections of mine.  I think I shied away from them because I felt like they had high fees but now I think maybe the fees would more than cover themselves by the better quality advice.


Free is worth free


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## oldmontana (Oct 30, 2021)

I have used many firms that have high costs for trades, like Merill Lynch and Smith Barney.  I find that they care more about their commissions than what is best for me.  I also used TD Ameritrade and subscribe to financial newsletters. I do not need or want a stock broker calling me.

Know I just use TD Ameritrade but Fidelity and Schwab would give me what I need.


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## palides2021 (Nov 23, 2021)

Have used TD Ameritrade in the past. Loved their free trades. Haven't used Schwab or Fidelity.


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## dseag2 (Nov 23, 2021)

My father was a financial advisor, so I totally believe in using a full-service firm.  He made lots of money for his clients.

My financial advisor was with Morgan Stanley until he moved to Wells Fargo.  Unfortunately, he passed away a couple of years ago and a new advisor has taken over my account.  The new guy is also great.  He is paid on the performance of my account.  I have been with them for 20 years with absolutely no complaints.

Hard not to see increases in today's stock market, but I am very satisfied with the growth.  My advisor calls me on a regular basis to talk about potential new investments and the company's view of the future of the market.  I'm sticking with full-service, since I know just enough about investing to be dangerous.


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## old medic (Nov 24, 2021)

After a bunch of research we opened an account with Schwab. was very pleased with the help we got... Liked being able to sit across a desk and talk with someone. was treated like we were investing a million... not the minor amount we were... 
Look up Bogleheads 3 fund portfolio.... and advisor can make you more money... but they are playing with your money to make them money.


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## Liberty (Nov 24, 2021)

palides2021 said:


> Have used TD Ameritrade in the past. Loved their free trades. Haven't used Schwab or Fidelity.


Schwab owns Ameritrade...so far they are running it as two separate companies though.  Heard they may merge it.


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## Liberty (Nov 24, 2021)

old medic said:


> After a bunch of research we opened an account with Schwab. was very pleased with the help we got... Liked being able to sit across a desk and talk with someone. was treated like we were investing a million... not the minor amount we were...
> Look up Bogleheads 3 fund portfolio.... and advisor can make you more money... but they are playing with your money to make them money.


Yes, recently read that 3 out of 4 advisers don't make their clients  enough "extra" to pay for their charges.
Today, with all the good funds there are out there, its probably hard to "beat the market" without taking some big risks.  Most folks don't like that.  Like they say on Bogleheads, markets go up and down, but those advisor fees are forever...especially at 1.5 %.


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## OneEyedDiva (Nov 24, 2021)

I've been with all three brokerages in addition to a few others in the past. I left Fidelity because no one would answer a simple question I had....were they affiliated with ALEC. The customer service rep wouldn't (or couldn't) answer and the department she referred me to, which I emailed, refused to answer.  I left Vanguard because of all the brokerages I've dealt with (next to TD Ameritrade), their site and procedures were the most complicated and cumbersome to navigate. I felt that it would be too much of a hassle for my son and grandson to deal with after I pass. That was the catalyst for transferring my Vanguard accounts to Schwab.

I *love* dealing with Schwab because the customer service has been great, their two factor identification is unique yet simple, the site is very easy to navigate and they've instituted features that make it super easy to do whatever you need to do such as change beneficiaries, transfer funds from another brokerage, take RMDs and research investment choices (even non Schwab funds) for which reports can be generated free of charge. I no longer have to worry about mailing requests that have my sensitive information on them. I have recommended Schwab to people I know who are looking to open brokerage accounts.

I *really *dislike TD Ameritrade's site. Plus a representative took it upon him or herself to not reinvest one of my quarterly dividends. The rep I spoke with saw that but couldn't tell who was responsible. I would have transferred my funds but they want $75 for transfers to another brokerage, which is ridiculous. No other brokerage has ever required that. Since TDA and Schwab merged several months ago, I'm hoping that the steps to access my TDA account via Schwab will be in place real soon.


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## WaskaleeWabbit (Nov 28, 2021)

MrPants said:


> This is absolutely true!
> 
> You can do well with the cheap trade options available out there but you better know what you're doing and have the time and ability to do your own market research because if you don't, you're just plain gambling.
> 
> That's why I have a very good, independent advisor who I pay very well because he has access to data I don't and knows how to interpret it. Works out well for both of us!


I know several investment professionals, one is the managing director for a 60b dollar firm and the other is a retired day trader, and both have told me on a zoom conference call that I'd be better off parking my funds in the SPY ETF, Both have said it's very rare for any personal manager to outperform the S&P 500, which YTD is 30% . I think the other important thing to do immediately is to get a minimum of 10% of your portfolio into Bitcoin/crypto. If you are not keeping up with the S&P 500 on your investments then you are not keeping up with inflation so i've been told.


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## mathjak107 (Nov 29, 2021)

let me say nonsense …..retirees are generally not going to have 100% equities which is what the s&p is so right off the bat matching the s&p return as a benchmark is not going to happen .

it is also not nominal returns that count , it is real returns which are inflation adjusted .

a 4% safe withdrawal rate in retirement  which IS INFLATION ADJUSTED requires a 2% real return average the first 15 years of a 30 year retirement to be able to inflation adjust yearly


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## HarryHawk (Nov 29, 2021)

When it comes to the stock market, time is your friend.  Some of us seniors certainly don't have the same luxury with regards to time as does a 35-year-old person still at work.  

If we are relying on our investments to provide a regular income, perhaps the biggest risk we face is --

_Sequence of Return Risk, also called sequence risk, this is the *risk that comes from the order in which your investment returns occur*. To put it another way, sequence of return risk is the risk that market declines in the early years of retirement, paired with ongoing withdrawals, could significantly reduce the longevity of a portfolio_


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## mathjak107 (Nov 29, 2021)

even at 65 we have long term money we wont eat with for 20-30 years .

that is still money that should be in equities


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## WhatInThe (Nov 29, 2021)

Fidelity is Ok. Schwab clients seem to be happy. Vanguard is a different story all around. Their service is slow and their policies are geared to buy and hold customers only. It could be major listed stock with no financial issues if they don't like their strategy they will not let you buy it. Basically they don't want aggressive strategies but all strategies/stocks are risky to a point.


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## mathjak107 (Nov 29, 2021)

HarryHawk said:


> When it comes to the stock market, time is your friend.  Some of us seniors certainly don't have the same luxury with regards to time as does a 35-year-old person still at work.
> 
> If we are relying on our investments to provide a regular income, perhaps the biggest risk we face is --
> 
> _Sequence of Return Risk, also called sequence risk, this is the *risk that comes from the order in which your investment returns occur*. To put it another way, sequence of return risk is the risk that market declines in the early years of retirement, paired with ongoing withdrawals, could significantly reduce the longevity of a portfolio_


this is a concept few understand.

average returns mean little when spending down .  the same exact average return can see as much as a 15 year difference in how long the money will last over a 30 year retirement between the best out come and the worst .

just the order the gains and losses come in has more of an effect than the gains themselves .

contrary to popular misbelief ,even a conservative 4% inflation adjusted draw using fixed income and little to no equities has failed to last 30 years so many times it has actually earned a unsafe success rate rating .

100% equities has actually done about the same as 50/50 ….the bigger up years help the spending in the down years .

so  people do have their facts reversed


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## Creek Pirate (Feb 11, 2022)

The Guru's above may not like this but I have a diversified portfolio that I keep in a growth mode even though its a conservative 40/60 set of ETF's and bonds. I never WD 4%, normally it's 2.6 - 3.5%. On a bad year I may put off a WD. I made sure I could survive on my penny fixed income during that kind of year. I stay debt free. This works. I know some will not be able to do this for various reasons but I never here people talk this way. I would rather be frugal a leave some behind then lose my independence. No I am by no means rich. Wishing you all great retirements.


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