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At times fidelity is even cheaper on their index funds. Speaking of low fees , I just read the tax fraud case against vanguard is still waiting to be decided .
Their one time head tax lawyer blew the whistle on the fact their low fees were really a tax ploy. The company would charge the mutual funds excessively low fees so as to not show taxable profits and have under payed billions in taxes while diverting profits to some sort of contingency fund that was redistributed in some manner in which it committed tax fraud in his option and they fired him for making a big to do over it.
It has been going through the courts for a few years but stalled out waiting for the high court to decide a similar case before ruling.
Last edited by mathjak107; 07-30-2018 at 04:37 AM..
Open a RollOver IRA account, at either Vanguard or Fidelity (Really does not matter they are both good companies).
Its generally not a good idea to leave it under your old Employers 401K, If they company closes it 401K for some reason, Goes bankrupt, Does not pay the Administrator you funds could be locked up for months or maybe year while the mess is cleared up.
Moving it to your current employer just locks the money in to their plan choices.
Getting it in to a Rollover IRA gives you the option of investing the money as you wish. If in the future your Tax situation changes has you in a Low(er) Tax Bracket, That Rollover IRA, can be converted to a Roth IRA, Pay the taxes on it then (with other money) Then grow tax free.
To move the Old 401K, Just contact (Fidelity or Vanguard) they will do all the work, (You should NEVER touch the money) to move it from fiduciary to fiduciary. (takes about a week).
I think companies like Vanguard, T. Rowe Price, Fidelity, and Dodge & Cox are all quite straightforward and don't charge loads or other annoying fees (or at least very minimal).
They don't charge fees on after-tax portfolios. My question is about IRA accounts and Roth IRA accounts. They have to make their money somehow.
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Vanguard 'new' second verification process (personal US cell phone ONLY) is impossible to use if you spend a lot of time 'out-of-country', or live in a non-cell coverage region of USA, so... if I can't access my Vanguard accounts, I will be moving them.
30+ yrs and lots of accounts, but I need access... Fidelity has not YET been so restrictive as is remove access to my accounts.
Vanguard claims NO options beyond a direct call / txt to your USA based carrier phone for 2nd verification.
Vanguard customer service for non-traditional services (something that a robot cannot answer)... is not stellar.
Even though the other companeis might not have loads, I believe only Vanguard has low expense ratio stock index funds, but I have no personal experience with the other companies to know if that's a true statement. By far the best thing you can do is go with low cost stock index funds like Vanguard.
fidelity announced the first ever no fee index funds today ....
Most managed 401k's will have additional 'bookkeeping' and 'custodial' fees, you can check your account history to see how much they take out. Ideally you'll want to roll it to an IRA via trustee-trustee transfer. You'll have options to put in low/no-load(Fidelity Zero) fund and also convert some or all of it eventually to Roth IRA.
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