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  • Fidelity 401K

    Hello everyone! I'm going to be starting my job in the next month and just found out they use Fidelity for their 401K. I was pretty set on using Vanguard with all their low cost funds with a plan to use a combination of their Total Stock Market/International Stock/Bond Market (and possibly REIT) funds invested pretty aggressively in an 80/20 ration favoring stocks. However, I'm not sure what the equivalents would be at Fidelity and if I even have access to the Vanguard funds (and if I do do they have higher expense ratios?). 


     


    Any help or guidance would be appreciated in how to invest in my 401K with those goals in mind. Thanks!


  • #2

    I'd start with this thread.  @DFMA has mentioned some similiar ones. Your plan may offer a subset of total funds in the 401k. I'd ask for the details of the plan, and available funds.


    Depending on your situation, etc, you can usually have your Roth IRA at Fidelity too, and an individual (read: taxable) investment accounts too, where you may have more fund options.

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    • #3

      Ask your employer/benefits/HR people for a list of available funds and post them here.  We'll help ya out.

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      • #4

        They'll probably give you a packet pretty soon.  Plus you'll find out when you go to sign up.


        We are stuck with Fidelity for my wife's 403b.  Sucks but at least there's a couple decent Vanguard funds available.  We use Vanguard for everything else, my firm's 401k, Roths for me, wife and kid, utma, etc.

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        • #5
          My old jobs 401k was through fidelity. The expense ratios were essentially identical. I was happy enough to move all my investments away from from vanguard, who has the customer service comparable to a kids lemonade stand.

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          • #6

            There is this on the Bogleheads board


            https://www.bogleheads.org/wiki/Fidelity


             


            Not sure how up to date it is because it doesn't have Fidelity's FTIPX international fund which is a little over two years old.

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            • #7

              Ultimately, it may come to down which funds from Fidelity are offered.


              My wife’s 401k is at Fidelity, and she has the major asset classes of index funds available to her. My open architecture retirement plan is also at Fidelity, and their index fund options are now excellent, and there are lots of other great choices if you want to get more exotic.


              All told, I would estimate that about 2/3 of our investible wealth is at Fidelity, and I have been happy with the offerings and service, both of which seem to get better every year. You could do a lot worse.

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              • #8
                As mentioned, it depends on your options. I have a fidelity 401k and using Spartan funds I've designed a lifecycle fund with cheaper ER than equivalent vanguard fund. Last I calculated, it was saving me around a Macallan 18 each year.

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                • #9

                  Once you know what funds are available let us know. Fidelity is essentially equivalent to Vanguard. They have excellent options  as well.

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                  • #10

                    Do not assume when an employer says they have a "Fidelity" or a "Vanguard" plan, that it is in fact a direct plan with that financial institution as administrator. Many times, the "Fidelity" or "Vanguard"  only means that they are the custodian and/or record keeper. The selection of funds can be from an advisor  or TPA. This is like you having an account at TD Ameritrade. The 401k plan could have funds from other fund providers. Of course, if an advisor has his hands in the till, who knows how good those funds will be.  

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                    • #11

                      Also, there maybe an option to open a brokerage account which could give you hundred of choices.  My wife's Fidelity 401k has this option.

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                      • #12
                        Thanks again everyone for all your help! Here are the long awaited funds available at my new job. I'm looking at about 40% allocation for stocks with either Fidelity 500 Index or Vanguard Growth Index Fund (though not sure which one besides their expense ratios and performance), 30% at the Fidelity International Index Fund, 20% with Vanguard Intermediate-Term Bond Index Fund and 10% with Vanguard REIT.

                        This sticks to the allocation I initially wanted (aggressive growth) but not the exact funds I had hoped for. Thoughts are appreciated!

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                        • #13
                          I'd use 500 Index for US equities.  Your allocation a little heavy in international for me.  I have about half of what you are planning in my portfolio but agree with the international index fund choice.  Since you stated up above that you want an aggressive allocation, you could also tilt to small cap value if you so desire.

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                          • #14
                            Much appreciated! I'll look over the international allocation again just in case. My ideal fund wouldn't have no more than 3-4 funds for simplicity sake so the small caps might be a little much for my tiny investing head.

                            Appreciate the feedback though!

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                            • #15
                              I agree with jhwkr542 (Rock Chalk!).  Being in S&P 500 you aren't getting any small or mid-cap exposure (other than REITS which are smaller cap companies).  I would consider reducing your REIT exposure to 5% and allocate the remainder to small-cap.

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