DIY platforms?
Hi, everyone,
I'm new to FIRE, but have been investing for a while. My Roth IRA, IRA, and brokerage accounts are with Wells Fargo, but I'd like to move some (all?) of that somewhere where I'm not paying someone to hold my money while I'm doing most of the directing. What are the best or FI recommended platforms? TIA!
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I would also add to Charlott's options as a good option would be Charles Schwab.
Fidelity, Schwab and Vanguard are all popular. Since you can buy a company's ETFs (not mutual funds) anywhere without trading fees, you should choose based on whose trading features and user experience you like best and not choose by whose funds you want. You can google for YouTube walkthroughs of each of their trading platforms to get a sense of their UI. I would put Fidelity at the top with Schwab second. Vanguard has historically been very slow to roll out new features and update their user experience so I would put them last of those three only for that.
In with vanguard and I’m happy there
I agree that Fidelity, Vanguard and Schwab are the go-to options. A couple of details to know about: First, while most people correctly recommend that you go DIY and keep it simple in broad market ETFs, I get that some people might be drawn to roboadvisors. If that’s you, be aware that in the past Schwab forced their roboadvisor portfolios to hold a significant cash position, and they were paying lousy interest on that cash. They got sued and agreed to disclose the practice more openly, but I don’t think they actually gave up that practice.
Also, even though I prefer Vanguard and Fidelity, when I retired in February I actually moved my 401k to an IRA at Robinhood because they have a 2% match on IRA rollovers and that was worth nearly $20k in my situation.
They require you to keep the money there 5 years to keep the match. If you make a small withdrawal before 5 years, they clawback 2% of the withdrawal amount, which is fine with me, as I’ll only withdraw enough to result in maybe a few hundred bucks clawback, leaving me still with a net profit of at least $16k-$18k at the end of the day.
I keep my near term spending money — like several months’ worth — in a Fidelity cash management account. I keep those funds in SPAXX and FDLXX. Safe, decent yield, state tax advantaged, and completely liquid with free checking, atm, and bill pay. My old local bank checking account with 0% interest is now obsolete.
Thanks for the post, Hugh. Your experience points to the value of doing some research. A 2% match is notable, so my hat's off to you! None of my balances will generate that level of bonus, but it's good to know that those options are out there. I appreciate you taking the time to reply to my question.
If you have over $25K in assets to transfer, Fidelity will reimburse you for up to $175 for fees that will be charged by Wells Fargo. I found the link by googling "fidelity ACATS fee transfer reimbursement" and there's a reddit post by Fidelity that gives you the link. I don't believe Vanguard will do that; not sure with Schwabb. I have all our retirement accounts and IRAs in Fidelity and our brokerage account in Vanguard. IMO, Fidelity just edges out Vanguard overall.
I would Recommend Fidelity as an excellent option for moving all your accounts over.
Vanguard or Fidelity are great options!