Should I rollover my Fidelity 401(k) to a Vanguard IRA?

Question

I'm leaving a job where I have a Fidelity 401(k). I plan to rollover my Fidelity 401(k) into an IRA after I leave the job.
I like Fidelity. But most of my portfolio is invested in Vanguard ETFs, and I plan to continue investing in them.
Should I rollover my Fidelity 401k to a Vanguard IRA? Or should I stick with a Fidelity IRA?

Craig W · Accepted Answer

You can buy Vanguard ETFs commission-free at Fidelity. If you wanted to buy Vanguard mutual funds (and were opposed to the Fidelity equivalents), that would be a different story. But with ETFs either brokerage is fine, so it's really a matter of personal preference, and you can't go wrong with either. Note that rolling over a Fidelity 401(k) to a Fidelity IRA might be easier than to a Vanguard IRA, so that could impact your decision.

Correct answer by Craig W on May 28, 2021

Hilmar · Answer

Compare fees and convenience of access.
If you are planning to invest in Vanguard ETFs anyway it's probably easiest and cheapest to open a Vanguard IRA.

jamesqf · Answer

I don't think it makes all that much difference. I like having accounts with two different companies just for diversity. If someone manages to hack into one account, then I still have the other to use while the first is being fixed. Likewise, if I'm ever disabled for a spell, the person who has my health care POA can draw funds from account A, but can't be tempted to clean out both and head for someplace with no extradition :-)

Answered by jamesqf on May 28, 2021

Should I rollover my Fidelity 401(k) to a Vanguard IRA?

3 Answers

Add your own answers!

Ask a Question