| Is my 401K paying for extras? |
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raemart
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| Is my 401K paying for extras? |
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Does anyone know particulars about the recent Fidelity story regarding them
taking the overnight cents gains made on customer 401K accounts and using it to pay for their overhead? It was only on the news feed for a single day and I didn't see it afterwards. I believe it was on Fox News. I am concerned... My 401K is with Fidelity!
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Fri Mar 22, 2013 7:23 pm |
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oldguy
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Concerned which way - for it or against it?
In all business the consumer pays the cost of what s/he consumes (as s/he should). Hopefully Fidelity puts capital under their control out at interest whenever they can to help pay their costs. But, if not, they will need to increase the fees that you pay to cover those costs.
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Fri Mar 22, 2013 8:20 pm |
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raemart
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Thanks Oldguy, Pretty sure these weren't scheduled, concrete fees known to the customers. They were skimming them off the overnight gains before they hit customer accounts the next morning. Fidelity's statement after accused was that this is standard operating procedure.
I am ALWAYS against paying for extras(known or unknown), especially with my money!
Here is what I saw on TV. It's a video. Hope it posts.
http://video.foxbusiness.com/v/2212900758001/401k-provider-sued-for-allegedly-using-customer-money/
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Fri Mar 22, 2013 10:16 pm |
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oldguy
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The rule about 'as soon as practicable' is normally applied to employers who are slow (a few weeks?) to put employees contributions in the 401k accounts at places shuch as Fidelity.
As for the overnite float - that looks a lot like someone in search of a "gotcha" against "Big Finanance". If I had a Fidelity 401k, if they credited my account with the SP500 Index Return minus their 0.2% expense ratio, I don't get very concerned about what they do with overnite ransfers. But we'll wait and see how it plays out - 
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Sat Mar 23, 2013 3:12 pm |
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raemart
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Thanks all. It just kind of startled me when I saw it on TV. I only saw the one report on a single day. It never reported a second time which I thought odd...? It does seem there may be a grudge involved possibly especially with no follow through. It was kind of like a hit and run. I do want to keep an eye on it, though.
I am still looking to see who is the best out there to host my brokerage account. I have small one started with Etrade(through my old employer) but still not sure if I want them to have large sums of my money. Fidelity has my 401K and they are tauted to be as good as Vanguard. Fidelity would be obivious, of course. But I see many are members of several different brokerage. It just seems when one's information is spread across hell's half acre, it is difficult for estate matters and heirs, etc, etc. Still pondering. Thanks for all the good help here!
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Sat Mar 23, 2013 9:30 pm |
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raemart
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Oh Lordy! More research! At this rate, I'm never gonna get in the market! Haha!
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Sat Mar 23, 2013 11:59 pm |
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Anton Martin
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| Re: Is my 401K paying for extras? |
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quote:
Originally posted by raemart
Does anyone know particulars about the recent Fidelity story regarding them
taking the overnight cents gains made on customer 401K accounts and using it to pay for their overhead? It was only on the news feed for a single day and I didn't see it afterwards. I believe it was on Fox News. I am concerned... My 401K is with Fidelity!
You don't need to worry about your 401k, for sure they keep it safe as even Fidelity understand that they hold people retirement money and they will need to pay it as people retire having their 401k with Fidelity. So don't worry and even if you are not sure with it, then you can contact your employer and you can ask your concern to them.
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Mon Mar 25, 2013 11:38 am |
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raemart
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TD Ameritrade is highly ranked in Kiplinger's Best Online Brokerage for 2012. For Investment choices, it came in 2nd behind Etrade(1st) and Fidelity(3rd). That's very good! Barron's also rated it high. All three did very well with commissions and fees with straight trades too.
Here's a quote from the 2012 Kiplinger's article.
"With a mild upset, E*Trade carried the day in this year’s rankings. Fidelity, which came in first in our February 2011 rankings, wasn’t far behind. Scottrade and TD Ameritrade came in third and fourth, respectively. E*Trade isn’t the lowest-cost firm, but its high scores in investment choices, user experience, and research and tools propelled it to the top of the list."
http://www.kiplinger.com/article/investing/T023-C000-S002-best-online-brokers-2012.html
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Tue Mar 26, 2013 3:03 pm |
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raemart
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Anton, I know my 401k will always be there for either me or inherited by my kids. They have to be funded and maintained by law. Just wondered what that report was all about and how serious.
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Tue Mar 26, 2013 3:09 pm |
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