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Fidelity Investments Sucks

By elliemae   Follow   Fri, 16 Sep 2011, 7:27pm   1,367 views   14 comments
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I work for a company that recently decided to force its workers to save for retirement. They auto signed everyone up for a 401(k) to which they don't contribute - and for which we are responsible for fees. To opt out, you have to log on to a very unfriendly Fidelity website and screw around for awhile before you figure out how to opt out of a very stupid plan.

This isn't the first time I've had to deal with Fidelity, we have a past. Six years ago I worked for a company that had a stock plan, when I quit I sold the stocks (leaving the balance at zero). I am still receiving statements from them... to their credit, it's no longer monthly (it was monthly for about 4 years). I wrote them, I called them, but they still sent statements.

I figured that they make so much money they don't need mine and swore I'd never have anything to do with them ever again. This is why I'm pissed... it took another 20 minutes of my life to call (only to be told that I have to call back during their business hours on the East Coast, after holding for 10 minutes) and then go to their most unfriendly website.

Fidelity sucks.

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1. Done! Follow Befriend (4) 159 threads 2,826 comments

   1   6:25am Sun 18 Sep 2011   Share   Quote   Permalink   Like   Dislike   elliemae says I work for a company that recently decided to force its workers to save for retirement. They auto signed everyone up for a 401(k) to which they don't contribute - and for which we are responsible for fees. To opt out, you have to log on to a very unfriendly Fidelity website and screw around for awhile before you figure out how to opt out of a very stupid plan. Call a labor lawyer, if they don't have a signature from you, I'd take this all the way from suing them in court to a supreme court ruling if I had to. Then I would sue them again for firing me, over the huge stink I would make over such a violation.

2. elliemae Follow Befriend (25) 416 threads 7,009 comments Saint George, UT elliemae's website

   2   9:35am Sun 18 Sep 2011   Share   Quote   Permalink   Like   Dislike (2)   I don't think I have a case, and even if I did there are no damages. They're assholes, but all I had to do is opt out. Maybe if I'd broke a nail I could've gotten a free manicure.

3. corntrollio Follow Befriend (5) 27 threads 2,073 comments

   3   11:57am Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike   The opt out thing is becoming more common so that people contribute. Not sure why the trout is suggesting filing a frivolous lawsuit. I'm not a big fan of Fidelity either, although they do sponsor a decent credit card and they do have relatively low fees on index funds (although Schwab is often lower among non-Vanguard options). Do you have to pay heavy fees to Fidelity under the plan? Is the plan otherwise pretty good?

4. elliemae Follow Befriend (25) 416 threads 7,009 comments Saint George, UT elliemae's website

   4   12:00pm Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike (2)   I didn't even check it out; I have no intention of investing with a company just because where I work wants me to. They don't contribute to it, nor do they subsidize the fees.

5. CL Follow Befriend (12) 141 threads 1,367 comments Emeryville, CA

   5   12:06pm Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike   Nudge the fudge! http://www.thedailybeast.com/newsweek/2008/06/21/nudge-against-the-fudge.html

6. corntrollio Follow Befriend (5) 27 threads 2,073 comments

   6   1:42pm Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike   elliemae says They don't contribute to it, nor do they subsidize the fees. Right, but the benefit is tax-deferred savings (or post-tax with no future taxation, if Roth). In some cases it can be better to save in a taxable account, but it's unclear whether this is one of those cases.

7. elliemae Follow Befriend (25) 416 threads 7,009 comments Saint George, UT elliemae's website

   7   9:41pm Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike (2)   corntrollio says Right, but the benefit is tax-deferred savings... Shouldn't that be my personal choice? WTF?

8. corntrollio Follow Befriend (5) 27 threads 2,073 comments

   8   2:10pm Wed 21 Sep 2011   Share   Quote   Permalink   Like   Dislike   elliemae says Shouldn't that be my personal choice? I don't understand the question. You are given the following choices: 1) 401(k) (or 403(b), which is similar) as determined by your employer 2) various forms of IRAs, depending on income If you don't want option #1, then use #2 or lobby Congress to add another option. So would you use Fidelity if your employer had a match?

9. zzyzzx Follow Befriend (9) 436 threads 4,261 comments Baltimore, MD

   9   8:48am Tue 27 Nov 2012   Share   Quote   Permalink   Like   Dislike (2)   Also stuck with fidelity. Just got screwed by them as well. Instead of cutting me off at the yearly limit, they decided that my contribution should be buying mutual funds on an after tax basis.

10. mell Follow Befriend (5) 74 threads 1,406 comments Premium

    10   9:02am Tue 27 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   They do suck, I just helped a friend transfer the funds from his fidelity 401K to a friends hedge fund. Definitely not recommended unless your employer does matching and they happen to use fidelity.

11. elliemae Follow Befriend (25) 416 threads 7,009 comments Saint George, UT elliemae's website

    11   8:58am Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike (2)   corntrollio says So would you use Fidelity if your employer had a match? Nope. I now work for a different company and was told yesterday they are changing their investment firm for new hires to (drum roll, please) Fidelity. They don't match $ either so it doesn't matter to me. And, by the way, I am still receiving statements from Fidelity for a company I worked for in 2005, cashed out and have never used them since. Get them quarterly, with no $ in the account.

12. Ceffer Follow Befriend 6 threads 693 comments Pleasanton, CA

    12   10:13am Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   As I recall, Fidelity funds have high front end loads. Somebody at your company may be getting a kickback. Go Vanguard, low fee tracking funds.

13. zzyzzx Follow Befriend (9) 436 threads 4,261 comments Baltimore, MD

    13   11:42am Wed 28 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike (2)   Ceffer says As I recall, Fidelity funds have high front end loads. Somebody at your company may be getting a kickback. That is what I was thinking.

14. thunderlips11 Follow Befriend (13) 61 threads 2,708 comments Premium

    14   1:04pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike   Protected   zzyzzx says That is what I was thinking. +1. Somebody got a free Fidelity T-shirt, a stress ball, and referral fee.