Fidelity Investments Sucks


By elliemae   Follow   Fri, 16 Sep 2011, 7:27pm   1,730 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!


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    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


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    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


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    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


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    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


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    5   12:06pm Mon 19 Sep 2011   Share   Quote   Permalink   Like   Dislike  
  6. corntrollio


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    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


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    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


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    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


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    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


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    10   9:02am Tue 27 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    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


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    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


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    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


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    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


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    14   1:04pm Wed 28 Nov 2012   Share   Quote   Permalink   Like   Dislike  

    zzyzzx says

    That is what I was thinking.

    +1. Somebody got a free Fidelity T-shirt, a stress ball, and referral fee.

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