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Fidelity Investments Sucks


By elliemae   Follow   Fri, 16 Sep 2011, 12:27pm PDT   2,089 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.

Comments 1-14 of 14     Last »

Done!   Sat, 17 Sep 2011, 11:25pm PDT   Share   Quote   Permalink   Like   Dislike     Comment 1

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.

elliemae   Sun, 18 Sep 2011, 2:35am PDT   Share   Quote   Permalink   Like   Dislike (2)     Comment 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.

corntrollio   Mon, 19 Sep 2011, 4:57am PDT   Share   Quote   Permalink   Like   Dislike     Comment 3

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?

elliemae   Mon, 19 Sep 2011, 5:00am PDT   Share   Quote   Permalink   Like   Dislike (2)     Comment 4

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.

CL   Mon, 19 Sep 2011, 5:06am PDT   Share   Quote   Permalink   Like   Dislike     Comment 5

Nudge the fudge!

http://www.thedailybeast.com/newsweek/2008/06/21/nudge-against-the-fudge.html

corntrollio   Mon, 19 Sep 2011, 6:42am PDT   Share   Quote   Permalink   Like   Dislike     Comment 6

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.

elliemae   Mon, 19 Sep 2011, 2:41pm PDT   Share   Quote   Permalink   Like   Dislike (2)     Comment 7

corntrollio says

Right, but the benefit is tax-deferred savings...

Shouldn't that be my personal choice? WTF?

corntrollio   Wed, 21 Sep 2011, 7:10am PDT   Share   Quote   Permalink   Like   Dislike     Comment 8

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?

zzyzzx   Tue, 27 Nov 2012, 12:48am PST   Share   Quote   Permalink   Like   Dislike (2)     Comment 9

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.

mell   Tue, 27 Nov 2012, 1:02am PST   Share   Quote   Permalink   Like   Dislike     Comment 10

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.

elliemae   Wed, 28 Nov 2012, 12:58am PST   Share   Quote   Permalink   Like   Dislike (2)     Comment 11

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.

Ceffer   Wed, 28 Nov 2012, 2:13am PST   Share   Quote   Permalink   Like   Dislike     Comment 12

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.

zzyzzx   Wed, 28 Nov 2012, 3:42am PST   Share   Quote   Permalink   Like (1)   Dislike (2)     Comment 13

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.

thunderlips11   Wed, 28 Nov 2012, 5:04am PST   Share   Quote   Permalink   Like   Dislike     Comment 14

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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