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I'm 56 yrs young, and would like to open an individual Roth IRA. Problem is, I can't decide to go with Vanguard or Fidelity? And also which funds? I just recently started to contribute to my 401k at work (10%) but I want to do more. I'm in the PIMCO at work.
Given I am 56 yrs old, and although I would LOVE to play catch-up, because I haven't been able to contribute during the last 11 yrs due to a divorce and financial reasons, and earn 10% - 25% it's not going to happen, not now anyways.
I know both Fidelity & Vanguard have a good variety and are reliable Company's, but problem is I don't know which funds to invest in.
I greatly appreciate your fabulous and knowledable input. Everyone here is just so wonderful!
I have IRAs with both and Roth at one of them. I guess you plan to invest in their mutual funds? They both have great choices of funds, but many of Vanguards have cheaper mgt fees, specifically the index funds.
However, you can set up your accounts so you can buy many mutual funds from many different companies. I am set up that way with each of them. I also have a brokerage acct with each of them so I can trade stocks. Explain this when signing up and they will set up your account so you can choose from their funds or someone else's funds. There might (or might not be) a fee for buying someone else's funds. They have lists that show which have fees and which don't. Most don't.
For trading stocks, Fidelity is much more robust...their web site is easier to use, gives current values easier where Vanguards shows yesterday's values. Also my big issue...Fidelity shows percentage of gains/losses where Vanguard simple gives the dollar value (then you have to do the math to get the percent, which is a hassle if you are trying to place a buy or sell order quickly before the price changes). For that reason, I choose Fidelity for trading over Vanguard. It doesn't sound like you will be trading.
Also Fidelity's customer service is great...probably better than Vanguard's.
Fidelity has some walk in centers in various cities and this can be nice if you want to drop in to discuss something or to make a deposit. I am not sure if Vanguard has any brick and mortar locations compared to Fidelity.
Both are excellent choices and you won't go wrong with either one.
Thanks for your input! I agree, I really like Fidelity too!
At 56 yrs young, I can't be too agresive in my choices, since I really cannot afford to lose $$$. But then again, if I go with fixed funds such as Money Market, etc. I really won't make enough money to be able to retire comfortably. So frustrating.
Any suggestions for funds I should pick in Fidelity? I am so obtuse when it comes to such things.
Fidelity calls their Money Market "cash reserves". This is your default account and where your money usually goes on Day 1. Then you pick mutual funds (if you choose) and the money comes out of the cash reserves.
They have an excellent online tool for picking funds. You can choose by sector or by morningstar rating . This rating, I think, is up to either 4 or 5 stars. The more stars the better the rating. Don't pick fund with too few stars. I mostly buy individual stocks these days, so I can't recommend a fund. However, Fidelity reps will work with you to help you pick what is best for you. each person has different risk as they are at different points in their lives and such.
Sounds like you want to be a bit conservative...which you can search funds by that also. And the reps can help you also.
Good luck. You can research on fidelity's site even if you don't have an account. Maybe get a subscription of the magazine (monthly) Kiplinger's Personal Finance. I like it better than Money. Got both for many years. It has lists of funds and tells which are good and why. And things change constantly and they are always following the trends and what they mean to you.
I use both (and also T Rowe Price). If you invest in a few broad market funds, you'll be invested in so many companies that it really doesn't matter what funds you pick.
Look for funds with "index" or "total market" in their names or descriptions. These usually invest in a lot of companies, insuring that you are well-diversified. Avoid "sector" funds unless you are willing to put all or a lot of your eggs in one basket.
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To: SwareToCod
