Investing - Theory, News & General • Vanguard to Exit Individual 401(k), Multi-SEP, and SIMPLE IRA Plans With Ascensus Deal

I m with you there. I think people have had a bad reaction to Vanguard's transferring to Ascensus, which now charges fees that in the past Vanguard waved. And the fees are not that bad. If you have an HSA with Vanguard funds, that HSA charges you maintenance fees and a percentage of the total amount. So I am not sure what is the fuss over the $500 per year. It's what Wall Street does, regardless of the "goodness of one company". Vanguard is no different. They want their fees and the solo 401k, since they are small business with low employee number, they would rather not have the headaches. They want the big bucks, the big plans. You noticed that they would not do that to an employer sponsored plan , say IBM or Apple. Understand that for a trillion dollar company, we are lower than pondscum. That's all. So, I would stay with Ascensus and see how they pan out. Then, if they run things badly...hey Fidelity or Schwab...here I come. Is that simple.

Fidelity's HSA does not charge any fees whatsoever.

You are free to stick with Ascensus but if my funds are being moved anyway I see no reason other than inertia to move them to a company that charges fees, however minimal, when I can get the same product at zero cost from a more reputable company like Fidelity and Schwab.

Also consider that even though the fee may be initially $25, it is not guaranteed to stay that low. Fidelity and Schwab have been offering Solo 401k's for a long time with no fees.

I am not outraged or anything but I'm moving to Schwab where I have had nothing but positive experiences (and no selling my accounts to other firms).

You are correct. but here is my personal dilema: I have no qualms changing to FIdelity, but I would have to buy Fidelity Mutual funds, because Fidelity would charge to hold Vanguard Funds. So, then what would be the point to move ? OK, I hear you say "buy Fidelity funds"...and I say " OK" But I have to spend time to see what funds are equivalent to the Vanguard funds and that takes time that currently I don't have. I did make a bit of a research on two funds comparison between Fidelity and Vanguard, and it tuns out while they are similar, Vanguard has a lot more stocks in their funds than Fidelity. Take it for what it's worth

Statistics: Posted by aristotelian — Mon Apr 29, 2024 6:05 am — Replies 427 — Views 35384