Fidelity, Ameriprise or other

Jun 24, 2018 23 Comments

Retired from Microsoft. I have ~$600K in 401K at Fidelity and ~$600K at Ameriprise in non-401K personal portfolio. Another $500K in paid off real estate. As soon as I left MS both Fidelity and Ameriprise have become very interested in moving the money to other investments...no surprise.

Any opinions on Fidelity vs. Ameriprise?

I'm 50. They both want me to move about 20% to a more conservative investment like an insurance company run holding that is a more guaranteed investment that pays out like a pension at 60. So ~$250K that will pay around $18K annual to death to supplement SS. It would pay out market value to beneficiaries upon death. Sounds like they make money and conver their risk via fees from the original $250K investment over time.

Anyone doing something this?

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 TOP 23 Comments
  • Uber
    Tjeesdh

    Go to company page Uber

    Tjeesdh
    Ameriprise has a sketchy background
    Jun 24, 2018 0
  • Amazon / Eng
    n0v

    Go to company page Amazon Eng

     n0v
    Microsoft's 401k gives you access to institutional class investments with extremely low fees. No rollover account will come close to those fees.
    Jun 24, 2018 5
  • MSFT 401k is well above average for a 401k, but it's still pretty bad in absolute terms. You'd be far better off just rolling over to Vanguard or Fidelity. Vanguard Admiral shares are very close to the institutional share classes, so close That you can't tell the difference.
    Jun 25, 2018 5
    • Google
      fried🐙

      Go to company page Google

      fried🐙
      But yeah not so great if you can only buy say large cap/S&P 500.
      Jun 25, 2018
    • @JonDoe1, makes sense, thanks. Yeah that is true. If you’re looking for one spot to manage all your money then it won’t suffice. But if you want to hold your US equities there and manage international and bond elsewhere then it works well. But, as you say, vanguard admiral shares are not too far off so if the 0.02% difference in fee is worth the convenience of managing only one account, a rollover could be worthwhile. Definitely getting to the level of splitting hairs and optimizing personal situations... examples: are you converting nondeductible IRA contributions to Roth and need to keep that IRA balance clean by keeping 401(k) balance as is? Do you want protection assurances from 401(k) or flexibility from IRA? OP would need to do what’s best for them personally, and rollover to Vanguard or Fidelity could certainly be the best option depending what they need.
      Jun 25, 2018
  • Vanguard. Fidelity is significantly better than your other current option. Expense ratios tell the story.
    Jun 24, 2018 2
  • Fidelity is light years better than Ameriprise. I wouldn't get into any sort of annuity like they seem to be pushing. Just invest in a standard 3 fund portfolio using index funds
    Jun 24, 2018 0