Title. I listened to something on fees companies like Fidelity charge to manage retirement accounts despite pegging a lot to the market anyway. Thinking I'll move everything to SPY and reinvest dividends, etc. to save on fees. What am I missing? #personalfinance #investments #retirement #401k
Nothing
yup, you only pay the “expense ratio” (ER) which is effectively an annual fee on the total amount you have invested. Check out other ETFs that mimic SPY and have a lower ER. “VOO” is one by Vanguard and is an example of a decently good alternative
I've been coming across the VOO a lot lately. will check it out
I didn’t know this. Will moving incur a tax penalty?
Great question - can anyone answer that?
If it’s in 401k and you keep it in 401k then no taxes for moving
FXAIX is voo equivalent for fidelity, lower expense ratio than SPY. I would only do SPY if you want to sell calls eventually or something
Nothing.