MadHungarian,...
So can i actually keep my Vanguard funds after that account is transferred to Fidelity? Or Will Vanguard/Fidelity sell them during the transfer? Fidelity wasn't completely clear there, but they seemed to be saying i can keep them? And if so, what are the restrictions? Extra fees? Fees for adding to the Vanguard funds? How about reinvesting dividends? My understanding so far is that the Vanguard fund can sit there pristine without fees (at least for now), but any new money must be added to Fidelity funds instead?
You'll get better help if you share which specific funds you transferred.
In general you can keep the funds you have.
Vanguard index funds can all be transferred. There may be some Vanguard funds (like some active ones) that won't transfer to Fidelity but - again - you need to share which funds you're talking about.
In general there's no fee for dividend reinvestment.
Your understanding is not quite right -- in general you can buy more Vanguard shares but you would have to pay a transaction fee. So it's not correct to say "any new money must be added to Fidelity funds instead".
Here's what Fidelity says about fees for trading VTSAX. I underlined a key phrase.
Transaction Fee:
A transaction fee is similar to a brokerage fee or commission which you pay when you buy or sell a stock. For some funds available through Fidelity you are required to pay a transaction fee. However, you will not pay a sales load on Transaction Fee (TF) funds. You will only be charged a transaction fee when you buy a FundsNetwork TF fund, not when you sell one. All other fees and expenses described in a fund's prospectus still apply. You can choose to buy or sell shares directly from the fund itself or its principal underwriter or distributor without paying a transaction fee to Fidelity.
Online Transaction Fees: $49.95 for most funds. Certain funds will have a transaction fee of $75. To identify any applicable transaction fees associated with the purchase of a given fund, please refer to the "Fees and Distributions" tab.
Fidelity Automated Service Telephone (FAST): 25% off representative-assisted rates, Maximum: $187.50, Minimum:$75
Representative-Assisted: 0.75% of principal, Maximum: $250, Minimum: $100
Automatic Investment: $5 per transaction, after the initial investment.
Sales load:
A sales charge added to the price of the fund. Funds have different sales charge structures, including front-end loads, back-end loads (deferred), and no loads. Sales loads can either be charged when a fund is purchased, commonly known as a front-end load, or when a fund is sold, known as a deferred load. Not all funds charge a load. Refer to the Loads, Expense and Minimums section of the fund's prospectus for details on these amounts. Although no load funds do not have a front-end or deferred load, they may incur other fees, such as a 12b-1 fee.
Statistics: Posted by sycamore — Sat May 11, 2024 9:51 am — Replies 147 — Views 17178