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Sep 01, 2004 -- Fidelity lowers expense fees even more

It’s been about one year since the mutual fund scandal broke. Companies were trading in and out of mutual funds after hours and committing all kinds of various abuses. But some companies are still ripping us off with the unbelievable expenses they charge. First of all, you’re charged huge commissions to go into a fund. Secondly, you are charged a 12B1 fee, which is a bogus amount charged every year by most commissioned brokerage houses. And, on top of that, there is an annual fee that all brokerage houses charge. It’s a triple whammy. But not everyone in the industry is playing it fast and loose with your money. One of the most respected companies out there is Fidelity Investments. Fidelity has always been a leader in the industry, but Vanguard has been eating them up in recent years. Vanguard’s charges are generally much lower than Fidelity’s. But Fidelity is changing that. The company is putting a number of its index mutual funds on sale. In fact, its expense ratio will be below what Vanguard charges. The company is cutting expenses down to one-tenth of one percent. That’s even less than what Vanguard charges. So, you can either pay 1.5 percent of your money to normal brokerage houses or one-tenth of a percent to Fidelity. Which one sounds better? The only hurdle is that Fidelity charges a $10,000 minimum investment. Other great companies are T. Rowe Price and TIAA-Cref. So, they are out there. There is no reason to put your money with the commissioned players in the market.

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What others are saying

  • fidelity 401k retirement managed funds
    in 2000 i retired and rolled all my money about 330k into a IRA with fidelity as they already had out 401k and for 1% fee would manage the IRA for me as they said they could do a better job than i could so i agreed and after one year they did nothing but collect the 1% fee of over $3300 so i took it and put it with edward jones. after all was done they sent me a check for 2¢ which i did not cash and kept for a reminder. since 2001 i have every month received a statement from their management trust co. custodian with my 2¢ balance plus proxie voter cards as if i had millions, so over the last 8 years i have received over 100 pieces of mail with first class postage plus all the paper work.two or more sheets plus envelope a month. point is they do not manange anything or someone would know i have only 2¢.
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