Difference between Fidelity and Vanguard
You must have heard of the saying that you should “save for a rainy day”. Saving for the golden years is also a must and all the more so during these times when the global economic situation has not yet stabilized. You need to make sure that you’ll be able to live comfortably when you are old and gray with no viable source of income. That is why it only makes sense to consider investing or applying for retirement plans as early as possible. When it comes to planning for the future, there are two names that are neck-and-neck in competition – Fidelity and Vanguard.
Services
Fidelity covers pretty much everything related to investment options. It has a range of investment and retirement plans to help secure your future. These include mutual funds, ETFs, trading, annuities, insurances, and retirement plans. Vanguard too, is not to be outdone in terms of the number of options available. In particular, there are mutual funds, ETFs, and annuity products, as well as brokerage services and retirement plans, to choose from.
Pros
Fidelity is professionally managed and the fact that it has been around for quite a long time now certainly speaks well for the company. Besides offering a wide range of products and services, Fidelity also provides easy account setup, relevant news and information and requires no commission on sign up deals. Signing up for an account with Fidelity can be done with ease and any investor would surely appreciate the fact that Fidelity does not charge exorbitant fees for its services. The one drawback, it seems, is that its website is not very intuitive. Vanguard, on the other hand, is easier to get around. One can readily find the piece of information one needs on the corporate website. It boasts of significantly lower fees and excellent customer service alongside its wide range of products and services that are very flexible and easy to use. Another great thing about Vanguard is that you can invest as little or as much as you want. Plenty of satisfied clients can vouch for the reliability of Vanguard – and time itself can prove that, too.
Add-Ons
Add-ons are extra services provided by the company. Aside from the impressive plans offered by Fidelity, the company also offers expert advice and guidance in choosing a plan that is appropriate to your needs. It has experts on different areas of finance to help you build a more stable future. Vanguard offers customized plan consulting, sound investment management strategies and customized plan consulting, coming out with a design and plan that would work to your advantage.
Summary
There are plenty of investment companies out there. Ultimately, however, your choice would boil down to just two– Fidelity and Vanguard, after factoring in the following considerations:
- Quality of products and services – a wide range of investment and retirement plans are offered by both. These include mutual funds, trading, ETF, retirement plans
- Management and online support – both are professionally managed with websites, but Vanguard’s website is more intuitive and easier to get around than Fidelity
- Add-ons – both companies offer additional services, such as guidance and consultation services
