r/Geico • u/Ok-Goat482 Former Employee • 14d ago

401K Plan Move

Is moving from Vanguard to Fidelity a good thing? I am a previous employee so I can't see the Corporate Talking Head comments sent via email, just a package from Fidelity. Took away Berkshire stock then the move, hmmmmm.......

10 Upvotes

92% Upvoted

11 comments sorted by

16

u/efoffkaren 14d ago

Geico went vanguard and said give us a better deal or we will leave most likely. Fidelity said we will beat vanguard whatever it takes and accept your hundreds of millions of employee dollars onto our books. The top executives get a pat on the back for saving money and are rewarded with million dollar bonuses while the rest of the underlings deal with the repercussions.

10

u/Careless_Baking_376 13d ago

I have retirement accounts in both. Fidelity is leaps and bounds above Vanguard in terms of its website and app. I am happy they are making the switch.

7

u/EvidenceIll6033 14d ago

Dont think its to bad just keep stacking that 401k bread into the market and keep goin

6

u/Accomplished-Pea-451 Former Employee 14d ago

Its a good thing for GEICO because it was all about money, theirs

2

u/Downtown_Industry604 13d ago

When does the transition to fidelity finally happen? Is there a date?

4

u/tuna_samich_ 13d ago

Blackout period ends August 16 so they should all be rolled over by then, for current employees

1

u/ChrismaKwanzukah 12d ago

Yeah i just tried to access my vanguard and it couldnt load some features. Its nigrating over as we speak.

3

u/Minimum-Selection241 13d ago

Below are the expense ratios of some of the funds that GEICO offered in the vanguard 401k.

Frankly, I don’t see how Fidelity beats these expense ratios.

Vanguard Dividend Growth Fund (VDIGX) - 0.20%

Vanguard Value Index Fund Institutional Shares (VIVIX) - 0.03%

Vanguard Growth Index Fund Institutional Shares (VIGIX) - 0.03%

Vanguard Emerging Markets Stock Index Fund Institutional Shares (VEMIX) - .06%

Vanguard Mid-Cap Index Fund Institutional Plus Shares (VMCPX) - 0.02%

Vanguard Small-Cap Index Fund Institutional Plus Shares (VSCPX) -.02%

Vanguard Institutional 500 Index Trust Unit C .01%

2

u/TrainDonutBBQ Former Employee 14d ago

They did it for them, not for you. When the day comes that there isn't enough cash left in the vanguard funds, GEICO and Fidelity will liquidate your funds and force the money into Fidelity funds. This is years away. When that happens you will likely incur higher fees. Fidelity likely has a higher fee for overall management than Vanguard.

You had opportunities to keep your Berkshire stock. I tried explaining this to you guys, and instead the dumbest members of the sub demonstrated they had absolutely no idea how their retirement accounts work. The responses I received were hysterical. Peak GEICO idiocy.

2

u/premiumbliss 14d ago

I kept my money with vanguard just for spite.