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Is Fidelity (the invesment firm) evil?

Evilness is graded, especially when it comes to financial institutions. So where along the Continuem of banking evil, that ranges from BofA to WSECU, does Fidelity fall? Can I in good conscience use them to manage an IRA?

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  • Dinolock_small
    Reputation: 976

    Although your BoA->WSECU scale is funny, it's sort of a naive question to ask if a company that has holdings in the mutli-billions is "evil" -- of course they are (in some way).

    With a company this large, I guarantee someone sits on their board that funnels significant sums of money into things you find appalling.

    I can vouch for Charles Schwab as a happy customer. I started with a brokerage account and over the last 5 years or so have moved my entire financial life to them. Their customer service has never been anything but perfect and I can't think of a single problem I've ever had.

    Free checking with 1% interest, all ATM fees get rebated monthly, 2.5% savings, $12-fee trades (higher for mutual funds), no monthly fees or service charges (outside of brokerage) or minimum balances, can use iOS app to deposit checks from phone.

    I guess my only complaint is they sold their credit card division to BoA and got out of that game. You can't get a credit card through them as far as I know, but I haven't asked for a year or so. They do not have any debit rewards program either. The only hitch I've ever run into is they do not have a way to deposit cash, even at their branch in Bellevue -- they won't accept it. I had to open a second account at a more traditional bank to deposit cash into, link it to my Schwab account, and can point-and-click transfer between the two on Schwab's website.

    Anyway, all banks are at least a little bit evil. A quick Google shows Charles Schwab himself donates heavily to the Republican Party. Oh well, if you were going to make all you consumer decisions based on that, you're going to live a very tedious life.

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  • Icon_small
    Reputation: 1627

    How much management do you need for your IRA? Are you willing to DIY it? TD Ameritrade offers IRAs, although it would be your responsibility to plan and manage your own investments. I don't know where TD Ameritrade falls on the evil spectrum, but their system is set up to save investors money on fees. At the very least, you'd be putting less of your hard-earned money into the financial sector.

    I also feel that investment services are largely bullshit. Very few fund managers outperform the S&P 500 over the long run, and those few investment geniuses out there only serve people with real money.

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