vanguard or fidelity

New to the Investing Game? Put Your Money in Vanguard or Fidelity

Ever since the pandemic hit, people have had money problems, such as losing their jobs and not having enough money to pay for expenses. With the recession, Now it is time to take your money to the next level. You've probably heard about Fidelity and Vanguard and may wonder, “Is it worth getting into it now?” 

According to BMO Real Financial Index, Americans have reduced their retirement savings due to inflation, and around 60% of young people decreased their 401(k) contribution. To make the most of your money, you must “seek advice from a financial expert on ways to successfully manage your finances, from learning ways to save and which types of accounts to use, to moving from knowing what you should do with your money, to doing it,” suggest Paul Dilda, head of consumer strategy for BMO Harris Bank. 

If you are new, you should start taking a look at investment brokerage firms if you haven't already. Brokerage firms use their expertise to invest on your behalf to increase your net worth. Investment can include:

  • Stocks
  • Mutual Funds
  • Exchange-traded Funds (ETFs)
  • Money Market Funds
  • Bonds
  • Certificates of Deposit (CDs)
  • Precious Metals

Depending on your financial goals, time frame, and risk tolerance, they will help you to get where you need to be on your financial journey. For example, you may be saving for a down payment on a house, fighting inflation, increasing your money to retire early, or becoming financially free. If your investment time frame is more long-term, you have more time for your portfolio to rebound from any downturns in the market. 

If you are new to the investing game, you might not have enough knowledge to invest your money and probably need help from financial advisors. 

Here are two top brokerage firms to invest in your future before the year ends!

Invest in One of these Brokerages

Fidelity

Fidelity Investments is an American multinational financial service headquartered in Boston, Massachusetts. It offers a wide range of services from financial planning and wealth management to retirement planning and more. 

Fidelity offers “Fidelity Go” and “Fidelity Personalized Planning & Advice” advisor services. The first service is a robo-advisor if you prefer someone to manage your investments. The second service is a hybrid robo-advisor if you want to be more involved, may have questions, and would like to speak to an advisor from time to time. 

They also offer wealth management ($250,000 eligibility) and private wealth management ($2 million eligibility, plus $10 million+ in total investable assets) advisory services if you have an extensive portfolio to be managed.

Investment choices include stocks, exchange-traded funds (ETFs), mutual funds, options, bonds and certificates of deposit (CDs), international investments, precious metals, and custom index investing. There are no minimums for opening an account. For commissions, there is no cost for online US stock, ETF, and options trades. For margin rates, it can range from 5.50% to 9.825%. For bonds and CDs, there is a $1 fee per bond or CD. There are also advisory fees ranging from 0.50% to 1.50% or a flat rate per month, dependent upon the size of your portfolio.

The best part about Fidelity is that it offers commission-free online US stock and options trading with no fees when you open a brokerage account. Many people love Fidelity since it is a beginner-friendly platform. 

Vanguard

Like Fidelity, Vanguard is a registered investment advisor headquartered in Malvern, Pennsylvania. It is a top brokerage firm that is known for its pioneering work in creating and marketing mutual funds and ETFs to investors. 

Vanguard offers investors a wide selection of ETFs, mutual funds, stocks, CDs, bonds, and money market funds. Most Vanguard mutual funds require a minimum investment of $3,000, but some funds begin with $1,000. For commissions, there is no cost to trade stocks, ETFs, and Vanguard mutual funds online. Vanguard also charges annual account service fees for its brokerage accounts and mutual fund-only accounts. 

It offers “Personal Advisor Services” and “Vanguard Digital Advisor” services. The first service is available if you have a minimum investment of $50,000. Additional personal advisor services (tax and estate planning, etc.) are available for “ultra-high-net-worth” investors. 

The second service is an automated service (robo-advisor) that requires a minimum $3,000 investment. It will automatically adjust your portfolio to remain on track with your defined financial goals. There are also fees based on your investment amount for either of these advisory services.

The best part about Vanguard is that it excels at low-cost investing, making it ideal for investors who want to invest long-term. The company also has no outside investors, meaning the company is owned by its fund, which are people who invest with Vanguard. 

Which Brokerage Firm is Right for You?

Choosing a brokerage firm will depend on a number of factors, including the amount of money you have to invest, how financially savvy you are, and how hands-on you want to be with your money. 

It would be prudent to check both of their websites and online brokerage firm reviews and contact their staff with questions you may have. Your level of knowledge also plays a role in whether you want more interaction with an advisor or if you're content with a more automated approach. Both brokerage firms are well-established, with trillions in assets and 30 to 40 million investors. 

The Big Decision

Doing your due diligence is key when it comes to investing your money. You want to see a healthy return on your investment, whether you want to build wealth, retire early, or diversify your income streams. After completing your research, your overall comfort level will determine which brokerage firm is the best place for your investment. After all, it's your money.

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She started her blog, The Money Dreamer, when she realized the 9-5 job was not the lifestyle she wanted anymore. After designing for a while, she wanted a more meaningful life, which was freedom, so she decided to venture out. She took action so that she can live her dream life and decided to help people to live theirs by helping them how to save, budget, and invest.

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