Fidelity Top Choice for IRA Rollovers

Investors who recently rolled over their 401(k) plan to an IRA chose Fidelity more than any other brokerage firm, according to a recent survey by Millionaire Corner/Spectrem Group. Fidelity was named by 30% of respondents, followed by Vanguard (11%), American Funds (9.2%), Edward Jones (7.1%) and Morgan Stanley Smith Barney (6.6%).

(Fidelity also ranked high in our 2010 Online Discount Broker Survey. AAII members gave it the third-highest score, trailing only Scottrade and Charles Schwab.)

The Millionaire Corner/Spectrem Group study found three primary factors that affect the decision of where to roll a 401(k) over to. The first is advice provided by an investor’s financial advisor. Advisors will often suggest an account with their own firm, which may help explain the popularity of American Funds. (American Funds is often sold by independent advisors.) The second is low investment fees, which both Fidelity and Vanguard offer. The third is customer service, particularly the ability to speak to a person as opposed to working through a voice-response system on a phone.

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