IPX Fidelity vs Vanguard Proper

[JC. 0]

Hi Everyone,

 

My district just added two new vendors to our list.

IPX and Vanguard.

 

Which would you choose:

 

Vanguard $60 a year or IPX with Fidelity Funds for $50 a year?

 

I'm a Fidelity investor, the fund I am interested in are on average less expensive than Vanguard, but my money would be house with IPX not Fidelity directly.

 

Thoughts?

 

JC

[krow36 0]

I checked out IPX after you first posted about it. Thanks for bringing to our attention. No, I wouldn’t call the IPX offerings “immoral”. I think some of the IPX options are actually lower cost than Aspire’s 0.15% + $40/yr fees. That’s certainly the case a higher balance, with IPX Vanguard (P3) and IPX Fidelity (P3). For what it’s worth, here’s my summary, based on 403bcompare:  https://www.403bcompare.com/vendors/1966#/productlist

Encompass is an advisor option with a fee of 0.31%/Q or 1.24%/yr, which is not competitive with Aspire which adds only 0.6% for an advisor. It does offer Vanguard Admiral class index funds. Of course I do not believe an advisor is justified or needed to contribute reasonably to a 403b plan.

IPX Fund Portal (Investor Class) has a $6.25/Q or $25/yr fee and a 0.05%/Q or 0.20%/yr fee. It also offers Vanguard Admiral class index funds as well as many higher cost actively-managed funds. There are no low-cost index Target Retirement funds. So the lowest overall cost adds up to about 0.25%/yr + $25/yr.

IPX Vanguard (P3) charges $21.50/Q or $86/yr. There is no asset-based fee. Only Vanguard’s Admiral class index funds are offered although there are no Target Retirement or LifeStrategy funds. This IPX option compares favorably with Vanguard’s 403b $60/yr.

IPX Fidelity (P3) charges $12.50/Q or $50/yr. There are Fidelity’s low-cost total market index funds but their index target retirement funds are actively managed and are higher cost. This actually beats Vanguard’s $60/yr fee but not Fidelity’s $24/yr.

[JC. 0]

Thank you so much for your response. That website 403bcompare.com is a wonderful resource.

I would say the IPX plans that do not charge BP seem to be a wonderful option. You have to remember though Fidelity charges $24, but I have to content with the $36 fee Omni charges. So if Omni brought Fidelity into the P3 I would have to pay $60. with IPX I pay $50 and that includes Omni's $36 fee. It's actually cheaper. Since I will just be using this account for the Fidelity SP 500 index fund FXAIX at .02% it's an incredibly inexpensive plan.

 

Thanks again for the reply.

 

JC