Hugh’s “Hierarchy of Trouble” and why you should flee Fidelity Investments
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- เผยแพร่เมื่อ 6 ก.พ. 2025
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Wife and I met with our Fidelity consultant about 1-1/2 years ago. He recommended selling a bunch of stock to diversify. Had similar amounts of Apple, Microsoft and Nvidia. Rather than sell equal amounts of all three, he sold almost ALL of the Nvidia stock, the best performer. The stock continued to rise after the sale, costing us $1 million. In addition, he never advised us of the newly passed Washington State Capital Gains tax. That cost us $14,000 in state tax. When we complained to him he said “taxes are the price we pay for success”. Thanks Fidelity.
Seems like this one was blown way out of proportion. Also a Fidelity customer of 25 years now and while I receive a lot of communications from them I cannot imagine handling this one in this manner. There are simple escalation paths that can be taken and my experience with Fidelity customer service has been nothing short of excellent. I won't be selling off my Fidelity investments and fleeing them for another brokerage that may have worse customer service.
agree. this felt entirely like a "get off my lawn" rant!
10:22 10:30 Hugh. Deep breath. That wasn't a threat. Once you got annoyed and maybe your own problem you lost it. I'm a senior and have been a self directed customer for 30 years and very satisfied.
This is NOT a Fidelity problem. It is a state law problem. I managed my Mother's accounts in Texas. I got a few of those warnings from a few banks she had CDs in due to inactivity. I had the same reaction. But it is NOT just Fidelity.
Exactly. The post office probably returned a piece of mail that was mis-sorted to another carrier's route, and it triggered events that led to an escheatment letter/email. And if you don't work with a broker at the company who knows you, you will spend an inordinate amount of time on the phone, first proving who you are, and then waiting for the highly scripted telephone rep. to "fix" the information in their system. Then, pray that it propagates correctly throughout the system and solves the problem.
I like Fidelity! Good funds and good service for me.
One of the points of irritation Hugh expressed with Fidelity is that the letter was machine generated. Unfortunately, this is the trend in all businesses. And that trend will only grow as large businesses invest in AI. Machines are cheaper than people. I too find this very frustrating.
This is not a Fidelity problem. I am a lawyer at a brokerage firm. Unfortunately, the SEC, FINRA, NASAA, FINCen and other agencies heap regulation upon regulation on us that make it difficult for even for us to comply with all of the rules. That said, what you described are plain vanilla, routine issues that should be easy to resolve. But increasing incidents of fraud require more and more safeguards which are cumbersome for ordinary retail investors. PS: Elder Financial Abuse laws are inapplicable here and apply to fraud or potential fraud. Happy to share our perspective with you sometime. And very glad Paul Atkins will be heading the SEC soon.
The government never makes things easier.
I suspect Hugh would've been less unhappy, had the scripted service agent been more human, and shown some concern for his inconvenience. Instead he got the line over and over. And no real kindness.
Gez, took over 5 minutes to get to the point.
Do you think Vanguard is better?
The volume is better. Thank you.
I had the same letter from schwabb
Hugh you’re kind of cranky with the brokerage. You are indeed a lawyer.
Hugh...if I sent this video to my folks (75 and 74), THEY would probably freak out, as they are with Fidelity, and I help them with their retirement accounts.
You can move your 401k. Use In Service Rollover if 59 1/2. Most employers allow you to do this. You can still participate in your employer’s retirement acct.
Fidelity wasn't good for me and I closed it a couple of years ago. I'm glad that I did.
I think it was most likely your fault. I've made a fortune there just sitting on my rear end.
I am with Charles Schwab and do not receive any such letters or mail of this type. Can see your point and am happier than ever to be with Schwab!
Hugh, don’t read any more letters or make any more calls. I can’t take another ten minute screed.
I have been a Fidelity customer since 1976 and during those years I have looked at other brokerages and have arrived at the same conclusions. Fidelity is accurate, timely, and priced fairly. In listening to your rant I am left with the conclusion that are only involved in these matters on a very superficial basis, hence the frustration. The problem is not Fidelity it is to some extent your lack of understanding in how these systems work. The federal rules are many and complex as you next commenter points out.
Got to say it, first time watcher of Hewitt, and now last time watcher. How obnoxious can lawyers be? He’s the poster that answers that question..
Hugh, Fidelity investments sucks, period. Fidelity is well known to closing accounts as per their policy; for ANY REASON. They've closed me. If you're someone they dont agree with politically or social wise; they can or will discontinue business with you, this is well documented, chevk online. If you have a past conviction for any kind on your record, any kind, "adverse information", Fidelity will discontinue busuness with you. Fidelity sucks. I will never do business with them again. Fidelity needs a class action put against them.
Hugh, Please check your Fidelity accounts every day and you may be able to avoid many of these
issues. It is usually possible to transfer funds down to a zero balance and then ask them to close the account. Everything is easier online.
All of these outfits are run by machines. Where are you going to go when the only response obtained from any of them is the voice of AI?
That's a valid concern. I heard the same sentiment voiced by Patrick Wood at Technocracy News when referring to China's social credit score system. The way things are going we could all be faced with issues that can't be resolved because there's no one to talk to. The machine makes the rules and the machine always wins.
States want money and have turned up the screws on financial companies to turn over money to the state. While you can always claim the account, the state earns interest on the deposits. As for complaining about the legalities of UGMA accounts, if you are a lawyer as you claim you must be a bad one.
Just told my Husband to look at all our financial accts when he does our taxes, and make sure nothing is with Fidelity. He thinks we may have something.
I detest Companies like this. We close credit card accounts occasionally for bad service like this too. We don't tolerate it.
You may be a lawyer but you are obviously not an escheat law expert. Your opinion about Fidelity is therefore irrelevent. Maybe you should research your state's escheat laws before posting a video like this.
Please join MADE: Mothers Against Dangerous Ebikes
Long time customer of Fedelity. Had my sun open an account. They refused to open the account as well as refused to return the monies submitted to fund the account.
Moving assets as I can from them. Never have been treated like they did refusing to say a word one way or another.
Hugh, You say you've had legal training. Look up the word "escheatment." Our legal system is based on English common law. Fidelity is doing you a favor. You would have received the same letter from any financial institution where you have accounts with no activity in them for a number of years (depends on the state), e.g., bank, insurance company, mutual fund, stock broker, etc. They ALL must turn the funds over to the state when the accounts are statutorily inactive. Then, the state publishes its "lost money" list for people to step forward and claim it. From a consumer protection perspective, these laws are good and bad, but mostly good. They incentivize institutions to not pocket the money from inactive accounts, unclaimed insurance bequests, uncashed checks, unclaimed refunds, and so forth. Last, be glad you're not in California, where it is almost impossible to get your funds back after they have been surrendered to the state.
You really stretched this out.
I can forgive the letter. That's based on various laws and regulations. What I find ridiculous is why it took so long (90 minutes) to close the accounts.
Recent follower, but after this tirade you appear to be a nut job. Flee Fidelity for where when the issues were of your own making.
That was brutal. Fidelity really screwed the pooch.
We get all kids of scam calls. I'm just not that lonely.
Thank you. I have a feeling they are not the only ones doing this. I had a similar experience with Schwab a couple of years back, where their customer support representatives would just hang up on you. Now I've just received a threat letter from Social Security and both phone numbers are unreachable and just hang up on you.
Fidelity is great. I’ve been with him for years and have a substantial amount of money there.
The only moron is this guy talking in this will be the last time I watch this show because if he’s wrong on this, what else is he wrong on?
He sounds like Donald Trump oh wait Donald Trump called him a moron that time
So I can’t believe I’m agreeing with Donald Trump
I'm gonna have to wait until I either leave, or retire my current job. They manage my 401(k) and my pension. I've already determined I'm cashing out my pension and moving it to somewhere more stable.
Might be A I at work behind the curtain. I remember when a bank was charging people for going to a ATM and get their own money out. I left them years ago.
Hugh the company I work for they use Fidelity . They use to use Vanguarg
Fidelity is freaking out now! 😂
What's with the "Go on-line and do such and such." They asked you to call them. Why can't they do it? If I wanted to do something on-line, I would already have done it.
Hugh, you can move your money out of your companies 401k. Its called an "indirect rollover". Your 401k rules probably will allow it. Just ask. Im in the industry. The "indirect rollover" is a legit avenue for people to use providing you are 59 1/2. Good luck!
I left fidelity about 4 years ago.
Guy spends endless wasted time grinding along like an old man.
If you are older than 59.5 years old you can do what is called an "in service rollover" of your 401k to an IRA. You should contact your financial advisor and ask how this can apply to you.
Get to the point already. Crisis tragedy bla bla bla.
Hugh double check I believe you can move your monies prior to retirement provided you are over 591/2.
I think they try to hang on to all accounts with a death grip
Really? your personal issues with the bureaucracy of life are all that is on your mind these days? I hope you never have to fight with an insurance company OMG
Are you sure you aren’t in some stage of dementia?
Hugh: you sound like an uneducated elite defuse.
Goodness, this really set you off, didn't it?
And people wonder why people are on drugs. If Hugh struggles with these types of things imagine the average person.
How hard is it to move an Roth IRA from fidelity?. This is terrible
That's a fine Trump Tantrum, Hugh!! 🙄
Please stop calling your wife "the fetching Mrs. Hewitt"> It's so classless.
You do know the word fetching means Attractive or Beautiful, and goes back to the late 1800s right? Let the man call his love beautiful if he wants to.
Depends on what class you are referring to. To the educated, considerate, committed hudband class Hugh belongs to, it’s seen as a great compliment.
You are hereby banned from watching, or listening to Hugh.