Fidelity's Investment Advice: What You Need To Know

Fidelity is a multinational financial services company that offers a wide range of services, including investment advice. The company has been in business for over 70 years and serves individuals, businesses, and advisors. Their investment advisory services include access to a team of advisors, dedicated advisors with supporting teams, digital investing plus coaching, and more. Fidelity's investment advice covers various areas, such as choosing investments, navigating life stages, and planning for retirement, taxes, insurance, and estates. The minimum investment required for their advisory services is $50,000, but they also offer digital investment management services with no minimum requirement.

Fidelity Wealth Management

The dedicated advisor will help clients establish a clear view of their full financial picture, define and prioritize financial goals, and understand their investment options. The advisor will also proactively offer investing and planning advice, connect clients with specialists, and help them leverage Fidelity's advanced planning tools.

In addition, Fidelity Wealth Management provides active investment management, with a holistic approach to allocating assets, including all money managed by Fidelity and other firms. Advisors can also provide advice on assigning assets across accounts with different tax treatments to maximize long-term growth.

Investment advice for life events

Life is full of surprises, and sometimes a little guidance can go a long way. Fidelity offers investment advice and resources to help you navigate life's big moments. Here are some key areas where Fidelity can provide investment advice for life events:

Planning for Change

Whether you're planning for a new addition to the family, a career change, or transitioning into retirement, Fidelity can help you make balanced decisions with confidence. Their services include helping you understand the full impact of an event, gathering important documents, and providing a clear roadmap to follow.

Managing Large Purchases

Fidelity can assist in ensuring that your big purchases, such as a second home, align with your other financial goals. They will guide you through important considerations such as taxes, maintenance costs, and financing options.

Saving for Education

As college costs continue to rise, Fidelity can provide invaluable peace of mind. They will help you navigate how to pay for college expenses, discuss expected contributions, and determine how much to save.

Retirement Planning

Fidelity is known for its retirement services, offering a range of options such as rollover IRA, Roth IRA, or traditional IRA accounts. They can help you choose and manage your investments, including mutual funds, stocks, bonds, and ETFs.

Health Care Costs and Aging Care

With rising health care costs, Fidelity can provide guidance on managing expenses and insurance coverage. They also offer support for those caring for aging parents or loved ones with disabilities, helping you navigate financial and caregiving responsibilities.

Loss and Caregiving

Fidelity can help you navigate the unexpected loss of a loved one, providing resources and tools to manage the financial and emotional aspects of this difficult time.

Fidelity's approach is tailored to your individual needs, offering 1-on-1 dedicated advisor support, digital investing with coaching, and customized planning. Their services are designed to help you make informed decisions and achieve your financial goals through life's various milestones and surprises.

Personalised investment plans

Fidelity offers a range of investment advisory services, including personalised investment plans. The company's services are designed to help individuals, businesses, and advisors with their financial goals, whether that be saving for retirement or a major purchase. Fidelity takes into account clients' investment preferences, current portfolios, and tax situations when creating personalised investment plans.

Fidelity Wealth Management is one of the company's advisory services that provides clients with access to a dedicated advisor. This service is designed to help clients plan, invest, and make important financial decisions as their lives evolve. The dedicated advisor will work with the client to establish a clear view of their full financial picture, define and prioritise financial goals, and help them understand their investment options. The advisor will also proactively offer investing and planning advice and connect clients with specialists who can provide tailored guidance on topics like estate planning and insurance.

Fidelity also offers digital investing services with access to coaching for clients with a balance of $25,000 or more. For clients with at least $50,000, Fidelity Advisory Services Team provides access to an advisory team by phone or video to help keep their investment strategy aligned with their goals through portfolio management, annual reviews, and tax-smart investing techniques.

Fidelity's Private Wealth Management service is a comprehensive planning, advice, and investment management service delivered by a dedicated wealth management team. This service is for clients with $2 million managed through Fidelity Wealth Services or Fidelity Strategic Disciplines and $10 million or more in total investable assets.

Fidelity's investment advisory services are designed to help clients create a personalised investment plan, identify opportunities to grow and protect their assets, and build a relationship with a dedicated advisor to better plan for their specific needs.

Tax-smart investing

Comprehensive and Personalized Strategies

Fidelity has developed a comprehensive, tax-smart approach refined through decades of experience and innovation. This approach is applied throughout the year and goes beyond purchasing tax-efficient investments or conducting year-end tax-loss harvesting. When making trades in your account, Fidelity considers your personal tax rate, the purchase date, and individual gains and losses on every position in that account.

Transition Management

Fidelity searches for ways to integrate your existing eligible holdings into your managed account instead of starting from scratch. This helps reduce the potential tax consequences of creating your personalized investment strategy.

Tax-Loss Harvesting

If positions in your account are sold at a loss, Fidelity may use those losses to offset gains elsewhere in your portfolio, reducing your tax liability in the current or future years.

Manage Capital Gains

Fidelity may realize long-term capital gains instead of short-term gains when possible, which can reduce your tax obligations as long-term capital gains are taxed at a lower rate.

Municipal Bond Funds or ETFs

Depending on your tax rate, Fidelity may provide exposure to municipal bonds, whose interest may be exempt from federal taxes and, in some cases, state and local taxes.

Tax-Smart Rebalancing

As your mix of investments shifts, Fidelity considers the potential tax impact of trades made on your behalf to maintain the appropriate level of risk.

Tax-Smart Withdrawals

When you need to make withdrawals, Fidelity will aim to reduce the tax impact by carefully selecting which holdings to sell.

Separately Managed Accounts (SMAs)

SMAs are portfolios of individual securities that investors own directly, managed by professional asset managers. They offer a high degree of transparency, and you can track individual positions and prices intraday. SMAs can also provide individualized tax management and allow for customization, letting you pick a limited number of investments to exclude.

Active Investment Management

Fidelity advisors can help you assess your investment options and choose those that align with your priorities and risk tolerance. They provide a holistic approach to allocating your assets, including money managed by Fidelity and other firms, and offer advice on assigning your assets across accounts with different tax treatments to maximize long-term growth.

Access to a team of advisors

Fidelity offers access to a team of advisors for investors who want to work with a dedicated advisor. This service is available through Fidelity's Wealth Management service, which provides investors with a dedicated advisor to help them plan, invest, and make important financial decisions. The minimum investment required to access this service is $50,000, and it is designed for investors with a minimum of $500,000 in eligible Fidelity accounts.

The dedicated advisor will work with the investor to develop a clear understanding of their current financial situation and their future goals. This includes helping the investor establish a clear view of their full financial picture, define and prioritize their financial goals, and understand their investment options. The advisor will also assist in setting up the appropriate accounts and funding decisions to put the plan into action.

Fidelity's Wealth Management service also offers ongoing support and guidance. The advisor will proactively offer investing and planning advice and connect the investor with specialists who can provide tailored guidance on topics like estate planning and insurance. At least once a year, the advisor will initiate an in-depth review of the investor's overall financial situation to help uncover opportunities and make any necessary adjustments to their investment strategies.

In addition to the dedicated advisor, investors also have access to a team of specialists who can provide additional support and guidance. This team-based approach ensures that investors have access to a diverse range of expertise and can receive comprehensive support in various areas of financial planning.

Fidelity also offers a similar service called Fidelity Advisory Services Team, which is available through Fidelity Wealth Services. This service provides investors with phone-based access to a team of advisors for a minimum investment of $50,000. This option may be more suitable for investors who prefer not to meet in person or who do not meet the eligibility requirements for the Wealth Management service.

Frequently asked questions