Fisher Vs Fidelity: Which Investment Giant Is Superior?

Fisher Investments and Fidelity Investments are two financial firms with excellent reputations and a range of financial products and services. Fisher Investments is a private investment advisor company founded by Ken Fisher in 1979, serving over 155,000 clients and managing over $276 billion in assets. The company primarily serves high-net-worth individuals and offers highly personalized portfolios and financial advice. On the other hand, Fidelity, founded in 1943, is a large brokerage firm serving approximately 40 million individual investors with a broad range of savings and investment accounts. When comparing the two, it's essential to consider factors such as investment strategies, fees, customer service, and the specific needs of the investor.

Fidelity offers a broader range of services

Fidelity Investments and Fisher Investments are both reputable firms offering tailored financial advice and portfolio management services. However, Fidelity offers a significantly broader range of investment-based products and services than Fisher Investments.

Fidelity's range of services includes fixed-income accounts, portfolio management, 529 College Saving Plans, custodial accounts (UGMA/UTMA), Roth IRAs for children, and health savings accounts. On the other hand, Fisher Investments primarily focuses on financial advice services and portfolio management for high-net-worth individuals.

Fidelity is known for providing full-service brokerage and investment planning advice to customers with diverse income levels, while Fisher Investments caters mainly to wealthy investors. Fidelity's low-cost fee structure, with zero-commission trades and no-expense-ratio index funds, makes it a popular choice for individual traders.

In summary, if you are seeking a comprehensive range of investment options and services, Fidelity is likely to be the better choice due to its broader offerings and accessibility to a wider range of customers.

Fisher has a minimum portfolio requirement of $500,000

Fisher Investments has a minimum portfolio requirement of $500,000. This is a significant amount and is indicative of the type of client that Fisher Investments targets. The company primarily serves high-net-worth individuals and those approaching retirement age. This high minimum portfolio requirement is one of the main differences between Fisher and its competitor, Fidelity. Fidelity is a brokerage and investment strategy firm that provides affordable, accessible fiduciary services to a wide range of customers with different income levels.

The minimum portfolio requirement of $500,000 is one of the "cons" of Fisher Investments, as it may exclude potential clients who do not meet this threshold. This requirement also contributes to the perception of Fisher Investments as a firm catering to wealthy investors. While this may be advantageous for high-net-worth individuals seeking specialised services, it may be a deterrent for those with less investable assets.

The $500,000 minimum portfolio requirement is also important to consider in relation to the fees charged by Fisher Investments. The company follows an Assets Under Management (AUM) system, where clients are charged a percentage-based fee depending on the size of their portfolio. This means that the minimum portfolio requirement directly impacts the fees a client will pay. For example, a client with a $500,000 portfolio will be charged an annual fee of $6,250 (1.25% of the first $1 million).

It is worth noting that Fisher Investments does offer some flexibility with its minimum requirements. They provide WealthBuilder accounts with a lower minimum account balance of $200,000. However, these accounts are only approved on a case-by-case basis and are not widely available.

In summary, the $500,000 minimum portfolio requirement of Fisher Investments is a significant factor to consider when comparing it to Fidelity. This requirement reflects the company's focus on serving high-net-worth individuals and those with substantial investable assets. While it ensures a certain level of exclusivity and specialised services, it may also limit the accessibility of Fisher Investments to potential clients who do not meet this financial threshold.

Fidelity is more affordable

Fidelity's fees are much more competitive and accessible to a wider range of investors. For example, the Fidelity Go service offers automated investment advice with zero fees for balances under $10,000. Even for investors with higher account balances, Fidelity's personalized wealth management and planning services have lower minimum requirements and more competitive fees than Fisher Investments.

Fidelity also offers a broader range of investment-based products and services than Fisher Investments, including fixed-income accounts, portfolio management, 529 College Saving Plans, custodial accounts, Roth IRAs for children, and health savings accounts. This makes Fidelity a more attractive option for those looking to save for their child's future or open specific savings accounts.

In summary, Fidelity's low fees, combined with its diverse range of investment products and services, make it a more affordable option than Fisher Investments. This accessibility and affordability have contributed to Fidelity's popularity, serving approximately 40 million individual investors.

Fisher offers a high-touch service model

Fisher Investments is a private investment advisor company founded by renowned investment analyst Ken Fisher in 1979. The company operates a fee-only structure and mainly serves high-net-worth clients. Its philosophy focuses on a 'high-touch' support model, providing access to tailored advice from a dedicated Investment Counselor.

The 'high-touch' service model means that Fisher Investments provides highly personalized portfolios for wealthy investors. Instead of offering brokerage services or online trading portals, Fisher financial advisors focus on designing customized portfolios based on the research of Ken Fisher. This means that Fisher Investments does not hold its clients' money. Registered clients can receive login details for a third-party group to check assets, balance, and performance.

The 'high-touch' service model is designed to offer extensive support to clients managing high-value accounts. Fisher's 'high-touch' service model is a good option for those who want a high level of contact and support from their investment firm. This model is particularly well-suited to those who need help managing large amounts of money and prefer a more traditional, personalized approach to investing.

The 'high-touch' service model offered by Fisher Investments is characterized by the following features:

• Personalized support: Fisher Investments offers highly tailored advice and support to each client. This includes creating unique investment mixes for each client and frequently adjusting their portfolios based on the firm's evolving market outlook.
• Dedicated Investment Counselor: Each new client is assigned an Investment Counselor who helps them set up an account with a custodian, makes asset allocation recommendations, and implements those recommendations. This person will also help the client understand their financial situation and create an investment strategy based on their age, risk tolerance, current needs, and future objectives.
• Active management approach: Fisher takes an active approach to money management, with its Investment Policy Committee (IPC) monitoring economic conditions and market sentiment to regularly devise new investment strategies and update existing ones. This means that Fisher's investment strategies are constantly evolving, and client portfolios are adjusted accordingly.
• Transparent fee structure: Fisher Investments charges an annual fee based on the total amount of assets it manages, with fees ranging from 1.25% for the first $1 million to 1% for assets over $5 million. This progressive, bracketed fee structure is similar to the U.S. tax system.
• Global presence: Fisher has offices in several U.S. states as well as a few global offices, allowing them to serve over 155,000 individuals, businesses, and employees worldwide.

In summary, Fisher Investments' 'high-touch' service model offers a high level of personalized support and investment advice to high-net-worth individuals. This model is well-suited to those who need help managing large amounts of money and prefer a traditional, advisor-led approach to investing.

Fidelity has a better customer service reputation

When it comes to customer service, both Fisher and Fidelity have strong reputations. However, Fidelity's customer service shines through its comprehensive range of educational resources and customer support options.

Fidelity offers an impressive range of contact options, including 24/7 virtual assistance, live chat, phone support, and 1-on-1 assistance via Facebook and Twitter. They also provide a broad range of educational materials, such as an online Learning Center with articles and videos, and the opportunity to register for educational webinars. Additionally, customers can join the Fidelity Viewpoints mailing list to receive insights and analysis from Fidelity financial professionals.

Fidelity's customer service is designed to cater to a wide range of customers with diverse income levels and investment goals. Their services are accessible and affordable, making them a popular choice for individual traders.

On the other hand, Fisher Investments offers comparatively fewer ways for customers to get in touch, primarily through phone support or a contact form on their website. However, they also provide a wealth of educational resources, covering topics such as retirement planning, personal finance, and market cycles.

While both companies have their strengths, Fidelity's customer service stands out for its accessibility, comprehensiveness, and focus on catering to a diverse range of customers.

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