Fidelity Investments: A Comprehensive Financial Services Giant

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation. It is one of the largest asset managers in the world, offering a wide range of services, including brokerage, mutual funds, investment advice, retirement services, wealth management, and life insurance. With a presence in 11 countries and over 76,000 associates, the company has established itself as a leading player in the financial industry, known for its innovation and customer-centric approach.

Financial services and products

Fidelity Investments offers a wide range of financial services and products to help individuals, families, employers, wealth management firms, and institutions. With a focus on meeting the unique needs of its diverse customer base, Fidelity provides solutions for those seeking to save for college, a new home, or retirement. Here is an overview of their financial services and products:

Retirement Services:

Fidelity helps individuals plan and save for retirement through various products such as IRAs, 401(k) plans, and retirement calculators. They also offer retirement income advantages and portfolio advisory services to help individuals manage their finances throughout retirement.

Wealth Management:

Fidelity provides wealth management services to individuals, families, and institutions. They offer investment advice, asset management, and financial planning to help clients grow and protect their wealth. This includes mutual funds, exchange-traded funds (ETFs), bonds, and managed accounts.

Brokerage Services:

Fidelity operates as a major brokerage firm, providing investment advice and a range of investment options such as stocks, ETFs, mutual funds, and options. They also offer brokerage accounts with no fees or minimums to open, making it accessible to all types of investors.

Cash Management:

Fidelity helps individuals manage their cash flow and spending through cash management accounts, debit cards, checking, and savings tools. Their cash management services are fee-free and include bill pay, returned check services, and domestic wire transfers.

Life Insurance and Annuities:

Fidelity provides life insurance products to help individuals protect their loved ones financially. They also offer annuities, which can provide a steady income stream during retirement.

Benefits Consulting:

Fidelity works closely with employers to create dynamic benefit programs for their employees, including retirement savings plans, health and welfare programs, stock plan services, emergency savings, and student loan repayment programs.

Cryptocurrency Trading:

Fidelity has ventured into the world of cryptocurrency, offering Bitcoin and Ethereum trading through a separate entity dedicated to institutional crypto-asset custody. They were the first major 401(k) provider to offer cryptocurrency as an investment option for retirement savers.

Educational Resources:

Fidelity provides extensive educational resources to help investors make informed decisions. This includes articles, videos, webinars, and a dedicated financial planning tool to guide individuals in managing their finances and investments.

Fidelity's financial services and products cater to a broad range of clients, from young and first-time investors to advanced traders and wealth management firms. With their diverse offerings, they aim to empower individuals and businesses to achieve their financial goals.

Investment advice and planning

Fidelity Investments offers financial planning, advice, and educational resources to help investors, including young and first-time investors, achieve their financial goals. The company provides investment advice and retirement services, as well as a range of investment products such as stocks, ETFs, mutual funds, bonds, options, and cryptocurrencies.

Fidelity's investment advice and planning services include:

• Retirement planning: Fidelity helps individuals save for retirement through various products such as 401(k) plans, IRAs (Individual Retirement Accounts), and retirement calculators. They also offer resources for retirement planning, such as their Retirement Income Advantage service, which helps investors plan and manage their finances throughout retirement.
• Wealth management: Fidelity offers wealth management services to individuals, businesses, and institutions. They provide portfolio management, financial planning, and investment advice to help clients grow and protect their wealth.
• Brokerage services: Fidelity operates a major brokerage firm, providing investment products and services such as stocks, ETFs, mutual funds, options, and fixed-income products. They also offer educational resources and tools to help investors make informed investment decisions.
• Financial planning: Fidelity provides free financial planning resources and tools, such as their Fidelity Free Financial Plan, which allows individuals to create a comprehensive, goal-based financial plan. They also offer support for managing everyday finances, saving for college, and other financial goals.
• Investment research and screening: Fidelity offers comprehensive research and screening tools for various investment options, including stocks, ETFs, mutual funds, options, and fixed-income securities. Their platform provides real-time data, analytics, and trading ideas to help investors make informed decisions.
• Cash management: Fidelity offers cash management products, such as their Cash Management Account, which helps individuals spend and save smarter. They also provide high-yield cash investments, such as money market mutual funds, and low-fee or no-fee products and services.
• Cryptocurrency trading: Fidelity has entered the cryptocurrency space, offering trading and custody services for digital assets such as Bitcoin and Ethereum. They were the first major 401(k) provider to offer cryptocurrency as a retirement investment option.

Fidelity's investment advice and planning services are designed to cater to a wide range of investors, from beginners to advanced active traders. They offer a range of resources, tools, and products to help individuals manage their finances, plan for the future, and make informed investment decisions.

Brokerage services

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. It was founded in 1946 and is one of the largest asset managers in the world, with trillions of dollars in assets under management and administration.

Fidelity operates a major brokerage firm with investor centres in over 140 locations across the United States. The company provides a full-featured, low-cost brokerage account called the Fidelity Account, which offers a wide range of investment choices, including:

• Domestic and international stocks
• Exchange-traded funds (ETFs)
• Equity, ETF, and index options
• Mutual funds
• Bonds and CDs
• Precious metals
• International investing
• Extended-hours trading

The Fidelity Account offers $0 commission for online US stock, ETF, and option trades. It also provides free, independent research from over 20 providers, dollar-based investing with fractional shares, and advanced tools for active traders, such as streaming market data and enhanced trading capabilities.

Fidelity's brokerage services also include powerful trading websites and mobile applications that allow users to stay connected to the financial world, manage their portfolios, and trade anytime, anywhere.

In addition, Fidelity provides industry-leading research and analysis tools, ranked #1 by Investor's Business Daily, to help investors make educated decisions. The company was also rated #1 for Best Overall Broker in 2024 by NerdWallet and Investopedia.

Fidelity's brokerage services are designed to meet the needs of investors of all experience levels, from beginners to advanced active traders, with a range of educational resources and trading platforms to suit different investment styles. The company's commitment to innovation and technology ensures that its brokerage services continue to evolve and improve over time.

Wealth management

Fidelity Wealth Management provides clients with dedicated advisors who work collaboratively to create a customised plan to help grow and protect their wealth. These advisors get to know their clients and their specific needs, offering comprehensive planning that covers topics such as retirement, taxes, healthcare, and estate planning. The service also includes ongoing investment management, factoring in clients' preferences and risk tolerance, with regular monitoring and rebalancing.

Fidelity Wealth Management has specific eligibility requirements, including a minimum of $500,000 managed through Fidelity Wealth Services, with a gross advisory fee ranging from 0.50% to 1.50%. For those with higher investable assets, Fidelity Private Wealth Management offers a dedicated wealth management team and comprehensive financial planning for a lower gross advisory fee, starting at 0.20%.

Fidelity also offers specialised services such as separately managed accounts, fixed income and bond investing, and trust solutions for inheritance and estate planning. The company's wealth management services aim to provide clients with innovative investment and technology solutions to help them grow their businesses and meet their financial goals.

Fidelity's wealth management services have received mixed reviews from clients. Some appreciate the access to dedicated advisors and specialists, while others have criticised the lack of transparency around fees and the performance of their portfolios. Overall, the company's wealth management division offers a range of services to help clients manage and grow their wealth, with a focus on customisation and ongoing support.

Retirement planning

Planning for Retirement

Fidelity's Planning and Guidance Centre allows customers to create and monitor multiple independent financial goals. The service is free to use, although expenses charged by investments and fees associated with trading will still apply. Fidelity's retirement planning tools can help customers to create a clear plan to save more for retirement, with the flexibility to adjust that plan as their life changes and priorities shift.

Opening a Retirement Account

Fidelity offers a range of retirement accounts, including IRAs and 401(k)s. These accounts offer tax advantages, such as the opportunity for tax-free growth and withdrawals in retirement with a Roth IRA. Fidelity also offers rollover IRAs to help customers consolidate savings from former employers into a single account after a job change.

Retirement Income Planning

Fidelity can help customers estimate their monthly income in retirement, including income from Social Security, pensions, or annuities. They also provide guidance on when to start taking required minimum distributions (RMDs) from accounts to avoid paying a penalty. Withdrawing from a traditional IRA or 401(k) is generally taxed as ordinary income, while withdrawals from a Roth IRA are not taxed if the account has been open for more than five years.

Advisor Options

Fidelity offers customers the option of working with a dedicated advisor or a team of phone-based advisors to help with retirement planning.

Other Services

Fidelity also provides retirement planning tools and calculators, such as their guideline to save 10x your income by age 67. They offer a range of investment options, including mutual funds, exchange-traded funds (ETFs), bonds, and more, to help customers grow their retirement savings.

Frequently asked questions