Fidelity Investment Professionals: Who Are They?

Fidelity Investments, formerly known as Fidelity Management & Research (FMR), is an American multinational financial services corporation based in Boston, Massachusetts. It is one of the largest asset managers in the world, with $5.8 trillion in assets under management, and $15.0 trillion in assets under administration as of September 2024. The company was established in 1946 and offers a wide range of financial products and services, including brokerage, mutual funds, fund distribution, investment advice, retirement services, index funds, wealth management, securities execution, and life insurance. With a focus on innovation and a commitment to meeting the evolving financial needs of its customers, Fidelity has become a leading player in the world of investing.

Investment advisory services

Fidelity offers a range of ways to access investment advisory services, depending on the client's needs and preferences. These include:

• Digital investing with coaching: This service provides professional and affordable money management, with automatic rebalancing to keep the client's strategy on track. It also offers access to coaching when the client's balance reaches $25,000, with a minimum investment of $101.
• Fidelity Managed FidFolios®: This service offers professionally managed stock portfolios, with tax-smart investing techniques built-in. A team of professionals customizes portfolios of individual stocks, with a minimum investment of $5,000.
• Fidelity Advisory Services Team: This advisory team provides phone or video access to a team of advisors who partner with the client to help keep their investment strategy aligned with their goals. They offer portfolio management, annual reviews, and tax-smart investing techniques, with a minimum investment of $50,000.
• Fidelity® Wealth Management: This service allows clients to work with a dedicated advisor to receive customized planning and investment management designed for their full financial picture. It is generally available to those with $500,000 invested in an eligible Fidelity account, with a minimum investment of $50,000.
• Fidelity® Private Wealth Management: This service provides comprehensive planning, advice, and investment management delivered by a dedicated wealth management team. The team may also coordinate with the client's outside advisors, such as accountants or attorneys. It is available to those with $2 million managed through Fidelity® Wealth Services or Fidelity® Strategic Disciplines and $10 million or more in total investable assets, with a minimum investment of $500,000.

Fidelity's investment advisory services provide clients with access to a range of tools, resources, and professional expertise to help them make informed investment decisions and work towards their financial goals. The company's mission is to make investing and financial planning clear and simple, instilling confidence in their clients' decision-making.

Investment strategies for retirement

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

Fidelity offers a range of investment strategies for retirement, including:

Interest and dividends only

If you have accumulated enough savings, you may be able to rely solely on the income generated by your portfolio to meet your retirement needs. This typically includes investments such as bonds, bond funds, CDs, and dividend-paying stocks. This option offers minimal risk to the principal amount and the entire principal is returned upon maturity of the assets. However, it can complicate long-term income projections due to uncertain future interest rates, and it may leave you exposed to inflation risk if investments in stocks are limited.

Investment portfolio only

This approach involves making regular withdrawals from your investment earnings and principal. It offers the potential for income generation and growth opportunities, especially with automated withdrawals and greater flexibility and access to savings. However, it may require more active management, and there is a risk that savings may not last through your lifetime.

Investment portfolio plus guarantees

By using a portion of your assets to purchase an annuity, you add an element of certainty to your retirement income. An income annuity provides a guaranteed stream of income for life or a set period. Fixed income annuities provide a set payment on each annuity date, while you can also purchase a cost of living adjustment (COLA) to keep up with inflation. This strategy allows you to invest the rest of your portfolio with a focus on growth. However, it may result in giving up some control over your savings and potentially higher expenses.

Short-term bridge

If you need additional income before full retirement, you can use a portion of your assets to fund a short-term bridge strategy. This could involve investing in Model CD Ladders or period-certain annuities, which provide income for a fixed period, typically ranging from 1 to 5 years. This strategy can help generate income to cover any gap before receiving Social Security, pension, or 401(k) benefits.

General Tips for Retirement Investment Strategies:

• Build a realistic retirement income strategy by considering your desired retirement lifestyle and the associated costs.
• Aim for growth potential in your investment portfolio to outpace inflation, but balance this with the risk of market fluctuations.
• Prepare for curveballs by combining income from multiple sources, such as Social Security, pensions, and annuities, to create a diversified income stream.
• Consider working with a financial professional to determine the right mix of investments and adjust your plan as needed.
• Preserve some principal for emergencies or leaving a legacy, but be aware of the trade-offs in terms of lower yields and the potential for insufficient income.
• Utilize tax-advantaged accounts, such as a Roth IRA, to keep more of your earnings and simplify your retirement savings.
• Take advantage of professional management services if you prefer a more hands-off approach to investing.

Investment and technology solutions

Fidelity Investments provides investment and technology solutions to over 16,200 wealth management firms and institutions. These solutions are designed to help businesses grow and meet the evolving financial needs of their clients.

Fidelity's investment advisory services include access to a team of advisors, dedicated advisors with supporting teams, digital investing with coaching, and more. The minimum investment required to access these services ranges from $101 to $10 million, depending on the specific service and the client's financial situation.

Fidelity also offers a wide range of investment options, such as mutual funds, exchange-traded funds (ETFs), stocks, bonds, and cryptocurrencies. They provide industry-leading platforms, tools, and research to support investors and active traders. Their platforms include mobile, desktop, and the downloadable Active Trader Pro, which is designed for frequent and advanced investors.

In addition to investment services, Fidelity provides innovative technology solutions. They were the first mutual fund company to create a homepage, and they continue to explore new technologies, such as voice and gesture-based interfaces, to enhance the customer experience. Their Next Generation Contact Center provides a seamless and engaging experience for customers, regardless of how they interact with the company.

Fidelity's commitment to innovation and technology is evident in their establishment of the Fidelity Center for Applied Technology (FCAT). FCAT drives innovation by researching and exploring emerging technologies such as virtual/augmented reality, artificial intelligence, digital currencies, and blockchains.

By combining investment advisory services, a wide range of investment options, and innovative technology solutions, Fidelity empowers wealth management firms and institutions to succeed in the changing industry landscape.

Investment platforms

Fidelity's investment platforms provide access to a wide range of investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, and cryptocurrency. The platforms offer flexible trading options, allowing investors to choose from various trading technologies, such as mobile, desktop, or the company's advanced trading platform. Fidelity also offers a full-featured brokerage account, providing access to $0 commission trades, powerful research tools, and educational resources to help investors improve their investing knowledge.

One of the key features of Fidelity's investment platforms is the availability of expert insights and investing tools. The company provides easy-to-use tools and the latest professional insights from its team of representatives, enabling investors to make the most of their financial lives. Fidelity's platforms also offer portfolio analysis tools, such as the Fidelity Full View tool, which helps investors analyze their investment allocation across different asset classes. Additionally, Fidelity provides screeners and research capabilities, allowing investors to screen and research various investment options, including stocks, ETFs, mutual funds, and fixed-income securities.

Fidelity's investment platforms also cater to different types of investors, from beginners to advanced active traders. For instance, the Active Trader Pro platform is designed for intermediate and advanced traders, offering customizable features, real-time data, and comprehensive visual analytics. On the other hand, the Fidelity Go platform is suitable for beginners, providing a trusted team to manage their investments through a simple and efficient digital experience.

In conclusion, Fidelity's investment platforms offer a comprehensive suite of tools, resources, and investment options to cater to a diverse range of investors. With a focus on providing straightforward pricing, security, and expert insights, Fidelity aims to help investors make confident and educated decisions to achieve their financial goals.

Investment options

Fidelity offers a wide range of investment options to its customers. These include:

• Stocks and Exchange-Traded Funds (ETFs): Fidelity offers commission-free online trading of US stocks and ETFs, with the ability to buy fractional shares for as little as $1. ETFs are actively and passively managed funds that can be bought and sold throughout the market day.
• Mutual Funds: Fidelity manages a large family of mutual funds and offers zero-expense-ratio mutual funds, with no account minimums required to open.
• Options: Options trading is available on the platform, although it entails significant risk and may not be suitable for all investors.
• Bonds: Fidelity offers access to corporate, agency, municipal bonds, and CDs.
• Crypto: Fidelity offers crypto trading through Fidelity Crypto®, allowing customers to buy and sell Bitcoin and Ethereum starting from as little as $1.
• Retirement Accounts: Fidelity offers various retirement account options, such as rollover IRA, Roth IRA, and traditional IRA accounts, where customers can choose and manage their own investments.
• Fidelity Freedom Funds: These funds provide a simple approach for retirement investors, with a mix of stocks and bonds that becomes more conservative over time as the target retirement date approaches.
• Fidelity Basket Portfolios: This service allows customers to build and manage a basket of stocks and ETFs as a single investment.
• Fractional Shares: Customers can own a slice of their favourite companies and ETFs for as little as $1.
• International Investing: Fidelity provides exposure to foreign markets through individual stocks, ETFs, and mutual funds.
• Margin Loans: Customers can borrow money to buy more securities if they need additional funds for their investments.

Fidelity also provides a range of tools and resources to help customers explore their investment choices and make educated decisions. These include industry-leading research and analysis, trading platforms, and educational content.

Frequently asked questions