"Fidelity Go" - any experience?

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Green_98
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"Fidelity Go" - any experience?

Post by Green_98 » Sat Feb 04, 2017 12:15 pm

I'm wondering if anyone has any experience in Fidelity's Go accounts. It appears to be their attempt to beat a typical savings account that you can access anytime. A hypothetical investment of $25,000 shows a monthly expense of about $7.00. Seems like a good alternative to a bank savings account. Any input?

GrowthObsessed
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Re: "Fidelity Go" - any experience?

Post by GrowthObsessed » Sat Feb 04, 2017 1:30 pm

I looked at Fidelity Go while planning to move my accounts to Fidelity. It's an investment account that has investments/strategies chosen by Geode Capital Management. It seems similar to an employer 401k plan that's handled by an outside investment firm.

You can see by the sample investments that they appear to use a mix of 5-10 index funds, similar to the strategy that a lot of people on this forum seem to suggest.

It's got a decent fee structure but for me personally I wanted more control over the investments and still less fees, i.e. no advisory fees, period.

The comparison to a savings account might be a little off, though. Yes, you can withdraw money at any time like a savings account but as it is an investment account you'll possibly be subject to short/long term gains taxes when you withdraw, unlike a bank where you'd only have the (very low, if any) interest earned.

Green_98
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Re: "Fidelity Go" - any experience?

Post by Green_98 » Sat Feb 04, 2017 1:32 pm

I figured there would be capital gains tax since it is an actual investment. I'm looking for alternatives to a savings account, where I have approx $35,000 sitting, only losing value to inflation.

livesoft
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Re: "Fidelity Go" - any experience?

Post by livesoft » Sat Feb 04, 2017 1:57 pm

My understanding is that Fidelity Go is Fidelity's attempt at being a robo advisor, so it is not at all like a savings account. Instead, it is a risky long-term investment account without FDIC insurance and the possibility of losing money.

No one should pay any fees to have a savings account.
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livesoft
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Re: "Fidelity Go" - any experience?

Post by livesoft » Sat Feb 04, 2017 2:04 pm

I just went through a Fidelity Go exercise. It proposed a reasonable long-term 60/40 portfolio with overall expenses of 0.36% for me consisting of some iShares ETFs, Fidelity index fund, muni-bond funds. I can get the same portfolio for under 0.1% if I do it myself. All-in-all not a bad bit of advice from Fidelity.

So I will not be using this at all, but it seems on par with Vanguard PAS on the face of it.
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Green_98
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Re: "Fidelity Go" - any experience?

Post by Green_98 » Mon Feb 06, 2017 10:55 am

Any ideas for an alternative to a savings account?

mhalley
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Re: "Fidelity Go" - any experience?

Post by mhalley » Mon Feb 06, 2017 3:19 pm

Depending on the goal for money, the only other way to ensure the safety of principle would be a CD ladder. A short term bond fund would have less downside, but it still exists.

Tal-
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Re: "Fidelity Go" - any experience?

Post by Tal- » Mon Feb 06, 2017 3:33 pm

Green_98 wrote:Any ideas for an alternative to a savings account?
It depends on your situation, and what exactly you're trying to achieve.

For most people, a savings account is the right place to keep all of their emergency savings. Even though it returns next-to nothing, this money should be highly liquid and highly secure - and a savings account is great in these regards.

A CD ladder is an alternative that will get you a little more return for a little less liquidity. It's also takes a bit more time and energy than a savings account, but is a viable alternative if you really need one.

I'm in the minority here, but my personal view is that for some people, it may be OK to keep part of their emergency fund in bonds. This introduces risk in a part of your financial life that should be virtually risk-free, so this is not a plug-and-play option, and not a good option for most people.
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livesoft
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Re: "Fidelity Go" - any experience?

Post by livesoft » Mon Feb 06, 2017 3:34 pm

Green_98 wrote:Any ideas for an alternative to a savings account?
Vanguard Prime Money Market fund.
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NinjaTurtle
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Re: "Fidelity Go" - any experience?

Post by NinjaTurtle » Mon Feb 06, 2017 3:56 pm

Check the online banks ... I have an online savings account with Discover Bank through my AAII membership that pays 1%. I've seen ads for Synchrony (sp?) that I thinks may even pay 1.2%.

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