Fidelity portfolio advisory services

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gym4866
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Fidelity portfolio advisory services

Post by gym4866 » Fri May 12, 2017 11:55 am

Hello, have been a boglehead reader for a long time and have read lots of good advice on things. My question is has anyone had any experience with this service ? My present person that is handling my fidelity accounts has suggested that I consider this service. I am 69 have a pension and ss and small income annuity amounting to a 56k gross income per year. With over570+ Ivested in fidelity accounts this service has broken it down to 2 accounts,314k @1.28% and 256k @ 0.88%...if I figure it out right it comes out to 8k in advisory fee's. What are some of the things I should consider or need to know in considering this service.advisor tell me that it would be good for me in the area of tax management . Any help appreciated.
Last edited by gym4866 on Fri May 12, 2017 12:47 pm, edited 1 time in total.

sport
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Re: Fidelity portfolio advisory services

Post by sport » Fri May 12, 2017 11:59 am

Find out what the expense ratio is on the funds Fidelity would have you invest in. Most likely, they will be high expense funds in addition to the management fees. Vanguard offers an advisory service with a fee of 0.3% and they use Vanguard's very low expense funds. In short, Fidelity will be expensive. Vanguard would be much less so.

afan
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Re: Fidelity portfolio advisory services

Post by afan » Fri May 12, 2017 12:07 pm

NOOOOOO!!!


You don't need to pay anything for investment advice. You can get that for free right here.

There is nothing Fidelity can do that would be worth paying them anything close to this much.

If you absolutely are resolved you want someone to pick investments for you, consider transferring to Vanguard. The Vanguard Personal Advisory Service will charge 0.3%, way better than what you you are being quoted at Fidelity.

The problem with paying even Vanguard's much lower fee is that there is nearly nothing for the advisor to do. After an initial asset allocation, the rest of the time they should do absolutely nothing. They should not readjust your portfolio based on what is happening in the market. They should not try to predict market movements and buy and sell funds to beat the market. If things change in your life that might be a reason to change allocation, but that hardly happens every year, let alone constantly during the year. So almost all of the time you are paying someone a lot of money to do nothing.

So you could save a lot of money with Vanguard vs this Fidelity offering. Fidelity also has Fidelity Go, a new service that is essentially the same thing as Vanguard PAS, with a higher fee of 0.35%. https://dpcs.fidelity.com/prgw/dpcs/dma/

But the right figure to pay is zero.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

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BL
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Re: Fidelity portfolio advisory services

Post by BL » Fri May 12, 2017 12:25 pm

If you don't want to do the 3-fund portfolio of index funds, you could buy Fidelity Freedom Target Date INDEX funds instead. What are you in now? Did you ask them for advice? They are expensive + will sell you expensive funds, not way less than 0.2% ER that you can get with index funds.

Vanguard PAS is low cost and will put you into low-ER funds. I think that would be fine and much safer for your portfolio than advisors at F.

V has more low-ER balanced fund choices as well as lots more index funds. They also have the popular Wellesley and Wellington active funds which are also lower-ER.

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goingup
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Re: Fidelity portfolio advisory services

Post by goingup » Fri May 12, 2017 12:39 pm

gym4866 wrote:My present person that is handling my fidelity accounts has suggested that I consider this service.
You have an advisor now? I read an old post of yours (2 years ago) which said your Fidelity advisor had you in 7 funds. Curious about why you're considering a change..

birdy
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Re: Fidelity portfolio advisory services

Post by birdy » Fri May 12, 2017 12:43 pm

I refuse to pay any kind of management fee to ANYONE! I have always picked good funds and then let them be. If you are in funds you are happy with, why pay someone to "watch" them sit and earn money? My funds are all with Vanguard now. My spouse has all his money in Fidelity (Spartan) accounts. We are happy with the set up. This website has been a wealth of information for me over the years, enabling me to keep what I earn instead of paying it out in fees. Don't willingly pay fees for something so easy to do yourself!

birdyt

mancich
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Re: Fidelity portfolio advisory services

Post by mancich » Fri May 12, 2017 12:49 pm

Nope, no need. It is not that difficult, and there are a ton of smart people on this board who will help you for free.

Topic Author
gym4866
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Re: Fidelity portfolio advisory services

Post by gym4866 » Fri May 12, 2017 1:24 pm

goingup wrote:
gym4866 wrote:My present person that is handling my fidelity accounts has suggested that I consider this service.
You have an advisor now? I read an old post of yours (2 years ago) which said your Fidelity advisor had you in 7 funds. Curious about why you're considering a change..
Well,as I stated in my post I didn't call him an advisor. He calls me once a year to check on things/or suggest re-balance. He was the person whom I talked to when I retired and set up my investments according to the info I gave him......I am still in 7 funds...individual acc-fsivx/ftbfx/fusvx.....Ira rollover-fcntx/fsitx/ftbfx.....Roth-ftbfx......don't no why he suggested this new path...only to say I always complain about why fidelity is'nt more transparent with what it cost me a year and how expenses are taken out.

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gym4866
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Re: Fidelity portfolio advisory services

Post by gym4866 » Fri May 12, 2017 1:32 pm

birdy wrote:I refuse to pay any kind of management fee to ANYONE! I have always picked good funds and then let them be. If you are in funds you are happy with, why pay someone to "watch" them sit and earn money? My funds are all with Vanguard now. My spouse has all his money in Fidelity (Spartan) accounts. We are happy with the set up. This website has been a wealth of information for me over the years, enabling me to keep what I earn instead of paying it out in fees. Don't willingly pay fees for something so easy to do yourself!

birdyt
I totally agree with all your statements,but I'm not a savvy investor,I read some things going into this and I was only concerned with preserving my principal and low cost funds....I went with what was set up for me.....I made one changed about a year ago in aa,because he had me in like a 80/20 aa and I thought that was kind of hight for my age.i'm more close to to 60/40 right now.

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rkuklinski
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Re: Fidelity portfolio advisory services

Post by rkuklinski » Fri May 12, 2017 6:04 pm

+1 on the Fidelity Freedom Index funds or three fund portfolio.

Advisory services like these charge you likely 1% per year plus high expense funds for the benefit of chatting with a rep each year about your allocation, the weather, your family, etc.

Plus, the portfolio they will recommend will likely be over a dozen funds in order to make the simple look complex. Basically their recommendation will be the opposite of this:

https://www.bogleheads.org/wiki/Boglehe ... simplicity
'Who controls the past' ran the Party slogan, 'controls the future: who controls the present controls the past.'"

rebellovw
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Re: Fidelity portfolio advisory services

Post by rebellovw » Fri May 12, 2017 6:10 pm

Stay away from PAS - you will pay high fees because they are actively moving stuff constantly and barely making big returns. I ditched PAS after almost 10 years and became a boglehead with my 3 fund portfolio - It is doing much better under my control than it did under PAS.

One thing I'm grateful for - is I always paid the PAS quarterly bills - and didn't let them take that out of my IRA - if I didn't do that - I'd have been down probably 20K. I paid them something like 10K in fees over the 10 year period.

Lesson learned.

Topic Author
gym4866
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Re: Fidelity portfolio advisory services

Post by gym4866 » Fri May 12, 2017 6:23 pm

rkuklinski wrote:+1 on the Fidelity Freedom Index funds or three fund portfolio.

Advisory services like these charge you likely 1% per year plus high expense funds for the benefit of chatting with a rep each year about your allocation, the weather, your family, etc.

Plus, the portfolio they will recommend will likely be over a dozen funds in order to make the simple look complex. Basically their recommendation will be the opposite of this:

https://www.bogleheads.org/wiki/Boglehe ... simplicity
Yes,I get that feeling of the other high expenses etc....but when he was putting on the hard sell and mentioned about tax loss harvesting, he got my attention,reason being that I do not know anything about that and if they where going to do that so I would save paying more than my fair share, I said I would be interested to look the suggestion over.....and your right from what they sent me, it's more like 2 dozen funds involved. I believe in simplicity,the less moving parts the better.......thanks for the link and your thoughts.

MikeG62
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Re: Fidelity portfolio advisory services

Post by MikeG62 » Fri May 12, 2017 6:51 pm

gym4866 wrote:Yes,I get that feeling of the other high expenses etc....but when he was putting on the hard sell and mentioned about tax loss harvesting, he got my attention,reason being that I do not know anything about that and if they where going to do that so I would save paying more than my fair share, I said I would be interested to look the suggestion over.....and your right from what they sent me, it's more like 2 dozen funds involved. I believe in simplicity,the less moving parts the better.......thanks for the link and your thoughts.
I have had this conversation with Fidelity before - tax management, blah, blah, blah. It's more sizzle than steak. Especially for someone with your taxable account balance. And the thought of putting someone with your invested asset value into 12 different funds is ridiculous. I would absolutely pass on this.

I would recommend calling your rep and telling him you appreciate his advice but have decided to go in a different direction. Then tell him you want to end the relationship you have with him/Fidelity pursuant to which you are paying almost $8K annually. You can just leave things as they are now (for the most part the funds you are in are low to very low cost funds), until you come up with a better/more permanent solution - will be the same thing your advisor is/has been doing for you and you'll save $8K per year.

You can do the simple three fund portfolio - or some variation of it. The simpler the better! Honestly, the way your funds are invested you are already in a simplified few fund portfolio anyway. All you really need to do is review your asset allocation.

Also, swapping out investments in the taxable account may well have tax consequences so tread thoughtfully there. Investments in the other accounts can be moved around without tax worries.

Even you want some initial hand holding, you can either get it here or maybe find a planner on the Garret Network (some on the forums have had positive experiences with planners found through that network). I really don't think you have big tax issues or big tax planning opportunities - from what you have posted above. So I would not be thinking you are missing out on some big tax savings opportunities.

Good luck.
Last edited by MikeG62 on Sat May 13, 2017 7:00 am, edited 2 times in total.
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rkuklinski
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Re: Fidelity portfolio advisory services

Post by rkuklinski » Fri May 12, 2017 8:12 pm

gym4866 wrote:Yes,I get that feeling of the other high expenses etc....but when he was putting on the hard sell and mentioned about tax loss harvesting, he got my attention,reason being that I do not know anything about that and if they where going to do that so I would save paying more than my fair share, I said I would be interested to look the suggestion over.....and your right from what they sent me, it's more like 2 dozen funds involved. I believe in simplicity,the less moving parts the better.......thanks for the link and your thoughts.
Here is a background on TLH:

https://www.bogleheads.org/wiki/Tax_loss_harvesting

Searching around the forum it appears opinions are split on whether paying for TLH services are worth it. A basic awareness of the concept and applying it in perhaps an "imperfect" fashion on your own may be "good enough" while keeping things simple. The motto "the greatest enemy of a good plan is the dream of the perfect plan" (or something like that) comes to mind.
'Who controls the past' ran the Party slogan, 'controls the future: who controls the present controls the past.'"

chinto
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Re: Fidelity portfolio advisory services

Post by chinto » Sat May 13, 2017 2:05 am

This thread is interesting. Overall I like Fidelity. I find it interesting they never try and sell me anything or push me into anything which is in contrast to what many others apparently.

That being said, Fidelity has a pretty good Four-in-one fund. It is a one fund, instant portfolio. You might want to consider it in place of an advisor. Take a look at the objective.

Fidelity® Four-in-One Index Fund (FFNOX)

Fund Overview
Objective
Seeks high total return.
Strategy
Investing in a combination of four Fidelity stock and bond index funds (underlying Fidelity funds) using an asset allocation strategy designed for investors seeking a broadly diversified, index-based investment.


Domestic Equity Funds 59.56%
Fidelity 500 Index Fund - Institutional Premium Class 47.67%
Fidelity Extended Market Index Fund - Institutional Premium Class 11.89%
International Equity Funds 25.58%
Fidelity International Index Fund - Institutional Premium Class 25.58%
Investment-Grade Bond Funds 14.84%
Fidelity U.S. Bond Index Fund - Institutional Premium Class 14.84%
https://fundresearch.fidelity.com/mutua ... /31634R109

student
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Re: Fidelity portfolio advisory services

Post by student » Sat May 13, 2017 5:45 am

chinto wrote:This thread is interesting. Overall I like Fidelity. I find it interesting they never try and sell me anything or push me into anything which is in contrast to what many others apparently.

That being said, Fidelity has a pretty good Four-in-one fund. It is a one fund, instant portfolio. You might want to consider it in place of an advisor. Take a look at the objective.

Fidelity® Four-in-One Index Fund (FFNOX)

Fund Overview
Objective
Seeks high total return.
Strategy
Investing in a combination of four Fidelity stock and bond index funds (underlying Fidelity funds) using an asset allocation strategy designed for investors seeking a broadly diversified, index-based investment.


Domestic Equity Funds 59.56%
Fidelity 500 Index Fund - Institutional Premium Class 47.67%
Fidelity Extended Market Index Fund - Institutional Premium Class 11.89%
International Equity Funds 25.58%
Fidelity International Index Fund - Institutional Premium Class 25.58%
Investment-Grade Bond Funds 14.84%
Fidelity U.S. Bond Index Fund - Institutional Premium Class 14.84%
https://fundresearch.fidelity.com/mutua ... /31634R109
What is interesting about this fund is the expense ratio, which is 0.15%. However, its underlying funds have expense ratios 0.015% for 500, 0.045% for extended, 0.05% for int and 0.03% for bond. So it charges at least 0.1% for assembling the 4 funds.

Topic Author
gym4866
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Re: Fidelity portfolio advisory services

Post by gym4866 » Sat May 13, 2017 11:14 am

sport wrote:Find out what the expense ratio is on the funds Fidelity would have you invest in. Most likely, they will be high expense funds in addition to the management fees. Vanguard offers an advisory service with a fee of 0.3% and they use Vanguard's very low expense funds. In short, Fidelity will be expensive. Vanguard would be much less so.
I revisited the information fidelity sent me to count the number of funds that they suggested:
INVESTMENT ACCOUNT-314k

GROWTH WITH INCOME-MUNI:
domestic stock funds-16 funds
foreign stock funds-15 funds
bond funds-9 funds
other- 1 fund
TOTAL: 41 funds

RETIREMENT ACCOUNT/ROTH-256K
growth with income
domestic stock-8 funds
foreign stock-5 funds
bond funds-6 funds
short term-4 funds
TOTAL:23 funds
GRAND TOTAL: 64 funds
when you say expense ratio, i get a little mixed up about this...so if a fund has an e/r of 0.45% that =$ 4.50 per 1000.00 invested...correct ?
if a fund has a e/r of 0.3% ....is that 30 cents per 1000.00 invested ?

sport
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Re: Fidelity portfolio advisory services

Post by sport » Sat May 13, 2017 11:35 am

0.45% of 1000 is 4.50
0.3% of 1000 is 3.00
0.03% of 1000 is .30

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BL
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Re: Fidelity portfolio advisory services

Post by BL » Sat May 13, 2017 12:01 pm

sport wrote:0.45% of 1000 is 4.50
0.3% of 1000 is 3.00
0.03% of 1000 is .30
Yes. This is the same as:
0.0045 X 1000
0.0030 X 1000
0.0003 X 1000
Try it on your calculator in case you don't have the % key, or do it by hand to get a better feel for it.

MikeG62
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Re: Fidelity portfolio advisory services

Post by MikeG62 » Sat May 13, 2017 12:35 pm

gym4866 wrote:
sport wrote:Find out what the expense ratio is on the funds Fidelity would have you invest in. Most likely, they will be high expense funds in addition to the management fees. Vanguard offers an advisory service with a fee of 0.3% and they use Vanguard's very low expense funds. In short, Fidelity will be expensive. Vanguard would be much less so.
I revisited the information fidelity sent me to count the number of funds that they suggested:
INVESTMENT ACCOUNT-314k

GROWTH WITH INCOME-MUNI:
domestic stock funds-16 funds
foreign stock funds-15 funds
bond funds-9 funds
other- 1 fund
TOTAL: 41 funds

RETIREMENT ACCOUNT/ROTH-256K
growth with income
domestic stock-8 funds
foreign stock-5 funds
bond funds-6 funds
short term-4 funds
TOTAL:23 funds
GRAND TOTAL: 64 funds
when you say expense ratio, i get a little mixed up about this...so if a fund has an e/r of 0.45% that =$ 4.50 per 1000.00 invested...correct ?
if a fund has a e/r of 0.3% ....is that 30 cents per 1000.00 invested ?
They may use a total of 64 funds in their portfolio advisory services, but they won't use anywhere near that number of funds in your case (or anyones case for that matter). More likely they will select a few. However, may well be actively managed funds with high(er) expense ratio's - plus you will be paying them a handsome fee for selecting the funds.

Having said that, I don't know what they will do for you that you cannot do yourself (as I said previously). Your current holdings are mostly index-based low cost funds. There may not be a big need to change much, other than to relieve Fidelity of their current responsibilities and pocket the $8K per year in fees.
Real Knowledge Comes Only From Experience

birdy
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Re: Fidelity portfolio advisory services

Post by birdy » Sun May 14, 2017 8:48 pm

GYM4866:

What we have in Fidelity funds are:
500 index FUSVX Expense ratio=.04%
International index FSIVX Expense ratio=.08%
total market index FSTVX Expense ratio=.04%
mid cap FSCKX Expense ratio=.07%

This combination does not make a balanced portfolio. Spouse really likes the 500 fund. I personally would get rid of it and just use the total market index instead. The midcap is because it compliments our WHOLE investment portfolio (which includes our Vanguard accounts). You keep saying you are not a knowledgeable investor.....well read the "Bogleheads Guide to Investing" book and quit claiming ignorance!!! Cut the umbilical cord with that "advisor" and pay attention to what we are trying to tell you. You are giving away money that really adds up over the years into REAL MONEY. The people on this site are only trying to help you not make the mistakes that we have already made! We have no other motive than to help you make the most of your investing dollars.

Spouse and I are 62 years old and retired last year because our portfolio has become large enough for us to do so. We are: 65 stocks/ 35 bonds and intend to stay that way. I suggest you go to http://www.morningstar.com and look up your individual funds by their ticker name. It will easily show you details (you can get them on Fidelity site also). On the site you can plug in the ticker names and get an "Xray" of your total portfolio which can be helpful to see if your portfolio is balanced to what you decided is best for your situation. It will also show you funds that overlap each other with the same investments. You can use the site without paying to get this info.

We are here to help you, but you need to be open minded about the advice we are giving. You sound like you have already decided not to leave the security of your "advisor". That is fine----it is your money after all.

birdy

dodonnell
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Re: Fidelity portfolio advisory services

Post by dodonnell » Sun May 14, 2017 9:12 pm

Fidelity pays employees more to sell PAS.
https://www.fidelity.com/bin-public/060 ... sation.pdf

2008 Thread on Fidelity PAS
viewtopic.php?p=186394
I must admit, I am horrified by this portfolio management from Fidelity.

- DDB
2010 Thread on Fidelity PAS
viewtopic.php?f=10&t=51820
... I am sick to my stomach. - dodonnell (me)
(after i did a Portfolio review of PAS for a close friend)

It doesn't look like much has changed. Funds of Funds with adviser fee on top.
https://www.fidelity.com/bin-public/060 ... mental.pdf

workerbeeengineer
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Re: Fidelity portfolio advisory services

Post by workerbeeengineer » Tue May 16, 2017 11:44 pm

chinto wrote:This thread is interesting. Overall I like Fidelity. I find it interesting they never try and sell me anything or push me into anything which is in contrast to what many others apparently.

That being said, Fidelity has a pretty good Four-in-one fund. It is a one fund, instant portfolio. You might want to consider it in place of an advisor. Take a look at the objective.

Fidelity® Four-in-One Index Fund (FFNOX)

Fund Overview
Objective
Seeks high total return.
Strategy
Investing in a combination of four Fidelity stock and bond index funds (underlying Fidelity funds) using an asset allocation strategy designed for investors seeking a broadly diversified, index-based investment.


Domestic Equity Funds 59.56%
Fidelity 500 Index Fund - Institutional Premium Class 47.67%
Fidelity Extended Market Index Fund - Institutional Premium Class 11.89%
International Equity Funds 25.58%
Fidelity International Index Fund - Institutional Premium Class 25.58%
Investment-Grade Bond Funds 14.84%
Fidelity U.S. Bond Index Fund - Institutional Premium Class 14.84%
https://fundresearch.fidelity.com/mutua ... /31634R109

Family member who changed jobs rolled a 401K into a Fidelity IRA . At that time, I recommended a mix of Spartan index funds, but the family member went with PAS. :oops: She had a lot going on and might not of appreciated my emphasis on controlling costs. Fast forward about 2 years, family member now has more time to focus on her investments. She realizes she is paying a lot for so-called services. Performance has fallen short of any reasonable mix of index funds. Family member asks me if Four-in-One is good choice. My response is that IF she is OK with the asset allocations, then sure. My takeaway....sometimes takes awhile for people to understand the implications of their decisions. I am glad however that this family member did decide to make a change once she could focus on her situation. :happy

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bostondan
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Re: Fidelity portfolio advisory services

Post by bostondan » Wed May 17, 2017 7:32 am

My mother and sister used Fidelity PAS for a long time. In my mom's case she had $6m with them and was paying AUM fee of 0.5% and underlying fund fees weighted average around 0.6%, so total 1.1%. They had her in a million different funds and also individual stocks.

It was a total mess. Some of the bond funds had fees as high as 3% or higher. We discussed this at length with her advisor who kept trying to convince us it was a good idea to have a fund like that because it "is like a hedge fund." I didn't really follow his logic. Nonetheless, at the end of the conversation I said, "I appreciate your thought, but please remove that from her portfolio."

He replied with, "Well, we actually can't customize your portfolio at all, but I'll give that feedback to our backend people." I was appalled. She had $6m with them and she was getting a cookie cutter portfolio. She was in the "wealth advisory" level (or whatever it's called) that advertises all sorts of custom advice. All they really do is help you come up with an asset allocation. It's basically the same as using a robo advisor, except more expensive, and significantly less evidence-based.

Run away from Fidelity PAS. Invest the money in Fidelity index funds or iShares index ETFs (many trade free at Fidelity). If you MUST use an advisor service, use Vanguard PAS. If you insist on a brick & mortar establishment, then use Schwab (free or "cheap" advisor service, but has cash drag) or Fidelity Go (robo advisor, doesn't do tax-loss harvesting).
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel

Topic Author
gym4866
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Joined: Tue Mar 06, 2012 5:29 pm

Re: Fidelity portfolio advisory services

Post by gym4866 » Sat May 20, 2017 5:46 pm

MikeG62 wrote:
gym4866 wrote:
sport wrote:Find out what the expense ratio is on the funds Fidelity would have you invest in. Most likely, they will be high expense funds in addition to the management fees. Vanguard offers an advisory service with a fee of 0.3% and they use Vanguard's very low expense funds. In short, Fidelity will be expensive. Vanguard would be much less so.


I revisited the information fidelity sent me to count the number of funds that they suggested:
INVESTMENT ACCOUNT-314k

GROWTH WITH INCOME-MUNI:
domestic stock funds-16 funds
foreign stock funds-15 funds
bond funds-9 funds
other- 1 fund
TOTAL: 41 funds

RETIREMENT ACCOUNT/ROTH-256K
growth with income
domestic stock-8 funds
foreign stock-5 funds
bond funds-6 funds
short term-4 funds
TOTAL:23 funds
GRAND TOTAL: 64 funds
when you say expense ratio, i get a little mixed up about this...so if a fund has an e/r of 0.45% that =$ 4.50 per 1000.00 invested...correct ?
if a fund has a e/r of 0.3% ....is that 30 cents per 1000.00 invested ?
They may use a total of 64 funds in their portfolio advisory services, but they won't use anywhere near that number of funds in your case (or anyones case for that matter). More likely they will select a few. However, may well be actively managed funds with high(er) expense ratio's - plus you will be paying them a handsome fee for selecting the funds.

Having said that, I don't know what they will do for you that you cannot do yourself (as I said previously). Your current holdings are mostly index-based low cost funds. There may not be a big need to change much, other than to relieve Fidelity of their current responsibilities and pocket the $8K per year in fees.
Well, I agree 64 fund is a lot , but when I started reading the info packet they sent me on the two accounts,the above accounts where broken down into 2% in this account...3% it another account etc...etc...etc....everyone of the above accounts had a percentages for my investment dollars assigned to it.

Topic Author
gym4866
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Re: Fidelity portfolio advisory services

Post by gym4866 » Sat May 20, 2017 6:01 pm

I just want to thank all that replyed to this post...the opinions /links/comments once again has helped me out greatly.

Larry2623
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Re: Fidelity portfolio advisory services

Post by Larry2623 » Sun Jun 24, 2018 9:33 pm

I am retired so no longer contributing new money. Not sure what Fidelity use to be like, but now their service is under 1% management fee and all funds have very low expense ratios. Most are under 0.1% way under. Not sure if I will test drive this service with a portion of my money but I like the idea...60/40 balance with regular rebalances no fees. If they can beat me I will leave it...maybe even add to it

Bronco Billy
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Re: Fidelity portfolio advisory services

Post by Bronco Billy » Mon Jun 25, 2018 8:03 am

Larry2623 wrote:
Sun Jun 24, 2018 9:33 pm
Not sure if I will test drive this service with a portion of my money but I like the idea...60/40 balance with regular rebalances no fees. If they can beat me I will leave it...maybe even add to it
Larry, can you please explain to me the Service you are talking about test driving? I also getting ready to retire and have a company 401 with Fidelity. I been told I can leave it with Fidelity and still self direct. I move my TDA account to Vanguard and this would let me compare companies.

Thank You!!

rotorhead
Posts: 463
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Location: Florida

Re: Fidelity portfolio advisory services

Post by rotorhead » Mon Jun 25, 2018 8:50 am

gym4866, you've been given some very good advice here. Take some time and absorb what the good folks are saying.

I am long time satisfied Fidelity customer (Fidelity Private Client), and they have never tried to "up sell" me into their more expensive funds. Told them what I want, and they leave me alone.

I am 60/40 allocation, with just two funds - Total Market and Total Bond. Couple of weeks ago had my annual meeting with my assigned account advisor. He told me that I'm doing just fine; and wouldn't suggest anything, except that I might want to consider moving some of the bond money into CD's in view of interest rate outlook, if I'm concerned about it. Pretty good advice actually, I thought; but I think short term bond fund better for me than CD's if I do any change.

I suggest you do the following exercise. Will take a little while; but well worth the effort, since we're talking about considerable money here.

Log into your Fidelity account. Then go to the "Investment Products" tab, then "Mutual Funds", select "Diversified Portfolios" tab; and look at what's available. You'll see a range from "Conservative to Most Aggressive" - several choices. Pick the one that suits you, and look at the list of funds Fidelity recommends for that portfolio. Write them down, and look at the ER's for each. Calculate what the expenses would be for your new portfolio. I think you'll be aghast at what you see.

This is exactly what the Fidelity managed funds exercise will do with your money. And it will cost you dearly. Spend a little time; and do the math. It will save you lots of money in the long run.

My wife's account is with Vanguard; and we are equally pleased with their service as well. Eventually we'll consolidate into one or the other; likely Fidelity, purely as matter of convenience, since they have large office very near our home.

dodonnell
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Re: Fidelity portfolio advisory services

Post by dodonnell » Mon Jun 25, 2018 11:45 am

Larry2623 wrote:
Sun Jun 24, 2018 9:33 pm
I am retired so no longer contributing new money. Not sure what Fidelity use to be like, but now their service is under 1% management fee and all funds have very low expense ratios. ...snip...
Fidelity's lasted regulatory filing representing their reduced fees (139 pages):
https://www.fidelity.com/bin-public/060 ... mental.pdf

Page 6. "Gross fees" are likely a closer approximation to total expenses:

... i don't get to "under 1%" until over > 3.12M in account size?

Image

Larry2623
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Re: Fidelity portfolio advisory services

Post by Larry2623 » Mon Jun 25, 2018 2:56 pm

I gave them a portion around $450k and I will pay .9% with no other fees except expense fees on funds and etfs and they are very low

Larry2623
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Re: Fidelity portfolio advisory services

Post by Larry2623 » Mon Jun 25, 2018 3:05 pm

Bronco Billy wrote:
Mon Jun 25, 2018 8:03 am
Larry2623 wrote:
Sun Jun 24, 2018 9:33 pm
Not sure if I will test drive this service with a portion of my money but I like the idea...60/40 balance with regular rebalances no fees. If they can beat me I will leave it...maybe even add to it
Larry, can you please explain to me the Service you are talking about test driving? I also getting ready to retire and have a company 401 with Fidelity. I been told I can leave it with Fidelity and still self direct. I move my TDA account to Vanguard and this would let me compare companies.

Thank You!!
I converted a profit sharing account to an IRA opened as a "professionally managed account". The only extra fee is .9% management fee for a balanced portfolio 60/40. Fees on the funds/etfs are very low (which I watch very close, so I know they are low). They will rebalance on regular basis...if stocks are up and bonds are down they will sell stocks and buy more bonds. The nice thing is the summary page will show you all the returns...gross and net after fees. I will give them a year and see how they do compared to my other investments.

flyfishing
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Re: Fidelity portfolio advisory services

Post by flyfishing » Mon Jun 25, 2018 3:50 pm

When some go to the theater they sit in the balcony and some in the orchestra. At a ball game some in the bleacher and some box seats. Value and "what it is worth" varies tremendously. We each also have a different idea for the term "value". There are some who just don't want to manage their own investments. My feeling is to know what it costs. After that each to his/her own level for comfort/convenience.Picking an advisor isn't always about trying to "earn more". I think some on this board are a little to judgmental of others.

Bronco Billy
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Re: Fidelity portfolio advisory services

Post by Bronco Billy » Mon Jun 25, 2018 6:57 pm

I converted a profit sharing account to an IRA opened as a "professionally managed account". The only extra fee is .9% management fee for a balanced portfolio 60/40. Fees on the funds/etfs are very low (which I watch very close, so I know they are low). They will rebalance on regular basis...if stocks are up and bonds are down they will sell stocks and buy more bonds. The nice thing is the summary page will show you all the returns...gross and net after fees. I will give them a year and see how they do compared to my other investments.

Thanks Larry for the information,

Tommy
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Re: Fidelity portfolio advisory services

Post by Tommy » Mon Jun 25, 2018 9:05 pm

Larry2623 wrote:
Mon Jun 25, 2018 2:56 pm
I gave them a portion around $450k and I will pay .9% with no other fees except expense fees on funds and etfs and they are very low
Do you mean Fidelity Go? O.35% management fee including fund expenses

bayview
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Re: Fidelity portfolio advisory services

Post by bayview » Tue Jun 26, 2018 6:01 am

I have to say that in the current returns environment, giving up 1% (ok, 0.9%) on my returns sounds pretty awful.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

yougotitdude
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Re: Fidelity portfolio advisory services

Post by yougotitdude » Tue Jun 26, 2018 8:31 am

Did you look at the historic numbers of the model? They'll provide it if you ask (or sometimes push).

Compare that to a target date fund or asset allocation fund with a similar allocation and you might be surprised. ;)

Larry2623
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Re: Fidelity portfolio advisory services

Post by Larry2623 » Sun Jul 01, 2018 9:31 am

bayview wrote:
Tue Jun 26, 2018 6:01 am
I have to say that in the current returns environment, giving up 1% (ok, 0.9%) on my returns sounds pretty awful.
Maybe it will turn out so, but I will not know unless I give them a shot. I will evaluate their performance and compare to my other return past and present at 6 months and 1 yr.

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nedsaid
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Re: Fidelity portfolio advisory services

Post by nedsaid » Sun Jul 01, 2018 12:09 pm

Tommy wrote:
Mon Jun 25, 2018 9:05 pm
Larry2623 wrote:
Mon Jun 25, 2018 2:56 pm
I gave them a portion around $450k and I will pay .9% with no other fees except expense fees on funds and etfs and they are very low
Do you mean Fidelity Go? O.35% management fee including fund expenses
Fidelity GO would be worth consideration. My understanding is that it is run by robots. It would probably be as good or better than the more expensive Fidelity Portfolio Advisory Services. Plus Fidelity GO uses index funds.
A fool and his money are good for business.

yougotitdude
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Re: Fidelity portfolio advisory services

Post by yougotitdude » Mon Jul 02, 2018 10:35 am

Larrry, you can get the historical returns if you ask. They're on a model so they have them. Have them give you the historical returns against the benchmark (they have a benchmark with the same allocation).

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