Does Fidelity Premium Services cost anything?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
Topic Author
PrettyCoolWorkshop
Posts: 191
Joined: Tue Aug 11, 2015 8:44 pm

Does Fidelity Premium Services cost anything?

Post by PrettyCoolWorkshop » Fri Mar 15, 2019 6:54 am

Howdy Bogleheads.

I am currently in the process of transitioning my mother out of a financial advisor that charges ~1% AUM fee. I have now been set up as Power of Attorney for my mom. I am migrating her assets to Fidelity. One of my mom's friends suggested a person at Fidelity in her area we should contact to help with the process, so we did. He is a financial advisor. Earlier during the transition process I told him my intent that I intend to invest in low cost index funds, etc. and avoid fees at all cost. He has been helpful with the transition. We simply set up two retirement accounts and a brokerage account. If the advisor did any paperwork with my mom that created an explicit advisor relationship, I was not involved. Now that the accounts are set up, I noticed a big "Fidelity Premium Services" banner, with a "your advisor" link, across the top of her account.

I fear that I will likely have to terminate this Fidelity Premium Services if it charges an AUM fee. Is anyone here familiar with Fidelity Premium Services charging a fee, or is it gratis? I have tried googling this and searching Fidelity's website but the answers were heavily obfuscated (perhaps intentionally?).
Be greedy and fearful. All the time.

Strayshot
Posts: 598
Joined: Thu Mar 05, 2015 8:04 am
Location: New Mexico

Re: Does Fidelity Premium Services cost anything?

Post by Strayshot » Fri Mar 15, 2019 6:56 am

Premium services costs nothing and is triggered by the amount of money you have at Fidelity.

User avatar
Topic Author
PrettyCoolWorkshop
Posts: 191
Joined: Tue Aug 11, 2015 8:44 pm

Re: Does Fidelity Premium Services cost anything?

Post by PrettyCoolWorkshop » Fri Mar 15, 2019 6:58 am

Thanks, Strayshot. Looks like so far we have avoided getting "out of the frying pan, into the fire."
Be greedy and fearful. All the time.

Strayshot
Posts: 598
Joined: Thu Mar 05, 2015 8:04 am
Location: New Mexico

Re: Does Fidelity Premium Services cost anything?

Post by Strayshot » Fri Mar 15, 2019 6:59 am

This old thread has some additional info:

viewtopic.php?t=185163

I should add that I have never actually used or seen any benefit from being under the premium services category. I have always had extremely good customer service at Fidelity, maybe it is due to this or maybe not, but I can surely say I have not seen any fees or attempts to contact me or sell me anything by Fidelity. I have been extremely pleased with Fidelity, more so than with any other financial company/services I have engaged with. If Fidelity ever IPO’s I will lose my boglehead status because 15% of my portfolio will become Fidelity.
Last edited by Strayshot on Fri Mar 15, 2019 7:02 am, edited 1 time in total.

mervinj7
Posts: 1119
Joined: Thu Mar 27, 2014 3:10 pm

Re: Does Fidelity Premium Services cost anything?

Post by mervinj7 » Fri Mar 15, 2019 7:00 am

https://thefinancebuff.com/vanguard-fid ... count.html

It doesn't look there is a charge. It's just for accounts with balances over $250k. Call the rep and find out.

Interestingly enough, it seems assets under record also count. So with over $250k in Vanguard funds held in a Fidelity account, one should also qualify for Fidelity Premium Services...

Post Reply