[ad_1]
Fidelity Go is a robo-advisor product provided by a reputable brokerage company with low fees. For those with a balance of less than $10,000 and all investors can use Fidelity’s mutual funds without an expense ratio, there is no need to pay consulting fees.
What is Fidelity Go and how does it work?
As the robotic advisory arm of the Fidelity Investments family, Fidelity Go has an automated portfolio of Fidelity Flex funds (yes, they are free) and has no minimum opening balance. It also does not charge any consulting fees for balances below $10,000.
Like other robo-advisors, Fidelity Go investors will first fill out a short questionnaire based on information about your goals, finances, and risk tolerance. Some of these questions include your year of birth and your investment goals (such as retirement or non-retirement goals).
The platform will also ask you to rate your risk tolerance on a scale from 1 to 10, where 10 is the most aggressive and 1 is the least aggressive. More aggressive investors usually have a higher percentage of stocks in their portfolio, and the more conservative you want, the more bonds it will switch to.
Upon completion, the robo-advisor will use the answers to create a portfolio based on your personal needs.
If you are not sure whether you want to join Fidelity Go, you can fill out the questionnaire and view a sample portfolio. This way, you can understand what it’s like to invest with this robo-advisor before continuing with the rest of the registration process.
Fidelity Go
Best for advanced trading opportunities
main feature
- No management fee for accounts under USD 10,000
- Ability to invest in Fidelity Flexible Fund
- Investors can start investing for just $10
Fidelity Go is a robo-advisor that charges low fees and invests in Fidelity Flex mutual funds of four asset classes. There are human investment advisors who manage and rebalance portfolios, but investors cannot reach them. Other features include cash management accounts, 24/7 customer service and automatic rebalancing.
Fidelity Go
Minimum account opening deposit
0 USD (although you need 10 USD to invest)
Management fee or consulting fee
Accounts below 10,000 USD
Provided account
Taxable (individual and joint) and four IRAs
Prime Minister’s Privilege
ETF without expense ratio
Fidelity overview
| feature | detail | more details | ||
|---|---|---|---|---|
| account type | 2 Taxable | 4 IRAs | ||
| Minimum account | $0 open | Investment 10 USD | ||
| Commissions and fees | $0 balance | More fees> balance | ||
| Combination | 4 mutual funds | No real estate | ||
| Portfolio management | Conservative and enterprising | Automatic rebalance | ||
| Cash management account | Yes | Better interest rate results | ||
| Customer Support | Live chat; phone support | 8 am to 6 pm Eastern Time, MF |
Features of Fidelity Go
Before opening an account, you need to consider many features. Our list of related information will help you determine whether Fidelity Go is right for you.
account type
Investors can open individual and joint taxable accounts, as well as IRA (traditional, Roth and rollover). If you already have a Fidelity account, you can easily integrate your investment with Fidelity Go.
Minimum account
If you want to open a Fidelity Go account, there is no minimum account opening deposit, but you need to invest $10 or more to start investing.
Commissions and fees
Fidelity Go does not charge any commission for any of its transactions.
The following are the consulting fees it will charge based on your account balance:
- Below 10,000 USD: None
- Between USD 10,000 and USD 49,999: USD 3 per month
- 50,000 USD and above: 0.35% per year
Other than that, there are no additional costs. In most cases, investors need to pay an expense ratio for the underlying securities in their portfolio. Since this robo-advisor uses the free Fidelity Flex fund, there is no.
Combination
Investors can choose from 14 portfolio options-half are retirement portfolios, and the rest are taxable. Whichever one you choose, they are all created by the Fidelity Flex Fund.
These funds hold four asset classes, including US stocks, international stocks, domestic bonds and short-term securities. How many of these funds are in your portfolio will depend on your goals.
Remember, there are no assets such as commodities, real estate investment trusts and international bonds to choose from. Nonetheless, if you don’t bother about the lack of these additional options, you can get quite a bit of diversification.
Considering that they are all free funds, assuming you pay less consulting fees, you will be able to save money compared with other robo-advisors. Fidelity Go will also conduct an annual review to ensure that the current investment strategy is right for you.
Portfolio management
Fidelity Go will start allocating your funds to various asset allocations based on your questionnaire-from here on, you don’t need to intervene. As long as market fluctuations derail your asset allocation, robo-advisors will ask their financial advisors to rebalance your investment portfolio.
Robo-advisors do not provide tax loss gains. This is a strategy for brokers to offset capital gains by selling loss-making investments. However, Fidelity GO does purchase municipal bonds for its taxable accounts, and these tax-friendly securities may be able to minimize your taxes.
Investors can register for monthly email reminders to keep up with the latest situation of their investment portfolios.
Cash management account
Customers can choose to open a cash management account. Any idle cash in your Fidelity Go portfolio will automatically be transferred to Fidelity Government Cash Reserves. In this way, customers can benefit from better prices compared to the prices you find at other brokers.
Customer Support
Fidelity Go customers can contact a representative from 8 am to 6 pm Eastern time Monday to Friday, log in to their account and use the live chat feature, or call 1-800-343-3548.
Is Fidelity right for you?
Fidelity Go is perfect for those who wish to invest through robo-advisors or prefer a let-off strategy. It is also very suitable for those who do not have a large amount of funds to invest initially, because accounts with a balance of less than $10,000 do not need to pay consulting fees.
One of the main advantages of Fidelity Go is that you will be able to see how your funds will be allocated in the asset allocation recommended by the robo-advisor. If you like what you see, that’s great. If not, you don’t need to promise anything.
If all you want is to provide basic services with low cost and no expense ratio, then this platform is good. You can adjust your asset allocation according to your financial goals and risk tolerance. Fidelity is a reputable brand. Those who want to get additional services (such as human financial advisors) and more advanced investment products can do so because they have a Fidelity account.
Remember, once your balance reaches $10,000 or more, you will need to start paying consulting fees. Nevertheless, the cost is still competitive and slightly lower than the competition.
However, if you are looking for a more powerful robo-advisor and offer privileges such as access to human financial advisors, then you are out of luck. This option is useful if you are looking for more personalized guidance on retirement and other financial goals. Paying more for consulting fees may still be cheaper than opening an account with Fidelity Go and hiring a separate financial advisor (comparing the cost before doing anything).
Although this may not be a big problem, the lack of real estate, commodities and foreign bonds may be offensive to others. In addition, despite the low cost of Fidelity Flex funds, they may be restricted depending on your investment objectives.
Don’t forget that Fidelity Go is not involved in tax loss harvesting-if you are concerned about paying large amounts of capital gains, please consult a financial professional to see how it affects your bottom line. Fidelity Go’s use of municipal bonds in taxable accounts may be pleasing enough.
Overall, Fidelity Go is a good product, but be sure to compare other brokers before making a decision.
Pros and cons of Fidelity Go
Check out our assessment of the pros and cons of Fidelity Go to determine if this is right for you.
advantage
- No consulting fees are required for balances below USD 10,000
- No opening balance requirement
- Ability to view sample portfolios before opening an account
- Investments in a portfolio of free funds
shortcoming
- Limited options for financial goals
- No tax loss to gain
- Unable to obtain a human financial advisor
- Limited account types
- Some investors may lack funding options
Frequently Asked Questions (FAQ) about Fidelity Go
We have compiled answers to frequently asked questions about Fidelity Go.
What are asset management fees?
The fee is usually a percentage of your balance, but there may be a fixed monthly fee charged by a broker. If you charge a percentage, it may mean that the higher your balance, the more you pay.
Does Fidelity Go provide tax loss collection services?
No, Fidelity Go does not provide tax loss collection services. This is a strategy used by other robo-advisors to help investors reduce their tax burden. Instead, it allocates a portion of the investor’s portfolio to municipal bonds in taxable accounts.
How much does Fidelity charge?
If your balance is less than US$10,000, Fidelity Go will not charge consulting fees. Over this amount, if your balance is less than $50,000, the robo-advisor will charge $3 per month, and once your account reaches $50,000, you will be charged 0.35% per year.
Can I quit Fidelity Go?
Yes, you can withdraw money from your Fidelity Go account. You don’t need to pay any fees, and you don’t need to withdraw money from your account at any time. If you want to withdraw your full balance and close your account, we will charge you a consulting fee based on the time that Fidelity Go manages your account.
Contributor Sarah Li-Cain is a personal finance writer based in Jacksonville, Florida, specializing in real estate, insurance, banking, loans, and credit. She is the host of the Buzzsprout and Beyond the Dollar podcasts.
[ad_2]
Source link
