Fidelity Go Reviews

Fidelity Investments is a reputable online broker, and the robo arm of their company is known asFidelity Go.Fidelity Go reviews reveal that the managed product provides a unique fee and pricing structure that differentiates their offering from other competitors in the marketplace.

Investors pay 0.35% of the portfolio balance annually for the management of retirement funds, and 0.40% for taxable accounts.These fees include the investment expense ratios, a feature that’s totally unique to Fidelity Go.There is a $5,000 minimum to get started with the service.

Fidelity Go allocates among index funds, primarily their own, to diversify assets and create your portfolio.They employ a team of specialists who then monitor and re-balance the funds as needed.

In this summary, we’ll examine the details of the Fidelity Go investment option and give you insight into the account basics, pros and cons of the service, and help determine if this is the best robo-advisor fit for you.

At A Glance Summary of Fidelity Go

To better understand Fidelity Go, here we’ll review the basics you need to know about the service.

Account Basics

  • There is a $5,000 account minimum.
  • The account fees encompass both the management and investment expense ratios.They are as follows:
  • 0.35% on retirement accounts
  • Up to 0.40% on taxable accounts
  • The service includes free re-balancing on accounts that is executed by fund managers rather than by computer algorithm.
  • Portfolios may be comprised of the following products:
  • Up to seven different Fidelity index funds
  • BlackRock iShares ETF’s
  • Supported accounts include:
  • Joint and individual non-retirement accounts
  • IRA’s- Roth, traditional and rollover
  • Fidelity Go does not offer 401(k) management
  • There is no tax strategy counseling available

Investment Information

Like you’ll commonly find the robo-advisor services, upon enrollment, you’ll fill out an online questionnaire to determine your attitude towards risk, overall goals, the timeline to achieve them, and the amount of monthly investment you’re able to make.Based on your answers, a computer algorithm will recommend a portfolio that’s a match.Before you invest your funds,you’ll be able to see the estimated future value of your suggested portfolio to help you better make your decision and compare your options to other similar products.

If you’re building a portfolio for retirement, your allocations can include up to seven different Fidelity index funds.Investors building taxable portfolios may also have BlackRock iShares ETFs included in the mix to maximize gains.

How it Works

Fidelity Go’s flat-rate fee model is what makes this product unique.Regardless of your investment level, you’ll pay 0.35% for retirement accounts and up to 0.40% for taxable accounts for the service.

The company allocates the funds among Fidelity index funds, and a portion of taxable funds into BlackRock iShares exchange traded funds.Then, they return all their revenue from the Fidelity funds and the majority of the revenue from the BlackRock investments back to their customers via a variable fee credit to achieve their investment-inclusive expense model.

E-Trade Adaptive Portfolio Standouts

In addition to their comprehensive fee model, there are a few other areas where Fidelity Go offers features and services unique in the robo-advisor space.Here are the highlights.

Managed by Actual People

Most online automated advisors pair sophisticated computer algorithms with a team of financial advisors who monitor accounts and answer questions on as-needed basis.Fidelity Go breaks out of that mold.All their client portfolios are built and overseen by actual people with investment advising institution Geode Capital Management.The firm is one of the sub-advisors on many of Fidelity’s own funds as well.

The professionals are responsible for both monitoring and re-balancing the accounts, making this an attractive option for someone who wants a hands-off investment option but doesn’t necessarily want a computer doing all the work.

Although they manage your account, it’s important to note that these are not the advisors you will speak with if you ever have a question via phone.Their customer service line is staffed with representatives, not financial professionals 24 hours a day.

Fidelity Integration

If you’re one of Fidelity’s more than 500,000 existing clients, it’s an easy process to take advantage of this managed investment option.You can use money available in your existing IRA or taxable account to fund your minimum.

Competitive Account Minimum

Among other broker-backed robo-advisors, a $5,000 minimum is very competitive.There are a few others in the marketplace with the same threshold, but many are well above that limit.

While it’s good to know if you want the backing of a large broker, there are many independent advisors in the space with much lower, or no, minimum point of entry.

Potential Drawbacks

Fidelity Go does a good job of producing an attractive robo-advisor product, but there are a few areas where they fall a bit short.Here are a few areas of possible concern.

No Tax Strategy

One benefit that many robo-advisors offer that is attractive if you have a taxable account is tax-loss harvesting.This process helps you to mitigate your investment impact on capital gains taxes.Fidelity Go does use tax-advantaged funds in their accounts, which can help to minimize the impact, but they don’t offer any services as part of their platform to help directly.

It Must be Cash

Whether you’re an existing Fidelity customer or not, they will not accept any securities transfers of any kind.This includes someone who may already have funds allocated towards securities inanother Fidelity Go portfolio.To enroll, you must first sell all securities.

Who Would Benefit

Fidelity Go is a great option for a couple of different types of investors.New investors who are interested in the robo-advisor space but who are concerned about being hit with fees and charges they didn’t expect can rest easy using this service.  The flat-rate investment management approach is at a comparatively low cost to other services available, and won’t hold any surprises.

Individuals who like the idea of a human element managing their money are also a good fit for this product.While Fidelity Go does use advanced computer algorithms to manage parts of the system, there is a live human being who regularly oversees the accounts.

Finally, current Fidelity customers may also be a great fit for Fidelity Go.  It’s a simple process toenroll your existing accounts in the service and could help to produce gains for your retirement or financial strategy.

Final Thoughts

As robo-advisors go, this service has a lot to offer.Fidelity Go reviews show that the established broker has developed a unique fee structure that is not only all-inclusive but also competitive.The additional benefits of a low account minimum and human monitoring on the accounts make this an excellent potential choice for both new and seasoned investors.

The main drawback of the service for investors with taxable accounts is the complete lack oftax-loss harvesting.You may need to look elsewhere, and likely pay for this expertise.Additionally, transferring securities is impossible with Fidelity Go, although some marketplace competitors make it work.

About the Author HarryC

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