Fidelity is a good brokerage for investors who want to invest in mutual funds and individual stocks.
However, its wealth management services are more controversial. Some financial advisors argue that the fees charged by Fidelity for these services are not justified by the company’s performance. Others contend that the quality of Fidelity’s wealth management services is worth the price.
Here is an important point: The wealth management service from Fidelity charges a fee of 0.35% to 1.5%.
So, is it really worth it?
To answer that question, we surveyed a group of investors who have experience with Fidelity’s Wealth Management service.
Here’s what they had to say:
Fidelity Wealth Management (2023 Reviews)
1. No, it’s not worth it. You can pick low-cost index funds, and you already paid yourself a 0.35-1.5 % premium.
2. When considering the 1.5% fee charged by Fidelity’s Wealth Management service, it’s essential to understand that it equates to a 25% cost on your investment. Avoid management as much as possible.
3. I spoke to an advisor and have decided to cancel advisory services. I can handle rebalancing myself, and I can call anytime for help if needed.
4. Fidelity’s advisors are not permitted to make specific investment recommendations. Despite this, they still charge an aggregate mixed management fee of 1.25% for assets under management of $1 million. This fee is not justified in a highly volatile market.
5. Put your money in Fidelity Freedom Target Index Funds. As you might with CDs, ladder your investments. Then watch the money grow. And remember the rule of 72. Divide 72 by the average yearly return. So at 10%, your money will double in 7.2 years.
As you can see, the survey results are mixed, but it’s clear that many investors think Fidelity’s Wealth Management service is not worth the fee.
