Fidelity Wealth Management Review

Pros and Cons of Fidelity Wealth Management

Types of Clients

Fidelity offers three major in-person (or phone) advisor products: Advisory Services Team, Wealth Management, and Private Wealth Management. To gain access to any of them, you’ll need to meet the firm’s minimum asset requirements, which range from $50,000 to $10,000,000. Here’s what you’ll need for each one:

Service	Minimum Requirement
Advisory Services Team	$50,000
Wealth Management	$500,000
Private Wealth Management	$2,000,000 managed by Fidelity and $10,000,000 in total investable assets.

Unfortunately, if you can’t meet any of the above requirements, you won’t be able to work with a human advisor. However, the firm does offer robo-advisor and professionally managed products with much lower asset barriers through Fidelity Go and Fidfolios.

Financial Advisor Services

As mentioned, Fidelity offers three in-person advisor products. While they have similarities, each one operates a bit differently. The first one, Advisory Services Team, gives you access to a professional over the phone. However, the other two provide wealth management services granted that you can meet their requirements. Below, we explain what each product has to offer:

• Advisory Services Team. With a $50,000 initial investment, you’ll gain access to:
  • A team of phone-based financial advisors that can assist you with a variety of tasks.
  • Help with tax-loss-harvesting, which helps you earn more on your investments by owing less on your returns.
  • Annual portfolio reviews to monitor your investments’ progress.
• Wealth Management. An investment of $500,000 allows you to access the firm’s wealth services, which include:
  • A dedicated finance expert who will work with you to build your portfolio.
  • An annual consultation (at minimum) to review your investments and identify new opportunities.
  • Tax-loss-harvesting to optimize your returns and minimize what you owe.
  • Financial planning services, including estate, retirement, and investment planning.
• Private Wealth Management. This wealth management tier gives you a more hands-off approach, as well as:
  • A dedicated finance expert who’ll work with you to build your portfolio.
  • Active portfolio management services
  • An annual consultation (at minimum) to review your investments and identify new opportunities.
  • Tax-loss-harvesting to optimize your returns and minimize what you owe.
  • Financial planning services, including estate, retirement, and investment planning.
  • Generational wealth planning, including trust administration, transitions, estate planning, and coordination with other professionals, such as attorneys and accountants.

Types of Advisors

Fidelity’s wealth management advisors are employees of Fidelity Personal and Workplace Advisors LLC (FPWA). This subsidiary is registered with the SEC as a registered investment advisor (RIA). Because of this, all its professionals must adhere to the fiduciary standard and are, by extension, investment advisor representatives (IARs).

FPWA only provides services to wealth management clients. All other advisory services are provided by Strategic Advisers LLC, another Fidelity subsidiary. This is also an RIA, meaning its representatives must act as fiduciaries.

Other credentials an advisor has will depend on who you work with. On Fidelity Wealth Management’s tool to help potential clients find an expert, it lists the following designations as those that its professionals may have:

• Certified Financial Planner (CFP). These are professionals who’ve completed rigorous requirements set forth by the CFP Board, including years of experience and an exam. They specialize in a wide range of planning tasks, such as for retirement or investments.
• Chartered Financial Analyst (CFA). These are highly qualified experts who hold a designation from the CFA Institute. Typically, they can assist with investment management, financial planning, and wealth management.
• Certified Equity Professional (CEP). After passing three exams, these experts receive a designation from the CEP Institute. You can expect them to help you with accounting, equity planning, corporate law, and other similar tasks.
• Equity Compensation Associate (ECA). Also offered by the CEP Institute, ECAs specialize in equity compensation, corporate law, and accounting.
• Chartered Financial Consultant (ChFC). ChFCs receive their designation from The American College of Financial Services. Their job focuses heavily on financial planning tasks.
• Certified Private Wealth Advisor (CPWA). These experts have at least five prior years of experience in finance before receiving their credentials. Their role mainly centers around wealth management tasks.

Fee Structure

Fidelity uses a fee-only structure to charge clients. Namely, it’ll take a percentage of assets under management (AUM), depending on how much you have. Here’s an outline of what each product charges you:

Account Type	Cost
Advisory Services Team	1.10% of AUM
Wealth Management	0.50% to 1.5% of AUM
Private Wealth Management	0.20% to 1.05% of AUM

Keep in mind that the fees you pay above don’t include other associated costs from securities you buy. This includes those from transactions you make or fund management. You’re also responsible for paying taxes on earnings within your account.

Investment Philosophy

Fidelity’s website espouses three core principles as it relates to investing. Each works toward maximizing returns and minimizing risk as much as possible.  Below is a breakdown of each element:

1. Focus on long-term investments. Market volatility is a near certainty. For this reason, Fidelity recommends its advisors (and their clients) emphasize investing with the long-term in mind. This means not selling at the first sign of danger and not expecting quick returns.
2. Build your portfolio according to your goals. Your current situation, risk tolerance, and long-term goals should dictate how you and your advisor structure your portfolio.
3. Prioritize tax-efficient investing. Taxes are an obstacle for all investors to overcome. To maximize returns, Fidelity’s advisors focus heavily on tax-efficient investments and tax-loss harvesting methods.

Keep in mind that while the above principles may indicate a top-level philosophy from Fidelity, it’s not definitive. And the strategies your advisor employs may differ. Ultimately, how you invest should be tailored to your needs and preferences.

Disclosures

Fidelity’s advisor products operate under two separate subsidiaries. The first, Fidelity Personal and Workplace Advisors (FPWA) LLC handles the wealth management aspect of its offerings. Strategic Advisers LLC, the other, focuses on all other offerings, including Advisory Services Team and Fidelity Go. Each has a separate registration with the SEC, with its own disclosures.

Per its Form ADV filing, FPWA has a few recent disclosures due to its dealings in Sweden and with Hellenic’s Republic Capital Market Commission. For instance, in 2017, the company was fined $1,700 by Sweden’s Financial Supervisory Authority (SFSA) notification of a change in shares being sent late. Similarly, the firm failed to notify Hellenic of a change in ownership of a Greek company; however, it did not need to pay fines for this matter.

Strategic Advisers LLC reported similar disclosures regarding the same parties on its Form ADV. This is because both companies are subsidiaries of Fidelity Management and Research Company (FMR) LLC, which the regulatory actions are against.

Customer Service

Fidelity gives you three main options if you need to contact its customer service department to discuss its advisor products, as well as to ask a question or leave a complaint:

• By phone – (800) 343-3548, 24/7
• Via the virtual assistant on the firm’s contact page, 24/7
• Via a live chat with a corporate representative, Monday-Friday, 8am-10pm EST, Saturday-Sunday, 9am-4pm EST (accessible on the contact page).

How to Get Started

The first step to getting started with Fidelity’s advisory services is deciding which level fits your needs. You’ll need to consider how much you have to invest and what services you require. For Advisory Services Team (the firm’s phone-based product), you can call (800) 343-3548 to begin. However, for wealth management, you may use the company’s website to find an advisor near you or schedule an appointment.

Tips for Choosing a Financial Advisor Firm

The firm you end up working with is an important choice. What you decide to do should be based on your goals and needs, as well as the reputation of the company in question. And, even if the organization is top-notch, be sure the advisor you’re getting is highly skilled and qualified.

You should also consider whether you’re eligible to access a firm’s services. Many, such as Fidelity, have steep requirements for you to even be able to speak with an advisor in person. So, be sure you know which companies fit your financial situation. You’ll also want to think about the fees associated with hiring an expert.

If you need help finding a quality advisor, we recommend using this free matching tool. After you fill out a short quiz, it’ll match you with up to three vetted professionals in your area.

Methodology

This review is based on publicly available information directly from Fidelity’s website, the SEC, and FINRA. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

How much does it cost to talk to a Fidelity advisor?

Fidelity doesn’t charge for initial consultations. However, for them to begin giving you real financial advice, you’ll need to select a product and pay the requisite fees.

Is Fidelity’s Advisor Service worth it?

This depends on what services you need and the value you hope to get out of it. Fidelity Wealth Management scores high marks for investor satisfaction; however, your experience will largely hinge on the relationship you develop with your advisor.

How much money do you need for Fidelity wealth management?

You need at least $500,000 for Fidelity Wealth Management. However, if you need private wealth management, you must make an initial $2,000,000 investment and have $10,000,000 of total investable assets.