Investment advisory services are provided through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser, for a fee.
There is no advisory fee for accounts with less than $25,000. Investments of $25,000 or more are charged 0.35% per year, but that level gets you unlimited one-on-one financial coaching sessions.
Fidelity has average trading and low non-trading fees, including commission-free US stock trading. On the negative side, margin rates and fees for some mutual funds can be high.
One-on-one meetings are complimentary!
While 1.5% is on the higher end for financial advisor services, if that's what it takes to get the returns you want, then it's not overpaying, so to speak. Staying around 1% for your fee may be standard, but it certainly isn't the high end. You need to decide what you're willing to pay for what you're receiving.
However, it's typically only worth paying for a financial advisor if you have at least $250,000 or more of investable assets and know that you're going to get excellent service from your financial advisor.
Fidelity® Wealth Services (FWS) Wealth Management service-level clients must generally qualify for support from a dedicated Fidelity advisor, which is based on a variety of factors (for example, a client with at least $500,000 invested in an eligible Fidelity account(s) would typically qualify).
Dollar-cost averaging is a strategy in which you invest your money in equal amounts, at regular intervals—say $250 a month—regardless of which direction the market or a particular investment is going.
Escaping the Fidelity Recordkeeping Fee can be achieved through strategic actions such as closing the account, seeking fiduciary services, and considering alternatives to minimize financial obligations. Closing the account is a straightforward approach to avoid the fee entirely.
Very generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could also be higher, such as $500,000, $1 million or even more.
Relatively few embrace working with multiple advisors (13%) or any individual advisor managing other advisors (quarterback approach, 5%). those with $1 million to $5 million in investable, non-retirement assets, and ultra-high-net-worth are investors with over $5 million in investable assets.
Customers get low-cost trading, top-notch research and educational resources, strong customer experience, no account fees and more. Fidelity is a good choice for just about any investor, but beginners and long-term investors will appreciate the fractional shares program and thousands of no-transaction-fee mutual funds.
The annual fee for Schwab Wealth Advisory starts at 0.80% of assets and decreases at higher asset levels (see chart). Enrollment minimum is $500,000.
Most financial advisors charge 1 percent of the AUM. A fee higher than this may be considered too high for many individuals, as it represents a significant portion of the investment returns and can impact the overall growth of the portfolio.
If your investable assets are under $250,000, it's likely best to seek help from a financial planner and invest on your own until you build up a larger nest egg. The simple reason is that you get more value from your advisory firm as your assets grow and your financial situation becomes more complex.
However, in general, it's wise to start working with a financial advisor or wealth management team once you've built a nest egg of $1M in investable assets.
On average, you can expect to pay between 0.5% and 2% of your total assets under management annually, $150 to $400 per hour, or a flat fee ranging from $1,000 to $3,000 for a comprehensive financial plan.
By hiring a single investment advisor, you receive more streamlined advice as only one person manages all your money matters removing any chance of conflicting advice or any disagreement. This also allows the chosen individual to clear up your doubts and offer guidance to you on how to best attain your financial goals.
Gross advisory fee applicable to accounts managed through Fidelity® Strategic Disciplines ranges from 0.20% to 0.49% and gross advisory fee applicable to accounts managed through Fidelity® Wealth Services ranges from 0.50%–1.04%, in each case based on a minimum investment of $2 million.
The average Financial Advisor base salary at Fidelity Investments is $76K per year. The average additional pay is $81K per year, which could include cash bonus, stock, commission, profit sharing or tips.
Is there a charge for Full View? No, this is a free service for Fidelity customers.