Overview of Fidelity Go
Fidelity Go is a robo-advisor service offered by Fidelity Investments, designed to provide automated investment management and portfolio rebalancing for individual investors. Here’s a detailed look at what the product does and its key features:
How It Works
Fidelity Go is tailored for hands-off investors, beginners, and existing Fidelity clients. The process begins with a straightforward onboarding process where users fill out a short questionnaire providing details about their financial goals, risk tolerance, and time horizon. This information is used to suggest an initial investment strategy and a mix of stocks and bonds that align with the user’s profile.
Key Features
- No Account Minimum: There is no minimum balance required to open a Fidelity Go account, making it accessible to a wide range of investors. However, there is a $10 minimum balance needed before the funds are invested.
- No Advisory Fees for Small Accounts: Fidelity Go does not charge advisory fees for accounts valued below $25,000. For accounts above this threshold, users gain unlimited access to Fidelity’s financial advisors.
- Automated Investment and Rebalancing: The platform automatically invests and rebalances portfolios based on the user’s specified goals and risk tolerance. This includes buying and selling investments to maintain the chosen investment strategy.
- Investment Options: Fidelity Go invests in Fidelity Flex mutual funds, which cover four asset classes: domestic, foreign, bonds, and short-term investments. Users can choose from 16 different portfolios, including eight taxable and eight retirement portfolios.
- Account Types: Users can open various types of accounts, including taxable accounts, traditional and Roth IRAs, rollover IRAs, SEP IRAs, and health savings accounts (HSAs).
- Goal Planning: The platform allows users to set up savings goals, such as retirement or large purchases, and provides tools to help balance contributions to multiple accounts. Users can also link external financial accounts for a more holistic view of their financial situation, although these external accounts are not factored into Fidelity Go’s planning calculations.
- Smart Shift Feature: Fidelity Go includes a feature called Smart Shift, which automatically moves the portfolio to a more conservative allocation as the target date approaches. Users must opt into this feature.
- Security and Protection: The platform offers robust security features, including two-factor authentication, biometric entry, and coverage by the Securities Investors Protection Corporation (SIPC) along with excess SIPC coverage.
- Educational Resources: Fidelity Go users have access to Fidelity’s extensive educational content library, which includes articles, videos, podcasts, and classes on various investment topics.
- Reporting and Updates: Users receive regular updates on their goal progress, including tax, transaction, and performance reports on a daily, monthly, quarterly, and yearly basis.
Additional Benefits
- Integration with Fidelity Tools: Fidelity Go integrates seamlessly with other Fidelity services, allowing users to connect external financial accounts and use tools like Full View for more comprehensive financial planning.
- No Additional Fees: There are no account fees, annual fees, transfer fees, or closing fees associated with Fidelity Go accounts.
In summary, Fidelity Go is a user-friendly, automated investment solution that caters to a variety of investors by offering flexible account options, no minimum balance requirements for opening, and free advisory services for smaller accounts. Its integration with Fidelity’s broader suite of financial tools and robust security features make it an attractive option for those seeking a streamlined and cost-effective investment management solution.