Using Fidelity Wealth Asset Management

quote:

---

Explain

---

From the website...

There is a "Gross advisory fee: 0.50%–1.50%"

The fine print states....

quote:

---

1. Fidelity advisors are registered with Fidelity Brokerage Services LLC (FBS) and licensed with Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment advisor. Whether a Fidelity advisor provides advisory services through FPWA for a fee or brokerage services through FBS will depend on the products and services you choose. Clients with $500,000 or more at Fidelity may qualify for a single point of contact for support and guidance as needed without enrollment in an investment advisory program.

2. 

Fidelity® Wealth Services (FWS) Wealth Management service-level clients and all Fidelity® Strategic Disciplines (FSD) 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). Account investment minimum is $50,000 for FWS, $100,000 for an FSD equity strategy, and $350,000 for an FSD bond strategy. Non-discretionary financial planning is available for Fidelity Strategic Disciplines clients if they qualify for Private Wealth Management.

3. The advisory fee does not cover charges resulting from trades effected with or through broker-dealers other than Fidelity Investment affiliates, mark-ups or mark-downs by broker-dealers, transfer taxes, exchange fees, regulatory fees, odd-lot differentials, handling charges, electronic fund and wire transfer fees, or any other charges imposed by law or otherwise applicable to your account. You will also incur underlying expenses associated with the investment vehicles selected.

---

That's where I am now.
However, this program does offer a little bit in return (other than whatever investment advice is supplied).
The credit card associated with Fidelity allows like an extra half to one percent cash back on all purchases.
Not much compared to the fee, but it's something I guess.

Fidelity called me a couple years ago when my brokerage account was growing and asked if I wanted to move into a professionally managed account with a tax loss harvesting strategy. I’ve been in it 3 years now and am pretty happy. They model the SP500 with individual holdings and cut out the losers before dragging your avg down too far. The expense is around 30 basis but they’ve beat S&P bench marks by 150-200 bps each year and I net tax advantages of tens of thousands per year while converting most gains to capital gains status. I think that approach has been worth it. Since I’ve grown more they hound me for a bigger piece of my pie but I haven’t increased their role.

They invest in individual stocks to mimic the S&P, but gives them more control to cut out the downward moving stocks along the way and reenter at lower basis. They do have a healthy chunk ~5% in SPY though. No funds from what I can tell.