Fidelity High Net Worth

Fidelity Investments is a global financial services firm with 70 years of experience. It is a private company with headquarters in Boston and regional offices and investor centers across the United States. It serves a range of customers, from individuals to corporations and financial advisors.

7 Secret book

STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION

7 Secrets To High Net Worth Investment Management, Estate, Tax and Financial Planning

The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.

Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.

Known to most through its mutual funds, Fidelity provides a comprehensive line of investment products and services, including retirement planning, life insurance, investment management, and brokerage services. It provides business consultation on financial needs and concerns, including portfolio advisory and wealth management.

Fidelity recognizes that portfolio management for high-net-worth individuals involves a broad spectrum of investment strategies, including income-producing securities that offer periodic payments to investors looking for a steady income stream. In contrast, non-income-producing securities may be chosen in light of their potential to appreciate capital rather than provide immediate income. Maintaining the balance between risk and reward may also suggest including in the portfolio lesser quality debt securities that could result in defaults but offer higher yields and, in turn, create significant opportunities for those investors with a high risk tolerance.

Some defaulted securities may even be considered within a well-diversified portfolio, as they may show some unique opportunities for recovery and profit. With such expertise from Fidelity, the high net worth client can navigate this labyrinth of options to build a tailor-made, balanced, and optimized portfolio. The minimum account value for the firm’s wealth advisory services is pegged at $50,000, making it affordable for a wide clientele.

Moreover, Fidelity introduces digital, discretionary investment management services without any minimum investment requirement, alongside personalized advice and planning for clients with a minimum of $25,000 in their accounts. For those seeking its exclusive private wealth management services, an investment of $2 million or more in assets is required.

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Table of Contents

Fidelity Background

Fidelity Background

Edward C. Johnson founded Fidelity in 1946. The year 1969 saw diversification under Fidelity International Limited for the markets not in the United States. The company initiated the provision of investment management services to its clientele in 1989, including portfolio advisory services.

Founded and owned by FMR LLC, the company remains under the care of the Johnson family, including a member of the board, who is a third-generation Johnson family member, leading the way for the company.

Testimonial From Satisfied Clients

3 Best Brokerage Firms for High Net Worth

3 Best Brokerage Firms for High Net Worth
  • Vanguard
  • Schwab
  • Fidelity

Renowned for their robust online platforms, these companies offer tools that empower investors to monitor and refine their portfolios at any time. Known for their reliability and solid reputation, Fidelity, Vanguard, and Schwab stand as giants in the realm of online brokerage, presenting a broad spectrum of financial services tailored to meet diverse investor needs.

Yet, for ultra-high net worth individuals and families possessing assets exceeding $10 million, the personalized services of a multi-family office often surpass what these large-scale firms can provide. Such high-value clients may find themselves deprived of specialized coordination among top-tier experts, leading to inefficiencies in tax management and unnecessary time expenditure.

Consider the case of an investor whose wealth extends into the hundreds of millions. Faced with an impressively thick tax return, he sought the specialized services tailored for the ultra-wealthy at a renowned bank. His expectation was a bespoke solution akin to what a multi-family office might offer, a concept he was unfamiliar with at the time. Instead, he was met with a strategy focused primarily on asset management and fee collection, far from his initial needs.

Fidelity

Initially, our experience with Fidelity was less than optimal in guiding us toward the appropriate financial advisor. It required multiple phone calls to sort out the correct advisor who was meant to assist us from the beginning.

However, upon connecting with an advisor skilled in handling high-net-worth clients, our experience markedly improved and stood out as the best among the three firms. This advisor offered highly tailored advice through Fidelity's personalized planning and brokerage services, clearly demonstrating a deep understanding of our unique financial situation, based on our Fidelity brokerage account.

The advisor's suggestions were not only well-considered but also included a detailed explanation of the reasoning behind each recommendation, making it clear how it fit into the broader context of managing both Fidelity and retail brokerage accounts effectively. The level of customization and insight provided for our brokerage account at Fidelity truly set this experience apart.

The approach used by Fidelity in managing the portfolios of their high-net-worth clientele includes all investment vehicles such as exchange-traded funds (ETFs), equity trades, and convertible securities. Fidelity provides one-stop access to services spanning the complexity of personal finance, focusing on a well-diversified investment portfolio built to manage risk and pursue growth.

Still, you should be prepared, as any investment implies some risk, such as losing principal funds. However, Fidelity advisors are ready to prepare their clients for such risks and are inclined toward equity trades or investments in exchange-traded funds or foreign markets.

The allure of foreign markets and convertible securities can signal unique growth opportunities. This is a relevant point and one that makes Fidelity an expert in these areas: where a high-net-worth client might take the opportunity to look into tax-advantaged investments or conversion opportunities. However, in the face of those opportunities, there are also certain risks and complexities: like fluctuations in market conditions and the effect of foreign economic and political events on investments.

Exchange-traded funds provide an efficient and low-cost vehicle for diversification, while the investor should be highly critical of other investment options in relation to management fees. Fidelity's open-book policy on fees is meant to ensure that the client is well aware of the impact of management fees on investment returns.

Such a high level of clarity and detail reflects Fidelity's commitment to providing advice of an extremely high quality, able to meet even the most sophisticated requirements of an HNW client. With a well-thought-out selection of equities, ETFs, and other securities, Fidelity inspires its clients' confidence in dealing with the investment landscape while at all times balancing risk and potential reward.

In comparison, the advice from the other two firms seemed generic and failed to address our primary concerns adequately. Their focus was predominantly on investment forecasts, which, while significant, did not fully encompass the breadth of our financial challenges.

investing involves risk

Vanguard

Vanguard stands out for its distinct advantaige in the financial sector, highlighting its commitment to low fees, transparency in costs, and a unique corporate structure without shareholders, thus ensuring no hidden commissions or exorbitant profits are made at the expense of clients.

The firm prioritizes investment in ETFs and low-cost index funds, advocating for their significantly reduced expense ratios in comparison to other financial instruments. Vanguard steers clear of investing in individual stocks on behalf of their clients.

Moreover, Vanguard excels in customer communication, evidenced by their consistent and informative email follow-ups, providing updates and necessary information throughout our engagement, despite a notable hiccup during the transition from initial contact to consultation with a specialized advisor.

However, Vanguard lacks a physical presence, with no local offices available, contrasting sharply with its competitors. This limitation became apparent during discussions on state-specific tax regulations, where their advisors' lack of local tax knowledge was noticeable.

Schwab

Schwab stood out for its exceptionally tailored service among the options we considered, particularly through their high net worth advisor's diligent phone outreach. The frequency of their calls once we were in touch with this advisor conveyed a genuine interest in our financial wellbeing, beyond merely profiting from our partnership.

Their advisor provided deeper insights into a broad range of tax matters, including local, state, and federal levels, covering income, estate, and real property taxes. Such expertise is invaluable for crafting a thorough financial strategy applicable in multiple jurisdictions. While Schwab may not boast the same level of fund notoriety as Vanguard, it compensates by offering a mix of passive and active investment funds, alongside the capability for direct stock trades. Schwab further accommodates investors through its robo-advisor services for those inclined towards automated financial management, while still offering the option of personalized advice via a human advisor.

Despite these strengths, Schwab's approach to sharing their proposal was less accommodating. They insisted on opening an account before providing an electronic version of the proposal, a requirement we found inconvenient since we hadn't yet decided to commit to their services. Consequently, we had to opt for receiving the proposal through mail.

Fidelity Wealth Management: Overview

fidelity brokerage account

Fidelity Wealth Management provides highly personalized services in wealth and investment management, which aim to ease the complexities of the financial life of an affluent individual or family. The firm, therefore, focuses on growing wealth, supporting long-term objectives, and integrating its activities cohesively.

These offerings incorporate a blend of tax strategies, investment advice, legal support, governance oversight, and bespoke concierge services, among other customizable solutions designed to meet the requirements of high-net-worth and ultra-high-net-worth clients and their families. Fidelity's comprehensive approach minimizes the need for high earners to navigate through a maze of independent financial advisors, processes, and teams to manage their wealth and related activities effectively. It’s important to note that wealth management strategies are highly individualized—each client benefits from a tailored approach as to team composition, services, and scalability to best address their needs.

Personalized Investment Management

Personalized Investment Management

Fidelity offers these clients full ownership of their investment portfolios, while managing them to protect and increase wealth. This requires complete insight into the financial situation of each client, regarding investment objectives, risk tolerance, and time horizon. It's crucial for these personal characteristics and preferences to be factored into developing an investment strategy—so the portfolio aligns with the client's financial dreams and respects their risk comfort level. Such an approach is dynamic in nature, customized to market changes, personal circumstances, and financial goals.

This all-inclusive service includes regular monitoring and rebalancing of investment portfolios. Due to market fluctuations and changes in investment, drifting from the original target allocations implies rebalancing. This is necessary for the risk profile and the investment strategy to be in line with the desired profile. Such proactive management ensures that the portfolio stays in line with the client's objectives over time, protecting against volatility in the market and adding potential returns.

Periodic reviews and open communication between the portfolio manager and the client ensure that the investment approach stays on track to respond to changes in the client's preferences or financial status or the economic environment at large. It is within such an encompassing and personalized framework that wealth managers make every effort to safeguard and help grow the wealth of their clients.

Expert and Dedicated Wealth Managers

Expert & Dedicated Wealth Managers

The company takes pride in providing an unrivaled service level for its clientele, based on a deep-seated commitment to understanding their needs and aspirations. Care is taken to ensure maintaining a teamwork environment by articulating financial plans with precision, taking into consideration the individual needs of the clients. This dedicated effort is directed not only toward the preservation of wealth but also its growth.

Thus, through effective communication, the wealth managers and clients are in constant communication to share knowledge and explore opportunities. Doing so aims to prepare a financial plan that is not just a template cut-out but an individual blueprint for success. These strategies put in place potential returns maximization while minimizing risks, testifying to the fact that the firm is committed to the financial well-being of its clientele. The firm functions as a service provider and even a value-added advisor, hence helping its clients navigate and transition through the complexities of wealth management with a keen focus on the achievement of long-term financial goals.

Total Wealth Management

Total Wealth Management

Adopting a holistic view of wealth management, a total wealth approach is a sophisticated strategy that transcends the fragmented perspective often encountered in traditional financial planning. This approach ensures harmonized coordination of asset classes, thus aligning investment decisions with the broader scope of the client's financial goals. By looking at an individual's assets together, ranging from liquid ones to real estate, investments, and even intangibles like intellectual property, it is a cohesive approach—beyond mere accumulation to emphasizing strategic allocation and optimization, aiming to enhance clients' financial health and stability.

By integrating all facets of an individual’s wealth into a comprehensive financial plan, wealth managers can not only forecast but also actively manage and oversee the evolution of their client's total wealth with greater precision. Such integration is pivotal for devising strategies that are responsive to market dynamics, personal life changes, and evolving financial objectives. Through a total wealth approach, wealth managers can offer tailored advice that encapsulates the full spectrum of financial planning—from investment management to estate planning, tax strategies, and beyond. This holistic approach allows the client to navigate their financial roadmap with certainty, where their riches are not only conserved but prepared for growth in line with their vision of the future.

Tax-Smart Investing Strategies

Tax-Smart Investing Strategies

The tax landscape is complex. Therefore, it's safe to say that the preservation and growth of your wealth may well be heavily dependent upon success in this area. Fidelity Wealth Management takes the complexity of tax laws and their impacts on investment portfolios seriously, with expert advisors who are fluent in tax-smart investment options that grow your financial portfolio. This reduces your tax liabilities so you keep more of your hard-earned wealth. At the same time, it ensures that your investment plan works to not only grow but also protect your capital against unnecessary taxation with an approach suitable to your individual financial objectives and tax situation.

In addition, Fidelity Wealth Management stands behind the above tax-smart investing principles with much more than just portfolio management. It understands changing tax law and how it may impact any change in asset classes along with investment opportunities. Positioned on the front lines, Fidelity empowers your strategies to adapt in real time, keeping your portfolio resilient and tax-efficient as laws and market conditions change. Hence, you can make informed decisions, where your riches are not only preserved but also enhanced over time through personalized service and expert guidance. The goal is to give you peace of mind in knowing that your wealth is well taken care of with a keen eye toward maximizing after-tax returns and securing your financial future.

Holistic Planning

Holistic Planning

Selecting the appropriate wealth manager is crucial for crafting a personalized financial strategy that encompasses all facets of your financial landscape. This comprehensive approach not only addresses immediate needs but also anticipates future requirements in various domains, including estate planning to ensure your assets are distributed according to your wishes, retirement planning to secure a comfortable future, tax optimization to reduce liabilities, healthcare planning to manage potential costs, and even travel budgeting to fulfill your leisure aspirations. By integrating these elements, a wealth manager can offer you a holistic financial plan that aligns with your unique goals and circumstances, ensuring that every aspect of your financial health is considered and catered to.

Fidelity Wealth Management extends its services beyond a traditional scope, offering an array of options to meet the diverse needs of its clients. For entrepreneurs, it provides small business retirement plans, a critical component for both the owner's and employees' financial security. It also offers a variety of retirement products, IRAs, and mutual fund management services aimed at maximizing your savings and investment potential. For those looking into education funding, Fidelity presents options like 529 plans.

Meanwhile, Fidelity's robo-advisory program integrates technology to offer streamlined, efficient investment guidance. The company also delves into insurance, offering life insurance and long-term care options to protect you against unforeseen circumstances. For clients interested in philanthropy, charitable giving services are available, along with annuities for a steady income stream in retirement, comprehensive investment management to build and maintain wealth, and portfolio guidance to tailor investment strategies to individual risk profiles and financial goals.

How Much Does Fidelity High Net Worth Cost?

exchange traded fund

Fidelity Wealth Management serves a wide range of clients, from high-net-worth individuals to those just commencing their investment journey. The cost for Fidelity Wealth Management varies and depends mostly on the program selected. A general overview indicates that advisory service fees at Fidelity begin at an account value of $50,000, making it an option for investors at various levels. The firm also extends a digital investment management solution without a mandatory minimum investment, alongside tailored advice and planning services starting at a $25,000 threshold. For access to its exclusive private wealth management offerings, clients are expected to bring a minimum of $2 million in investable assets to the table.

For those interested in Fidelity Wealth Services, a baseline investment of $50,000 is required. Investment in certain specialized programs, such as the tax-advantageous options or the BlackRock Diversified Income Portfolio, necessitates a minimum of $200,000.

Moreover, the firm sets the bar high for its premier wealth management advisory program, demanding a minimum of $10 million in assets for participation, with a requisite $2 million initial investment. This elite tier is managed by the Private Wealth Management division, ensuring a bespoke experience for its clientele.

Fidelity Service Cost Schedule

Fidelity Wealth Services levies an advisory fee that covers the costs of obtaining financial planning assistance, expert advice, ongoing portfolio supervision, as well as custody, brokerage, and clearing service charges. Additionally, to counter potential biases stemming from the company's earnings on specific investment trades, clients are provided with a credit. This credit reduces the total advisory fees, applied quarterly.

For example, accounts with average assets under $500,000 daily will incur a yearly advisory fee of 1.5%, after accounting for the credit deduction. The highest possible fee for such accounts is $6,250. Meanwhile, for accounts exceeding $500,000, the fee structure changes accordingly.

Comparing Fidelity vs. Vanguard vs. Schwab

Comparing Fidelity vs. Vanguard vs. Schwab

Services and Feature

Vanguard, Fidelity, and Schwab offer overlapping services such as 401(k)s, 529 plans, custodial accounts, to IRAs, among many others.

Normally, there is a $0 initial investment required for most accounts, but Vanguard has a minimum investment of around $1,000 to $3,000 for some mutual funds.

Vanguard offers extensive mutual, exchange-traded, and index funds—with something for any investor who may want to specialize interests in those areas. Trading stocks at Fidelity is commission-free and easy, with an amazing pool of educational resources and, finally, a wide array of funds suitable for passive investors.

All three companies offer no-fee robo advisors: Schwab's Intelligent Portfolios suggest making investments based on individual goals with the help of personalized investment strategies built mainly by investing in low-cost funds.

Fidelity Go, the automated advisory service at Fidelity charges $3 per month for investments between $10,000 and $50,000, with an annual fee of 0.35% for the amount over this threshold.

Vanguard Personal Advisor Services requires a minimum of $50,000 for its automated advisory offering. The Vanguard robo-advisory offers automated advice, while the Vanguard offering provides tailor-made investment strategies specifically. Its management fees are at 0.3%, just a little lower than the management fees charged by human financial advisors at Vanguard.

Fees

The advent of zero transaction fees on platforms like Vanguard, Fidelity, and Schwab means investors can trade stocks without paying commissions or trading fees. The majority of mutual fund transactions, particularly those involving the platforms' own funds, are usually free, though trading non-proprietary mutual funds can result in transaction fees exceeding $49.95 in some cases.

Options trading on these platforms does involve some costs, which remain relatively minimal. Fidelity and Schwab levy a charge of $0.65 per options contract, whereas Vanguard's fee is $1 per contract. These are fees per contract, not commission-based charges. Certain specialized transactions might attract extra fees.

Holding shares in specific funds might lead to fees, but Fidelity offers numerous funds without any expense ratio. Meanwhile, Vanguard and Schwab are known for their below-average expense ratios, offering a cost-effective option for investors.

Minimum Deposits and Commissions

FeatureFidelityVanguardSchwab
Minimum Deposit$0$0$0
Commission (Stocks/Options/ETFs)$0$0$0
Transaction Fee (Mutual Funds)Up to $49.95/Trade (buy)Up to $20/tradeUp to $74.95/trade (buy)
Commissions (Options Contracts)$0.65/contract$1/contract$0.65/contract

Account Types

Among the offerings are 401(k) plans, which remain a cornerstone of employees' retirement savings through a tax-advantaged way to set aside a portion of their earnings. The 529 plans are another highlight, specifically designed for saving for future education expenses and offering tax advantages that, in some cases, are bolstered by state tax advantages. They also offer custodial accounts to cater to the needs of minors, where parents or guardians manage the assets until the child reaches maturity.

These firms further diversify the types of accounts offered, including Individual Retirement Accounts (IRAs) that serve as a pivot for anyone looking to develop their retirement savings with the flexibility to invest in everything from stocks and bonds to many other securities. Joint accounts are also available, whereby two people—partners or any other status—can operate the same account to manage their investments together, hence facilitating a shared approach to financial planning.

Asset Classes, Features and Services

Online and Mobile

This trio of brokerage firms offers a gamut of access points to their services, which can only reflect that they are serious about users' penchant for convenience and how much they want to be able to control the services in which they participate. The processes through which their services are made available to users are mobile apps, desktop interfaces, and traditional phone-based services.

Desktop mode provides access to the comprehensive suite of features that these websites offer, from intricate market analysis tools to personalized account management options. in contrast, mobile apps offer unbeatable convenience to trade on the move, including managing funds. At times the features tend to be a scaled-down version of the desktop interface. However, this functionality does not prevent the user from controlling their financial decisions, such as execution of a trade or money transfer, from any device used.

Of these features, though, Schwab's app has generally received good reviews on the sheer number of features offered although some critics claim that its app offers way too much information and can be somewhat overwhelming, while that of Vanguard has generally been well-reviewed but trails slightly in terms of user feedback. However, the mobile app by Fidelity is named the most convenient, functional, and highly rated one in comparison to competitors in both the Apple App Store and Google Play Store.

This difference underlines how Fidelity is committed to offering a seamless and intuitive mobile user experience, in pace with the expectations of modern consumers for efficiency and access. This diversity in app performance and user satisfaction may reflect the different approaches such firms take to their digital engagements, always trying to meet the needs of the client.

Tips for Finding a Financial Advisor

Tips for Finding a Financial Advisor

1. Identify why you need an advisor

Take time to reflect on why you are looking for a financial advisor before zeroing in on one. Whether you are looking for investment strategies, retirement savings, debt management, or a comprehensive financial blueprint, clarity of your need will guide your choice. This can also establish how often you would want to meet with your advisor. Are you looking for periodic guidance throughout the year, or would a couple of strategic planning sessions suffice? Many investors work with a financial advisor under an hourly pay system, which has the potential to be cheaper in the long run than committing to an annual fee for years or decades.

2. Consider the types of financial advisors

Several types of financial advisors are available, each suited to different needs.

One example is Robo-advisors, a service that automatically advises on investments, creating a portfolio from the investor's financial goal and acceptable risk. They also come at much lower fees than traditional advisors and sometimes offer additional perks like automatic portfolio rebalancing or strategies for tax optimization.

A fee-only financial advisor charges an annual fee or by the hour, depending upon the model, but this kind of financial advisor does not earn any commissions on the sale of financial products and hence does not have any conflict of interest.

A fee-based advisor may earn commissions paid by clients through the purchase of financial products sold to them by the advisor, resulting in a possible conflict of interest.

Wealth management services are focused on individuals who fall in the category of high net worth, and the services include activities like estate planning along with tax planning and investment management.

A question worth asking is: "Are you a fiduciary?" If the answer is yes, then the advisor is legally bound to place your needs ahead of theirs. The advisor should carry the certified financial planner (CFP) certification or follow a fiduciary standard regarding their clients.

Understand how advisors get paid

3. Understand how advisors get paid

Scott Bishop, CFP and managing director at Presidio Wealth Partners, raises an important question regarding the transparency and reliability of financial advisors and planners. In this respect, if there are fields like medicine or law that have standard expectations of professionals, in the financial industry, such standards are not present. This can be quite confusing as to what services one may get from a financial advisor, since the latter may range from wirehouses, insurance companies, independent broker-dealers, and independent registered investment advisors.

Bishop highlights a prevalent issue where some individuals in sales roles masquerade as advisors, particularly in organizations whose primary focus isn't client advisement, like insurance or fund management companies. In these scenarios, the advice given may be biased, aiming to promote the company's own products and services rather than the client's best interests.

The quest for impartial guidance may draw clients towards independent advisors. However, vigilance is essential, as even these advisors could have incentives that align more with sales than with unbiased advice.

Brian Walsh, CFP and head of advice and planning at SoFi, suggests several critical questions to ask regarding an advisor's motivations: Do they receive commissions from insurance or stock transactions? Are they connected to a financial entity that markets its own products?

Walsh's advice underscores the caution needed when engaging with a financial advisor, especially one compensated by means other than direct payment for services. Remember, the adage "He who pays the piper calls the tune" aptly applies, signaling the importance of understanding who ultimately benefits from the financial advice given.

4. Evaluate how much you can afford to pay a financial advisor

The cost structure of financial advisors varies widely, influenced by the advisor's approach. Here's an overview of how these costs are typically structured.

A robo-advisor will typically add an annual management fee to your account. It always charges an account according to the percentage of your managed assets, with this fee usually revolving around 0.25% per year. For example, on every $10,000 in your investment portfolio, you would pay annually $25.

Fee-only advisors typically determine their fees with various structures, such as hourly rates, fixed fees, or an annual fee based on a percentage of your assets under management.

Another category of advisors may charge annually or hourly but also have an element of commissions, as they earn from the sales of certain products.

Different categories of financial advisor fees include:

  • Hourly charges: These are applied based on the time an advisor dedicates to your account, with rates differing among advisors.
  • Fixed fees: Some advisors offer a set fee covering all offered services. While this amount can vary, it might be approximately $6,000 annually or more.
  • Assets under management (AUM) fees: Most advisors charge a certain fee, around 1% per annum of the managed assets. For example, with $100,000 under management, you would be looking at about $1,000 in fees annually.

For those seeking basic advice, a few sessions with an hourly-charged advisor could suffice, offering a financial strategy without continual expenses. Individuals facing more intricate financial situations might find more value in an annual advisory relationship, where the consistent fees are justified by the comprehensive support provided.

Research financial advisors

5. Research financial advisors

In your search for the right financial advisor that can meet your needs, you will very likely find a sea of possibilities across the United States. Here are a few steps for searching for financial advisors near you.

  • Use your personal network: You could consider asking your friends and family members, who have financial advisors, which provides honest opinions resulting from personal experiences of what worked for them and what did not work.
  • Use advisor-finding platforms: The internet is awash with platforms designed to connect you with financial advisors. Among them are Zoe Financial, Wealthramp, and Harness Wealth, to mention a few. Many of these platforms extend services free of charge to clients and can save you a ton of time.
  • Research professional associations: Explore professional organizations that can help you find advisors around your area.

6. Check their professional credentials

Individuals in the market for financial advice should ensure they evaluate the professional qualifications of potential advisors, particularly looking for credentials like the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designations. Holders of these certifications are required to prioritize their clients' interests, acting as fiduciaries.

Robert Johnson, a finance professor at Creighton University, emphasizes the significance of these credentials. He notes that they signify a dedication to a rigorous standard of knowledge and ethical practice. "These professionals have conquered an intricate set of knowledge, successfully navigated through detailed exams—in the case of CFA charterholders, a series of tests—and have committed to follow a strict ethical code," he states.

Johnson highlights a portion of the ethical code for CFA recipients that mandates prioritizing client welfare above personal or employer gains.

The credentials of an advisor can be authenticated through the official websites of the CFA Institute or the CFP Board. Although possessing these credentials does not absolutely assure that an advisor will act in your best interest, they do suggest a level of expertise and ethical commitment that is significant.

FAQ about Fidelity High Net Worth Services

Fidelity Personalized Planning provides highly personalized service in the area of personal finances of high-net-worth individuals who want a personal financial plan specifically developed for their goals, time horizon, and risk tolerance.

By integrating with details of your Fidelity account, investment preferences, and financial objectives, Fidelity experts can offer strategically designed advice for the growth and preservation of your wealth.

 

Fidelity is a registered investment advisor and admits that investment does have risks. When not well accounted for, they may result in losing all or part of an investment. Fidelity uses an extensive risk assessment process to define and manage the risks likely to affect its high-net-worth clients. This include integrating a variety of asset classes and diversifying regionally to minimize volatility. Fidelity advisors will also enlighten their clients on the nature of the risks posed by different investments, ensuring informed decision making.

Indeed, at Fidelity, high-net-worth clients can invest in exchange-traded funds (ETFs) for their benefit. Considering the easy and low-cost diversification of portfolios, ETFs are increasingly becoming the preferred option for most investors, since they have access to almost all other sectors and industries, including geographic areas. With the help of Fidelity, clients have access to a full range of ETFs managed both inside and outside, and therefore, their investment plan can take into consideration their needs and goals.

The lower-quality debt securities are called "high yield" or most commonly referred to as "junk" bonds, where this indicates bond issues of less than investment grade. They offer higher interest payments to provide plenty of extra income to make them very desirable even though they carry increased default risk. Some high-net-worth individuals might take this as a reason to include them in their Fidelity-managed portfolios for possible return enhancement. However, there is a concomitant feature, and that is that they bear higher risks compared with higher-rated bond securities. Fidelity's personalized planning can help determine whether such investments would fit into your overall financial strategy and risk tolerance.

Fidelity is one of the biggest financial organizations in the world, offering full-service wealth management, which involves developing a deep understanding of your financial goals, lifestyle needs, and appetite for risk. Fidelity's personalized planning is an undertaking where advisors work very closely with high-net-worth customers to arrive at a portfolio that will serve their needs and include strategic planning for long-term objectives. This means an ongoing process of reviewing and sometimes changing the portfolio to be in line with the set goals, considering changes in the market and your financial status or circumstances.

 

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