Mutual funds with no expense ratios
What Is Fidelity Go and How Does It Work?
Look over our assessment of Fidelity Go’s pros and cons to decide if this is the right robo-advisor for you.
Pros
Overall, Fidelity Go is a decent offering, but make sure to compare other brokerages before making your decision.
Investors can keep up to date with their investment portfolio by signing up for monthly email alerts.
If you’re not sure if you want to commit to Fidelity Go, you can fill out the questionnaire and be able to see a sample investment portfolio. That way, you can get a feel for what it might be like to invest with this robo-advisor before proceeding with the rest of the sign-up process.
Fidelity Go
Prime perk
- No management fee for accounts under $25,000
- Ability to invest in Fidelity Flex mutual funds,
- Investors only need $10 to start investing
Accounts offered
Ready to stop worrying about money?
The platform will also ask you to rate your risk tolerance based on a scale from one to 10, with 10 being the most aggressive and one being the least. More aggressive investors will usually have a higher percentage of stocks in their portfolios, whereas if you want to be more conservative, your portfolio will veer more toward bonds.
For those with lower balances, paying more in advisory fees may still be cheaper than opening an account with Fidelity Go and hiring a separate financial advisor. Compare costs before doing anything.
Fidelity Go will start allocating your money into various asset allocations based on your questionnaire — it’s hands-off for you from there. The robo-advisor will have their financial advisors rebalance your portfolio whenever market fluctuations veers your asset allocation off course.
Fidelity Go is a great fit for those who are looking to dip their toes in investing with a robo-advisor or are more into hands off strategies. It’s also a great fit for those who initially don’t have a large chunk of money to invest because accounts with balances under ,000 won’t need to pay advisory fees.
While it may not be a big deal, the lack of real estate, commodities and foreign bonds may be off-putting to some. Plus, although Fidelity Flex funds are low-cost, they may feel limited depending on your investing goals.
What Are Asset Management Fees?
Feature | Details | More Details | ||
---|---|---|---|---|
Types of Accounts | 2 taxable | 4 IRAs | ||
Account Minimum | $0 to open | $10 to invest | ||
Commission and Fees | $0 on balances $25,000 | 0.35% annual fee on balances > $25,000 | ||
Portfolio Mix | 4 mutual funds | No real estate | ||
Portfolio Management | Conservative-aggressive | Automatic rebalancing | ||
Customer support | Live chat; phone support | 8 a.m. to 6 p.m. ET, M-F |
Features of Fidelity Go
Management or advisory fees
Types of Accounts
Contributor Sarah Li-Cain is a personal finance writer based in Jacksonville, Florida, specializing in real estate, insurance, banking, loans and credit. She is the host of the Buzzsprout and Beyond the Dollar podcasts.
Account Minimum
Fidelity Go is a robo-advisor offering from a reputable brokerage with low fees. There is no advisory fee for those who have balances lower than ,000 and all investors can access Fidelity’s mutual funds with no expense ratios.
Commission and Fees
Taxable (individual and joint), IRA (Traditional, Roth, Rollover) and health savings account (HSA)
Aside from that, there are no additional fees. In most cases, investors are required to pay expense ratios for the underlying securities in their portfolios. Since this robo-advisor uses fee-free Fidelity Flex mutual funds, there are none.
- Under $25,000: none
- $25,000 and over: 0.35% per year
A major advantage of Fidelity Go is you’ll be able to see how your money will be spread out across the robo-advisor’s recommended asset allocations. If you like what you see, great. If not, you don’t need to commit to anything.
Portfolio Mix
As the robo-advisor arm of the Fidelity Investments family, Fidelity Go features automated investment portfolios composed of Fidelity Flex mutual funds (yup, they’re fee-free) and no minimum opening balance. It also doesn’t charge any advisory fees for balances less than ,000.
Considering they’re all no-fee funds, you’ll be able to save money compared to other robo-advisors, assuming you’re paying less in advisory fees. Fidelity Go will also conduct a review annually to ensure the current investment strategy works for you.
We’ve answered common questions about Fidelity Go.
Portfolio Management
Keep in mind there are no assets such as commodities, real estate investment trusts and international bonds to choose from. Still, you can get a decent amount of diversification if you’re not bothered by the lack of these additional choices.
Once that’s complete, the robo-advisor will use the answers to create an investment portfolio based on your individual needs.
No, Fidelity Go doesn’t offer tax-loss harvesting, a tactic employed by other robo-advisors to help investors lower their tax burden. Instead, it allocates part of an investor’s portfolio towards municipal bonds in taxable accounts.
Customer Support
Don’t forget Fidelity Go doesn’t engage in tax-loss harvesting — if you’re worried about paying a lot in capital gains, consult a financial professional to see how it’ll affect your bottom line.
Is Fidelity Go Right for You?
Key Features
Fidelity Go is a robo-advisor that charges low fees and invests in a mix of Fidelity Flex mutual funds over four asset classes. Investors with more than ,000 in their accounts can have unlimited 30-minute phone calls with advisors. The robo-advisor also offers automatic rebalancing.
Only accounts with at least ,000 can access human financial advisors. Those users can get unlimited one-on-one, 30-minute phone calls with advisors. This option is useful if you’re looking for more personalized guidance on retirement and other financial goals. Fidelity Go HSA accounts are not eligible for advising.
Can I Withdraw From Fidelity Go?
Best for Low-Maintenance Investing
Fidelity Go Investors have a choice between more than a dozen portfolio options — some are retirement portfolios, and others are taxable. No matter which you choose, they’re created from Fidelity Flex mutual funds.
Yes, you can withdraw money from your Fidelity Go account. You won’t need to pay any additional fees and can withdraw from your account at any time. If you want to withdraw your entire balance and close your account, the advisory fee will be prorated for the time Fidelity Go managed your account.
Does Fidelity Go Offer Tax-Loss Harvesting?
Pros and Cons of Fidelity Go
4 out of 5 Overall
- Balances under $25,000 don’t need to pay any advisory fees
- No opening balance requirement
- Ability to view sample investment portfolio before opening an account
- Investments within portfolios comprised of no-fee funds
- Limited options for financial goals
- No tax-loss harvesting
- Access to human financial advisors depends on account balance
- Limited account types
- Selection of funds may be lacking for some investors
Frequently Asked Questions (FAQ) About Fidelity Go
Fidelity Go at a Glance
Cons
There are a number of features that you will want to consider before opening an account. Our list of the pertinent information for each will help you decide if Fidelity Go is the right brokerage for you.
Investors can open both individual and joint taxable accounts, plus IRAs (Traditional, Roth, and Rollover) and health savings accounts. If you have an existing Fidelity account, you can easily integrate your investments with Fidelity Go. <!–
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Fidelity Go doesn’t charge any commissions for any of their trades.