Fidelity Wealth Management Review: How It Works & Whether It's Worth It
Fidelity is one of the largest and most trusted names in investing.
It's best known as a brokerage and for its Fidelity-branded investment products, though it also offers personalized wealth management services.
With access to financial advisors, professionally managed portfolios, and tax-optimized strategies like SMAs and direct indexing, Fidelity Wealth Services offers a tailored, hands-off approach to growing and protecting your money.
But is it the right choice for you? And is the service worth the fees?
Here's everything you need to know about Fidelity's wealth management offering and how to decide whether it's right for you. I've also listed a few alternatives to consider before making your decision.
The bulk of the information in this review is from Fidelity's Form ADV, which you can find here.
What is Fidelity Investments?
Fidelity Investments is one of the most established financial services companies in the world.
Founded in 1946 and headquartered in Boston, Fidelity has more than $16 trillion in assets under administration and serves over 40 million individual investors.
The company operates across several areas:
- Brokerage and retirement accounts: IRAs, taxable accounts, 401(k) plans, and trading platforms.
- Mutual funds and ETFs: Fidelity is one of the biggest asset managers in the world and is known for its low-cost index funds and actively managed funds.
- Wealth management and advisory services: These include Fidelity Advisory Services, Wealth Management, and Private Wealth Management.
- Other services: Cash management, credit cards, and other banking services.
Fidelity has invested heavily in technology to make investing cheaper and more accessible, as well as to provide objective, high-integrity data and advice.
It's one of the most trusted names in finance and is respected by both retail investors and professionals alike for its reliability, scale, and nearly 80-year-long track record.
All of Fidelity's services
This article focuses on Fidelity Wealth Services, the company's umbrella term for its personalized wealth management services.
Because Fidelity provides a wide range of investment services, it helps to first understand where Wealth Services fits within its overall lineup.
Here's a quick overview of the main investing services Fidelity offers (ranging from do-it-yourself options to digital management to hands-on management):
Brokerage account
Self-directed trading and access to online tools, planning, and resources.
Managed Accounts
- Fidelity Go: A robo-advisor that automatically recommends a basic investment strategy based on your profile.
- Fidelity Managed FidFolios: A program of actively managed strategies created by Fidelity's team, which includes tax-smart strategies.
- Fidelity Strategic Disciplines: A program of actively managed SMAs managed by Fidelity's team with the goal of creating more opportunities for tax savings.
Wealth Services
- Fidelity Advisory Services: Provides customized planning, advice, and investment management. Planning and advice are provided by a team of phone-based agents.
- Wealth Management and Private Wealth Management: Provides customized planning, advice, and investment management. Planning and advice are provided through a dedicated advisor supported by a service team.
Now that you know where Fidelity Wealth Services fits into the company's service offerings, here's a closer look at everything that's included in those three tiers.
How does Fidelity Wealth Services work?
Fidelity offers investment management, financial planning, tax-smart investing, and personalized advice through its Fidelity Wealth Services program.
Technically, these services are offered through Strategic Advisers, a registered investment advisor (RIA) that is an indirect, wholly owned subsidiary of Fidelity.
Clients are billed annual fees based on their service tier and the amount of assets under management.
These wealth management services are only available to U.S. citizens — Fidelity does not serve international investors.
Service tiers
Fidelity Wealth Services offers three service tiers with fees varying based on your assets:
| Minimum assets | Annual fees | |
| Fidelity Advisory Services | $50,000+ | 1.10% |
| Wealth Management | $500,000+ in eligible accounts | 0.50%–1.50% |
| Private Wealth Management | $2+ million in eligible accounts and $10+ million in investable assets | 0.50%–1.04% |
There are three aspects to these services:
- Discretionary Investment Management Services
- Access to a Fidelity Representative
- Access to Financial Planning Services
That said, the core of the service is investment management, which I cover in the next section. The other two components are covered in the “Other services” chapter below that.
Fidelity Investment Management Services
New clients and asset allocation
If you become a new client, you will first provide information about your financial situation, investment goals and objectives, risk tolerance, planned investment horizon, and other assets you may own.
Based on this information, an advisor will propose an allocation consisting of stocks, bonds, and other short-term investments.
Proposed allocations range from conservative (lower risk and return potential) to aggressive (higher risk and return potential). You can select an asset allocation that differs from the allocation Fidelity proposes.
After selecting an asset allocation, you can choose between a Total Return (normal) or a Defensive investment approach.
The Defensive approach aims to reduce risk by tilting the portfolio (i.e., allocating more money) toward conservative stocks and high-quality bonds.
Once the portfolio is set, Fidelity will manage and rebalance it automatically to keep it aligned with your target allocation.
Investment selection
In general, accounts hold a broad range of primary asset classes — domestic stocks, foreign stocks, bonds (of all types and maturities), and other short-term assets like money market funds, certificates of deposit, and cash.
These are primarily held through Fidelity-created mutual funds and ETPs*.
*ETPs (exchange-traded products) include exchange-traded funds (ETFs), exchange-traded notes, unit investment trusts, closed-end funds, master limited partnerships, and certain trusts.
Certain accounts may also hold shares of mutual funds and ETPs that invest in nontraditional assets such as real estate, inflation-protected securities, commodities, and other alternative investments.
Additionally, “Tax-Smart Program Accounts” may hold individual securities for tax-loss-harvesting purposes.
Tax-Smart Program Accounts, SMAs, and SMA Sleeves
Outside of asset allocation and diversification, Fidelity Wealth Services places a large emphasis on tax-smart investing techniques and features it as one of the service's main selling points.
Tax-Smart Program Accounts are managed with the goal of increasing after-tax returns, mainly through tax-loss harvesting.
Tax-loss harvesting is the practice of opportunistically selling losing investments — and reinvesting in similar positions — to offset capital gains taxes and reduce taxable income.
Fidelity can also increase the potential for tax-loss harvesting through the use of Separately Managed Accounts (SMAs) and direct indexing.
In an SMA, individual securities are held directly in your account rather than through mutual funds or ETFs.
These portfolios may be further divided into SMA Sleeves — sections of the account managed by different professional managers or investment strategies.
Because each security is held individually, there are typically more opportunities for tax-loss harvesting.
However, while the idea sounds great in theory, I've found direct indexing is rarely that useful in reality. See this for more information.
Additionally, these services almost always result in accounts filled with hundreds of individual positions that can be annoying to unwind. See former Fidelity Wealth Management clients' comments here and here for more details.
Other services
All of the above is included in what Fidelity refers to as “Discretionary Investment Management Services.”
Outside of those services, Fidelity also offers “Access to a Fidelity Representative” and “Access to Financial Planning Services,” both with varying levels of assistance depending on your service tier.
Access to Fidelity Representatives
Each Wealth Management client has access to one or more Fidelity representatives who can help with the account and answer questions regarding financial goals and objectives.
The type of support you receive depends on your service tier:
- Fidelity Advisory Services: You have access to a call center of representatives.
- Wealth Management: You have access to a dedicated advisor who is supported by their own service team.
- Private Wealth Management: You have access to a dedicated advisor, their service team, and various other investment specialists and advanced planners who specialize in multigenerational financial planning and engagement.
The varying levels of support is one of the biggest differences between service tiers. To have your own dedicated advisor, you must be enrolled in the Wealth Management tier or higher.
Additionally, while Fidelity Advisor Services clients only receive phone support, if you're in the higher tiers, you can access their dedicated advisors (and their support staff) by phone, email, or video call.
Fidelity also has 217 branch locations across the U.S. where you can schedule an appointment and meet with an advisor in person. In-person appointments are available to all service tiers.
Access to Financial Planning Services
If you ask for it, a Fidelity representative will provide financial planning services to help evaluate your ability to meet your financial goals (retirement planning, education funding, insurance planning, and more).
The representative will analyze your current situation and then forecast where your portfolio may be headed in the future.
Again, the amount of access you have to these services depends on their service tier.
Fidelity Advisory Services clients will only receive planning regarding their retirement and retirement income needs, while the Wealth Management and Private Wealth Management tiers also come with tax, estate, and insurance planning.
It's worth repeating that these services are only available upon client request, and are otherwise not provided on an ongoing basis.
Fee structure
Fidelity Wealth Services charges an annual advisory fee. Fees vary by service tier and the amount of assets under management.
I outlined the ranges for each of the three service tiers above, but here's a more detailed breakdown of its fee schedule:
| Fidelity Advisory Services | Annual fee |
| All average daily assets | 1.10% |
| Wealth Management and Private Wealth Management | Annual fee |
| If less than $500,000:* | |
| Up to $500,000 | 1.50% |
| If more than $500,000: | |
| First $500,000 | 1.25% |
| Next $500,000 | 1.10% |
| Next $1,000,000 | 0.90% |
| Next $3,000,000 | 0.70% |
| In excess of $5,000,000 | 0.50% |
*Although the stated minimum for the Wealth Management tier is $500,000, clients with less may be approved on a case-by-case basis.
This is a progressive, bracketed fee structure. So, if you have a portfolio of $12 million, you will be charged:
- 1.25% on $500,000 = $6,250
- 1.10% on $500,000 = $5,500
- 0.90% on $1 million = $9,000
- 0.70% on $3 million = $21,000
- 0.50% on the remaining $7 million = $35,000
In this scenario, the total annual fee would be $76,750 (or ~0.64%).
If you have $2 million, the total annual fee would be $20,750 (or ~1.04%).
In general, these fees are on the high end of industry average, in my experience.
Commissions
Fidelity's wealth management business does not earn extra fees for placing you in certain Fidelity or third-party products.
However, many of Fidelity's (and its third-party affiliates') mutual funds and ETPs are used in their clients' portfolios, which could create a conflict of interest.
For instance, when choosing between two mutual funds, an advisor might be tempted to select the Fidelity-branded product — which generates revenue for Fidelity — over a competitor's, “double dipping” on fees.
To address these conflicts, Fidelity issues a credit to client accounts in the amount of the revenue generated by any of its products.
For example, a person in the Wealth Management tier paying an annual fee of 1.25% holds only Fidelity mutual funds with an average expense ratio of 0.40%.
Instead of paying the combined 1.65%, Fidelity applies a 0.40% credit to the client's account, reducing total fees to 1.25%.
So, on net, Fidelity does not generate additional revenue for recommending certain investment products.
Other fees and services
Here are several other fees that may impact certain clients:
- SMA Sleeves: There are no additional fees for SMA Sleeves provided by an affiliate of Strategic Advisers. However, you may be charged up to 0.35%–0.40% on SMA Sleeves provided by Unaffiliated Model Providers.
- Complex financial planning: Fidelity may charge an additional fee for financial planning services if you have a highly complex financial situation. Where applicable, the fee will be discussed before the financial planning begins.
Additionally, Fidelity clients who are not participating in its wealth management services can request standalone financial planning services, though this is only available if you have assets of $3 million or more.
The fee for standalone planning varies based on the complexity of your financial situation and the nature and amount of your assets, though it typically does not exceed $20,000.
The downsides of Fidelity Wealth Services
Fidelity is a respected brand with a strong reputation. That said, the biggest downsides, in my opinion, are the lack of customization and personal touch.
1. Lack of customized advice
Although Fidelity sorts people based on their financial situation and risk tolerance, the portfolios they construct are far from individualized.
According to the firm's ADV, there are two investment approaches — Total Return and Defensive — and six investment universes that range from Conservative to Aggressive.
That means each person ultimately lands in one of twelve pre-built investment models based on their questionnaire responses and stated preferences.
While there are likely some differences between accounts — particularly if you have SMAs, concentrated positions, etc. — the majority of client portfolios probably look very similar.
This lack of customization isn't unique to Fidelity (Fisher Investments has a similar issue) and is simply the reality of running a high-volume firm.
Most large firms rely on model portfolios because full customization for every client isn't operationally possible.
2. Moderate fees, low-touch service
In addition to using model-based portfolios rather than truly customized ones, Fidelity Wealth Services keeps the client-advisor relationship in the background rather than a main feature of the service.
You can request to meet with your assigned advisor, but meetings don't happen by routine.
There don't seem to be structured check-ins, ongoing planning sessions, or proactive outreach. In most cases, people seem to receive an initial asset allocation, and that's where the structured engagement ends.
While I've always been impressed with Fidelity's customer service and the knowledge of its representatives, some people also say it may take a few requests to find an advisor you like.
In contrast, most traditional financial advisors meet with their clients at least once per year.
These advisors are typically a phone call or email away and are available to talk about changing financial goals or upcoming plan changes. Your life is dynamic, and your financial plan may need regular updates.
Again, this low-touch model isn't a flaw unique to Fidelity — it's a byproduct of being a large, high-volume firm. There simply isn't enough time to meet with everyone personally.
Alternatives to Fidelity Wealth Management
While Fidelity has an excellent reputation and I have a lot of respect for the company and its products, I have a hard time recommending its wealth management offering.
In my view, the service offers too little customization and too little personal service to justify its fees. The portfolios are largely model-based, the advisor relationship is minimal, and the pricing is toward the higher end of industry average.
For most investors, there are two better paths forward: managing your own money or hiring a higher-touch financial advisor.
1. Self-directed investing
As mentioned above, the majority of Fidelity Wealth Services clients probably don't have the most sophisticated portfolios. There's some tailoring based on your financial situation, age, and risk tolerance, but nothing overly complex.
Additionally, the core holdings in these portfolios are typically mutual funds and ETFs that any investor can access directly.
Based on these two factors, I don't think it would be overly difficult to replicate Fidelity's allocation yourself, for free.
Fidelity's own ADV confirms this, saying, “A client could therefore invest directly in the individual securities, ETPs, and certain mutual funds available through the Program through a Fidelity brokerage account or a brokerage account at another firm without incurring the advisory fee charged by the Program.”
It also states that you could “plan independently using the tools and analytics that are used to support the financial planning services provided through the Program that are also made available by FBS at Fidelity.com without a fee, or, if the client qualifies for dedicated support from a Fidelity representative, work with the Fidelity representative to receive planning services offered by FBS without a fee.”
So, if you're willing to take a more hands-on approach, I think you can build a portfolio with a 90%+ overlap to Fidelity's strategy, without paying a ~1%+ annual advisory fee.
2. Traditional financial advisors
However, since you're looking into Fidelity's wealth management services, you probably like the idea of a professional advisor managing your money.
If that's the case, you can often get higher-touch service for the same or lower cost from a traditional financial advisor.
According to Drew Lunt,* founder and lead financial advisor at Scratch Capital, good advisors build custom, comprehensive plans for each person they serve.
*I interviewed Drew Lunt for multiple sections of this article. Drew is the founder and lead advisor at Scratch Capital, a fee-only financial advisor located in Boise, Idaho. The firm serves individuals and families across the U.S.
You can get a free, custom financial plan by filling out this form.
Everyone is unique — their exact financial situation, balance sheet, and financial goals are unlike anyone else's — and their portfolio should reflect that.
Beyond investment management, the best advisors are highly knowledgeable in tax, insurance, estate, and other related fields. They take a holistic approach, ensuring every part of your financial life is aligned and optimized.
Just as important, they maintain an ongoing personal relationship and proactively adjust the plan as your life evolves.
Put simply, a good financial advisor offers more depth, context, and care than a high-volume firm can provide, all for the same or lower cost.
What to look forIf you're going to hire a financial advisor, be sure they are a fee-only fiduciary. That means they don't earn commissions from recommending certain investment products and are legally obligated to act in your best interest.
Final verdict
Fidelity is one of the most reputable names in finance, with an outstanding lineup of investment products, technology, and customer service.
However, I don't find its wealth management program to be particularly valuable.
The service is too low-touch to rival a traditional financial advisor and too easy to replicate for those comfortable managing their own portfolios.
For these reasons, I think most investors would be better off either managing their own money or working with a higher-touch financial advisor who offers more personalized guidance and ongoing support.
That said, Fidelity's wealth management program could still make sense for investors who prefer simplicity and brand trust over a fully customized experience — especially those already familiar with Fidelity's ecosystem and comfortable with the fees.
Frequently asked questions
Here are a few additional questions that are often asked about this service.
Fidelity Wealth Management vs Private Wealth Management
In addition to its Wealth Management Service, Fidelity also offers Private Wealth Management, which is designed for high-net-worth investors with more complex needs.
This premium tier provides a broader, team-based approach that incorporates estate planning, tax strategies, and multi-generational wealth transfer support.
Here's how they compare:
| Wealth Management | Private Wealth Management | |
| Minimum assets | $500,000 | $2 million managed by Fidelity, and $10 million of total investable assets |
| Annual fees | 0.50%–1.20% | 0.50%–1.04% |
| Advisor access | Dedicated advisor and service team | Dedicated advisor, service team, and investment specialists |
Is Fidelity Wealth Management worth it?
Fidelity Wealth Management can be worth it for investors who value convenience and brand trust, but most investors can likely get more personalized advice — or similar results for lower fees — through self-directed investing or a financial advisor.
Is Fidelity Wealth Management a fiduciary?
Yes, when providing investment advisory services (through Strategic Advisers, an RIA that is an indirect, wholly owned subsidiary), Fidelity Wealth Management acts as a fiduciary. It has a legal obligation to act in its clients' best interests.
