Table of Contents
Investing can feel overwhelming, especially if you’re new to the financial world.
There are so many options available, and it can be quite confusing as to where to start. This is where robo-advisors such as Fidelity Go come in. Fidelity Go is an investment management product that is automated in order to make the investment process easier and achieve the best results with the investment portfolio. In this article, I will explain how Fidelity Go works and how it can help you manage your investment portfolio more effectively.
What is Fidelity Go?
Fidelity Go is a robo-advisor offered by Fidelity Investments, one of the biggest and most respected financial services companies in the world. The goal is to provide a simple and automated approach to investing and managing money. With the help of technology, Fidelity Go creates and manages a portfolio of assets that are suitable for your risk tolerance, investment goals, and time horizon.
When you create an account with Fidelity Go, you will have to answer some questions about your investment motivations and your risk appetite. Based on your inputs, Fidelity Go will recommend a portfolio of low-cost ETFs that are spread across different asset classes like equities, bonds, and commodities, among others for you.
The Advantages of Fidelity Go
The following are the advantages of Fidelity Go in the management of your investment portfolio:
- Professional Management: You are provided with professional investment management services at a price that is much lower than that of conventional financial advisors when you choose Fidelity Go. Your portfolio is monitored and readjusted regularly to ensure it meets your goals.
- Diversification: The platform seeks to minimize risk through the investment in a number of assets that may potentially lead to better returns over time.
- Low Fees: The annual advisory fee of Fidelity Go is only 0.35% of the assets you invest, which is much lower than the fees charged by other investment products.
- User-Friendly: The platform has been built with the user in mind and should be easy to use for anyone, regardless of their investment knowledge. You will be well informed of the status of your portfolio and its performance.
- Tax Efficiency: Fidelity Go uses certain tax-efficient strategies that aim at minimizing the taxes on your portfolio which in turn may boost your returns.
John’s Experience with Fidelity Go: A Case Study
In order to explain how Fidelity Go can be useful, let’s look at a specific situation. John is 35 years old and works as a banker, and he wants to start saving for his retirement. John has not invested before and has no time or interest in monitoring and managing a portfolio himself.
So, John thought it worth giving Fidelity Go a go. He signs up and fills out the survey to determine his investment purpose and comfort with risk. According to his preferences, Fidelity Go recommends a portfolio with 70% stocks and 30% bonds.
When John makes an investment of $10,000 in Fidelity Go, the platform takes over the management of the portfolio and automatic rebalancing of the portfolio over the next few years. As John gets closer to his retirement, Fidelity Go shifts his portfolio to a more conservative mix of assets to minimize the risk of large losses.
When John retires after 20 years, his portfolio is $50,000, which shows that Fidelity Go has helped him benefit from the power of compound growth. John is happy with the portfolio performance and also relieved that it has been managed by professionals.
How to Begin with Fidelity Go
It is easy to get started with your journey with Fidelity Go. Here’s how it works:
- Go to the Fidelity Go website and select the “Get Started” button.
- Fill out the survey to identify what you want to achieve with your investment and the level of risk you are willing to take.
- Review and accept the recommended portfolio.
- Send your money to your Fidelity Go account.
- Sit tight and let Fidelity Go manage and rebalance your portfolio for you.
Conclusion
Fidelity Go is a product that can be very useful in the management of portfolios by investors. With low costs, the ability to monitor your account actively, and tax-efficient strategies, it is a good solution for those who want to make their investment process simpler. Whether you are new to the investing world or have some experience, Fidelity Go can help you achieve your financial goals. Why not give it a try and find out how it can improve your portfolio?
