If you are concerned the new hybrid digital-human robo-advisors could turn into a Frankenstein, Fidelity Go has placed a human back at the controls. Fidelity Go is a new breed of robo-advisor targeted to the young digital investor. While other robo-advisors will provide you with a human advisor to provide investment advice, Fidelity has gone father to remain faithful to the traditional investment management model. Fidelity investment managers still watch over and manage your portfolio, alongside some smart robo algorithms. The professional money management is provided at advisory fees competitive with other robo-advisors.
Assets Under Management: Over $5 billion
Client Profile: Young, digitally savvy investors in the 25-to-45 age range.
Minimum Investment: $5,000
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What do you need to start?
Digital wealth managers typically provide short and sweet questionnaires; this one is zippier than most. Fidelity Go’s approach is to provide you with the very basics and give you the option to access more in-depth portfolio analysis tools at no extra charge, if you so choose. Investing a few more minutes of your time in producing a more accurate risk assessment is well advised.
What questions do they ask?
You will be asked to provide the very basic information in seven questions on age, individual or joint account, investment objective, income, account deposit, and risk profile. Your suggested portfolio then pops up with an estimate of its future value under different market conditions, and costs – about $1.60 a month for a $5,000 account balance. The hypothetical portfolio contains Fidelity ETFs.
How is risk tolerance assessed?
For risk tolerance, you will simply be asked to rate your own risk tolerance on a scale of 1 (Minimize short-term losses) to 10 (maximize total returns). Does a 7 represent a 60-year-old female with an average income, or a 55- year-old male with a six figure income? We received the same 70% stock allocation for both profiles, with a 21% holding in foreign stocks. Highly recommended is clicking on the option to “add information.” The expanded questionnaire conducts a more thorough risk assessment. When creating a higher risk profile for the 55-year-old male, the stock allocation dropped to 60 percent and the monthly fee to $1.58. You can also call an investment professional at 800-823-0125 who will help you ascertain your risk level. The whole process through to account opening can be completed in a few minutes.