You may have heard of the famous investor Peter Lynch. His book One Up On Wall Street is a bestseller. Peter Lynch became well-known because of his performance at Fidelity Investments where he averaged a staggering 29.2% between the years 1977 and 1990.Pillar Wealth Management’s investment record isn’t too shabby either. It has been serving clients with $5 million to $500 million in liquid investible assets for over three decades.
Fidelity today is a diversified financial services company. It is headquartered in Boston but is very global in its operations. It has a presence in several countries across North America, Europe, Asia, and Australia.Fidelity is in the investment management business. If you happen to have $10 million or more in investible liquid assets and wish to learn more about portfolio management, then we encourage you to download this guide on choosing the best financial advisor.
Fidelity operates an asset management business which includes Fidelity’s mutual funds. Some of Fidelity’s most well-known funds include the Magellan Fund and the Fidelity Contrafund, the largest non-indexed fund in the US. It also operates a brokerage arm that serves institutional firms, banks, trusts, family offices, and investment advisors. Fidelity has other investment management businesses as well as Fidelity wealth management – a fairly large wealth management practice.
Choosing which wealth manager to work with is a big decision. To make the evaluation process easier for you, we decided to write the following guide. We will talk about the various aspects of wealth management. The Fidelity wealth management background is quite interesting. We will answer the question “what types of client does Fidelity accept?” We will then look at where is Fidelity wealth management located. Finally, we will list some tips for finding the right wealth manager.
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Fidelity Wealth Management Background
Fidelity Investments has some $3.3 trillion in assets under management. The wealth management arm is estimated to have around $400 billion in assets under management. So, as you can imagine, the wealth management practice of Fidelity today is quite large. Fidelity has around 2,400 wealth managers spread out across 200 offices. You can choose to work with a large wealth management firm or you can consider working with a niche firm like Pillar Wealth Management that takes only 17 new clients a year. These are individuals who have $5 million to $500 million in investible liquid assets. Both approaches have their pros and cons. It really depends on what strategy fits best for your purpose.
Any discussion on Fidelity wealth management background has to begin with the services on offer.Fidelity has a strong investment management offering. It also conducts tax planning, retirement planning, and financial planning for high net worth and ultra-high net worth individuals.Finding out the goals of a client and matching them with the investment decisions is important. There are family office services that look at things like custody and other services sought after by single-family, multi-family, and wealthy family offices. Services like inheritance planning, estate planning, and personal legacy planning are also included under Fidelity’s wealth management offerings. You can read about what a wealth manager does and what areas are covered in this specially compiled guide on choosing the best financial advisor for individuals with $5 million to $500 million in liquid assets.
Pillar Wealth Management also offers all of the services mentioned above. However, the way it delivers these services revolves around personalization, customization, and financial serenity. Get in touch with Hutch Ashoo to learn more about the philosophy of financial serenity.
Why Portfolio Strategy Matters, even at Fidelity Wealth Management
As discussed in the intro, Fidelity has a long history in the field of investment management. Not only does it offer numerous funds that most people have invested in during some part of their lifetime, but its brand also benefits from having star fund managers like Peter Lynch. However, investment management is also about finding the right balance between returns and costs.
We have discussed portfolio management in great detail in this guide on improving portfolio performance for investors with $5 million to $500 million in investible liquid assets. One of the things discussed in the guide is the focus on investment costs. Investment costs can be in the form of short-term and long-term capital gains taxes, fund expense ratios, brokerage fees, and other costs. Pillar Wealth Management gives particular attention to such costs. These costs are unavoidable. However, they can be optimized and carefully planned out if the wealth manager gives enough attention to such costs.
You may have imagined high net worth wealth managers as people in sharp suits and fancy offices making risky bets. However, simply earning the highest rate of return or attempting to “beat the market” doesn’t always help. If a client’s life goals can be achieved via a stress-free long-term investment in a passive fund which will grow at an average rate, then isn’t that a better option? Why take unnecessary risks and attempt to earn 20%+ returns while riskingthe loss of half the portfolio when the next market crash occurs?
Similarly, trying to beat the market by making frequent trades attracts higher short-term capital gains taxes. If the financial goals can be achieved through long-term investing, then that would be a better strategy. Start a conversation with Pillar Wealth Management to discuss any ideas you have about portfolio management.
What Types of Client Does Fidelity Accept?
Fidelity Wealth Management has two offerings.One is known simply as “Wealth Management” and requires a minimum investment of $250,000.The other is known as “Private Wealth Management” and requires a minimum investment of $2 million. The Private Wealth Management option is for high net worth and ultra-high net worth individuals.
Once you start researching wealth management firms, you will realize that most of them have a minimum account size that they work with. Even Fidelity Wealth Management has this threshold.Besides,an individual firm may have additional criteria to screen clients further. Pillar Wealth Management works with clients from all professional and demographic backgrounds, industries, and age groups. The only criterion that the firm has is the liquid-asset size, which should be between $5 million to $500 million.
Pillar Wealth Management has worked with wealthy families, successful medical professionals, millennials, entrepreneurs, engineers and technology professionals, women, senior citizens, and all kinds of high net worth and ultra-high net worth individuals. The experience of working with such a diverse set of individuals and families has allowed the firm to build its expertise and have a ready template for figuring out any wealth management issue that you may be facing. Go ahead and schedule a free consultation with Hutch Ashoo or Chris Snyder. You never know what you might gain from the conversation. There is nothing to lose.
Just like wealth management firms screen clients, so should you.Always try and speak to the wealth manager one-on-onebefore deciding who to work with. If you wish to know more about how to evaluate a wealth management firm, then we recommend you read this book called The Ultimate Guide to Choosing the Best Financial Advisor: For Investors With $5 Million to $500 Million in Liquid Assets.
Where Is Fidelity Wealth Management Located?
Fidelity Wealth Management has over 200 offices spread out across the world. So, the answer to the question “where is Fidelity wealth management located?” depends on where you live. While the big-name firms have the scale and size to open offices all around the world, it does not necessarily mean that theyare always the best option for all high net worth individuals. What matters are your life goals, your financial situation, and whether you can find a firm that understands your wealth management needs.
Sometimes, a boutique firm, that can offer a high level of personalization and customization, may be a better fit. By personalization, we mean the wealth management firm knowing you by the first name. It means a human being answering the phone whenever you call rather than you going through IVRs. Personalization is also visible in the approach of the wealth management firm in terms of getting to know you and your family indetail. It means understanding what kind of lifestyle you intend to secure for your family, what motivates the younger generation, and how the wealth can be structured to secure your family’s financial future. This kind of white-glove service is something Pillar Wealth Management specializes in.
With advances in technology, scheduling a video call has become quite convenient. While we agree that there is no substitute for meeting a wealth manager in person, some things can be discussed from the comfort of your home. Such advancements open up the possibility for you to engage with top wealth management firms that are not located within your region or your city. It allows you to work with stellar wealth managers who have had a tremendous track record in managing high net worth wealth.
Tips for Finding the Right Wealth Manager
We have spoken about Fidelity wealth management, how different approaches can be beneficial, and what role investment management plays in wealth management. If you are actively looking for reputed wealth managers to work with, then we would like to help you out in the search process. We would like to offer you some tips for finding the right wealth manager.
The first step in finding the best wealth manager is self-introspection. You need to ask yourself what your life goals are and why you want to work with a wealth manager. What are the key areas in your financial life where you could really use the expertise of a wealth manager? We have talked about the 5 critical shifts needed to maximize portfolio performance for investors with $5 million to $500 million in investible liquid assets in this short guide.
You should also try and avoid working with wealth management firms that may pose a conflict-of-interest situation. For example, some large wealth management firms also have their own mutual funds. The large listed asset management companies have a duty to boost their bottom lines for their shareholders. So, there is a possibility that they may suggest investments in their own funds over other more promising options.
It may also be beneficial to work with a wealth manager whose thinking isn’t biased because of the environment in which he/she works. For example, some advisors at Wall Street firms may have learned their trade from fellow Wall Street professionals. They are in that atmosphere all the time and the common beliefs there may saturate their thinking. An independent thinking wealth manager may be able to offer a broader perspective. Feel free to call Pillar Wealth Management to find out how its location helps the firm offer top-notch wealth management services.
Fiduciary Fee-Only Wealth Managers
If you are to trust someone with your hard-earned wealth, then that person better be honest, ethical, and work in your best interests. One way to evaluate whether a wealth manager will always act in your best interests is to ask if the manager is a registered fiduciary. A fiduciary is an investment advisor who has to register with the SEC or the local state regulator and is legally obligated to act in your interests.
It also helps if the fee-structure of the wealth manager is aligned with your interests. A fee-only model has no commissions. There is only the fee portionwhichis normally based either on an hourly rate, a milestone-based structure, or a fixed percentage of the assets that the client asks the wealth manager to manage. Therefore, there is no motivation for a fee-only firm to “recommend” certain products, which by the way you don’t really need, in the hope of earning a commission.
Hutch Ashoo and Christopher Snyder are the expert founders of independent, fee-only, and fiduciary wealth management firm Pillar Wealth Management. If you would like to speak with them or simply ask any questions about how custom and trusted wealth management advice is offered to highnet worth individuals with $5 million to $500 million in investible assets, then feel free to start a conversation.
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