Upon retiring at 66 yrs, I recently rolled over my 401k into my existing Fidelity IRA. The total is now about 1.6 million. After years of choosing low cost index funds in my 401k, Fidelity Strategic Advisers, Inc. has proposed actively managing my assets for a net annual advisory fee of .66%. The primary investment strategy is 60% Equity and reflects my answers to a simple questionnaire. Their proposed portfolio seems to rely mostly on index funds and reflects my bias toward them. Should I continue to pick my own index funds or should I let the pros do the picking for an extra advisory fee?

Terry Says:

It looks like you’ve done a pretty good job so far!   And if you don’t use their strategic advisors program, they do offer FREE retirement income modeling and asset allocation advice using Monte Carlo modeling.   The Strategic Advisors plan is mainly to keep your account rebalanced according to the guidelines for asset allocation that you have set.  But Fidelity has an entire suite of retirement planning, investment allocation, and withdrawal strategy tools.  Ask to speak to an advisor (FREE!) who will guide you through this process.   Let Fidelity know that you are aware of this — and aware that Vanguard offers a similar FREE program.  I bet they back off and direct you to that free service!

Have a Question?

Ask yours!