Fidelity PAS

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Jun 2, 2008 9:31 pm

Does anyone know about Fidelity Personal Advisory Services/ I've seen it advertised in the NY Times. I'm interested in knowing what type of advice they give, do they offer Fidelity funds exclusively? What are the qualifications of the people there who give the advice? What do they charge?


Im talking to a client about a 500k rollover, from a 401k which is at Fidelity, they are trying to get the rollover.
This isnt the end of the world, its only 500k but I am curious. And the guy is already a client wtih 1.5 Million, so I'd like to get it.
Jun 2, 2008 10:24 pm
pratoman:

Does anyone know about Fidelity Personal Advisory Services/ I've seen it advertised in the NY Times. I'm interested in knowing what type of advice they give, do they offer Fidelity funds exclusively? What are the qualifications of the people there who give the advice? What do they charge?


Im talking to a client about a 500k rollover, from a 401k which is at Fidelity, they are trying to get the rollover.
This isnt the end of the world, its only 500k but I am curious. And the guy is already a client wtih 1.5 Million, so I'd like to get it.
 
For a 1% fee they will service the account.  They still only use Fidelity and service to them is calling once a year.  Very bush league.
Jun 3, 2008 10:08 pm

I think they actually allow nonproprietary funds now.  Aprospect told me that but I didn't see the statement.

Jun 3, 2008 10:18 pm

Met with the client tonight.

Fidelity put together a recommended asset allocation with a combination of Fidelity, Janus, and American Century Funds. No fees involved. They just want the assets.
 
This was a layup. There are no such things as no load funds. Only no service no advice funds.
I quoted 1.5% showed an allcoation, with the funds I;d use, and talked about the markets being dynamic and how changes need to be made periodically and thats what he is paying for.
I got the assets.
Jun 4, 2008 11:59 am

Way to go!

The reason for the assets with no fee is so they can collect the SubTA fees.  
It ticks me off when the SEC gets upset about 12B 1 fees and does not consider SubTA fees that the dicounters and the brokerage house recieve.
I think they should be disclosed also!  
 
Sorry to rant. Just my opinion.   
Jun 5, 2008 8:22 pm

Fido Pas.   There are two versions one with Fido funds exclusively and another with a mixture. Even in the mixed one, 50% are Fido Funds. Fees start at 1.1% and go lower as assets increase. They go back up to 1.1 for non retirement accounts at $300k becuase those are supposedly tax managed. This is on top of the fund expense ratios. Accounts greater than $200k get a quarterly call from a relationship officer based in Boston or Jacksonville. There are about 20 mutual funds in every recommendation. It is very simple to sell against this product. Just tell your client to ASK FOR THE PERFORMANCE NUMBERS. They are not part of that pretty book your client got. He's got to ask for it. The perf is pathetic. They sell this crap product on the basis of diversification and perf during down markets. Schwab's SMP and TD Ameritrade's ETF product are superior offers and more difficult to sell against.