Fidelity Go Investing Review 2023

Our experts answer readers’ investing questions and write unbiased product reviews (here’s how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

About Fidelity Go

Fidelity Go is the Fidelity Investments automated investment advisor. It relies on computer algorithms to create low-cost, personalized portfolios that are best suited for hands-off investors.

Fidelity Go account holders with account balances of $25,000 or more now get unlimited access to one-on-one coaching calls from Fidelity financial experts.

The platform doesn’t just utilize automated technology; it also relies on a team of investment professionals who handle the account’s day-to-day trading decisions. There’s no minimum to open an account, and you only need $10 to start investing. But it doesn’t offer tax-loss harvesting.

To get a personalized portfolio, you’ll take Fidelity’s short questionnaire to determine your risk tolerance, investing goals, and how long you’d like to invest. But you aren’t permanently locked into a particular investment strategy. Fidelity lets you change your strategy at any time.

Fidelity Investments is available both on the web and on iOS and Android mobile devices.

Fidelity Go: Overall Rating

Fidelity Go Pros and Cons

Is Fidelity Go Trustworthy?

Fidelity Investments currently has an A+ rating with the Better Business Bureau. The BBB’s ratings range from A+ to F, so this is the highest score a company can receive.

Factors that the BBB takes into consideration include the type of business, time in business, licensing and government issues, and advertising issues. But the bureau also says its ratings don’t ensure a company will be reliable or perform well. This is why it’s crucial to read customer reviews or talk with friends and family about their experiences before committing to an investment app.

In 2018, a class action lawsuit was filed against Fidelity Investments when the company was accused of failing to uphold its fiduciary duty by prioritizing its own proprietary investment products in its 401(k) plan. In 2020, Fidelity settled by paying $28.5 million.

Ways to Invest With Fidelity Go

Fidelity Go supports individual and joint brokerage accounts, IRA accounts (traditional, Roth, and rollover), and health savings accounts. Strategic Advisors, LLC, a Fidelity Investments company, manages the trading decisions in the account. 

Automated Investment Management

Fidelity Go is best for passive investors who aren’t interested in actively trading investments or trying to time the stock market. This account is solely automated, meaning Fidelity Go’s team manages your portfolio and investment transactions for you.

Fidelity doesn’t place any restrictions on the number of accounts you can open. This could be good for investors interested in taking advantage of both self-directed brokerage accounts and managed accounts (like a Fidelity Go account), and others simultaneously. Eligible Fidelity brokerage or retirement accounts can be converted to a Fidelity Go account. You can learn more on Fidelity Go’s FAQ page.

If you have an account balance of at least $25,000, you’ll also get access to calls and advice on budgeting, debt management, retirement planning, and more. 

Health Savings Account

A Fidelity Go HSA account is a personal savings account for qualifying health care expenses. This account is designed for investing goals of at least three years. When you pay out of pocket for qualifying medical expenses, you can get reimbursed by submitting a withdrawal request. You can contribute cash, transfer funds from another HSA, or make one-time contributions from an IRA. 

Like a taxable individual or joint Fidelity Go account, the platform automatically invests your funds into a blend of mutual funds based on your goals and risk tolerance. There’s no minimum to open the account. 

The difference is that with an HSA account, you can withdraw your money at any time (although it can take up to 10 days to receive money) to reimburse eligible healthcare expenses. It’s best for long-term medical expenses of three years or more. Fidelity suggests that a self-directed Fidelity HSA account is best for short-term qualified medical expenses. 

Retirement Accounts

Fidelity Go supports the following IRA accounts:

• Traditional IRA: A traditional IRA is a retirement savings account of tax-deferred funds, which means you’ll pay taxes when you withdraw funds. 
• Roth IRA: A Roth IRA is a retirement savings account of after-tax funds, which means you pay taxes on the contribution amount going into your account. Withdrawals are tax-free.  
• Rollover IRA: Funds from a previous employer-sponsored retirement saving account can be rolled over to a Fidelity Go IRA account. 

Both traditional IRA and Roth IRA accounts allow investors under 50 to contribute up to an annual $6,500 in 2023 (previously $6,000 in 2022), and up to $7,500 for folks over 50 ($7,000 in 2022). You’re able to start withdrawing funds when you’re 59 1/2. If you take out money before then, you’ll be penalized with a 10% early withdrawal fee. 

Investment Types

Fidelity uses a combination of Fidelity Flex mutual funds in its Fidelity Go portfolios. These funds contain a mix of domestic stocks, foreign stocks, bonds, or other short-term investments, according to Fidelity.

Depending on your risk tolerance, ideal investment time, and goals, Fidelity will generate a balanced portfolio of mutual funds. For example, an initial deposit of $300, a monthly contribution of $300, a risk profile of six (Fidelity rates risk on a 1-10 scale), $70,000 annual household income, and a 2000 birth year would generate the following investment strategy:

The portfolio above also has a specific focus on retirement. After you choose an investment strategy, you’ll be all set to fund your account and start investing.

Fidelity Go Fees

Most mutual funds have an expense ratio fee structure that deducts an annual fee from your holdings. Fidelity’s Flex mutual funds, however, have zero expense ratios. This means that, besides your account’s management fee (if applicable), you won’t have to worry about any annual fund fees. 

While there aren’t any minimum account requirements (though you’ll need $10 to start investing), you may incur an advisory fee, depending on the size of your account balance. This is cheaper compared to other robo-advisors like Charles Schwab Intelligent Portfolios, which has a $5,000 account minimum, or Ellevest which has an account minimum of $1 – $240 (varies by portfolio).

Fidelity Go has the following fee schedule:

• Under $25,000: No advisory fees
• $25,000 or more: 0.35% annual advisory fee (includes unlimited one-on-one coaching calls)

Fidelity Go’s advisory fees are standard compared to similar platforms that usually range from 0% to 1.5%. Otherwise, Fidelity Go has no trading fees, transaction fees, or rebalancing fees. 

Fidelity Go — Frequently Asked Questions (FAQs)

Methodology: How We Reviewed Fidelity Go

We examined Fidelity Go using Personal Finance Insider’s rating methodology for investing platforms to compare account options, fees, ethics, and customer experience when reviewing robo advisors.  

Automated investing platforms generally offer multiple assets, automatic trading tools, personalized portfolios, and other resources. Robo-advisors are usually best for passive and beginner investors, but some may be more suited for advanced traders. Fidelity Go was evaluated with a focus on how it performs in each category. We give investment platforms a rating between 0 and 5.

How Fidelity Go Compares

Fidelity Go vs. Betterment

Fidelity Go and Start Investing are platforms that specialize in automated investment advice and offer portfolio rebalancing features. They mainly differ in fees and investment choices.

Fidelity Go is better for people looking to invest in a portfolio of mutual funds. Betterment, however, is best suited for investors looking to mainly invest in ETFs. Betterment also supports four different cryptocurrency portfolio options (Universe, Sustainable, Metaverse, and Decentralized). Betterment also offers socially responsible investing portfolio options, tax-loss harvesting, and other tax strategy tools.

Both robo-advisors have no account minimums and $10 investing minimums.

Fidelity Go vs. Schwab Intelligent Portfolios

Though Charles Schwab Intelligent Portfolios has a much higher account minimum ($5,000), it makes up for it with its lack of advisory fees. It’s worth noting that you can skip out on advisory fees with Fidelity Go if you have under $25,000. But Fidelity Go accounts of $25,000 or more have to pay up to 0.35% in annual advisory fees. 

Like Fidelity, Schwab is a great option for those looking to dabble in other wealth-building products like self-directed brokerage accounts. Schwab Intelligent Portfolios offers a blend of ETFs, and features like tax-loss harvesting and portfolio rebalancing.