Fidelity Investments is helping me take care of my financial future
This week I did my annual review with my financial advisor, Zachary Clark, at Fidelity Investments. I want to shout out how thoughtfully and thoroughly he went through all of my accounts and assets. Even more importantly, he took the time to really listen to my goals to make specific recommendations and adjustments to my finances. These times are uncertain and the economy is challenging. It helps to know that this company has my back and is looking out for me. I don’t think it’s true for a lot of financial institutions; it’s definitely true for Fidelity. I highly recommend them.
Below are a few brief bullets about the advice and counsel my financial advisor had. Please keep in mind these are specific to me. That’s the beauty of Fidelity’s goal-based management. It’s designed for me, my financial situation, my goals, and my risk-tolerance. Your plan, because it’s designed for you, could be different.
I acknowledge I’m extremely fortunate to have been able to work hard to get to this point in my financial life. I grew up very poor and struggled financially for many years. To now be in a position to make these choices is a privilege I never take for granted. I’m very grateful.
My plan:
1.) I opened a managed brokerage account
I’m maxing out my 403(b) (my retirement account from my nonprofit employer) and Roth IRA contributions. I have an emergency fund saved in a high-yield savings account. I have no debt. I wanted to know what else I could do.
He suggested a managed brokerage account to help my mid-term (5–10 years) money do more for me. I don’t know what I want to do with that money yet so this option gives me flexibility while also earning more than it would in a savings account. This account is a different goal from my retirement account as I will likely use it for a purpose other than retirement. For example, I may decide to use it to buy a home, start a business, or invest in a business. You may use this kind of account for any goal you want — saving for college, a trip, wedding, baby, etc. No penalties for withdrawal and the potential to earn more interest than I would get by just having it in a CD or high-yield savings account.
2.) I decided not to buy an apartment right now
Interest rates are high. NYC prices and maintenance fees are high. The housing market is uncertain. I have an incredible rental deal. Taking all this into consideration, we decided it makes sense for me to continue renting for now and re-evaluate if and when markets shift. Fidelity has a rent vs buy calculator to help with this decision.
3.) My Roth IRA is now managed by Fidelity, matches my risk profile, and is funded by auto-debit
My Roth IRA has had a 35 / 65 split between stocks and bonds / cash. I’m quite a few years from retirement so it makes sense for it to have the 85 / 15 split my rollover IRA has. (My rollover IRA is the money from 401K and 403b accounts I had with former employers.) I also set up monthly auto-debit from my savings account to my Roth IRA so I make sure to max it out every year. Doing this over the course of the year helps me even out the volatility of the market. Fidelity managing it, with my personalized goals in mind, means I don’t worry about managing it myself.
I hope this info about Fidelity’s tools and advice are helpful. If you’ve got other questions, feel free to ask in the comments or DM me.