Fidelity PAS vs Target Retirement Fund
I have been using Fidelity Portfolio Advisory Service (PAS) for the past 7+years to manage my 401K account. As of today the account has a return of 21% and in 7 years Fidelity has charged ~$2K as Fees. I am just wondering whether it’s worth using the PAS as opposed to enrolling in target retirement fund like Vanguard Target Retirement fund 2050.What are the pros and cons of PAS?#personalfinance #investments
Literally just buy index funds. Why are you paying 2k for a service you can do yourself on a phone while pooping
I tried PAS for a year when my portfolio reached 100K, about a decade ago. The fee was about 1% and worse they deducted the fee from my portfolio, not taking from my account. There was a way, I could write them a check every quarter and ensure they didn't deduct from my portfolio. I would absolutely not recommend the. It's like adding over 1% expense ratio to your investments. They do give some fancy printed reports for that money for sure. Try calling and talking to them, you realize that they don't know a thing and can be replaced by a bot in 5 more years
you can just put the money into large cap option in the fidelity. FXIAX i think
I tried to compare my PAS managed portfolio with a target retirement fund like Vanguard 2055 and PAS seems to be way ahead in the last 5 years .However not sure it will hold true until i retire
You're paying a lot to basically hold the same assets. I'd switch if you can
Return is aggregate or annualized?
Aggregate