Fidelity® Equity Separately Managed Accounts

[Disappointed]

Wonder if anybody is using this service from Fidelity?

I met with one of their consultants and he suggested that I look into this.

MP

 

[Bruno]

Wonder if anybody is using this service from Fidelity?

I met with one of their consultants and he suggested that I look into this.

MP

I was also told about SMA.I was told they are for people with money ..takes 200k to get in to them He could not give me any History on SMA returns. I passed. Might be a good deal but i like to know what i am getting into. If you search SMA on here others have also talked about them.

 

[Sunset]

I had to look this up:
https://www.investopedia.com/articles/mutualfund/08/managed-separate-account.asp

Besides the fact they charge 1->3% of assets as a fee, I don't see any advantage that is not present by self-managing your own brokerage account.

I have many self managed accounts, all managed by me

They do have professional teams that supposedly will only buy you good stuff, but the reality is from reading about Wall street, when they have ownership of a dog they will sell it to the first sucker they can. That and load commissions and fees influence their decisions.

 

[audreyh1]

Why?

Fidelity has great low cost index fund offerings. You can do something as simple as 50/50 Fidelity Total Market Index and Fidelity US Bond Index and do just fine. You can diversify a bit more, but little more complexity is needed.

 

[The Cosmic Avenger]

I had to look this up:
https://www.investopedia.com/articles/mutualfund/08/managed-separate-account.asp

Besides the fact they charge 1->3% of assets as a fee, I don't see any advantage that is not present by self-managing your own brokerage account.

I have many self managed accounts, all managed by me

They do have professional teams that supposedly will only buy you good stuff, but the reality is from reading about Wall street, when they have ownership of a dog they will sell it to the first sucker they can. That and load commissions and fees influence their decisions.

+1. They've tried to sell me on this, which is why I've stopped using Fidelity "advisors". They couldn't convince me of why it was better, they just repeated their sales pitch.

 

[Red Badger]

Why?

Fidelity has great low cost index fund offerings. You can do something as simple as 50/50 Fidelity Total Market Index and Fidelity US Bond Index and do just fine. You can diversify a bit more, but little more complexity is needed.

+1.

I was late to the FIRE game, but a quote I learned long the way was invaluable.....

The first job of any FA is to make some of your money, their money.

Aber, full disclosure. Our portfolio is way more complicated than what Audrey calls out. We have the added complexity of a CD ladder for our 2 year horizon.