Considering Fidelity SMA for SP500 vs. Mutual Funds
Here’s a summary of the main problem and solutions discussed in the content:
- Main Problem: The user, ShadowFox, is debating whether to invest in a Fidelity Separately Managed Account (SMA) for tax harvesting in the S&P 500 versus using mutual funds like FXAIX or FSKAX, particularly regarding the fees and minimum investment required.
- Solution Offered: Fidelity representatives provided information about SMAs, emphasizing their professional management and the ability to customize portfolios based on investment objectives.
- Additional Resources: ShadowFox was directed to visit the SMA overview and mutual fund screener tools on Fidelity’s website for further research.
- Fee Clarification: The representatives clarified that the annual fee for a $100,000 investment would be $400 (0.4%), not $1600, and that fees depend on the strategy and account balance.
Here’s the full thread
Thoughts on fidelity sma for sp500 tax harvesting versus just mutual fund fxiax or fskax boggleheads strategy
Understand pros and cons but thoughts on long term investing in taxable accounts
Debating on this product since a big lump sum needed to start for tax advantages etc
Hey there, @ShadowFox. Thanks for the quesiton. As you’re probably aware, SMAs are professionally managed portfolios that can be personalized to your needs and a targeted investment objective. You can learn more about our SMAs to help you decide if it’s the right move for you by visiting the link below:
Separately Managed Accounts Overview
You can also research mutual funds for a self-directed account by navigating our website. The Mutual Fund Screener tools, located under the “News & Research” tab, allow you to research funds based on a custom criteria set by you.
We can’t give advice or opinions here on Discord, but I’ll go ahead and leave this up to allow the community to chime in. Thanks again for being here, and let us know if we can help with anything else.🟢
Thanks ! So just making sure I understand .4% of the 100k minimum would be $1600 a year in fees to start
Hey @ShadowFox. I just realized I did not give you the actual link to that SMA overview! Please refer to that, and for questions about Managed Accounts, please contact us.
SMA Overview: https://www.fidelity.com/managed-accounts/separately-managed-accounts/overview
Contact Us: https://www.fidelity.com/customer-service/contact-us
Thanks!
thanks ! – will reach out to them to learn more; i think its $400 a year think i did math wrong
Sounds good! Feel free to follow up with us if there’s anything else we can help with. 🟢
for sure are you able to confirm the minimum would be about $400 a year in fees
.4% of the 100k minimum would be $400. However, the fee will depend on your strategy and account balance.
gotcha gotcha so .1% quarterly was making sure i was reading it right so $400 a year versus $1600
You got it!🟢