When it comes to your finances, you want to make sure you are getting the best advice and service. Two major players in financial services are Edelman Financial Engines and Fidelity Investments. But how do they compare when looking at the key features and services offered?
This comprehensive guide will examine the pros and cons of Edelman Financial Engines versus Fidelity to help you determine which may be a better fit for your needs.
A Brief Comparison Table
| Category | Edelman Financial Engines | Fidelity Investments |
| Account Minimum | $50k – $250k+ | No minimum |
| Financial Advice | Dedicated financial advisors provide ongoing comprehensive planning | Consultants available for one-off guidance |
| Investment Management | Actively managed portfolios tailored to goals | Self-directed investing platform |
| Retirement Services | Specialize in retirement income strategies and 401(k) advice | Broad retirement services including IRAs and 401(k) rollovers |
| Digital Experience | Digital tools supplement human advisors | Robust digital platform for self-management |
| Fees | Asset-based advisory fees starting at 1.25% | Minimal fees for self-directed accounts |
| Locations | Primarily online with limited office locations | 200+ Investor Center locations nationwide |
Overview Of Edelman Financial Engines
Edelman Financial Engines provides personalized financial planning and investment management services. Theirapproach focuses on assisting clients of all wealth levels in achieving their long-term financial goals. Here are some of the key highlights of what Edelman Financial Engines offers:
- Financial advisors – Edelman Financial Engines provides access to a team of advisors, including CFP professionals, to develop comprehensive financial plans and provide ongoing guidance. Advisors take the time to understand your personal financial goals.
- Digital advice – In addition to human advisors, Edelman Financial Engines offers digital advice options. Their robo-advisor provides algorithm-based portfolio management.
- Retirement planning – Retirement planning is a major focus. Advisors can help with 401(k) allocation, developing income strategies, and creating retirement readiness plans.
- Investment management – Edelman Financial Engines can actively manage investment portfolios across IRAs, taxable accounts, 401(k)s, and more. Portfolios are customized based on your goals.
- Online resources – Their website provides various educational resources to help guide financial decision making. This includes tools, articles, videos, and more.
Also Read: Comparison Between Edelman Financial Engines And Fisher Investments
Overview Of Fidelity Investments
Fidelity is one of the largest providers of financial services, offering brokerage and investment products as well as retirement and wealth management services. Below are some of Fidelity’s notable features:
- Investment products – Fidelity allows you to invest in stocks, ETFs, options, bonds, mutual funds, and more through brokerage and retirement accounts. They offer thousands of funds.
- Wealth management – For high net worth individuals, Fidelity provides more tailored wealth management services, including trusts, IRAs, foundation management, and multi-generational planning.
- Retirement services – For retirement, Fidelity offers IRAs, annuities, pension management, life insurance, long term care, and more. They provide guidance on 401(k)s and other employer retirement plans.
- Financial consultants – Fidelity provides access to financial consultants who can provide guidance on investing and financial planning for a fee. This is more limited than Edelman’s ongoing advisor relationships.
- Digital experience – Fidelity offers easy online access to accounts and has online tools to manage an investment portfolio or get advice on savings, college planning, and retirement.
Comparing Pros And Cons
Now let’s dive into a detailed comparison of the pros and cons of using Edelman Financial Engines versus Fidelity for your investment and financial planning needs:
Financial Advice Approach
- Edelman Financial Engines
- Pros: Ongoing relationship with dedicated advisors who develop comprehensive financial plans and provide personalized guidance. Advisors take a goals-based approach.
- Cons: Full advisory services have account minimums ranging from $50k-$250k. Lower asset clients have access to more limited planning.
- Fidelity
- Pros: Offers access to financial consultants to provide guidance on specific needs for an hourly or flat fee. No high account minimum.
- Cons: Consultations are more transactional rather than an ongoing planning relationship. Advice may be more limited unless paying for a frequent consultant.
Investment Management
- Edelman Financial Engines
- Pros: Provides active portfolio management tailored to your goals. Rebalances portfolios and makes adjustments as needed. Can manage various account types.
- Cons: Typical account minimum of $50k for portfolio management services. Management fees can be high relative to self-directed investing.
- Fidelity
- Pros: Allows self-directed investing across a wide range of securities and funds. Offers extensive research, tools, and guidance for DIY investors. Very low or no minimums to open accounts.
- Cons: Must have the knowledge and discipline to manage your own investment portfolio aligned to goals. Lacks active oversight.
Retirement Services
- Edelman Financial Engines
- Pros: Assistance with comprehensive retirement planning and developing retirement income strategies. Can advise on 401(k)s and integrate employer plans with overall strategy.
- Cons: Less ability to actively manage retirement accounts like 401(k)s unless leaving employer.
- Fidelity
- Pros: Extensive retirement services from IRAs to annuities along with 401(k) rollovers. Allows consolidation of multiple retirement accounts. Retirement tools and guidance.
- Cons: Retirement planning services are more piecemeal rather than holistic. Guidance tends to focus on Fidelity products.
Also Read: Differences Between New York Life And Northwestern Mutual.
Digital Experience
- Edelman Financial Engines
- Pros: Digital tools allow online access to your accounts and financial plans. Robo-advisor available for portfolio management.
- Cons: Digital experience functional but less robust compared to some pure online advisors. Still relies heavily on human advisors.
- Fidelity
- Pros: Very comprehensive online and mobile apps to manage your investments and retirement accounts. Wide range of tools and research available 24/7.
- Cons: Interface can be complex with many features. Digital advice limited compared to hybrid models.
Costs and Fees
- Edelman Financial Engines
- Pros: Fees competitive within full-service financial advisor industry. Fees decline at higher asset levels.
- Cons: Advisory fees, typically 1% of assets, can be expensive for smaller portfolios under $100k. Also charges portfolio management fees.
- Fidelity
- Pros: Very low or no fees for self-directed investing accounts. Low expense ratios on Fidelity mutual funds.
- Cons: Charges commisions for stock and ETF trades. Financial consultant guidance is fee-based.
Customer Support
- Edelman Financial Engines
- Pros: Dedicated financial advisors act as main point of contact for questions and support.
- Cons: Limited brick-and-mortar locations. Support more limited for purely digital clients.
- Fidelity
- Pros: Has over 200 Investor Center locations for in-person support. 24/7 customer service for technical issues.
- Cons: In-person guidance requires making an appointment with a consultant. Support experience can vary.
Also watch this about Edelman!
Frequently Asked Questions (FAQ)
Fidelity offers Edelman services for some workplace retirement plans but not for general retail investing accounts. Individuals working with Fidelity Investments directly do not have access to Edelman.
It depends on your needs and preferences. Edelman is better if you want comprehensive financial planning and investment management from dedicated advisors. Fidelity is better for self-directed investing and basic guidance.
Edelman fees of 1%+ of assets can be worth it for those with complex planning needs, $250k+ in assets, and who value professional advisor access. For smaller accounts, self-directed may be better.
Typical Edelman fees include advisory fees starting at 1.25%, portfolio management fees of 0.60%, and hourly planning fees from $75-$300. Fees are competitive but higher than self-directed investing accounts.
Edelman can provide advice on 401(k) plans and integrate them into overall retirement strategies. But they do not directly manage 401(k)s unless you leave the employer plan. They can better manage IRAs and other individual accounts.
Also Read: Comparison Between Fisher Investments And Fidelity.
The Bottom Line
When choosing between Edelman Financial Engines versus Fidelity, the right option for you really depends on your financial profile and priorities. While Edelman offers robust ongoing guidance from advisors, their account minimums and fees may be prohibitive if you have limited assets or are cost-conscious.
Fidelity provides an excellent platform for self-directed investing but less hand-holding for those needing it.
Think carefully about whether you are willing to pay for professional guidance or are comfortable directing your own financial decision making. Evaluating the pros, cons and key differences between Edelman and Fidelity can allow you to make the financial services choice that is the best fit for your unique needs and life situation.