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Fidelity Annuities Review


ConsumersAdvocate.org Rating: 5 / 5 (Excellent)
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Fidelity Investments is a privately-held financial investment firm that provides retirement, brokerage and wealth management services. Founded in 1946 and based in Boston, Massachusetts, the firm caters to individual investors and businesses alike. Fidelity also invests in public equity and fixed income markets internationally and manages equity, fixed income and balanced mutual funds.
 
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How is Fidelity rated?

Breakdown

5.0/5
Policy Features
5.0/5
Fees and Commissions
5.0/5
Reputation and Financial Strength

Overall Rating: 5 / 5 (Excellent)

With over $2 trillion assets under management, Fidelity Investments stands apart as a leader in the financial planning and wealth management industry. With a wide range of investment products, Fidelity also offers a range of tax-deferred annuity plans, from fixed to variable, that cater to investors at all stages of retirement planning. Fidelity's plans are clearly outlined for side-by-side comparison, with in-depth, helpful, information about each plan and what kind of investor the product would be best suited for. There are also additional footnotes that expand on the product offerings.

One aspect clients may find appealing is that they can head to one of Fidelity's brick and mortar investor centers to talk to a specialist in person about its annuity products. For those just getting their feet wet, the site offers helpful articles, rates of return by state, fact sheets, and more.

Fidelity Annuity Features

Policy Features - 5 / 5

Fidelity offers several types of annuities ranging from variable to deferred fixed, deferred income, and immediate fixed annuities. The minimum investment varies – from $5,000 to $50,000 – depending on the product. The annual annuity fees also vary as well with the variable annuity, called the Fidelity Personal Retirement annuity, starting at 0.25% or 0.10% for investments of $1 million or more. This particular annuity product was featured on Barron’s list of “The 50 Best Annuities,” and appears to be the company's stand-out product for those who are interested in a low-cost variable annuities.

Like anything, all of Fidelity’s annuity products come with their unique perks (such as the Deferred Income Annuity’s option to make a cost-of-living adjustment or a one-time change to their income start date) but they also have some drawbacks and fees as well. No product is one-size-fits-all because some are more ideal for certain stages of retirement than others. We encourage those looking to invest to read the fine print (or footnote citations at the bottom of the product description pages) for each product to assess the possible fees. For those looking to switch annuity products, Fidelity also offers an annuity exchange that can potentially help an investor lower their fees without incurring taxes. However, depending on the annuity provider, there can be surrender fees associated with exchanging. Before investing, we recommend clients request the prospectus or summary prospectus of the annuity from Fidelity.
Annuity Type
Immediate
Deferred
Fixed-Deferred
Variable-Deferred
Minimum Balance
Ranges from $5,000 to $50,000 depending on annuity type.
Funding
Lump Sum
Series of Payments
Payment Frequency
Guaranteed Fixed Period
Lifetime Payments
Survivorship Payments
Withdrawal Options
Stream of Payments
Custom Schedule
Lump Sum

Survival Benefits

With the Fidelity Personal Retirement Annuity, the assets can be transferred to the beneficiary, or beneficiaries, named in the annuity contract. From there, the beneficiary can choose to receive the portion of the balance as a lump-sum, any amount withdrawn over a five-year period, periodic payments paid annually or more frequently (also called “stretch” payments) or a guaranteed lifetime stream of income (under the contract’s annuity income options.) With the “stretch” provision, a non-spouse beneficiary can stretch out the payments they inherited over their life expectancy. Other Fidelity annuity products, such as the deferred Fixed Annuities, offer similar options to beneficiaries.

Fidelity Fees and Commissions

Fees and Commissions - 5 / 5

Investors can expect fees to vary from product to product. With Fidelity’s Personal Retirement Annuity, a variable annuity, the annual fee is 0.25% or 0.10% for investments over $1 million. Fidelity’s New York Life Clear Income Fixed Annuity has the highest minimum investment at $50,000 and an annual fee of 0.75% of accumulation value. The fee structure on Fidelity's other products, such as the Deferred Fixed Annuity, Deferred Income Annuity, and Immediate Fixed Income Annuity, is not entirely clear. Market Value Adjustment and surrender fees may also apply to some products. We recommend investors thoroughly research fees associated with the product they are interested in.
Surrender Charges
Surrender charges may apply to some products.
Yearly Fees
Annual fees may apply to some products.
Other Fees
Early Withdrawal Penalty
IRS Penalties

Fidelity Reputation and Financial Strength

Reputation and Financial Strength - 5 / 5

Fidelity Investment enjoys a well-established reputation as a major investment firm, with over $2 trillion assets under management. Fidelity has a C- with The Better Business Bureau and a 5.5 out of 10 with Trust Pilot. Fidelity Investments is a long-standing company that offers a wide variety of investment products. It’s important to keep in mind that such ratings or reviews may not necessarily reflect its annuities products. Because the ratings vary from site to site, we recommend clients conduct their own thorough review of Fidelity's annuities before investing.
Year Founded
1946
BBB Rating
C-
Trust Pilot Rating
5.5 out of 10
Live Help 24/7
Yes
Live Help 24/7
Yes
Customer Support Hours
Chat representatives are available Mon.-Fri. 8 a.m. to 10 p.m., and Sat. and Sun. 9 a.m. to 4 p.m. Customer service is available by phone 24 hours, 7 days a week. Fidelity representatives will respond to secure emails in 3 to 5 business days.
Contact Methods
Phone
Email
Chat

Company Profile

Full Name
Fidelity Annuities
Company Website
https://www.fidelity.com
Headquarters
82 Devonshire Street, Boston, MA, 02109

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Customer Comments & Reviews

Loading Reviews ...
skwlsn54
5/28/2021
eware of being talked into a NY Life Annuity... At this point, I recommend knowing and understanding the answer to at least the 6 questions below before locking in an annuity. If I had known the actual growth and penalty I WOULD NOT have opted for an annuity that I would have to pay them to get a portion of my money back. What is the bottom line growth rate after expenses? Is there a Maturity Date, and When is it? How much money do I lose each year, if I withdraw before maturity? How many years do I expect to live? How many years before I expect to start withdrawing or needing a monthly stipend from my savings? What interest rate would I have to earn to exceed the amount... Read More

Top Rated
  • Marketplace service that compares top-rated insurers 
  • Fiduciary-led company 
  • No on-going fees
  • Offers Personal Pension Plans and income annuities 
  • User-friendly quote calculator
  • Helpful diagnostic tools and guides
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