Should You Use Fidelity Go for Your Investments

What Fidelity Go does and what it costs

Fidelity Go is an automated investment service from Fidelity that builds and manages a portfolio for you based on your age, risk tolerance, and time horizon. You answer questions about yourself, the service picks a mix of low-cost index funds, and it rebalances automatically as your target date approaches. The service charges no advisory fee — you pay only the expense ratios of the underlying funds, which typically range from 0.03% to 0.20% per year depending on which funds are in your portfolio.

The account minimum is $0, meaning you can open one with any amount. Fidelity Go works inside a regular taxable brokerage account, an IRA, or a 401(k) if your employer's plan offers it. The service is designed for hands-off investors who want professional-style portfolio management without paying a financial advisor.

Key Takeaways

• Fidelity Go charges no advisory fee, only the fund expense ratios of the investments it selects, which are typically under 0.20% per year.
• The service automatically rebalances your portfolio and adjusts your asset allocation as you get closer to retirement, with no action required from you.
• You can open an account with any amount of money and use it in a taxable account, IRA, or employer 401(k) if available.
• Fidelity Go is most useful if you want a diversified portfolio but do not want to research funds, pick allocations, or monitor your account regularly.
• If you already know how to build a portfolio or prefer to control every decision, you may find the automated approach limiting.

How Fidelity Go's fees compare to other robo-advisors

Most robo-advisors charge an annual advisory fee between 0.25% and 0.50% on top of fund expenses. Fidelity Go's zero advisory fee puts it at the lower end of the market. Competitors like Vanguard Personal Advisor Services charge 0.30% annually, while Betterment charges 0.25% for its core service. Charles Schwab's Schwab Intelligent Portfolios also charges no advisory fee, similar to Fidelity Go.

The real cost difference emerges over time. On a $50,000 portfolio, a 0.25% advisory fee costs $125 per year. Fidelity Go costs nothing for that advisory layer. However, the underlying fund expenses matter more than the advisory fee itself. If Fidelity Go's funds have an average expense ratio of 0.10% and a competitor's funds average 0.15%, the competitor's total cost is higher even if their advisory fee is lower. You should compare the full cost — advisory fee plus fund expenses — not just the advisory fee alone.

What Fidelity Go does automatically that you would do manually

Fidelity Go handles three tasks that most DIY investors either skip or do inconsistently: rebalancing, tax-loss harvesting, and glide-path adjustments. Rebalancing means selling winners and buying losers to keep your portfolio at its target allocation — for example, if stocks rise to 65% of your portfolio when your target is 60%, Fidelity Go sells some stocks and buys bonds. Most investors do this rarely or never, which causes their portfolios to drift toward whatever asset class is performing best.

Tax-loss harvesting sells losing positions to offset capital gains elsewhere in your portfolio, reducing your tax bill. Fidelity Go does this automatically throughout the year. A glide path is the gradual shift from stocks toward bonds as you approach retirement — Fidelity Go adjusts this automatically based on your target retirement date. If you are willing to do these tasks yourself, you can replicate Fidelity Go's results using a brokerage account and index funds. If you are not, Fidelity Go handles them without asking.

When Fidelity Go makes sense for your situation

Fidelity Go works best if you have money to invest but limited time or interest in managing it. You set it up once, answer the questionnaire, and the account runs itself. You do not need to research funds, decide on an allocation, or remember to rebalance. This is valuable if you have a full-time job, family obligations, or straightforward prefer not to think about investing.

The service also works well if you are starting with a small amount and want to avoid the complexity of building a portfolio yourself. A $500 or $1,000 initial deposit is enough to open an account. As your balance grows, the automated rebalancing keeps your allocation on track without you having to intervene. Fidelity Go is also useful if you want a target-date strategy — a portfolio that shifts from aggressive to conservative as you approach a specific retirement year — without having to pick a target-date fund.

When you might not need Fidelity Go

If you already have a clear investment strategy and enjoy managing your portfolio, Fidelity Go adds little value. You can build the same diversified portfolio using Fidelity's index funds directly, set up automatic rebalancing reminders, and avoid the service altogether. The cost difference is minimal — you would pay only the fund expense ratios, which are already very low.

Fidelity Go is also less useful if you have a complex financial situation. If you have multiple accounts across different institutions, significant taxable income outside investments, or specific tax-loss harvesting needs, a human financial advisor or a more customizable robo-advisor may serve you better. Similarly, if you want to hold individual stocks, bonds, or alternative investments alongside your core portfolio, Fidelity Go's preset allocations will not accommodate that.

How Fidelity Go's performance compares to managing your own portfolio

Fidelity Go does not beat the market — no robo-advisor does. It tracks the market by holding index funds, which means your returns will match the broad market minus the fund expenses. The value is not in outperformance but in consistency. Fidelity Go keeps you invested through market swings because you do not have to make emotional decisions. It rebalances automatically, which forces you to buy low and sell high — the opposite of what most investors do naturally.

Studies show that most individual investors underperform the market because they buy high, sell low, and chase performance. Fidelity Go removes those behavioral mistakes by automating the process. If you can stick to a buy-and-hold strategy with index funds on your own, you will get similar returns. If you tend to panic-sell during downturns or chase hot sectors, Fidelity Go's discipline may improve your actual results.

How to decide if Fidelity Go is right for you

Start by asking yourself three questions. First: Do you have the time and interest to research funds and manage your portfolio? If yes, you probably do not need Fidelity Go. If no, it may be worth the setup time. Second: Are you comfortable with a preset allocation, or do you want full control over what you own? Fidelity Go offers limited customization — you choose your risk level, and the service picks the funds. If you want to add specific holdings or adjust the allocation yourself, you will feel constrained.

Third: Will you actually stick to your investment plan during market downturns? If you know you will panic and sell when stocks drop 20%, Fidelity Go's automation protects you from yourself. If you can stay calm and hold, the automation is less critical. Open a Fidelity Go account with a small amount first — $100 or $500 — to see how the interface feels and whether the automated approach matches your preferences. You can always move the money to a regular brokerage account later if it does not work for you.

Frequently Asked Questions

Does Fidelity Go may provide returns or protect against losses?

No. Fidelity Go invests in index funds that track the stock and bond markets. Your portfolio will rise and fall with those markets. There is no may provide of returns, and you can lose money, especially in the short term. The service is designed for long-term investing, typically 10 years or more.

Can I withdraw money from Fidelity Go whenever I want?

Yes. Your money is in a regular brokerage or IRA account that you own. You can withdraw from a taxable account anytime without penalty. Withdrawals from an IRA follow standard IRA rules — early withdrawals before age 59½ typically incur a 10% penalty plus income tax, with some exceptions.

What happens if I stop using Fidelity Go?

Your account remains open and your investments stay in place. You can switch to managing the portfolio yourself, move the money to another brokerage, or leave it alone. Fidelity Go does not lock you in — you can change your strategy at any time.

Does Fidelity Go work with money I already have invested elsewhere?

Fidelity Go manages only the money in the Fidelity Go account itself. If you have investments at other brokerages, Fidelity Go will not rebalance or manage those. You would need to move the money to Fidelity first or use a separate robo-advisor that can aggregate multiple accounts.

How often does Fidelity Go rebalance my portfolio?

Fidelity Go rebalances automatically when your allocation drifts more than 5% from your target. It also adjusts your glide path quarterly as you move closer to your target retirement date. You do not need to do anything — the service handles it in the background.