Fidelity Investments Annuity Service Center

By | June 30, 2022

Fidelity Annuities Review

Fidelity Investments is a leader in the financial services sector. The company opened for business in 1946, and this long history makes Fidelity a leader in the annuities industry. Fidelity was the first annuities company to offer internet-based wealth management. We chose Fidelity Investments as one of our top picks among the best annuity companies.

Pros

  • Low-fee transfers
  • Rebalance or trade without penalties
  • Several annuities choices
  • Multiple convenient funding methods
  • Excellent customer service

Cons

  • High initial investment for some annuities

Types of Fidelity Annuities

Fidelity offers six primary annuities. Our chart explains the basics about each product: Fidelity Personal Retirement Annuity, New York Life Premier Variable Annuity – P Series, Deferred Fixed Annuity, Deferred Income Annuity, New York Life Clear Income Fixed Annuity – FP Series, and Immediate Fixed Income Annuity.

Fidelity Investment Annuities
Product & Minimum Investment Primary Benefit Highlights Best Use
Fidelity Personal Retirement Annuity

$5,000
Tax-deferred retirement savings Choice of 3 investment strategies Retirement savings and asset accumulation
New York Life Premier Variable Annuity–P Series

$25,000
Guaranteed initial investment return after 10 years Returns potentially outpace inflation Retirement savings while protecting the initial investment
Deferred Fixed Annuity

$10,000
Guaranteed return rate for a fixed period Fixed interest first 3 to 10 years Retirement savings and asset accumulation
Deferred Income Annuities

$5,000
Guaranteed lifetime income beginning at a future date Increase future income with additional payments during the deferral period Transitioning to retirement and asset protection
New York Life Clear Income Fixed Annuity – FP Series

$50,000
Guaranteed lifetime income with access to emergency funds Fixed rate first 7 years, annual 5% increase on guaranteed lifetime income first 10 years Transitioning to retirement and asset protection
Immediate Fixed Income Annuity

$10,000
Guaranteed lifetime income stream Plus-1 coverage and cost of living adjustment available Generating income while in retirement

Annuity Exchanges with Fidelity Investments

If you have an annuity and want to switch to Fidelity Investments, you can take advantage of the low-fee exchange process. An annuity exchange, also known as a 1035 exchange, allows for the tax-free transfer of funds held in a life insurance policy or annuity contract into a new annuity with Fidelity Investments.

You might consider exchanging annuities if:

  • Your current provider charges higher fees compared to Fidelity
  • You want more contemporary annuity investment options
  • You have other investments with Fidelity and wish to consolidate with one brokerage

Talk with your financial adviser to see if switching your annuity from your current provider to Fidelity is right for you.

Fidelity Annuities Cost

Depending on which Fidelity annuity you choose, you need at least $5,000 to invest. All annuities have annual fees, interest, and early withdrawal fees, and Fidelity fees are generally average to low. The Personal Retirement Annuity fees are around 0.25%, but if you invest $1 million or more, that cost drops to 0.10%. The New York Life fixed annuity fee is 0.75%, and New York Life Premier Variable Annuity charges 1.90%.

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Some annuities have surrender fees, and the IRS may be expecting taxes paid on withdrawals, but income grows tax-deferred. Be sure to read the fee schedule for the specific annuity you are considering. It’s a good idea to talk to a financial planner or visit the IRS website to learn about annuity taxation.

How to Buy Fidelity Annuities

Contact a Fidelity investment professional by phone or in person at a local Fidelity Investments Center. You can find the number and office locations on the website. Alternatively, you can use the online form to get in touch with a representative to discuss your financial goals and find out which Fidelity annuity would work best for you.

The account representative will talk you through the process of choosing a plan, completing a contract, and making annuity payments. Before you buy, be sure you have a clear understanding of the pros and cons of annuities to determine if it’s your best option for retirement savings.

Fidelity Annuities Complaints

Although most of the online reviews we found give Fidelity Investments stellar ratings, that’s not the case across the board. NerdWallet awards the company 5 out of 5 stars, mainly because Fidelity offers comparatively low fees and a wide selection of funds to choose from to build your annuity portfolio. Reviews on ConsumerAffairs give Fidelity Annuities an average of 3.9 out of 5 stars, where consumers noted exceptional customer service and convenient ways to fund annuities. Some complained about withdrawals not being easy to do, but others said they had no problem with withdrawals after the cutoff date.

The Better Business Bureau rates the entire Fidelity Investments company (not only annuities) a C-, primarily because of 38 unresolved complaints on the site. Fidelity only scores 1 out of 5 stars with consumers leaving reviews on the BBB, and complaints focus on the difficulty of withdrawing funds and closing accounts. On the flip side, ConsumersAdvocate’s Fidelity Annuities Review rates the company a 10 out of 10, with perfect scores for annuity features, reputation, financial strength, and low fees and commissions.

Fidelity Annuities Q&A

  • How can I learn more about each of Fidelity’s annuity plans?

    You can find an overview of each annuity on Fidelity’s website, and you can download a PDF with detailed information for each one.

  • How can I fund an annuity from Fidelity Investments?

    After making your initial contribution, you can take advantage of Fidelity Automatic Annuity Builder to automatically transfer funds from a checking or savings account. You set the amount to transfer, one or more annuities to contribute to, and whether transfers should occur monthly, quarterly, semiannually, or annually.

  • Do Fidelity representatives sell on commission?

    Fidelity employees receive bonuses or commissions for selling annuities, as is the case with most annuity companies. Online reviews suggest agents do a good job taking care of customers, but commissions can sway recommendations. We suggest you talk to a third party financial advisor before buying an annuity.

  • When is the best time to purchase a Fidelity annuity?

    You can purchase an annuity at any time: early in your career while saving for retirement, in midlife when actively planning for retirement, or while already living in retirement. The best annuity for you depends on your current stage of life and when you need to begin receiving payments.

  • Are Fidelity annuities FDIC-insured?

    The Federal Trade Commission does not insure annuities from any company because these financial instruments are based on life insurance and not deposits. If Fidelity became insolvent, annuity payments might not be guaranteed. However, Fidelity has a longstanding solid financial record with over $3,803.8 billion in retirement assets under the company’s administration. If you need an option that is FDIC-insured, consider Fidelity’s certificates of deposit (CDs) to protect assets from market volatility with a guaranteed rate of return.

  • What other investment services does Fidelity offer?

    Fidelity Investment offers full investment, financial, and retirement planning services. The company sells mutual funds, including funds requiring a low investment amount to open, bonds, and CDs. Fidelity also sells and administers retirement accounts, IRAs, life insurance, college savings plans, long-term care insurance, and exchange-traded funds (ETFs). Other offerings include managed brokerage accounts, self-directed online trading, sector investing, cash management, and credit cards.

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Conclusion

Annuities can be a vital part of retirement planning, and Fidelity’s low-fee annuities can increase your retirement income. Fidelity Investments is a full-service brokerage where you can manage your annuity investments yourself or with help from a pro alongside your other financial accounts.

Recent Reviews

Featured Review

My advisor Mike ** was very helpful and honest, in helping me find the best Annuity for my needs. I have been a client since 1985 and I’m very happy. Their fees are low, reputation is spotless, and their research and advice are the best.


John S.


Gretna, LA

Beware 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 Annuity would pay at the beginning of #5?

In 2016 I was told my Annuity would earn 5% but in reality it ONLY earns 00.35% a year. After holding and using my $250,000 for 5 years the annuity has only grown $4,000 and they are charging me $12,000 to get $243,000 a portion of my original investment back.

How it actually works is, they are charging me $7,000 to use my $250,000 for 5 years. IF I INVESTED THE $250,00 in a S&P500 index fund in August of 2016 it would be worth $510,019.93 in May of 2021.

IT seems they had the opportunity to make at least $250,000 during the 5 years they had my money and are charging me $7,000 for using my money.

Best Advice is to get advice from a fiduciary company you pay for advice, not an investment organization that makes their money from investments they recommend.


Steven W.


MORRILTON, AR

How is this such a popular website and no one has reported what they’re really doing??? Scamming the world and making victims. I found out the jig only after losing 100.000€ trying to buy bitcoins on their platform… I made payment and they claimed to not have received it, however my bank confirmed that the transaction was completed!!

This is not good at all and we need to get justice! I made reports to all the agencies, authorities and regulators I could think of I got the same response from all of them, “We will take your report into consideration, when we get more information, we will be able to investigate.”

What happened to investigating out right… I was not having it and I needed to get my money back so I went looking for private firms and found (fighting scams at aol dot com )this was the only company that was able to help me out and successfully get my money back…. Please if you have been scammed by Fidelity Investment, complain to fightingscams at aol dot com.


Wheller A.


NY, NY

I filled out the Annuity calculator for the$100000. I wanted to use, it said I could receive anywhere from $450 to $680 per month so I scheduled an appointment to speak with an advisor. As usual I wast extremely disappointed to know I was purposely misled and told I needed twice the amount I had to use.

I wasted my time and the advisor who ignored my disappointment with business like patience.Don’t waste your time and get your hopes up of getting anything from this company. Just another company panning to the rich and could care less about middleclass working people:(((


James N.


Phoenix, AZ

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Fidelity Investments Annuity Service Center

Source: https://www.retirementliving.com/reviews/fidelity-annuities

Posted by: finance.companiamedica.com

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