When it comes to retirement planning, two of the most prominent brokerage firms—Charles Schwab and Fidelity—offer a wealth of tools and services. Both companies allow you to open a variety of retirement accounts, such as Traditional IRAs, Roth IRAs, and 401(k)s. However, their retirement planning tools, fees, and features differ in important ways.
Retirement Accounts
Both Schwab and Fidelity offer no-fee accounts for traditional and Roth IRAs, making them appealing for retirement investors. Fidelity stands out with its extensive selection of low-cost target-date funds, which automatically adjust the asset allocation as you get closer to retirement. Schwab also offers target-date funds, but they’re not as widely recognized as Fidelity’s.
Retirement Planning Tools
Fidelity offers robust retirement planning tools that allow you to estimate your future retirement income and assess your current savings trajectory. Their tools provide personalized recommendations based on your financial goals.
Schwab’s retirement planning tools are similarly helpful, providing detailed retirement projections. They also offer in-person meetings with certified financial planners, which can be a great option for investors who want more personalized advice.
Robo-Advisor Services
Both Schwab and Fidelity offer robo-advisor services for retirement savings. Schwab’s Intelligent Portfolios have no advisory fee and require a minimum balance of $5,000. Fidelity’s Go service also has no advisory fee, but it requires a slightly higher minimum balance of $5,000.
Conclusion
Both Schwab and Fidelity offer excellent options for retirement planning, with Schwab standing out for its personalized financial planning services and Fidelity excelling in retirement-specific fund options and tools. Ultimately, the right choice will depend on your retirement goals and preferences.