Fisher Investments Review
Rating as of based on a review of services June 10, 2019.
Ranking
9/10
Fisher Investments offers professionally managed investment accounts. While they have high fees compared to robo-advisors, they have a lot more to offer. If you’re an investor with a little more money to spend, Fisher Investments is a great, hands-on advisor.
Best for:
- Hands-on advising
- Advising services
- Expert investors
Advancements in technology have provided a lot of options to investors. If you have no idea about where or how to invest your money and robo-advisors don’t appeal to you, then Fisher Investments might be the right place to start.
The company provides a tailored portfolio based on your needs, similar to a robo-advisor but with a personalized human touch.
What is Fisher Investments?
One of the largest wealth management firms in the country, Fisher Investments has handled assets worth $100 billion. The company has offices in Washington and California and serves over 40,000 private individuals and 175 institutions.
The company was founded in 1979 and continues to serve high-net-worth individuals. The term high-net-worth individuals refer to people whose net worth is at least $500,000.
How does Fisher Investments work?
Fisher Investments is solely a fee-based firm.
This implies that potential investors must pay a flat fee for investment management instead of each individual investment or trade facilitated by the firm. This structure ensures there is no conflict of interest and the company keeps your preferences in mind.
In a world where there is an ever-increasing trend of robo-advisors, Fisher Investments is a traditional human-guided investment management firm.
The significant difference between robo-advisors and Fisher Investments is that the latter doesn’t take complete control of your portfolio.
An investment portfolio at Fisher Investments consists of fixed income securities (such as bonds), US and international stocks, and Exchange Traded Funds (ETFs). They are all part of an investment portfolio, and their respective weights depend upon the customer’s desired goal.
How your portfolio is determined
There are many factors that Fisher Investments uses to determine your portfolio composition, such as your:
- Investment horizon time
- Cash flow requirements
- Risk tolerance
- Investment objectives
- Outside income and assets
- Any specific requests
Once the information has been collected, Fisher Investments will give a recommendation for your portfolio based on their assessments of the findings.
After signing up as a customer, you’ll be invited to events such as client gatherings and investment roundtables for non-listed companies.
The broad and overall investment strategy is determined by the Investment Policy Committee that comprises of five individuals, bringing an accumulated experience of 130 years in the investment world.
Though the main focus is on joint and personal accounts, the company also works with self-invested pensions, personal equity plans, corporate accounts, and even trusts like charity and university endowment funds.
Key features
Besides the experienced investment management and guidance, here are some of the other key features of the platform.
Constant updates
Through issuing periodic updates from the Investment Policy Committee, comprehensive quarterly reports, and daily online assessments, Fisher Investments strives to keep their investors updated and in the know.
Client programs
The company arranges events in over 60 cities exclusive to clients. The reason behind these events is to provide clients insight into the strategies being deployed by senior management and to make investors meet other clients. The activities include Fisher Forecast Seminars, Fisher Friends event, and even Investment Roundtables.
Attending the events is free of cost with no set limit on how many events each investor can attend. These events are an excellent platform for anyone looking for an in-depth look at the major happenings of the investment world.
Investment calculator
To arrive at your preferences for investments, you may require the use of external tools sometimes. Fisher Investments provides you with such calculators for your benefit and ease.
For example, the company has a 401(k) calculator to assess how significant or minimal changes can affect your retirement plan. It considers your salary, years left to retire, the percentage of salary being contributed, and estimated return on investments.
Fees and pricing
Fisher Investments doesn’t charge commissions for individual trades or investments nor do they charge any hidden fees or extra charges for services rendered. Instead, the company charges a fee based on the size of your investment portfolio.
The fee ranges between 1%-1.5%, depending on the investment. Typically, balances up to $500,000 are charged a 1.5% fee while a lower fee is charged for higher balances.
A fee of this margin is competitive in the world of investment management. However, compared to robo-advisors, this fee seems much higher.
Sign up process
On its web platform, the company provides two main methods of getting in touch – a dedicated phone number and a contact form. The form offers the option of getting an appointment to an investment advisor or just sending a query.
Fisher investments mobile app
The mobile app for Fisher Investments is only available for US residents via Apple’s App Store and Google Play for Android. The app provides customers with daily news, highlights, and commentary.
Pros & Cons
Pros
- Personalized service for individual investors — The company has a portfolio management team that adheres to the demands and desires of individual investors. They also offer separate global investments and money management for high net-worth individuals.
- The company offers exceptional service to institutional investors — Fisher Investments also has dedicated investment management that adheres to institutional investors. Their client lists include major corporations, renowned universities, and even public pension trusts and foundations. The company has individualized strategies for each institution to ensure a path to success backed by groundbreaking market research.
- Investment advice — Fisher Investments offer a detailed insight into their investment strategies. The company also provides advice and education to their clients to bring them up to speed with the latest happenings in finance and investments.
- Customized and diversified portfolios — Fisher believes in the need to customize every investment portfolio, so it is aligned with the investor’s preferences. With access to foreign bonds and stocks, Fisher Investments has the means to curate a diversified portfolio, one that meets your investment objectives and reflects your risk tolerance.
- Personal Investment Counselor — Fisher Investments’ customers have access to their own private investment advisor not on a commission.
Cons
- Higher fees — Fisher Investments charges a much higher fee as compared to robo-advisors, but they also offer a more personalized and higher level of service
Alternatives to Fisher
| Fees | Minimum Investment | |
|---|---|---|
| Fisher Investments | 1%-1.5% | You'll need a net worth of at least $500,000 |
| Fidelity | 0.20% - 1.7% | $50,000 for a managed account |
| Charles Scwhab | Vary depending on the fund | $1,000 to open a standard account and $5,000 for a managed account |
| Edward Jones | 1.25% to nearly 2% for mutual fund fees | $5,000 |
Fidelity Investments
Fidelity Investments caters to investors at all levels. Fidelity Investments charges less for self-managed accounts and has different fees for portfolio management and wealth management services. For investments accounts with a minimum balance of $50K, the firm designs a specific strategy based on your financial objectives.
Their fee generally varies and ranges from 0.20% – 1.7% with the lowest fee offered to the higher tier accounts. The company prides itself on flexibility, so investors looking for flexible options should find the firm useful.
Charles Schwab
Having a five-star rating in every category, Charles Schwab proved one of the top investment management firms in the country.
You’ll need at least $1,000 to open a standard account and $5,000 for a managed account, and the firm is catering to investors at every level and not just high-net-worth individuals. Customers with an investment of $25,000 qualify for a portfolio consultation.
Edward Jones
One of the oldest companies in the industry, Edward Jones was formed in 1922. Since then, it has provided investment advice and portfolio management services. The company boasts over 13,000 offices which is more than any other brokerage firm. This has helped the company gain seven million clients.
Fees charged by the firm are slightly higher than other investment management firms. They range from 1.25% – nearly 2% for mutual fund fees.
Who is Fisher Investments for?
High-net-worth individuals
The firm primarily caters to high-net-worth individuals, as the starting investment is set at at least $500,000. If you have no experience in building wealth through investments or don’t have the time, Fisher Investments can handle it all.
Those who want a hands-on approach
People who seek a more personalized touch are at ease with Fisher Investments as they offer each client a dedicated personal investment counselor. The counselor will know your financial details and advise you with the best strategy for going forward. Investors can consult with their dedicated counselor at any time without limitations.
Day traders
Investors looking to day trade or trade more frequently will be at ease with the company as it charges a flat fee and no commission based on individual trades.
Summary
Not everyone is at ease with managing their own investments. There is a massive trend of moving towards robo-advisors generated due to the lower fees.
Though robo-advisors charge less, the services offered by Fisher Investments are on a whole different level.
The provision of a personal investment counselor who knows the ins and outs of your financial situation provides you with mental relief and an added satisfaction that your money is being managed well. This level of highly personalized service is not available with robo-advisors.
The most compelling factor in choosing Fisher Investments over any robo-advisor is that the company pursues active investment management as a strategy. robo-advisors use passive management which entails matching the performance of the market. Active investment strategy, which Fisher uses, aims to beat the market.
So if you’ve got money to invest and what a bit more of a white glove service, check out Fisher Investments.
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