Personalized Portfolios

A diversified investment strategy built around a 360-degree view of your financial plan, designed to help you achieve your family’s long-term vision.

Whether you're planning for retirement or looking to grow and protect your wealth, a portfolio built around one or more professionally managed Personalized Portfolios accounts, offered through Fidelity® Wealth Services, can be tailored to your family's unique goals.

Matching asset
allocation to your goal

Goal: 

Retire in 10 years and maintain current lifestyle

Accounts assigned to goal:

Rollover IRA and Roth IRA

Goal asset allocation:
60% stocks / 40% bonds

60% stocks, 40% bonds

Graphic shows how Fidelity allocates multiple Personalized Portfolios accounts to the same goal. In this example, the goal asset allocation is 60% stocks and 40% bonds. Two Personalized Portfolios account are assigned to this goal — a Rollover IRA and a Roth IRA account. In this example, both accounts are invested in a way that aligns to the goal asset allocation, in this case 60% stocks and 40% bonds.



The asset allocation for each Personalized Portfolios account matches the recommended asset allocation for the goal.

FOR ILLUSTRATIVE PURPOSE ONLY.

Building an investment strategy around your other accounts

We recognize that not every account you assign to a goal will be a professionally managed Personalized Portfolios account—some may be managed elsewhere, and some you may manage yourself. In these cases, we're able to include them in your investment plan to create a comprehensive portfolio that includes an asset allocation recommendation for all the accounts you've assigned to a goal.

Integrating other
assets into your plan

When you assign non-Personalized Portfolios assets to a goal, we look at how these are invested when recommending an asset allocation for your Personalized Portfolios accounts. This technique is known as complementing and can help ensure the overall asset allocation for your goal remains appropriate.1

40% bonds, 60% stocks
Graphic shows how Fidelity allocates multiple accounts to the same goal, when one of the accounts is not a Personalized Portfolios account. In this example, the goal asset allocation is 60% stocks and 40% bonds. There's also a non-Personalized Portfolios account with an asset allocation of 100% short-term that's assigned to this goal. Since this is more conservative than the goal asset allocation, we use complementary investing to help ensure the overall asset allocation for the goal remains appropriate. In this example, two Personalized Portfolios account are assigned to this goal — a Rollover IRA and a Roth IRA account. To compensate for the more conservative asset allocation of the non-Personalized Portfolios taxable account, both of these accounts are invested more aggressively than the goal asset allocation, in this case 100% stocks and 0% bonds.

FOR ILLUSTRATIVE PURPOSE ONLY.

The benefits of complementing

Complementing gives us the flexibility to help ensure all accounts assigned to a goal are working together to create an appropriate asset allocation for that goal. When you assign outside or unmanaged accounts to a goal, we look at the stock allocation of those accounts, adjusting your Personalized Portfolios accounts as needed.


It's important to remember that our ability to maintain an appropriate goal asset allocation is dependent on our having current information about the stock allocations for all the accounts assigned to your goal. When the asset allocation for an account we're not managing changes, it's important that you make us aware of those changes so we can review the investment strategy of your Personalized Portfolios accounts to help ensure that your goal asset allocation remains appropriate. To learn more about the importance of maintaining your asset allocation, see Principles of Investing.

  • How it Works

    In this example, the non-Personalized Portfolios account was invested more conservatively (no exposure to stocks) than our recommended asset allocation for the goal (60% stocks). To balance this, we recommended an asset allocation of 100% stocks for the Personalized Portfolios accounts assigned to the goal through a technique known as complementing. This technique considers how any non-Personalized Portfolios accounts are invested as part of our effort to bring the overall asset allocation of all accounts assigned to the goal as close as possible to the recommended asset allocation for the goal.

Personalized Portfolios with Household Tax-Smart Strategies2

For goals that qualify, we're able to expand our toolkit to allow us to better coordinate investment decisions across all your Personalized Portfolios accounts assigned to a goal. Household Tax-Smart Strategies introduces additional tax-smart strategies such as asset location, which enables us to strategically position assets across your Personalized Portfolios accounts as part of our ongoing effort to help enhance after-tax returns.

Strategic positioning of assets

In this example, we've included a joint Personalized Portfolios account as part of the goal. This allows us to vary the asset allocation for the Personalized Portfolios accounts assigned to the goal depending on their tax registrations, while forging them into one cohesive portfolio. Tax-smart strategies3 are applied to the portfolio in an effort to enhance after-tax returns.

40% bonds, 60% stocks
Graphic shows how Fidelity allocates multiple accounts to the same goal, when one of the accounts is not a Personalized Portfolios account and how creating varying asset allocations for each Personalized Portfolios account may help enhance after-tax returns, while continuing to manage risk. In this example, the goal asset allocation is 60% stocks and 40% bonds. There’s also a non-Personalized Portfolios taxable account allocated to 100% short-term investments that’s assigned to this goal. Since this is more conservative than the goal asset allocation, we use complementary investing to help ensure the overall asset allocation for the goal remains appropriate. In this example, three Personalized Portfolios account are assigned to this goal — a Rollover IRA, a Roth IRA, and a joint taxable account. To compensate for the more conservative asset allocation of the non-Personalized Portfolios taxable account, we recommended an aggregate asset allocation of 85% stocks and 15% bonds for the Personalized Portfolios accounts assigned to the goal. Note that each Personalized Portfolios accounts can be managed with varying asset allocations, based in part on the tax registration of the account. In this case the Rollover IRA is given an asset allocation of 78% stocks and 22% bonds, the Roth IRA an asset allocation of 95% stocks and 5% bonds, and the taxable joint account an asset allocation of 95% stocks and 5% bonds. One of the things that enables us to do this on behalf of clients is asset location, which allows each managed account to be managed in such a way as to create an appropriate goal asset allocation while providing tax benefits.

FOR ILLUSTRATIVE PURPOSE ONLY.

  • How it Works

    In this example, the non-Personalized Portfolios account was invested more conservatively (0% exposure to stocks) than our recommended asset allocation for the goal (60% stocks). To balance this, we recommended an aggregate asset allocation of 85% stocks and 15% bonds for the Personalized Portfolios accounts assigned to the goal, as well as a unique asset allocation for each of the Personalized Portfolios accounts.

    Asset location may also increase the impact of some our other tax-smart strategies, which can help further enhance after-tax returns.

    • Enhanced transition management: By integrating eligible securities you've used for funding your portfolio, we may be able to reduce the tax impact when building your portfolio by positioning different assets across the various accounts assigned to your goal.
    • Enhanced tax-smart rebalancing: By factoring in the tax treatment of an account when deciding which investments to buy or sell in order to maintain the appropriate level of risk for your goal, we can reduce the tax impact of maintaining that level of risk.
    • Enhanced tax-smart withdrawals: By being mindful of the tax treatment of the accounts from which we sell assets in order to support your withdrawal strategy, we can help reduce the tax impact of those withdrawals.

    In managing your accounts, we'll always prioritize maintaining an overall asset allocation that's appropriate for your comfort with risk and your goal. However, we've found that tax-smart strategies like asset location can play an important role when it comes to reducing your tax obligations, keeping your money invested and working for you.

A fully coordinated approach

Clients whose goals qualify for Household Tax-smart Strategies and choose to have all their assets managed by Fidelity are able to experience the benefits of a fully coordinated approach. Employing fully coordinated investment decisions across all accounts allows for greater flexibility and may help enhance after-tax returns, while continuing to manage risk.

Asset location is applied
across all accounts

In this case, all the accounts assigned to the goal are Personalized Portfolios accounts, allowing us to more closely coordinate investment decisions as we work to employ asset location in pursuit of higher after-tax returns.

40% bonds, 60% stocks
For clients who choose to have all their assets managed by Fidelity, this graphic shows how asset location is applied across all the Personalized Portfolios accounts assigned to the goal. In this example, the goal asset allocation is 60% stocks and 40% bonds and is comprised of four Personalized Portfolios accounts — a taxable account, Rollover IRA, a Roth IRA, and a joint taxable account. Note that each account can be managed with varying asset allocations, based in part on the tax registration of the account. In this case, the taxable account is given an asset allocation of 72% stocks and 28% bonds, the Rollover IRA an asset allocation of 40% stocks and 60% bonds, the Roth IRA an asset allocation of 80% stocks and 20% bonds, and the joint taxable account an asset allocation of 72% stocks and 28% bonds.

FOR ILLUSTRATIVE PURPOSES ONLY.

Looking to keep more of what you earn?

Make tax-smart investing part of your plan.


To learn more, see tax-smart investing.

More information