The wealth-management centers are among a series of steps Fidelity is taking to court the affluent market at a time when these investors looking for advice. At least some of the new services are designed to compete with Schwab‚s Signature Services and the Merrill Lynch Private Client Group. Fidelity is also expected to offer to help affluent individuals find independent financial advisors who use Fidelity‚s custodial and clearing services.
In May, Fidelity launched an Advisor Access Service, which began matching investors with at least $250,000 in assets to private money managers.
The wealth-management centers are expected to target individuals with net worths of at least $500,000. But a premium service also is planned for people with a net worth of at least $3 million. In addition to money management, the new centers are expected to offer financial-planning services for wealthy individuals.
A spokesperson for Fidelity declined to comment. An announcement, however, was expected in late June.
Fewer Workers Confident About Retiring
In what may be a reaction to the volatile stock market and the softening economy, more workers have grown pessimistic about their ability to retire, according to a recent study. However, the majority think they‚ll have enough money to retire comfortably.
"There‚s no real panic out there–not yet," says Danny Devine, spokesman for the Employee Benefit Research Institute (EBRI), one of several groups that co-sponsored the 11th Annual Retirement Confidence Survey.
One of the survey‚s key findings was the first drop in worker retirement confidence since 1996. Sixty-three percent of respondents say they are either "very" or "somewhat" confident about retiring comfortably, down from 72% in 2000. Thirty-five percent say they are not confident about retiring comfortably, up from 28% a year ago.
But the lagging confidence apparently hasn‚t caused workers to spring into action because fewer of them say they have saved for retirement. Seventy-one percent say they have saved for retirement, down from 75% in 2000.
The survey didn‚t question respondents on what factors are impacting their feelings about retirement, but speculation is that the stock market, the economy and even rising medical costs could enter into play. One official says health-care considerations may play a larger role than some may think. "The decline in retirement confidence has occurred as public attention to the high cost of prescription drugs and long-term care has increased," EBRI President and CEO Dallas Salisbury says. "Fifty-one percent of those who retire early say it is for a medical reason, and confidence in having the funds for medical expenses or for long-term care is very low."