The Value of Working with a Financial Advisor

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1 The Value of Working with a Financial Advisor

2 Pursuing your financial goals can sometimes seem overwhelming, especially without someone to guide you in the right direction. A financial advisor can help you make sense of the markets and put together a financial plan tailored just for you. Not FDIC Insured May Lose Value No Bank Guarantee

3 A Qualified Professional Who Can Tailor an Investment Plan to Your Goals Even for the most experienced investor, today s markets can be overwhelming. The abundance of available investment options and increased market volatility makes it difficult to balance personal and financial priorities and stay on top of it all. Whether you re building an emergency fund, buying a home, or saving for retirement, you most likely have a mix of short- and long-term financial goals. Knowing how to invest to meet these objectives takes proper research, planning, and time. You and your financial advisor can add value when markets are up and protection in times of volatility by making a plan that takes into account multiple: Asset classes Managers Time horizons Here s how your advisor can help you: Planning Your financial advisor will ask you a variety of questions not only during your first consultation, but every time you meet. Identifying what s most important to you and your family allows your advisor to assess your goals, risk tolerance, and time horizon. He or she will compile this information to customize an approach that makes the most sense for you. Portfolio Construction Asset performance is affected by more than S&P 500 or Dow Jones Index results on any given day; it s driven by economic and financial market trends your financial advisor has exposure to and thoroughly understands. He or she will build a plan you re both comfortable with, based on: The asset allocations that make sense for you The types of assets you should invest in based on various fund families investment capabilities Regular Check-Ins Change is inevitable. You should let your advisor know about changes in your life that may affect your financial plan for example, getting married, making a career move, having a baby, or considering retirement.

4 A Trusted Mentor Who Can Offer More Than Just Retirement Advice Working with financial advisors does come at a cost: most charge an associated fee depending on the structure of their business. When it comes to your investments, it s important to know exactly what you are paying for. A good financial advisor is fully transparent about these fees and can offer a range of services, depending on what you re looking for a one-time consultation, ongoing financial planning, or full investment management. Your advisor can be your financial mentor no matter what level of assistance you need. He or she will be available to answer all your financial questions, including those related to your goals. Some other areas your advisor can help with: Navigating the rules during tax season Assessing whether to lease or buy an automobile Managing an emergency fund Refinancing your mortgage Securing commercial financing/lending options Planning to fund college Consulting on career paths and salary potential Long-term care insurance planning Estate planning Investing for income or for growth strategies Systematic withdrawal plans Trusts Charitable gifting

5 An Invaluable Third Party Who Can Help Take the Emotion Out of Investing Investors generally tend to buy investments currently performing strongly and sell underperforming ones, letting their emotions drive decisions. Reaching your goals does not happen by accident Unfortunately, these actions are often poorly timed, resulting in investors owning underperforming assets. Your financial advisor can help take the emotion out of investing by using disciplined investment processes, backed by strategic thinking, to avoid impulsive decisions. THE AVERAGE INVESTOR CONSISTENTLY UNDERPERFORMS Average annual returns ( ) GAP Average Investor Underperforms the Index 9.85% 5.19% GAP 6.20% GAP 9.91% 2.47% GAP Once you take the initiative and choose to work with an advisor, remember these steps to help you get there and make the most of your new relationship. Be open and honest. Your advisor will have difficulty helping you if you hold back important information or leave out key details. Keep your advisor in the loop. Your financial plan has to evolve with your circumstances. Keep your advisor updated on major life changes. Be proactive. Stay actively involved by reviewing your account statements, reading information on your investments, and documenting what you have agreed to. Stocks Average Equity Fund Investor Bonds 0.80% Average Bond Fund Investor Asset Allocation Average Asset Allocation Fund Investor Stocks Bonds Asset Alloction Be realistic. Your advisor can t predict how the markets will perform or if a recommendation will pan out. Please see back cover for information regarding Dalbar s Quantitative Analysis of Investor Behavior Study.

6 Achieve your financial goals. Contact your financial advisor today. institutional.fidelity.com Unless otherwise disclosed to you, in providing this information, Fidelity is not undertaking to provide impartial investment advice, act as an impartial adviser, or to give advice in a fiduciary capacity. Not NCUA or NCUSIF insured. May lose value. No credit union guarantee. Third-party trademarks and service marks are the property of their respective owners. Dalbar s Quantitative Analysis of Investor Behavior Returns are for the period ending December 31, Average equity investor and average bond investor performance results are calculated using data supplied by the Investment Company Institute. Investor returns are represented by the change in total mutual fund assets after excluding sales, redemptions, and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses, and other costs. After calculating investor returns in dollar terms, two percentages are calculated for the period examined: total investor return rate and annualized investor return rate. Total return rate is determined by calculating the investor return dollars as a percentage of the net of the sales, redemptions and exchanges. Stocks are represented by S&P 500 Index; Bonds represented by Bloomberg Barclays U.S. Aggregate Bond Index; Asset allocation represented by a custom benchmark of 50% of S&P 500 Index and 50% Bloomberg Barclays U.S. Aggregate Bond Index. You cannot invest directly in an index FIDELITY INVESTMENTS INSTITUTIONAL SERVICES COMPANY, INC., 500 SALEM STREET, SMITHFIELD, RI