What Every Fidelity Investor Needs to Know [Hardcover]

James Lowell (Author)

Book Description

Publication Date: November 3, 2006

Fidelity offers investors some of the most innovative financial tools, products, and platforms currently available, and with What Every Fidelity Investor Needs to Know, James Lowell—one of the most trusted names in the investment business and a self-described Fidelity fanatic—will help you get the best out of what Fidelity has to offer; whether it be through taxable accounts, IRAs, or 401(k)s.

Editorial Reviews

From the Inside Flap

With more than $1.1 trillion in mutual fund assets and more than nineteen million shareholders, Fidelity Investments has long ruled the mutual fund industry. But its services extend far beyond mutual funds to include discount brokerage services, retirement services, estate planning, securities execution and clearance, life insurance, and venture capital.

While Fidelity offers both novice and sophisticated investors some of the most innovative financial tools, products, and platforms currently available, the degree to which you'll benefit from your relationship with Fidelity depends upon how much you're willing to put into it. That's why James Lowell—one of the most trusted names in the investment business and a self-described Fidelity fanatic—has written What Every Fidelity Investor Needs to Know.

When it comes to investment know-how and guidance, Lowell's advice—some of which can be found in his multiple award-winning, independent newsletter Fidelity Investor (www.fidelityinvestor.com)—has helped hundreds of thousands of investors consistently outperform the market with less risk. And now he wants to show you how to do the same.

What Every Fidelity Investor Needs to Know is a clear and distinct guide that will help you get the best out of what Fidelity has to offer—whether it be through taxable accounts, IRAs, or 401(k)s. Using his proven investment experience and professional insights, Lowell walks you through the process of:

• Opening and understanding your Fidelity accounts—from reading your statements to investing online
• Planning for your retirement, saving for your child's education, and making charitable donationsthrough Fidelity
• Choosing from more than 300 actively managed,index-focused, and ETF-based funds—including Fidelity's Magellan Fund, Spartan Funds,and the ONEQ
• Tailoring a portfolio to your specific needs,risk tolerance, and investment objectives
• And much more

While firmly focused on the financial issues that matter to you most, this practical guide also takes the time to familiarize you with the distinct culture that has allowed Fidelity—and its investors—to prosper for more than fifty years. Not only will you learn about the distinguished history of this great company, but you'll also discover some of its long-standing traditions, such as why Fidelity prefers to develop its own management talent.

Engaging and accessible, informed and actionable, What Every Fidelity Investor Needs to Know contains the information you need to secure your financial future today.

From the Back Cover

Praise for What Every Fidelity Investor Needs to Know

"No one knows more about Fidelity, nor communicates it more eloquently, than Jim Lowell. An added bonus is that his fund picks and portfolio composition have a record of beating the market, with less risk. No Fidelity investor should be without this invaluable guide."
—Daniel P. Wiener Editor, The Independent Adviser for Vanguard Investors www.AdviserOnline.com

"This book is a fascinating read for anybody who wants to learn about the history and inner workings of America's largest fund company, as well as find out how best to use its vast resources to improve investment returns."
—David Callaway Editor in Chief, MarketWatch.com

"Nobody knows Fidelity better than Jim Lowell, nor explains it more clearly to the rest of us."
—Timothy Middleton Mutual Funds Columnist, MSN Money author of Investment Secrets from PIMCO's Bill Gross

"Among the dozens of so-called Fidelity gurus I have met, Jim Lowell stands out because he is not only an expert on all of Fidelity's hundreds of fund products, but he has an insider's knowledge of the portfolio managers who call the shots. Best of all, his clear explanations cut through the jargon for investors."
—Matthew Schifrin Vice President and Editor, Forbes Newsletter Group

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Product Details

• Hardcover: 338 pages
• Publisher: Wiley; 1 edition (November 3, 2006)
• Language: English
• ISBN-10: 0470036273
• ISBN-13: 978-0470036273
• Product Dimensions: 9 x 6.2 x 1.6 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars  See all reviews (2 customer reviews)
• Amazon Best Sellers Rank: #342,029 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

19 of 20 people found the following review helpful:

4.0 out of 5 stars Comprehensive Review of Fidelity Funds, December 26, 2006

By 

L. Masonson (Monroe, New York USA) - See all my reviews
(REAL NAME)   

This review is from: What Every Fidelity Investor Needs to Know (Hardcover)

James Lowell has spent many years analyzing Fidelity funds for his well-known website and newsletter. In this 338-page, twenty chapter book, the author tells you everything you ever wanted to know about Fidelity funds from their inception through current times. Part One of the book begins with the basics including the history of the firm, and then covers the mechanics of opening an account accompanied by a description of the fees and charges involved. Next, in separate chapters the author covers how to read the Fidelity monthly statement and how to master their online site.

Part Two first reviews retirement planning (IRAs, 401(k)s, 529s, UTMAs/UGMAs), a generic description of mutual funds, and then a five-page barebones chapter on charitable giving, including trust and estate planning.

Part Three, composed of eleven chapters, is by far the heart of the book. It covers all the Fidelity fund categories (e.g., growth, international, sector, money market, bond, Advisor funds, variable annuity, and index funds). Lowell devotes a paragraph to each fund in each of the categories. Interestingly, he doesn't mention funds that are closed to new investors.

He includes scatter diagrams of the fund categories of risk vs. return, but all the diagrams are too small to read. Also, included is a correlation matrix of growth funds compared to other funds, sector funds compared to each other, bond funds compared to each other, and Fidelity Advisor funds compared to one another. Again a two-page matrix would have been much more readable.

Lowell is a proponent of buying the "fund manager" not the fund, since he believes that fund management is the most important determinant of fund performance for diversified funds. Chapter 7 in Part Three is devoted to the importance of the fund manager, since individual managers run most funds rather than teams which is common at American Funds, for example.

Lowell provides a five-page table showing the management tenure for each fund since inception with a listing of the manager name and period managed. The date of this data table is not provided, but I assume it was around April 2006. To help investors determine a manager's performance record, the author provides quantitative data in table format measuring risk-adjusted relative returns, and other relative returns over various periods. Unfortunately, the small font size used (printed on only 1.25 pages) requires a magnifying glass to read. Considering the importance of the data to making mutual fund decisions, it should have been printed horizontally on four pages.

Appendix C is provided which lists the 114 Fidelity Fund Managers. This 19-page appendix alphabetically lists the fund managers with their college degrees, which funds they currently manage and prior fund management at Fidelity with dates and any prior employment. This appendix is not that useful information, since all managers have college or master degrees and there is no data correlating manager performance to educational background. It is interesting to note how many managers Fidelity recruits out of college or after receiving their MBA or Ph.D. Interestingly, only 5 out 114 managers have received their CFA designation, certainly not an impressive statistic.

Part Four covers three sample diversified model portfolios, chasing hot funds, and Fidelity's top stock holdings list as of 3/31/06. This list is not useful, since it is at least nine months old by the time an individual gets this book which was published in December 2006.

The end of the book contains glossaries and a few appendices. Included is an 11-page glossary of generic investment terms supplemented by a four-page glossary of Fidelity related terms

Appendix A 9 pages long lists all Fidelity's Investor Centers across the country by State, then city with address and phone number. This was nice to include, but not really necessary with the availability of 800 numbers and Fidelity online.

Appendix B contains a 2002 interview by Lowell with Peter Lynch, legendary Fidelity Magellan fund manager and currently vice chairman of Fidelity Investments. There are good insights on investing by Lynch which will stand the test of time.

Overall, Lowell provides a readable, organized treatise on Fidelity funds. New Fidelity investors and current investors who want to know all that Fidelity offers will benefit from reading this book.

2 of 7 people found the following review helpful:

4.0 out of 5 stars Lowell's latest FIDO Book, February 2, 2007

By 

Charles J. Boyle - See all my reviews
(REAL NAME)   

This review is from: What Every Fidelity Investor Needs to Know (Hardcover)

Informative Writings with good data & thoughful analysis.
Charts & Graph while readable the font size is too small.