Are you invested in the right kind of accounts?

Using your accounts strategically can potentially help improve after-tax returns.

April 20, 2023 View in a browser

FIDELITY VIEWPOINTS® WEEKLY EDITION: April 20, 2023

Are you invested in the right kinds of accounts? You may be able to help improve after-tax returns by holding certain highly taxed investments in tax-advantaged accounts. Optimize your accounts Recession risks rise Inflation is cooling but recessionary pressures are mounting as earnings growth slows. Fidelity pros synthesize what it means for you. What we're watching now How to make your retirement savings last Sticking to these tax-smart withdrawal guidelines can help improve your chances of success. Get your withdrawal number An inflation hedge to consider Gold, oil, and other commodities can provide a hedge against unexpectedly high inflation, but be prepared for volatility. Learn about commodities Check out this powerful Roth saving strategy The so-called "mega backdoor Roth" strategy can help you sock even more away in Roth 401(k)s and IRAs. Boost your savings Video of the week Viewpoints Market Sense: How to spend less in retirement Yes, it is possible to spend less while still enjoying the retirement you've always dreamed of. Our panel of pros share their tips for reducing spending painlessly. Watch now Chart of the week What not to do in a recession The prospect of recession ahead may make it tempting to bail out of stocks in an attempt to avoid losses. But remember that no one rings a bell at the bottom, and selling can mean you may miss out on potential returns. Read more Past performance is no guarantee of future results. Source: Fidelity Investments proprietary analysis of historical asset class performance, which is not indicative of future performance as of March 31, 2021.

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Before investing, consider the investment objectives, risks, charges, and expenses of the fund, exchange-traded fund, or annuity and its investment options. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully. This information is intended to be educational and is not tailored to the investment needs of any specific investor. Past performance is no guarantee of future results. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. The stocks mentioned are not necessarily holdings invested in by Fidelity. References to specific company stocks should not be construed as recommendations or investment advice. The statements and opinions are those of the speaker, do not necessarily represent the views of Fidelity as a whole, and are subject to change at any time, based on market or other conditions. In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. A tax-smart withdrawal plan is a suggested withdrawal strategy based primarily on your stated retirement income needs, the balances and tax status of the accounts assigned to your retirement goal (your "retirement accounts"), and an automated withdrawal service for Fidelity Wealth Services retirement accounts. The strategy presented is designed to minimize the tax impact of withdrawals from your retirement accounts by factoring in the tax-status of these various accounts. There are no guarantees that the strategy will be successful in doing so. Our methodology is dependent on information you provide as well as on various assumptions believed to be reasonable, but which may not reflect your specific situation. Review our methodology carefully.​ The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request. There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared to a single option trade. Sector investing can be more volatile because of their narrow concentration in a specific industry. Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high risk tolerance. Investors in digital assets could lose the entire value of their investment. Diversification cannot ensure a profit or protect against loss. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss. Your ability to sell a CD on the secondary market is subject to market conditions. If your CD has a step rate, the interest rate of your CD may be higher or lower than prevailing market rates. The initial rate on a step rate CD is not the yield to maturity. If your CD has a call provision, which many step rate CDs do, please be aware the decision to call the CD is at the issuer's sole discretion. Also, if the issuer calls the CD, you may be confronted with a less favorable interest rate at which to reinvest your funds. Fidelity makes no judgment as to the credit worthiness of the issuing institution. Fidelity does not provide legal or tax advice and the information provided above is general in nature and should not be considered legal or tax advice. Consult with an attorney or tax professional regarding your specific legal or tax situation. Fidelity Brokerage Services LLC does not offer digital assets nor provide clearing or custody services for such assets.

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