Financial Advisors Have Opportunity to Help Investors Maximize Retirement Savings While Building Their Business

BOSTON, February 19, 2004 - While more than half (56 percent) of American retirement savers report that missing one year of Individual Retirement Account (IRA) contributions would have an impact on their retirement savings, three out of five (61 percent) are confused about which IRA will best help them meet their retirement goals, according to a recent Fidelity poll.

"As the IRA turns 30 this year, saving for retirement remains one of the most important financial goals for Americans; however, it also can be one of the most daunting," said Marty Willis, executive vice president, Fidelity Investments Institutional Services Company. "Confusion about contribution limits and eligibility, among other things, can lead many retirement savers to forgo investing in an IRA, which could affect their ability to accumulate enough money for a comfortable retirement.

"Financial advisors are in an excellent position to help clients understand their IRA options and choose the right vehicle. Additionally, advisors can play an important role in educating clients about their investment options and helping to create an IRA portfolio that may best meet their long-term financial goals," continued Willis.

The Fidelity survey shows that American retirement savers have a positive outlook and recognize the importance of regular contributions. Three out of four (78 percent) are confident that their current investments will provide solid returns for their retirement. And of the more than 27 million Americans who contributed to an IRA last year and have either contributed or plan to contribute for tax year 2003, virtually all (94 percent) report that their IRA contribution amount will stay the same (62 percent) or increase (32 percent).

Fidelity Advisor IRAs offer access to more than 60 Fidelity Advisor Funds^®1 across major asset classes including equity, fixed-income, and international. Financial advisors and their clients also have access to the Fidelity Advisor Freedom Funds^SM, a series of asset allocation mutual funds that are actively managed to become more conservative as retirement approaches.

"Advisors are increasingly looking for a single-fund option that can deliver appropriate diversification and are managed to meet a client's specific time frame," said Willis. "With Fidelity Advisor Freedom Funds, advisors and their clients can invest in a fund that more closely aligns their changing asset allocation needs with expected retirement dates."

To get the most out of this IRA season, financial advisors should consider discussing the following items with their clients:

•		It's not too late -- Remind clients that 2003 contributions may be made up to and including April 15, 2004. Make sure that the 2003 contribution is specifically designated for that tax year. If it is not, IRS regulations require financial firms to process the contribution for the current year.
•		Invest early and often -- Remind clients to make their 2004 IRA contributions now, instead of waiting until April of next year. Don't let your clients miss out on a year of tax-advantaged compounding. For example, a 35-year-old who makes the maximum annual IRA contribution every January 1 for the current tax year (i.e., makes the 2004 IRA contribution on January 1, 2004, and so on) could accumulate $631,025 after 30 years. If that same individual waits until December 31 to make each annual contribution, he or she may accumulate only $584,282. 2
•		It's all in the name -- Remind clients to review their beneficiary designations and reevaluate beneficiary choices at significant life-stage events, including marriage or divorce, the birth of a child, or the death of a beneficiary.
•		Can't deduct, traditional IRAs still beneficial -- For those clients who exceed the Adjusted Gross Income limits3 and are not eligible to deduct their traditional IRA contributions, remind them that they can still make contributions to non-deductible IRAs. By doing so, they can enjoy the benefits of increased contribution limits and catch-up contributions (if over 50) in a tax-advantaged vehicle. Additionally, remind clients who participate in their employer's qualified retirement plan, such as a 401(k), that they may also be able to contribute to an IRA.
•		No income, no problem -- Remind single-income couples that the non-working spouse may also be eligible to invest in an IRA, which can be a major benefit, especially if the spouse contributes up to the maximum allowable amount, which is $3,000 for 2004, or $3,500 if age 50 or older. By maximizing their annual IRA contributions in an IRA and Spousal IRA, a single-income couple at age 35 could accumulate more than $1.2 million at age 65, compared to only $631,000 if only one spouse contributed.2

Fidelity Offers Advisors IRA Resources

Fidelity offers financial advisors a broad range of sales resources designed to help them strengthen their knowledge of the IRA opportunity and more effectively plan for their clients' retirement. Resources include sales strategies, seminars, and legislative and regulatory updates. Fidelity also offers a comprehensive range of IRA products, including Roth, Traditional, Rollover, SEP and SIMPLE IRAs.

In honor of the IRA's 30th "pearl" anniversary, Fidelity is also making available an IRA "Pearls of Wisdom" kit, designed to help financial advisors communicate the value and benefits of investing in an IRA to their clients. The kit will be available to advisors over the next several weeks.

Financial advisors can learn more about Fidelity's offerings by visiting http://advisor.fidelity.com/individualretirement or calling 1-800-544-9999.

About the Survey

A telephone survey was conducted for Fidelity Investments by Opinion Research Corporation International among a national probability sample of 606 American household financial decision-makers who are saving for retirement. Interviews were completed between December 19-22, 2003. The margin of error is +/- 4% and results were tested at the 95% confidence level.

About Fidelity Investments Institutional Services

Fidelity Investments Institutional Services Company provides investment management services through investment professionals at financial institutions nationwide, including wirehouses, regional and independent broker/dealers, banks, trust companies and insurance companies. The company offers Fidelity Advisor Funds®, Variable Insurance Product (VIP) Portfolios, systematic investment plans, institutional money market funds and a comprehensive line of retirement products and services. Fidelity Investments Institutional Services Company's total assets under management were $189.1 billion as of December 31, 2003.

About Fidelity

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.8 trillion, including managed assets of $988.3 billion as of December 31, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.

¹ Performance of the Advisor Freedom Funds depends on that of the underlying Fidelity funds. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities.
² This example assumes a hypothetical average annual rate of return of 8% compounded annually for 31 years (first day of 35th year through last day of 65th year) and does not reflect any taxes that are due on distributions. This hypothetical example, which assumes contribution limits, including catch-up contribution limits, are maximized every year as provided for under current law, that the individual is eligible to make IRA contributions and that Congress extends the current law beyond its current "sunset" date. This example is for illustrative purposes only and does not represent the performance of any security. Your account may earn more or less.
³ The phase out range for deductibility for single filers is a modified AGI of between $40,000 and $50,000 for tax year 2003 and between $45,000 and $55,000 for tax year 2004. For married individuals filing jointly that is between $60,000 and $70,000 for tax year 2003 and between $65,000 and $75,000 for tax year 2004.

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Fidelity Investments Institutional Services Co., Inc.
82 Devonshire St., Boston, MA 02109

Please consider the fund(s) investment objectives, risks, charges and expenses before investing. For this and other information on any fund available through Fidelity, call your investment professional for a free prospectus or visit advisor.fidelity.com for a free Fidelity Advisor Fund prospectus. Read it carefully before you invest or send money.