how to set up automatic investment fidelity

Direms

3 min read

·

11-12-2024

120

0

Share

Investing regularly can significantly boost your financial future. One of the easiest ways to achieve consistent investing is through automatic investing. Fidelity, a well-known brokerage firm, offers several ways to automate your investments. This guide will walk you through setting up automatic investments with Fidelity, empowering you to build wealth effortlessly.

Getting Started: Your Fidelity Account

Before you begin automating your investments, ensure you have a Fidelity account. If you don't, you'll need to open one. This typically involves providing personal information, choosing an account type (brokerage, IRA, etc.), and funding your account.

Account Types & Automatic Investing:

The process for setting up automatic investing might vary slightly depending on your account type. Fidelity offers several, including:

• Brokerage Accounts: Suitable for various investment strategies.
• Retirement Accounts (IRAs): Traditional and Roth IRAs for tax-advantaged retirement savings.
• 529 Education Savings Plans: For saving for education expenses.

Method 1: Setting Up Automatic Investments via Fidelity's Website

This is the most common and often preferred method.

1. Log in: Access your Fidelity account online.
2. Navigate to Investing Tools: Look for a section dedicated to "Investing Tools," "Automatic Investing," or similar. The exact wording may differ slightly depending on Fidelity's website updates.
3. Choose Your Investment Account: Select the specific account (brokerage, IRA, etc.) where you want to automate your investments.
4. Select "Automatic Investing": Click on the option to set up automatic investments.
5. Choose Your Investment Strategy: You’ll likely have options like:
   • Dollar-Cost Averaging (DCA): Investing a fixed dollar amount at regular intervals (e.g., $100 per week). This strategy helps mitigate risk by buying more shares when prices are low and fewer when they're high.
   • Investing in a Specific Fund or Stock: Investing a fixed dollar amount in a particular fund or stock.
6. Specify the Investment Details: Indicate the amount you want to invest, the frequency (daily, weekly, monthly), and the investment vehicle(s).
7. Review and Confirm: Carefully review your settings before confirming. Ensure all details are accurate. Double check the account you’re investing into.
8. Schedule Your First Investment: Once confirmed, your first automatic investment will be scheduled.

Method 2: Setting Up Automatic Investments via the Fidelity Mobile App

Fidelity's mobile app provides a convenient way to manage your investments, including setting up automatic investments. The process is generally similar to the online method:

1. Log in: Open the Fidelity app and log into your account.
2. Locate "Automatic Investing": Look for a section related to automatic investing, often under "Investing" or "Portfolio."
3. Follow On-Screen Instructions: The app will guide you through the process. This typically involves selecting your account, specifying the investment amount and frequency, and choosing your investment.
4. Review and Confirm: Carefully review the details before confirming your settings.

Method 3: Linking Your Bank Account for Automatic Transfers (ACH)

To ensure consistent automatic investing, you'll likely need to link your bank account to your Fidelity account for automatic transfers. This allows Fidelity to automatically debit funds from your bank account to fund your investments.

This linking process is typically handled during the initial account setup or can be managed within your Fidelity account settings. Look for options related to "ACH Transfers" or "Bank Linking."

Frequently Asked Questions (FAQs)

Q: Can I change my automatic investment settings?

A: Yes, you can modify your automatic investment settings at any time through the Fidelity website or mobile app. Remember to log in securely.

Q: What if I don't have enough funds in my bank account?

A: If your bank account doesn't have sufficient funds for the scheduled automatic investment, the transaction will likely fail. You may receive a notification from Fidelity.

Q: What are the fees associated with automatic investing?

A: There are typically no additional fees for setting up and using automatic investments. However, standard brokerage fees or transaction fees might still apply depending on your investment choices. Review Fidelity's fee schedule for details.

Q: Can I cancel automatic investments?

A: Yes, you can cancel automatic investments at any time through your Fidelity account settings.

Conclusion

Setting up automatic investing with Fidelity is a straightforward process that can significantly simplify your investing strategy. By automating your investments, you can consistently build wealth, benefitting from the power of compound interest and dollar-cost averaging. Remember to carefully review your settings and ensure they align with your financial goals. Consult a financial advisor if you need personalized guidance.