How to Set up Automatic Investment Fidelity
Automatic investments can be an effective way to grow your wealth over time without the hassle of constantly monitoring and managing your investments. Fidelity offers a convenient and user-friendly platform to set up automatic investments, allowing you to effortlessly contribute to your investment accounts on a regular basis. In this article, we will guide you through the process of setting up automatic investment with Fidelity and answer some frequently asked questions to help you make the most of this feature.
Setting Up Automatic Investment with Fidelity
1. Open an account: If you don’t already have an account with Fidelity, start by opening one. You can choose from a variety of account types, including individual brokerage accounts, IRAs, and 401(k)s, depending on your investment goals and needs.
2. Choose your investment strategy: Before setting up automatic investments, it’s important to determine your investment strategy. Consider factors such as your risk tolerance, investment objectives, and time horizon. Fidelity offers a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), stocks, and bonds, allowing you to build a diversified portfolio that aligns with your goals.
3. Set up automatic contributions: Once you have determined your investment strategy, log in to your Fidelity account and navigate to the automatic investment page. Specify the amount you want to contribute, the frequency of contributions (e.g., weekly, monthly), and the investment account you wish to deposit into. You can also select the specific investment(s) you want your contributions to be allocated to.
4. Funding your automatic investment: To fund your automatic investment, link your bank account to your Fidelity account. This will enable Fidelity to withdraw the specified amount from your bank account and invest it according to your instructions. You can set up recurring transfers or make one-time contributions, depending on your preference.
5. Monitor your investments: While automatic investments can save you time and effort, it’s important to regularly review and monitor your investment portfolio. Keep track of performance, review your investment allocations, and make adjustments as needed to ensure your portfolio remains aligned with your goals.
Frequently Asked Questions (FAQs):
1. Can I set up automatic investments for multiple accounts?
Yes, you can set up automatic investments for multiple accounts within your Fidelity account. Simply repeat the process outlined above for each account you wish to contribute to.
2. Can I change the amount or frequency of my automatic contributions?
Absolutely. Fidelity allows you to modify or cancel your automatic contributions at any time. Simply log in to your account and navigate to the automatic investment page to make the necessary changes.
3. Are there any fees associated with automatic investments?
Fidelity does not charge any fees for setting up or maintaining automatic investments. However, note that there may be fees associated with specific investments or account types. Be sure to review the fee schedule provided by Fidelity or consult with a financial advisor for more information.
4. Can I make additional contributions outside of the automatic investment plan?
Yes, you can make additional contributions to your Fidelity account outside of the automatic investment plan. Simply log in to your account and navigate to the funding page to make a one-time contribution.
5. Can I stop my automatic investments temporarily?
Yes, you can temporarily stop your automatic investments by simply logging in to your Fidelity account and navigating to the automatic investment page. From there, you can pause or modify your contributions as needed.
6. Can I invest in specific stocks through automatic investments?
Yes, you can choose to invest in specific stocks through automatic investments. Fidelity offers a wide range of investment options, including individual stocks, mutual funds, and ETFs.
7. Is there a minimum investment required for automatic investments?
Fidelity does not impose a minimum investment requirement for automatic investments. However, certain investment options may have their own minimum investment thresholds.
8. Can I set up automatic investments for my retirement account?
Yes, you can set up automatic investments for your retirement account, such as an IRA or 401(k), through Fidelity’s platform. This can help you consistently contribute to your retirement savings without having to remember to do so manually.
9. Can I change the investments my automatic contributions are allocated to?
Certainly! You can modify the allocation of your automatic contributions by logging in to your Fidelity account and navigating to the automatic investment page. From there, you can select different investments or change the percentages allocated to each investment.
10. What happens if I don’t have enough funds in my bank account for a scheduled automatic contribution?
If you don’t have sufficient funds in your bank account for a scheduled automatic contribution, Fidelity will typically notify you of the failed transaction. You can then decide whether to reschedule the contribution for a later date or make a manual contribution.
11. Are there any tax implications associated with automatic investments?
The tax implications of automatic investments depend on the type of account you are investing in and the investments themselves. Consult with a tax advisor to understand the specific tax implications applicable to your situation.
12. Can I set up automatic investments for a custodial account?
Yes, you can set up automatic investments for a custodial account with Fidelity. This can be a great way to save and invest for a child’s education or future financial needs.
In conclusion, setting up automatic investments with Fidelity can simplify your investment journey and help you grow your wealth over time. By following the steps outlined above and keeping these FAQs in mind, you can take advantage of this convenient feature and enjoy the benefits of consistent and disciplined investing. Remember to regularly review your investments and consult with a financial advisor to ensure your portfolio remains aligned with your goals.
