How to Set Up Recurring Investment in Fidelity
Investing regularly is a smart way to build your wealth over time. By setting up a recurring investment plan, you can automate the process and ensure that you consistently contribute to your investment portfolio. Fidelity, one of the leading investment management companies, offers a user-friendly platform that allows you to easily establish a recurring investment plan. In this article, we will guide you through the steps to set up a recurring investment in Fidelity and answer some commonly asked questions.
Setting up a recurring investment plan in Fidelity:
1. Open a Fidelity account: If you don’t already have a Fidelity account, you need to open one. Visit the Fidelity website and follow the instructions to create an account.
2. Log in to your Fidelity account: Once you have successfully created your account, log in using your credentials.
3. Navigate to the “Accounts & Trade” tab: On the Fidelity homepage, you will find a navigation bar. Click on the “Accounts & Trade” tab to access your account details.
4. Select the desired account: If you have multiple accounts with Fidelity, choose the one you want to set up a recurring investment plan for.
5. Go to “Manage Account”: Under the selected account, you will find a “Manage Account” option. Click on it to proceed.
6. Choose “Recurring Investments”: Within the “Manage Account” section, you will see a list of options. Select “Recurring Investments” to initiate the setup process.
7. Set up your investment details: In this step, you will provide the necessary information to create your recurring investment plan. Choose the investment you want to make, specify the amount you want to invest, and select the frequency (e.g., weekly, monthly) of your contributions.
8. Select the source of funds: You will need to specify the source of funds for your recurring investments. You can either use an existing Fidelity account or link an external bank account.
9. Review and confirm: Double-check all the details you have entered and ensure they are accurate. Once you are satisfied, click on the “Confirm” button to proceed.
10. Complete the setup process: Follow the on-screen instructions to complete the setup process. You may need to provide additional information, such as your bank account details if you are linking an external account.
11. Monitor your recurring investments: After successfully setting up your recurring investment plan, you can monitor its progress by accessing your Fidelity account. You will also receive periodic statements and notifications regarding your investments.
Frequently Asked Questions (FAQs):
1. Can I change the amount or frequency of my recurring investments?
Yes, you can modify your recurring investment plan at any time. Simply log in to your Fidelity account, go to “Manage Account,” and select “Recurring Investments” to make the desired changes.
2. Can I cancel my recurring investment plan?
Yes, you can cancel your recurring investment plan at any time. Just follow the same steps mentioned above and choose the option to cancel the plan.
3. Can I set up recurring investments for multiple accounts?
Yes, you can set up recurring investments for multiple Fidelity accounts. Simply repeat the steps mentioned earlier for each account you want to establish a plan for.
4. Is there a minimum investment requirement for recurring investments?
Fidelity does not impose a minimum investment requirement for recurring investments. However, some mutual funds or investment options may have their own minimum investment thresholds.
5. Can I invest in different funds or securities with my recurring investment plan?
Yes, you can allocate your recurring investments across different funds or securities. Fidelity provides a wide range of investment options to choose from.
6. Are there any fees associated with recurring investments?
Fidelity may charge transaction fees or account maintenance fees depending on the specific investment options you choose. It is recommended to review the fee schedule provided by Fidelity or consult with a financial advisor for detailed information.
7. Can I change the source of funds for my recurring investments?
Yes, you can change the source of funds for your recurring investments. Simply go to “Manage Account” and select the option to modify the source of funds.
8. How long does it take for my recurring investment to be processed?
The processing time for recurring investments may vary depending on various factors, such as the investment option chosen and the source of funds. It is advisable to check the specific processing timelines mentioned by Fidelity for your investments.
9. Can I make additional one-time investments alongside my recurring investments?
Yes, you can make additional one-time investments alongside your recurring investments. Fidelity offers the flexibility to contribute to your investments as and when desired.
10. Can I make changes to my recurring investments during market holidays?
Yes, you can make changes to your recurring investments even during market holidays. However, the processing of such changes may be delayed and could occur on the next business day.
11. Can I set up recurring investments for individual stocks or only mutual funds?
Fidelity allows you to set up recurring investments for both individual stocks and mutual funds. You can choose the investment option that aligns with your financial goals.
12. Are there any tax implications for recurring investments?
Recurring investments may have tax implications, such as capital gains or dividends. It is advisable to consult with a tax advisor to understand the tax implications specific to your investment plan.
In conclusion, Fidelity provides a convenient platform to set up recurring investments and automate your contributions towards building your wealth. By following the steps outlined above, you can establish a recurring investment plan tailored to your financial goals. Remember to monitor your investments regularly and consult with a financial advisor if you have any specific concerns or questions. Happy investing!