In today’s fast-paced world, time is money. And when it comes to investing, time is of the essence. The earlier you start, the more your money can grow. But, let’s face it, investing can be overwhelming, especially for beginners. That’s why automating your investments is a great way to take control of your financial future without sacrificing precious time. In this article, we’ll explore the benefits of automatic investing with Fidelity and provide a step-by-step guide on how to get started.
Why Automatic Investing with Fidelity?
Fidelity is one of the most reputable and trusted investment companies in the world, with over 75 years of experience and over $2.7 trillion in assets under management. By automating your investments with Fidelity, you can take advantage of their expertise and resources to grow your wealth over time.
There are several benefits to automatic investing with Fidelity, including:
- Convenience: Automatic investing allows you to set it and forget it, making it easier to stick to your investment plan without having to constantly monitor the markets.
- Discipline: By investing a fixed amount of money at regular intervals, you’ll avoid emotional decisions based on market volatility.
- Dollar-cost averaging: Automatic investing helps you take advantage of dollar-cost averaging, which can reduce the impact of market fluctuations on your investments.
- Fee savings: Fidelity offers low-cost investment options, and automating your investments can help you avoid unnecessary fees.
Getting Started with Fidelity
Before you can start automating your investments with Fidelity, you’ll need to open an account. This process is quick and easy, and can be done online or over the phone.
1. Choose the Right Account Type
Fidelity offers a range of account types, including brokerage accounts, IRA accounts, and 401(k) accounts. Choose the account type that best suits your needs and financial goals.
2. Gather Required Documents
You’ll need to provide certain documents to open a Fidelity account, including:
- Identification (driver’s license, passport, or state ID)
- Proof of address (utility bill, bank statement, or lease agreement)
- Social Security number or Individual Taxpayer Identification Number (ITIN)
3. Fund Your Account
You can fund your Fidelity account with a transfer from another brokerage firm, a bank transfer, or a wire transfer. You can also set up automatic transfers from your bank account to fund your investments.
Setting Up Automatic Investing with Fidelity
Once you’ve opened and funded your Fidelity account, you can set up automatic investing. Here’s how:
1. Log in to Your Fidelity Account
Log in to your Fidelity account online or through the mobile app.
2. Navigate to the Transfer & Pay Page
Click on the “Transfer & Pay” tab and select “Set up automatic investments.”
3. Choose Your Investment Option
Select the investment option you want to automate, such as a mutual fund, exchange-traded fund (ETF), or index fund.
4. Set Your Investment Amount and Frequency
Decide how much you want to invest and how often you want to invest it. You can choose from a range of frequencies, including weekly, biweekly, monthly, or quarterly.
5. Review and Confirm Your Settings
Review your automatic investment settings to ensure everything is correct. Confirm your settings to set up the automatic investment plan.
Tips for Successful Automatic Investing with Fidelity
To get the most out of automatic investing with Fidelity, keep the following tips in mind:
- Start small: Don’t feel like you need to invest a lot of money to get started. Start with a small amount and increase it over time as your financial situation allows.
- Be consistent: Consistency is key to successful automatic investing. Set a schedule and stick to it.
- Monitor and adjust: Periodically review your investment portfolio and rebalance it as needed to ensure it remains aligned with your financial goals.
Conclusion
Automating your investments with Fidelity is a great way to take control of your financial future without sacrificing precious time. By following the steps outlined in this article, you can set up a convenient and disciplined investment plan that can help you achieve your long-term financial goals. Remember to start small, be consistent, and monitor and adjust your portfolio as needed. With Fidelity’s expertise and resources, you can rest assured that your investments are in good hands.
| Fidelity Automatic Investing Benefits | Description |
|---|---|
| Convenience | Set it and forget it, making it easier to stick to your investment plan |
| Discipline | Avoid emotional decisions based on market volatility |
| Dollar-cost averaging | Reduce the impact of market fluctuations on your investments |
| Fee savings | Avoid unnecessary fees with Fidelity’s low-cost investment options |
Remember, automating your investments with Fidelity is a long-term strategy. Stay committed to your plan, and over time, you can build wealth and achieve your financial goals.
What is automatic investing, and how does it work?
Automatic investing is a process that allows you to invest a fixed amount of money at regular intervals, typically monthly, without having to manually initiate the investment. This is done by setting up an automatic transfer from your bank account to your investment account. Fidelity’s automatic investing feature allows you to take advantage of this strategy, making it easy to invest regularly and consistently without having to think about it.
With Fidelity, you can set up automatic investments into a variety of accounts, including brokerage accounts, IRAs, and 529 plans. You can choose the frequency of your investments, the amount you want to invest, and the specific investment products you want to use. Fidelity will then automatically deduct the specified amount from your bank account and invest it in your chosen investments.
Do I need to have a Fidelity account to use automatic investing?
Yes, you do need to have a Fidelity account to use their automatic investing feature. If you don’t already have an account, you can easily open one online or through the Fidelity mobile app. Fidelity offers a range of account types, including brokerage accounts, IRAs, and 529 plans, so you can choose the type of account that best fits your investment goals and needs.
Once you have a Fidelity account, you can set up automatic investing by logging in to your account online or through the app, and following the prompts to set up a new automatic investment. You’ll need to link your bank account to your Fidelity account, and then specify the amount and frequency of your investments, as well as the investment products you want to use.
How much money do I need to start automatic investing with Fidelity?
You can start automatic investing with Fidelity with as little as $50 per month. This means that you can begin investing with a relatively small amount of money, and then increase your investments over time as your financial situation allows. There is no minimum balance requirement to open a Fidelity account, and you can start investing automatically as soon as you’ve funded your account.
One of the benefits of automatic investing is that it allows you to take advantage of dollar-cost averaging, which means investing a fixed amount of money at regular intervals, regardless of the market’s performance. This can help you smooth out market fluctuations and avoid trying to time the market, which can be a challenging and often unsuccessful strategy.
Can I change or cancel my automatic investments with Fidelity?
Yes, you can easily change or cancel your automatic investments with Fidelity at any time. You can log in to your Fidelity account online or through the app, and make adjustments to your automatic investment settings. You can change the amount, frequency, or investment products associated with your automatic investments, or cancel them altogether.
If you need to make changes to your automatic investments, be sure to do so at least a few days before the next scheduled investment date, to ensure that the changes take effect in time. You can also contact Fidelity’s customer service team for assistance with making changes to your automatic investments.
Are there any fees associated with automatic investing with Fidelity?
Fidelity does not charge any fees for automatic investing. You can set up and maintain automatic investments without incurring any additional fees or expenses. However, you should be aware that some investment products, such as mutual funds or exchange-traded funds (ETFs), may have their own management fees or expenses.
It’s always a good idea to carefully review the fees and expenses associated with any investment products you’re considering, to make sure you understand the total cost of ownership. Fidelity provides transparent and detailed information about fees and expenses for all of their investment products, so you can make informed decisions about your investments.
How do I get started with automatic investing with Fidelity?
To get started with automatic investing with Fidelity, you’ll need to open a Fidelity account if you don’t already have one. Then, log in to your account online or through the app, and follow the prompts to set up a new automatic investment. You’ll need to link your bank account to your Fidelity account, and then specify the amount and frequency of your investments, as well as the investment products you want to use.
Once you’ve set up your automatic investment, Fidelity will take care of the rest, automatically deducting the specified amount from your bank account and investing it in your chosen investment products. You can monitor your investments and make changes to your automatic investment settings at any time through your Fidelity account online or through the app.
Is automatic investing with Fidelity secure?
Yes, automatic investing with Fidelity is secure. Fidelity uses state-of-the-art security measures to protect your personal and financial information, including encryption, firewalls, and secure servers. Your account information and investment details are protected by passwords, PINs, and other security protocols, to ensure that only you can access your account and make changes to your automatic investments.
In addition, Fidelity is a member of the Securities Investor Protection Corporation (SIPC), which provides limited insurance coverage for brokerage accounts in the event of a brokerage firm’s failure. Fidelity also has additional insurance coverage through Lloyd’s of London, which provides excess SIPC coverage. This means that your investments are protected up to $150 million, including $37.5 million in cash claims.