Are you tired of automatically investing in Fidelity without having full control over your money? Do you want to take a break from the constant deductions from your paycheck or bank account? If so, you’re in the right place. Stopping automatic investments in Fidelity can seem daunting, but with the right guidance, you can regain control over your finances. In this comprehensive guide, we’ll walk you through the process of stopping automatic investments in Fidelity and provide you with the confidence to make informed decisions about your money.
Understanding Automatic Investments in Fidelity
Before we dive into the process of stopping automatic investments, it’s essential to understand how they work. Automatic investments in Fidelity are a convenient way to invest a fixed amount of money at regular intervals, usually through automatic deductions from your paycheck or bank account. This investment strategy is often used to take advantage of dollar-cost averaging, which can help reduce the impact of market volatility on your investments.
However, automatic investments can also have drawbacks, such as:
- Lack of control: With automatic investments, you may feel like you’re losing control over your money, as a fixed amount is being deducted from your account without your explicit approval.
- Inflexibility: Automatic investments can be inflexible, making it difficult to adjust your investment amount or frequency in response to changing market conditions or personal financial circumstances.
- Fees and charges: Automatic investments may be subject to fees and charges, which can eat into your investment returns.
Why You Might Want to Stop Automatic Investments in Fidelity
There are several reasons why you might want to stop automatic investments in Fidelity, including:
- Financial constraints: You may be experiencing financial difficulties and need to reduce your investment amount or frequency to free up more money for essential expenses.
- Changing investment goals: Your investment goals may have changed, and you want to reallocate your money to a different investment vehicle or strategy.
- Dissatisfaction with Fidelity: You may be unhappy with the performance of your Fidelity investments or the fees and charges associated with them.
How to Stop Automatic Investments in Fidelity
Stopping automatic investments in Fidelity is a straightforward process that can be completed online or over the phone. Here’s a step-by-step guide to help you get started:
Option 1: Stopping Automatic Investments Online
- Log in to your Fidelity account online and navigate to the “Accounts” or “Portfolio” section.
- Click on the “Automatic Investments” or “Recurring Investments” tab.
- Select the investment account you want to modify.
- Click on the “Edit” or “Stop” button next to the automatic investment option.
- Confirm that you want to stop the automatic investment by clicking “Stop” or “Confirm.”
- Review your changes and confirm that the automatic investment has been stopped.
Option 2: Stopping Automatic Investments by Phone
- Call Fidelity’s customer service number at 1-800-FIDELITY (1-800-343-3548).
- Let the representative know that you want to stop your automatic investments.
- Provide your account information and confirm your identity.
- Follow the representative’s instructions to stop the automatic investment.
- Confirm that the automatic investment has been stopped and review your account information.
What Happens After You Stop Automatic Investments in Fidelity?
After you stop automatic investments in Fidelity, you can expect the following:
- No further deductions: No more automatic deductions will be made from your paycheck or bank account.
- Account status: Your Fidelity account will remain active, and you can continue to access your account online or by phone.
- Investment balance: Your investment balance will remain intact, and you can choose to leave it as is or make changes to your investment portfolio.
Tax Implications
Stopping automatic investments in Fidelity may have tax implications, depending on your individual circumstances. You may want to consult with a tax professional or financial advisor to understand the tax implications of stopping your automatic investments.
Alternatives to Automatic Investments in Fidelity
If you’re stopping automatic investments in Fidelity, you may want to consider alternative investment strategies, such as:
- Manual investments: Make manual investments in Fidelity or other investment platforms, giving you more control over your investments.
- Other investment platforms: Explore other investment platforms, such as robo-advisors or brokerage firms, that offer more flexibility and control over your investments.
- High-yield savings accounts: Consider parking your money in high-yield savings accounts, which can provide a lower-risk option with more liquidity.
Conclusion
Stopping automatic investments in Fidelity can be a liberating experience, giving you more control over your money and allowing you to make informed decisions about your investments. By following the steps outlined in this guide, you can confidently stop your automatic investments and explore alternative investment strategies that align with your financial goals and risk tolerance. Remember to review your account information, tax implications, and investment options carefully to ensure a smooth transition.
What is automatic investing, and how does it work with Fidelity Investments?
Automatic investing, also known as dollar-cost averaging, is a popular investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the market’s performance. With Fidelity Investments, automatic investing allows you to set up a systematic investment plan, where a predetermined amount is transferred from your bank account to your investment account at a specified frequency, such as monthly or quarterly. This approach helps to reduce the impact of market volatility and timing risks, as you’re investing a fixed amount regularly, rather than lump sums at specific times.
The automatic investing feature with Fidelity Investments is often used in conjunction with their brokerage accounts, IRAs, and 401(k) plans. When you set up an automatic investment plan, you specify the investment amount, frequency, and the securities you want to invest in. Fidelity then deducts the specified amount from your bank account and invests it in your chosen securities, according to your predetermined schedule.
Why would I want to stop automatic investing with Fidelity Investments?
There are several reasons why you might want to stop automatic investing with Fidelity Investments. One common reason is a change in your financial situation or investment goals. Perhaps you’ve experienced a job change, gotten married, or had a child, and your financial priorities have shifted. You may need to reassess your investment strategy or adjust your investment amounts to accommodate your new circumstances. Another reason could be a desire to take a break from investing or to reevaluate your investment portfolio.
Additionally, you might want to stop automatic investing if you’re experiencing financial difficulties or need to conserve cash for the short term. Stopping automatic investing can help you free up more money in your budget for essential expenses or debt repayment. Whatever the reason, stopping automatic investing with Fidelity Investments is a straightforward process, and this guide will walk you through the steps.
Will stopping automatic investing with Fidelity affect my account performance?
Stopping automatic investing with Fidelity Investments will not directly affect your account performance, as it only stops the recurring investments from being made. Your existing investments will continue to be held in your account, and you can still access them, sell, or transfer them as needed. However, keep in mind that not investing regularly may mean you’re missing out on potential long-term growth opportunities.
It’s essential to evaluate your investment portfolio and adjust it according to your current financial situation and goals. If you’re unsure about how to proceed, consider consulting a financial advisor or conducting your own research to determine the best course of action for your specific circumstances.
Can I stop automatic investing with Fidelity online or do I need to call them?
You can stop automatic investing with Fidelity Investments online or over the phone. If you prefer to manage your account online, you can log in to your Fidelity account, navigate to the “Accounts & Trade” section, and click on “Automatic Investments.” From there, you can select the investment plan you want to stop and follow the prompts to cancel it. Alternatively, you can call Fidelity’s customer service at 1-800-FIDELITY (1-800-343-3548) and speak with a representative to assist you in stopping the automatic investment plan.
Either method is quick and easy, and you can expect the change to take effect immediately. Be sure to confirm that the automatic investment plan has been stopped and that no further investments will be made.
What happens to my existing investments if I stop automatic investing?
When you stop automatic investing with Fidelity Investments, your existing investments will remain intact and unchanged. You can still access your account, view your investments, and make changes as needed. The only difference is that Fidelity will no longer automatically deduct funds from your bank account to invest in your chosen securities.
You can choose to leave your existing investments as is, sell some or all of them, or transfer them to a different investment vehicle. It’s essential to evaluate your investment portfolio regularly to ensure it remains aligned with your financial goals and risk tolerance.
Can I restart automatic investing with Fidelity in the future?
Yes, you can restart automatic investing with Fidelity Investments at any time. If you stopped automatic investing due to a temporary change in your financial situation, you can reactivate it when your circumstances improve. To restart, simply log in to your Fidelity account, navigate to the “Accounts & Trade” section, and select “Automatic Investments.” From there, you can set up a new automatic investment plan or reactivate a previously stopped plan.
Keep in mind that you may need to update your bank account information or investment selections when restarting automatic investing. Be sure to review and confirm the details before reactivating the plan.
Are there any fees associated with stopping or restarting automatic investing with Fidelity?
Fidelity Investments does not charge fees for stopping or restarting automatic investing. You can cancel or reactivate your automatic investment plan at no additional cost. However, be aware that Fidelity may charge other fees associated with your account, such as management fees for certain investment products or maintenance fees for low-balance accounts.
It’s essential to review your account details and understand any fees associated with your investments. If you’re unsure about any fees or have questions about your account, consider consulting a financial advisor or contacting Fidelity’s customer service.