Investing is a marathon, not a sprint, and consistency is key. One of the best ways to ensure that consistency is by setting up a robust investment schedule. If you're a Fidelity user, you're in luck, as their platform offers excellent tools to help you automate your investment journey. This guide will walk you through, step-by-step, how to schedule your investments in Fidelity, helping you build wealth systematically.
Are you ready to take control of your financial future and make your money work harder for you?
If so, let's dive into the powerful world of scheduled investments with Fidelity!
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| How To Schedule Investments In Fidelity |
Step 1: Accessing Your Fidelity Account and Navigating to Transfers
First things first, you'll need to log in to your Fidelity account.
Logging In: Go to the
Fidelity website Finding the Right Section: Once you're logged in, you'll see your dashboard. Fidelity's interface is generally user-friendly, but sometimes finding specific functions can take a moment. Look for a menu item like "Transfers," "Payments & Transfers," or "Move Money." This is usually located in the top navigation bar or a prominent side menu.
Tip: If you're having trouble locating it, use the search bar (if available) on the Fidelity website and type in "scheduled investments" or "automatic transfers."
Step 2: Initiating a New Scheduled Transfer
Now that you're in the "Transfers" section, it's time to tell Fidelity what you want to do.
Selecting "Set Up an Automatic Transfer": Within the "Transfers" or "Move Money" section, you'll typically find an option to "Set Up an Automatic Transfer," "Schedule an Investment," or "Create a Recurring Transfer." Click on this to begin the process.
Don't Confuse with One-Time Transfers: Be mindful not to select "One-Time Transfer" or "Make a Single Transfer." Our goal here is automation!
Step 3: Defining Your Source and Destination Accounts
This is where you specify where the money is coming from and where it's going.
Tip: Focus on sections most relevant to you.
Choosing the "From" Account:
Bank Account: Most commonly, you'll want to pull money directly from your external bank account (checking or savings). If you haven't linked your bank account to Fidelity yet, you'll be prompted to do so. This usually involves providing your bank's routing number and your account number. You might also need to verify small deposits Fidelity sends to your bank.
Fidelity Core Account: If you already have cash sitting in your Fidelity core account (e.g., in a money market fund), you can also choose to transfer from there into a different investment. This is less common for scheduling new contributions but useful for rebalancing.
Choosing the "To" Account:
Fidelity Brokerage Account: This is your primary investment account where you hold stocks, ETFs, mutual funds, etc.
Fidelity IRA (Traditional, Roth, SEP): If you're contributing to a retirement account, select the appropriate IRA.
Fidelity 529 Plan: For college savings, choose your 529 plan.
Other Fidelity Accounts: Select any other specific Fidelity account you wish to fund.
Important Note: Make sure you select the correct destination account. A mistake here could send funds to the wrong place!
Step 4: Setting the Investment Amount and Frequency
This is the heart of your investment schedule.
Specifying the Amount: Enter the dollar amount you wish to invest with each transfer.
Consider Your Budget: Be realistic about what you can afford to invest consistently. Even small, regular contributions can grow significantly over time thanks to the power of compounding.
Minimums: Be aware that some mutual funds or ETFs may have minimum initial investment requirements, though scheduled investments often help you meet these over time.
Choosing the Frequency: Fidelity typically offers a range of options:
Weekly: For those who get paid weekly and prefer to invest small amounts frequently.
Bi-weekly: Common for those paid every two weeks.
Monthly: A popular choice for many investors, aligning with monthly budgets.
Quarterly: Less frequent, but still provides a consistent approach.
Customizable Options: Some platforms may offer even more granular control, like "every X days."
Selecting the Start Date: Pick the date you want your first automatic investment to occur. Choose a date that aligns with your pay schedule or when funds are reliably available in your "from" account.
Setting an End Date (Optional but Recommended for Specific Goals):
No End Date: For long-term goals like retirement, leaving it open-ended is often the best choice, allowing your investments to run indefinitely.
Specific End Date: If you're saving for a defined short-to-medium-term goal (e.g., a down payment on a house in 5 years), setting an end date can be helpful for tracking.
Step 5: Allocating Your Investments (Where the Money Goes!)
This is a crucial step that often gets overlooked in initial setup guides. Simply transferring money into your brokerage account isn't enough; you need to tell Fidelity how to invest that money.
Directing Funds into Specific Investments:
Mutual Funds: If you're investing in a mutual fund, you'll typically be able to select the specific fund by its ticker symbol (e.g., FSKAX for Fidelity Total Market Index Fund) or name. The money transferred will automatically purchase shares of that fund.
ETFs/Stocks (Less Common for Direct Auto-Purchase): While you can set up recurring transfers into your brokerage account, Fidelity's auto-investment feature is primarily designed for mutual funds. For ETFs and individual stocks, you'll typically need to manually purchase them once the funds arrive in your account. However, some Fidelity accounts and specific features may allow for recurring ETF purchases - always double-check the exact options available for your account type.
Core Position: If you don't specify a particular investment, the money will likely land in your account's core position (often a money market fund). From there, you'd need to manually invest it. The goal here is automation, so specify a fund!
Percentage-Based Allocations (for Multiple Funds): If you're investing in a diversified portfolio of several mutual funds, Fidelity allows you to specify a percentage allocation for each. For example, 60% into a U.S. stock fund and 40% into an international stock fund. This ensures your desired asset allocation is maintained with each new contribution.
Example: If you invest $100 monthly, and set 60% to FSKAX and 40% to FTIDX, then $60 will go to FSKAX and $40 to FTIDX automatically.
Step 6: Review and Confirm Your Scheduled Investment
Before finalizing, take a moment to double-check everything.
Verify All Details:
Source Account: Is it the correct bank account or Fidelity account?
Destination Account: Is this the right investment account (brokerage, IRA, 529)?
Amount: Is the investment amount correct?
Frequency: Is it weekly, monthly, etc., as intended?
Start Date: Is the first transfer date accurate?
End Date (if applicable): Is it set correctly or left open-ended?
Investment Allocation: Are the funds going into the specific mutual fund(s) you want, and are the percentages correct?
Read the Terms and Conditions: While tedious, it's always wise to quickly skim any terms and conditions or disclaimers Fidelity presents.
Click "Confirm" or "Submit": Once you're confident all the details are accurate, click the final button to set your scheduled investment in motion.
Step 7: Monitoring and Adjusting Your Scheduled Investments
Setting it and forgetting it is great, but a little monitoring is healthy.
Tip: Absorb, don’t just glance.
Confirmation Email/Notification: You should receive a confirmation email from Fidelity once your scheduled investment is successfully set up. Keep this for your records.
Tracking Your Progress: Regularly check your Fidelity account to see your investments growing. You'll be able to see the scheduled transactions in your account activity.
Making Changes: Life happens! If your financial situation changes, you can easily modify or cancel your scheduled investments.
Navigate back to the "Transfers" or "Scheduled Transfers" section.
You should see a list of your existing scheduled transfers.
Click on the one you wish to modify or cancel and follow the prompts. You can typically change the amount, frequency, or even the destination fund.
Pro-Tip: Consider increasing your investment amount periodically, especially as your income grows. Even small increases can make a big difference over time.
Conclusion: The Power of Automation
By following these steps, you've successfully automated your investment strategy with Fidelity. This systematic approach, often referred to as dollar-cost averaging, can help mitigate the risks of market timing. You'll be investing consistently, regardless of market fluctuations, which typically leads to better long-term results. Congratulations on taking a significant step towards achieving your financial goals!
10 Related FAQ Questions
How to set up an automatic investment plan in Fidelity?
You can set up an automatic investment plan by logging into your Fidelity account, navigating to the "Transfers" or "Move Money" section, selecting "Set Up an Automatic Transfer," and then defining your source, destination, amount, frequency, and specific investment allocation.
How to change the amount of my scheduled investment in Fidelity?
To change the amount, log into your Fidelity account, go to the "Transfers" or "Scheduled Transfers" section, find the specific scheduled investment you wish to modify, and then select the option to "Edit" or "Modify" the transfer amount.
Tip: Reading in short bursts can keep focus high.
How to stop a recurring investment in Fidelity?
To stop a recurring investment, log into your Fidelity account, navigate to the "Transfers" or "Scheduled Transfers" section, locate the scheduled investment, and then choose the option to "Cancel" or "Delete" the recurring transfer.
How to link my bank account to Fidelity for automatic transfers?
You can link your bank account by going to the "Transfers" or "Move Money" section, selecting "Link a Bank Account" (or similar), and then providing your bank's routing number and account number. Fidelity will usually verify this with small test deposits.
How to schedule investments into multiple mutual funds in Fidelity?
When setting up your scheduled investment, in the allocation step, Fidelity often allows you to specify multiple mutual funds and allocate a percentage of your total investment to each. For example, 60% to Fund A and 40% to Fund B.
How to check the status of my scheduled investments in Fidelity?
You can check the status by logging into your Fidelity account and looking at your account activity or by navigating to the "Transfers" or "Scheduled Transfers" section, where you should see a list of all your active recurring transfers.
QuickTip: Focus on one line if it feels important.
How to ensure my scheduled investments are going to the correct account type (e.g., IRA vs. Brokerage)?
During Step 3, when you're defining the "To" account, carefully select the specific account type (e.g., "Fidelity IRA" or "Fidelity Brokerage Account") from the dropdown menu to ensure funds are directed correctly.
How to invest in ETFs automatically through Fidelity?
While Fidelity's automatic investment feature is primarily geared towards mutual funds, you can schedule recurring transfers of cash into your brokerage account. Once the cash arrives, you would then need to manually purchase the ETFs. Check for specific recurring ETF purchase options that may vary by account type or new Fidelity features.
How to set up a scheduled contribution to my Fidelity 401(k) or 403(b)?
Contributions to employer-sponsored plans like 401(k)s or 403(b)s are typically set up through your employer's HR or benefits portal, not directly through your personal Fidelity account. Contact your HR department for instructions.
How to get help if I have trouble setting up my scheduled investments in Fidelity?
If you encounter any issues, you can contact Fidelity's customer service directly. They offer phone support, live chat, and sometimes even in-person assistance at investor centers. Look for "Contact Us" on their website.
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