Are you ready to transform your financial future and make your money work harder for you, effortlessly? Imagine a world where your investments grow consistently, without you having to lift a finger after the initial setup. Sounds good, right? That's the power of automatic investing, and with the Fidelity app, it's incredibly accessible.
This comprehensive guide will walk you through every step of setting up automatic investments on the Fidelity app, ensuring you're well on your way to building wealth with discipline and ease.
The Power of Automation: Why Set Up Automatic Investments?
Before we dive into the "how," let's briefly touch upon the "why." Automatic investments, often linked with the concept of dollar-cost averaging, offer several significant benefits:
Discipline: It removes the emotional component from investing. You're less likely to panic-sell during market dips or try to "time the market" (a notoriously difficult feat).
Consistency: Regular contributions, regardless of market fluctuations, mean you buy more shares when prices are low and fewer when prices are high, potentially lowering your average cost over time.
Time Savings: Once set up, you don't need to manually initiate transfers or trades. It's truly "set it and forget it."
Compounding: The magic of compounding works best with consistent contributions. Your earnings start earning their own returns, accelerating your wealth accumulation.
Reaching Goals Faster: Whether it's a down payment, retirement, or a child's education, regular contributions help you steadily progress towards your financial goals.
Now, let's get down to business!
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| How To Set Up Automatic Investments Fidelity App |
A Step-by-Step Guide to Setting Up Automatic Investments on the Fidelity App
Fidelity has made the process quite user-friendly, and we'll break it down into clear, actionable steps.
Step 1: Log In to Your Fidelity Account
Are you logged in to your Fidelity app yet? If not, that's your very first action!
Open the Fidelity App: Locate and tap the Fidelity Investments app icon on your smartphone or tablet.
Enter Your Credentials: Input your username and password. If you have biometric authentication (fingerprint, Face ID) enabled, you can use that for a quicker login.
Two-Factor Authentication (if applicable): If you have 2FA set up (and you should for security!), enter the code sent to your registered device.
Pro-Tip: Make sure your app is updated to the latest version to ensure you have access to all the newest features and a smooth experience.
QuickTip: Stop scrolling, read carefully here.
Step 2: Navigate to the "Transact" or "Move Money" Section
Once you're in, you'll need to find where to initiate money movements.
Look for the Navigation Bar/Menu: At the bottom or top of your screen, you'll typically find a navigation bar with various options.
Tap "Transact" or "Move Money": Fidelity usually categorizes transfers and investments under a "Transact" or "Move Money" tab or icon. Tap on this.
Locate "Recurring Transfers & Investments": Within the "Transact" or "Move Money" section, you'll usually find an option specifically for "Recurring Transfers & Investments" or "Automatic Investing." Tap this to proceed.
Step 3: Choose Your Investment Account
Now it's time to decide where you want your money to go.
Select "Create" or "Set Up New Automatic Investment": You'll likely see a prominent button or link to start a new recurring investment plan.
Choose the Fidelity Account: A list of your Fidelity accounts (e.g., Brokerage, Roth IRA, Traditional IRA, 529 Plan, HSA) will appear. Carefully select the specific account into which you want to set up automatic investments.
Consider Your Goals: Are you saving for retirement (IRA), a child's education (529), or general wealth building (brokerage)? Your choice here is crucial for tax implications and investment strategy.
Step 4: Select the Investment Type
Fidelity offers flexibility in what you can automatically invest in.
Choose a Security Type: You'll typically have options like:
Stocks/ETFs: If you want to automatically buy shares of specific companies or exchange-traded funds.
Mutual Funds: Ideal for diversified, professionally managed portfolios. Fidelity has a vast selection, including their popular index funds.
Fidelity Basket Portfolios: A newer feature that allows you to create and manage a "basket" of stocks and ETFs as a single investment.
Enter Ticker Symbols (for Stocks/ETFs/Baskets): If you chose stocks, ETFs, or baskets, you'll need to enter the specific ticker symbols (e.g., "SPY" for an S&P 500 ETF, "AAPL" for Apple stock).
Tip: If you're unsure of a ticker, there's usually a search function (magnifying glass icon) to help you find it by company name.
Choose Mutual Funds (if applicable): If you selected mutual funds, you'll browse or search for the specific funds you want to invest in.
Step 5: Define Your Investment Frequency and Amount
This is where you set the rhythm of your automatic contributions.
Enter the Dollar Amount: Decide how much you want to invest with each recurring contribution. Even small amounts, consistently invested, can add up significantly over time.
Select Frequency: Choose how often you want the investments to occur. Common options include:
Weekly
Every 2 Weeks (Bi-Weekly)
Monthly
Consider your pay schedule when choosing frequency to ensure funds are available.
Choose a Start Date: Pick the date when your first automatic investment should take place. If the chosen date falls on a weekend or holiday, the transaction will typically occur on the next business day.
Step 6: Select Your Funding Source
Tip: The details are worth a second look.
Where will the money come from?
Link a Bank Account: You'll likely see an option to use a linked bank account. If you haven't linked one yet, you'll be prompted to do so. This usually involves:
Instant Verification: Logging into your bank account through a secure third-party service (like Finicity) for instant verification. This is often the quickest method.
Manual Verification: Providing your bank's routing and account numbers. Fidelity will then make small "test" deposits (usually a few cents) that you'll need to verify in your bank account before the link is complete. This takes a few business days.
Use Your Fidelity Account Balance (Core Position): You can also choose to have the funds pulled directly from the cash balance (core position) within your Fidelity account. This is useful if you regularly transfer money into Fidelity or receive dividends/interest there.
Important Note: Ensure you have sufficient funds in your core position if you choose this option.
Step 7: Review and Confirm Your Setup
This is the crucial final check!
Preview Details: Before finalizing, Fidelity will display a summary of your automatic investment plan:
Fidelity Account: Where the money is going.
Investment Type/Symbol(s): What you're investing in.
Amount: How much per contribution.
Frequency: How often.
Start Date: When it begins.
Funding Source: Where the money is coming from.
Read the Terms and Conditions: Take a moment to review any associated terms and conditions.
Confirm: If everything looks correct and aligns with your financial goals, tap the "Confirm" or "Create Automatic Investment" button.
Congratulations! You've just set up your automatic investments. You'll usually receive a confirmation message in the app and an email detailing your new plan.
Step 8: Monitor and Adjust (Optional but Recommended)
While automatic investing is "set it and forget it," it's not "set it and never look at it again."
Periodic Review: It's a good practice to review your automatic investment plan periodically (e.g., once a year, or after significant life changes).
Life Changes: Did you get a raise? Had a child? Changed your risk tolerance? Adjust your contributions or investment choices accordingly.
Market Conditions: While dollar-cost averaging helps mitigate market volatility, staying informed about broader market trends can help you make informed decisions if you decide to adjust your strategy.
Managing Existing Plans: You can easily modify or cancel your recurring investments in the app by going back to the "Recurring Transfers & Investments" section. You can change the amount, frequency, or even the investments themselves.
Frequently Asked Questions (FAQs)
Here are 10 common questions related to setting up automatic investments on the Fidelity app:
How to check if my bank account is already linked to Fidelity?
QuickTip: Don’t skim too fast — depth matters.
You can typically check your linked bank accounts by navigating to the "Move Money" or "Transfers" section in the Fidelity app, then looking for an option like "Linked Bank Accounts" or "Manage Bank Information."
How to link a new bank account for automatic investments?
Go to "Move Money" or "Transfers," then select "Link a Bank Account" or "Add External Account." You'll then follow the prompts, either by instantly verifying through your bank's login or by manually entering routing and account numbers for micro-deposit verification.
How to change the amount of my automatic investment?
In the Fidelity app, go to "Transact" > "Recurring Transfers & Investments." Find the specific automatic investment you want to modify, and there should be an option to "Edit" or "Modify" the amount.
How to change the frequency of my automatic investment?
Similar to changing the amount, navigate to "Transact" > "Recurring Transfers & Investments," select the plan, and look for an "Edit" or "Modify" option to adjust the frequency (e.g., from monthly to bi-weekly).
How to stop or cancel an automatic investment?
Within the "Recurring Transfers & Investments" section, select the automatic investment plan you wish to stop. There should be a clear option to "Cancel" or "Delete" the plan.
Tip: Reread complex ideas to fully understand them.
How to choose the right investments for my automatic plan?
This depends on your financial goals, risk tolerance, and time horizon. Fidelity offers various resources within the app and on their website (Fidelity Learn, research tools) to help you choose. Common choices include diversified mutual funds (like index funds) or ETFs. If you're unsure, consider consulting a financial advisor or exploring Fidelity Go (their robo-advisor service, which is a different type of automated investing).
How to ensure I have enough money in my bank account for automatic investments?
Set up reminders or integrate your budgeting app to track your bank balance. If you link your bank account, Fidelity will attempt the debit on the scheduled date, and if funds are insufficient, the transfer may fail, potentially incurring fees from your bank.
How to view my upcoming automatic investment schedule?
In the "Recurring Transfers & Investments" section of the app, you should be able to see a summary of all your active automatic investment plans, including their next scheduled transaction dates.
How to get help if I have issues setting up automatic investments?
Fidelity offers robust customer support. You can usually find a "Contact Us" or "Customer Service" option within the app, which provides phone numbers, chat support, and sometimes even a Fidelity Assistant for common queries.
How to understand the difference between "Automatic Investments" and "Fidelity Go"?
"Automatic Investments" allows you to personally choose specific stocks, ETFs, or mutual funds and set up recurring purchases. "Fidelity Go" is a robo-advisor service where Fidelity selects and manages a diversified portfolio for you based on your risk profile, for a small advisory fee (often free for balances under $25,000). While both involve automation, Fidelity Go provides managed portfolios, whereas automatic investments in your brokerage account give you direct control over the specific securities.
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