Investing in the stock market can be a daunting task, especially for those who are new to the world of finance. However, with the right tools and strategies, anyone can start building wealth over time. One of the most effective ways to invest in the stock market is through recurring investments, which allow you to invest a fixed amount of money at regular intervals. In this article, we will explore how to set up recurring investments with Fidelity, one of the largest and most reputable online brokerages in the world.
Why Recurring Investments Matter
Recurring investments are a powerful tool for building wealth over time. By investing a fixed amount of money at regular intervals, you can take advantage of the power of compound interest and reduce the impact of market volatility on your investments. Recurring investments also help you to develop a disciplined approach to investing, which is essential for achieving your long-term financial goals.
The Benefits of Recurring Investments
There are several benefits to recurring investments, including:
- Reduced market timing risk: By investing a fixed amount of money at regular intervals, you can reduce the risk of investing a large sum of money at the wrong time.
- Increased discipline: Recurring investments help you to develop a disciplined approach to investing, which is essential for achieving your long-term financial goals.
- Improved returns: Recurring investments can help you to take advantage of the power of compound interest, which can result in higher returns over time.
Getting Started with Fidelity
Before you can set up recurring investments with Fidelity, you need to have a Fidelity account. If you don’t already have an account, you can open one by visiting the Fidelity website and following the online application process.
Opening a Fidelity Account
To open a Fidelity account, you will need to provide some personal and financial information, including:
- Your name and address
- Your social security number or individual taxpayer identification number
- Your employment information
- Your financial information, including your income and net worth
Once you have provided the required information, you can fund your account and start investing.
Setting Up Recurring Investments with Fidelity
Setting up recurring investments with Fidelity is a straightforward process that can be completed online or through the Fidelity mobile app.
Step 1: Log in to Your Fidelity Account
To set up recurring investments, you need to log in to your Fidelity account. You can do this by visiting the Fidelity website and entering your username and password.
Step 2: Navigate to the “Transfers” Page
Once you have logged in to your account, you need to navigate to the “Transfers” page. You can do this by clicking on the “Transfers” tab at the top of the page.
Step 3: Select the “Recurring Investment” Option
On the “Transfers” page, you need to select the “Recurring Investment” option. This will take you to a new page where you can set up your recurring investment.
Step 4: Choose Your Investment
On the “Recurring Investment” page, you need to choose the investment you want to make. You can choose from a wide range of investments, including stocks, bonds, ETFs, and mutual funds.
Step 5: Set the Investment Amount and Frequency
Once you have chosen your investment, you need to set the investment amount and frequency. You can choose to invest a fixed amount of money at regular intervals, such as weekly, biweekly, or monthly.
Step 6: Confirm Your Investment
Once you have set the investment amount and frequency, you need to confirm your investment. You can do this by reviewing the details of your investment and clicking on the “Confirm” button.
Managing Your Recurring Investments
Once you have set up your recurring investments, you can manage them online or through the Fidelity mobile app.
Monitoring Your Investments
You can monitor your investments by logging in to your Fidelity account and navigating to the “Investments” page. On this page, you can view the current value of your investments, as well as any gains or losses.
Adjusting Your Investments
You can adjust your investments by logging in to your Fidelity account and navigating to the “Transfers” page. On this page, you can change the investment amount or frequency, or cancel your recurring investment.
Conclusion
Setting up recurring investments with Fidelity is a straightforward process that can help you to build wealth over time. By investing a fixed amount of money at regular intervals, you can take advantage of the power of compound interest and reduce the impact of market volatility on your investments. With Fidelity, you can manage your recurring investments online or through the mobile app, making it easy to stay on top of your investments and achieve your long-term financial goals.
| Investment Type | Minimum Investment | Investment Frequency |
|---|---|---|
| Stocks | $100 | Weekly, biweekly, or monthly |
| Bonds | $1,000 | Monthly or quarterly |
| ETFs | $100 | Weekly, biweekly, or monthly |
| Mutual Funds | $2,500 | Monthly or quarterly |
By following the steps outlined in this article, you can set up recurring investments with Fidelity and start building wealth over time.
What is a recurring investment and how does it work?
A recurring investment is a type of investment where a fixed amount of money is invested at regular intervals, such as monthly or quarterly. This type of investment allows you to invest a fixed amount of money regularly, which can help you build wealth over time. By setting up a recurring investment, you can take advantage of dollar-cost averaging, which means that you’ll be investing a fixed amount of money at regular intervals, regardless of the market’s performance.
Recurring investments can be set up through various investment platforms, including Fidelity. To set up a recurring investment with Fidelity, you’ll need to create an account and fund it with money. Then, you can set up a recurring investment by specifying the amount you want to invest, the frequency of the investment, and the investment vehicle you want to use. Fidelity will then automatically invest the specified amount of money at the specified frequency.
What are the benefits of setting up recurring investments with Fidelity?
Setting up recurring investments with Fidelity can provide several benefits, including convenience, discipline, and reduced emotional decision-making. By automating your investments, you can ensure that you’re investing regularly, without having to think about it. This can help you build wealth over time, as you’ll be investing a fixed amount of money at regular intervals. Additionally, recurring investments can help you reduce emotional decision-making, as you won’t be tempted to invest more or less based on market fluctuations.
Another benefit of setting up recurring investments with Fidelity is that it can help you take advantage of dollar-cost averaging. By investing a fixed amount of money at regular intervals, you’ll be buying more shares when the market is low and fewer shares when the market is high. This can help you reduce your average cost per share over time, which can lead to higher returns.
How do I set up a recurring investment with Fidelity?
To set up a recurring investment with Fidelity, you’ll need to create an account and fund it with money. Then, you can log in to your account and navigate to the “Invest” or “Trade” section. From there, you can select the investment vehicle you want to use, such as a mutual fund or ETF, and specify the amount you want to invest. You’ll also need to specify the frequency of the investment, such as monthly or quarterly.
Once you’ve set up your recurring investment, Fidelity will automatically invest the specified amount of money at the specified frequency. You can also set up notifications to remind you when the investment is made, or to alert you if there are any issues with the investment. Additionally, you can adjust or cancel your recurring investment at any time by logging in to your account and making the necessary changes.
What types of investment vehicles can I use for recurring investments with Fidelity?
Fidelity offers a wide range of investment vehicles that you can use for recurring investments, including mutual funds, ETFs, stocks, and options. You can also use Fidelity’s index funds or sector funds, which can provide broad diversification and potentially lower fees. Additionally, Fidelity offers a range of target date funds, which can provide a diversified portfolio based on your retirement date.
When selecting an investment vehicle for your recurring investment, it’s essential to consider your investment goals, risk tolerance, and time horizon. You may also want to consider the fees associated with the investment vehicle, as well as any minimum investment requirements. Fidelity’s website and customer support can provide more information on the available investment vehicles and help you make an informed decision.
Can I adjust or cancel my recurring investment with Fidelity?
Yes, you can adjust or cancel your recurring investment with Fidelity at any time. To make changes to your recurring investment, you can log in to your account and navigate to the “Invest” or “Trade” section. From there, you can select the recurring investment you want to adjust or cancel and make the necessary changes. You can also contact Fidelity’s customer support for assistance.
It’s essential to note that any changes you make to your recurring investment will only apply to future investments. If you’ve already invested money through the recurring investment, you won’t be able to change or cancel those investments. However, you can adjust or cancel future investments to ensure that they align with your current investment goals and risk tolerance.
Are there any fees associated with recurring investments with Fidelity?
Fidelity does not charge any fees for setting up or maintaining a recurring investment. However, there may be fees associated with the investment vehicle you choose, such as management fees or trading fees. For example, if you invest in a mutual fund, you may be charged a management fee, which can range from 0.05% to 1.50% per year, depending on the fund.
Additionally, there may be fees associated with buying or selling securities, such as trading fees or commissions. However, Fidelity offers commission-free trading for many investment vehicles, including ETFs and index funds. It’s essential to review the fees associated with your investment vehicle and recurring investment to ensure that you understand all the costs involved.
Is my recurring investment with Fidelity secure?
Yes, your recurring investment with Fidelity is secure. Fidelity is a well-established and reputable investment firm that has been in business for over 70 years. Fidelity is registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Fidelity also uses advanced security measures to protect your account and investment information, including encryption, firewalls, and secure servers. Additionally, Fidelity offers two-factor authentication and account alerts to help prevent unauthorized access to your account. You can also monitor your account activity and investment performance online or through Fidelity’s mobile app.