Investing in the stock market can be a daunting task, especially for those who are new to the world of finance. However, with the advancement of technology and the rise of online brokerage firms, investing has become more accessible and convenient. One of the most popular online brokerage firms is Fidelity, which offers a wide range of investment products and services. In this article, we will explore the possibility of setting up recurring investments in Fidelity and how it can help you achieve your financial goals.
What are Recurring Investments?
Recurring investments, also known as systematic investments, are a type of investment strategy where you invest a fixed amount of money at regular intervals, regardless of the market’s performance. This approach helps you to invest consistently and avoid making emotional decisions based on market fluctuations. Recurring investments can be set up for various investment products, including stocks, mutual funds, exchange-traded funds (ETFs), and index funds.
Benefits of Recurring Investments
Recurring investments offer several benefits, including:
- Dollar-cost averaging: By investing a fixed amount of money at regular intervals, you can reduce the impact of market volatility and avoid investing a large sum of money at the wrong time.
- Consistency: Recurring investments help you to invest consistently, which is essential for long-term wealth creation.
- Discipline: This approach helps you to avoid making emotional decisions based on market fluctuations and stick to your investment plan.
- Convenience: Recurring investments can be set up automatically, which means you don’t have to worry about investing manually every month.
Can You Set Up Recurring Investments in Fidelity?
Yes, you can set up recurring investments in Fidelity. Fidelity offers a feature called “Automatic Investment” that allows you to invest a fixed amount of money at regular intervals. You can set up recurring investments for various investment products, including stocks, mutual funds, ETFs, and index funds.
How to Set Up Recurring Investments in Fidelity
To set up recurring investments in Fidelity, follow these steps:
- Log in to your Fidelity account: Go to the Fidelity website and log in to your account.
- Select the investment product: Choose the investment product you want to invest in, such as a stock, mutual fund, ETF, or index fund.
- Set up the automatic investment: Click on the “Automatic Investment” button and select the frequency of your investments, such as monthly or quarterly.
- Enter the investment amount: Enter the amount you want to invest each time.
- Confirm the details: Review the details of your recurring investment and confirm the setup.
Types of Recurring Investments in Fidelity
Fidelity offers various types of recurring investments, including:
- Stocks: You can set up recurring investments for individual stocks.
- Mutual funds: Fidelity offers a wide range of mutual funds that you can invest in through recurring investments.
- ETFs: You can set up recurring investments for ETFs, which are traded on an exchange like stocks.
- Index funds: Fidelity offers index funds that track a particular market index, such as the S\&P 500.
Recurring Investment Options in Fidelity
Fidelity offers various recurring investment options, including:
- Monthly investments: You can invest a fixed amount of money every month.
- Quarterly investments: You can invest a fixed amount of money every quarter.
- Bi-annual investments: You can invest a fixed amount of money every six months.
- Annual investments: You can invest a fixed amount of money every year.
Conclusion
Recurring investments are a great way to invest consistently and avoid making emotional decisions based on market fluctuations. Fidelity offers a feature called “Automatic Investment” that allows you to set up recurring investments for various investment products. By setting up recurring investments in Fidelity, you can automate your wealth creation and achieve your financial goals.
What is a recurring investment in Fidelity?
A recurring investment in Fidelity is a type of investment that allows you to invest a fixed amount of money at regular intervals, such as monthly or quarterly. This type of investment is also known as a systematic investment plan or dollar-cost averaging. By setting up a recurring investment, you can automate your investments and invest a fixed amount of money regularly, without having to manually place trades.
Recurring investments can be set up for a variety of investment products, including stocks, mutual funds, exchange-traded funds (ETFs), and index funds. You can also set up recurring investments for tax-advantaged accounts, such as 401(k), IRA, or Roth IRA. By automating your investments, you can take advantage of the benefits of dollar-cost averaging, which can help reduce the impact of market volatility on your investments.
How do I set up a recurring investment in Fidelity?
To set up a recurring investment in Fidelity, you can log in to your Fidelity account online or through the Fidelity mobile app. Once you are logged in, you can navigate to the “Invest” or “Trade” section and select the investment product you want to invest in. From there, you can choose the “Recurring Investment” option and set up the details of your investment, including the amount, frequency, and duration.
You will also need to specify the funding source for your recurring investment, such as a bank account or another Fidelity account. Once you have set up your recurring investment, Fidelity will automatically invest the specified amount of money at the designated frequency. You can also modify or cancel your recurring investment at any time by logging in to your Fidelity account.
What are the benefits of setting up a recurring investment in Fidelity?
One of the main benefits of setting up a recurring investment in Fidelity is that it allows you to automate your investments and invest a fixed amount of money regularly. This can help you take advantage of the benefits of dollar-cost averaging, which can help reduce the impact of market volatility on your investments. By investing a fixed amount of money regularly, you can also reduce the impact of emotions on your investment decisions.
Another benefit of recurring investments is that they can help you invest consistently and avoid trying to time the market. By investing a fixed amount of money regularly, you can also take advantage of the benefits of compound interest, which can help your investments grow over time. Additionally, recurring investments can help you invest for long-term goals, such as retirement or a down payment on a house.
Can I set up a recurring investment for a specific stock in Fidelity?
Yes, you can set up a recurring investment for a specific stock in Fidelity. To do this, you can log in to your Fidelity account online or through the Fidelity mobile app and navigate to the “Invest” or “Trade” section. From there, you can search for the stock you want to invest in and select the “Recurring Investment” option.
You can then set up the details of your investment, including the amount, frequency, and duration. You will also need to specify the funding source for your recurring investment, such as a bank account or another Fidelity account. Once you have set up your recurring investment, Fidelity will automatically invest the specified amount of money in the designated stock at the designated frequency.
How do I modify or cancel a recurring investment in Fidelity?
To modify or cancel a recurring investment in Fidelity, you can log in to your Fidelity account online or through the Fidelity mobile app. Once you are logged in, you can navigate to the “Invest” or “Trade” section and select the investment product you want to modify or cancel. From there, you can choose the “Recurring Investment” option and select the “Modify” or “Cancel” option.
You can then make changes to the details of your investment, such as the amount, frequency, or duration. If you want to cancel your recurring investment, you can select the “Cancel” option and confirm that you want to cancel the investment. Once you have modified or canceled your recurring investment, Fidelity will update your account accordingly.
Are there any fees associated with setting up a recurring investment in Fidelity?
Fidelity does not charge any fees for setting up a recurring investment. However, you may be charged fees for the investment products you invest in, such as management fees for mutual funds or ETFs. You may also be charged fees for trading or investing in certain investment products, such as stocks or options.
It’s also worth noting that Fidelity may charge fees for certain services, such as wire transfers or account maintenance. However, these fees are not directly related to setting up a recurring investment. It’s always a good idea to review the fees and charges associated with your Fidelity account and investment products before setting up a recurring investment.