Setting up automatic investments can be a great way to consistently build your portfolio over time. Fidelity offers an automatic investment option that allows you to regularly contribute to your accounts on autopilot. This can remove the need to manually make deposits each time. In this comprehensive guide, we’ll walk through the step-by-step process to set up automatic investments with Fidelity using their handy PDF forms. We’ll cover eligibility, investment choices, bank linkages and more to help you take advantage of automated investing. Read on to learn how to put your Fidelity contributions on autopilot and grow your wealth over time.
You must have an eligible Fidelity account to use their automated investing
Fidelity offers automated investing for various account types, including individual, joint, trust, IRA, 529 college savings and more. Your account needs to meet eligibility requirements for automatic investments, such as: Having a minimum balance – Most accounts need at least $2,500 to start auto-deposits. IRA accounts have lower minimums. Being bill pay eligible – This allows linking your Fidelity account to an external bank account. Not having restrictions – Certain custodial accounts may limit automated transactions. You can contribute to the same Fidelity account each period or set up deposits across multiple accounts. This provides flexibility in your investment strategy.
Choose your investment timeline, frequency and start date
Fidelity allows you to customize your automatic investment schedule based on your needs and preferences. You’ll select: Investment frequency – Such as monthly, quarterly, annually or a custom schedule. Deposit date – The recurring day investments will be made, like the 1st or 15th of each period. Start date – When you want the automated transfers to begin. You can set up multiple deposit schedules across different Fidelity accounts to diversify. For example, contributing to an equity fund monthly and a bond fund quarterly.
Select the core and target investment options
Next, determine where your automatic Fidelity contributions will be invested. You have two main choices: Core position – The primary investment for your periodic deposits. This allows building a specific asset allocation over time. Target investment – Deposits go into this investment up to a configured limit, then overflow into your core position. This is useful to fund an IRA each year then invest in equities. Fidelity offers thousands of mutual funds, ETFs, stocks and more that are eligible for automated investing. Consider your risk tolerance, time horizon and financial goals when selecting investments.
Link an external bank account to enable transfers
To fund your automatic Fidelity investments, you’ll need to link an external bank account. This connects your Fidelity portfolio with a funding source to transfer money each period. The bank account can be a checking or savings account from most major financial institutions. Fidelity offers several ways to establish the link: Electronically verify your account – Instantly connect accounts from major banks. Enter your details – Provide your routing and account numbers to link other banks. Direct deposit form – Fill out a PDF form for your bank and mail it in. Once your bank is linked, transfers occur seamlessly through the automated clearing house (ACH) network. You can unlink accounts at any time.
Submit the Fidelity automatic investment form to start
With your choices made, it’s time to officially activate automated investing with Fidelity. You’ll complete and submit the Fidelity Automatic Transactions PDF form, including: Account owner details – Such as name and Fidelity account numbers. Investment instructions – Core and target funds, amounts and start date. Bank linkages – For ACH transfers each period. Signatures – To authorize the instructions. This comprehensive form establishes your customized schedule. Fidelity will begin making the periodic investments on your designated start date. You can modify automated transactions in the future as needed by submitting an updated form.
By taking advantage of Fidelity’s automated investment option and carefully completing their PDF form, you can put your contributions on autopilot. This removes the need to manually execute transfers every period. Just set it and forget it. Choosing the right frequency, allocation and start date allows tailoring automated investing to your situation. Linking a bank provides the funding source for seamless periodic investments into your specified Fidelity accounts. Automated transfers let you consistently build your portfolio over time. Start growing your wealth today by establishing automatic contributions with Fidelity.