Fidelity Automatic Investment sets the stage for a seamless and potentially rewarding investment journey. This approach allows you to automate your investments, taking the guesswork out of managing your portfolio. Whether you’re a seasoned investor or just starting out, Fidelity’s automatic investment options offer a streamlined way to achieve your financial goals.

Imagine a world where your investments are handled automatically, freeing up your time and energy to focus on other aspects of your life. This is the promise of Fidelity’s automatic investment features, which allow you to set up regular contributions, rebalance your portfolio, and even adjust your risk tolerance based on your evolving needs.

Fidelity Automatic Investment Overview

Fidelity Automatic Investment, also known as automated investing or robo-advising, is a convenient way to invest your money regularly without having to manually manage each investment. Fidelity offers various automatic investment options designed to suit different investment goals and risk tolerances.

These options are powered by technology and algorithms to manage your portfolio based on your investment objectives. This process simplifies investing, making it accessible to those who may not have the time, expertise, or desire to actively manage their investments.

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Fidelity Automatic Investment Options

Fidelity offers a range of automatic investment options to cater to different investment preferences and goals. These options are designed to simplify investing and provide a tailored experience.

• Fidelity Go: This option is ideal for beginners and those seeking a hands-off approach. It offers a low-cost, automated portfolio that is built and managed based on your investment goals and risk tolerance. Fidelity Go automatically rebalances your portfolio, ensuring that your asset allocation stays aligned with your investment strategy.
• Fidelity Personalized Portfolios: For investors seeking more control and customization, Fidelity Personalized Portfolios provide a wider range of investment choices. You can select from various asset classes, including stocks, bonds, and real estate, and customize your portfolio’s allocation based on your investment goals and risk tolerance. The platform offers automated rebalancing to help maintain your desired asset allocation.
• Fidelity Investments: This option provides a more traditional approach to investing, offering access to a wide range of investment products and services. While not strictly automated, you can leverage Fidelity’s tools and resources to create and manage your investment portfolio. Fidelity Investments provides access to research, analysis, and investment guidance to support your investment decisions.

Examples of Fidelity Automatic Investment in Practice

Let’s consider two scenarios to illustrate how Fidelity automatic investment works in practice:

1. Scenario 1: Saving for Retirement: John, a young professional, wants to start saving for retirement. He chooses Fidelity Go, setting a monthly contribution of $500 and indicating a moderate risk tolerance. Fidelity Go automatically allocates his contributions across a diversified portfolio of stocks and bonds, based on his investment goals and risk tolerance. As John’s portfolio grows, Fidelity Go rebalances it periodically to maintain his desired asset allocation, ensuring his investments remain aligned with his retirement goals.
2. Scenario 2: Building a Growth Portfolio: Sarah, an experienced investor, seeks to build a portfolio focused on long-term growth. She opts for Fidelity Personalized Portfolios and allocates 70% of her portfolio to stocks and 30% to bonds. Fidelity Personalized Portfolios automatically rebalances her portfolio periodically to maintain this desired allocation, ensuring her portfolio stays aligned with her growth-oriented investment strategy.

Setting Up Fidelity Automatic Investment

Fidelity Automatic Investment, also known as Fidelity Go, is a simple and convenient way to invest your money automatically. It’s designed for investors who want to set it and forget it, letting the platform handle the investment decisions for them. To set up Fidelity Automatic Investment, you’ll need to follow a few straightforward steps.

Steps to Set Up Fidelity Automatic Investment

Here’s a step-by-step guide to setting up Fidelity Automatic Investment:

1. Open a Fidelity Go account: If you don’t already have a Fidelity account, you’ll need to open one. The process is straightforward and can be done online. You’ll need to provide some basic personal information, such as your name, address, and Social Security number.
2. Link your bank account: Once you have a Fidelity Go account, you’ll need to link your bank account to it. This allows Fidelity to automatically withdraw funds from your account to make investments.
3. Choose your investment goals: Fidelity Go offers various investment goals, including retirement, education, and general savings. Choose the goal that best aligns with your financial objectives.
4. Select your risk tolerance: Fidelity Go will ask you to assess your risk tolerance, which is how much risk you’re comfortable taking with your investments. Your risk tolerance will determine the types of investments Fidelity Go allocates for you.
5. Set up your automatic investment schedule: You can choose how frequently you want to invest, such as weekly, bi-weekly, or monthly. You can also set a specific amount to invest each time.
6. Start investing: Once you’ve completed the setup process, Fidelity Go will begin investing your money automatically based on your chosen investment goals and risk tolerance.

Information and Settings

The following table summarizes the information and settings you’ll need to provide when setting up Fidelity Automatic Investment:

Fidelity Automatic Investment Strategies

Fidelity offers a variety of automatic investment strategies that can help you achieve your financial goals. These strategies range from simple to complex and can be tailored to your individual needs and risk tolerance.

Types of Automatic Investment Strategies

Choosing the right automatic investment strategy depends on your financial goals, risk tolerance, and time horizon. Here are some of the most common strategies:

• Target-Date Funds: These funds automatically adjust their asset allocation over time, becoming more conservative as you approach your target date, such as retirement. They are a popular choice for investors who want a hands-off approach to investing.
• Robo-Advisors: These automated investment platforms use algorithms to create and manage investment portfolios based on your risk tolerance, goals, and financial situation. They are often a good option for investors who are new to investing or who prefer a low-cost, automated approach.
• Dollar-Cost Averaging: This strategy involves investing a fixed amount of money at regular intervals, regardless of market conditions. This helps to reduce the impact of market volatility and can be a good option for long-term investors.
• Portfolio Rebalancing: This strategy involves periodically adjusting your asset allocation to maintain your desired risk level. For example, if your stock holdings have grown significantly, you might sell some stocks and buy bonds to reduce your overall risk.

Comparing Automatic Investment Strategies

Each automatic investment strategy has its own advantages and disadvantages. It’s important to consider your individual needs and circumstances when choosing a strategy.

• Target-date funds are generally considered to be a safe and simple option, but they may not be suitable for investors with specific investment goals or who want to customize their portfolio.
• Robo-advisors offer a low-cost, automated approach to investing, but they may not be as flexible as other options. They also may not be suitable for investors who want to make their own investment decisions.
• Dollar-cost averaging can help to reduce the impact of market volatility, but it may not be the most effective strategy for all investors. It can also be a slow way to build wealth, especially in a bull market.
• Portfolio rebalancing can help to maintain your desired risk level, but it can also be time-consuming and may require some knowledge of investment strategies.

Aligning Investment Strategies with Goals

The most important factor to consider when choosing an automatic investment strategy is your individual financial goals. For example, if you are saving for retirement, you might choose a target-date fund that automatically adjusts its asset allocation over time to become more conservative as you approach retirement. If you are saving for a down payment on a house, you might choose a more aggressive investment strategy with a higher allocation to stocks.

“It’s important to remember that there is no one-size-fits-all approach to automatic investing. The best strategy for you will depend on your individual circumstances and goals.”

Fidelity Automatic Investment Tools and Resources

Fidelity offers a suite of tools and resources to help automatic investors manage their investments effectively. These tools provide valuable insights, automation features, and support to make the investment process easier and more efficient.

Fidelity Active Trader Pro

Fidelity Active Trader Pro is a comprehensive trading platform designed for active traders and investors who need advanced tools and features. It provides real-time market data, charting capabilities, order types, and analytics. Automatic investors can use Active Trader Pro to monitor their portfolios, execute trades, and analyze market trends.

Fidelity Go

Fidelity Go is a robo-advisor service that automatically manages your investments based on your risk tolerance and financial goals. It offers a personalized investment portfolio with low fees and a simple user interface. Automatic investors can use Fidelity Go to set up their investment goals, monitor their portfolio performance, and make adjustments as needed.

Fidelity Investments App

The Fidelity Investments App is a mobile application that provides access to your accounts, trading features, and investment research. It allows you to track your portfolio performance, manage your investments, and access customer support. Automatic investors can use the app to monitor their automatic investment strategies, make changes to their accounts, and receive notifications about important events.

Fidelity Research & Analysis

Fidelity provides a wealth of research and analysis to help investors make informed decisions. This includes market commentary, industry reports, and investment ideas. Automatic investors can use this research to stay informed about market trends, identify potential investment opportunities, and evaluate the performance of their portfolio.

Fidelity Customer Support

Fidelity offers a dedicated customer support team to assist investors with their questions and concerns. They can help with account setup, investment strategies, and troubleshooting issues. Automatic investors can reach out to customer support for assistance with their automatic investment accounts, portfolio management, and any other questions they may have.

Fidelity Educational Resources, Fidelity automatic investment

Fidelity provides a wide range of educational resources to help investors learn about investing and financial planning. These resources include articles, videos, webinars, and online courses. Automatic investors can use these resources to gain a deeper understanding of investment concepts, learn about different investment strategies, and improve their financial literacy.

Fidelity Portfolio Review

Fidelity offers portfolio reviews to help investors evaluate their investment strategies and make adjustments as needed. These reviews can be conducted by a financial advisor or through a self-service tool. Automatic investors can use portfolio reviews to ensure their investments are aligned with their financial goals, risk tolerance, and time horizon.

Fidelity Automatic Investment empowers you to take control of your financial future. By embracing automation, you can simplify your investment process, potentially optimize returns, and achieve your financial goals with greater ease. Whether you’re looking to save for retirement, build a college fund, or simply grow your wealth, Fidelity’s automatic investment solutions offer a convenient and potentially rewarding path forward.

FAQ Compilation

What are the minimum investment requirements for Fidelity Automatic Investment?

The minimum investment requirements vary depending on the specific Fidelity automatic investment option you choose. Some options may have no minimum investment requirement, while others may require a certain initial deposit.

How do I choose the right Fidelity automatic investment strategy for me?

Fidelity offers a range of automatic investment strategies tailored to different risk tolerances and financial goals. You can work with a Fidelity advisor to determine the strategy that best aligns with your individual needs.

Can I adjust my Fidelity automatic investment settings after I set them up?

Yes, you can adjust your Fidelity automatic investment settings at any time. You can change your contribution amount, adjust your investment strategy, or modify your risk tolerance based on your evolving circumstances.

Is Fidelity Automatic Investment suitable for all investors?

Fidelity Automatic Investment can be a valuable tool for a wide range of investors, but it’s not necessarily suitable for everyone. If you prefer a more hands-on approach to investing or have specific investment goals that require a more tailored strategy, you may want to consider other investment options.

Fidelity Automatic Investment offers a convenient way to manage your portfolio, allowing you to set up recurring investments and automate your savings. If you’re considering investing in real estate, you might wonder if you can use a VA loan for an investment property. The answer, as you’ll find on this helpful resource, can you use a va loan for an investment property , is generally no.

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