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Ch: How To Set Up Automatic Investing With Fidelity
How Fidelity Automatic Investing Operates
Fidelity allows investors to configure fully automated recurring deposits and investments with as little as $10 per fund for mutual funds and $1 for exchange-traded funds (ETFs). By selecting "Transfer and then invest funds", Fidelity pulls money from your linked external checking account via automated clearing house (ACH) and immediately purchases your designated index funds (such as FXAIX, FZROX, or VOO) without manual trade orders or cash drag.
Why Set Up Automatic Investing?
Building long-term wealth does not require complex market timing or daily trading. In fact, academic research consistently demonstrates that systematic, automated dollar-cost averaging outperforms emotional discretionary trading over multi-decade horizons. Here are the four primary benefits of putting your Fidelity account on autopilot:
Dollar-Cost Averaging (DCA)
By automatically purchasing shares on a fixed schedule regardless of whether the market is up or down, you naturally buy more shares when prices dip and fewer when prices peak, lowering your average cost basis over time.
Eliminating Emotional Friction
Market volatility causes investor hesitation. Automating your purchases removes fear and greed from the equation, ensuring you remain invested through market pullbacks when future returns are highest.
Out of Sight, Out of Mind
Capital left sitting in a checking account is easily spent on lifestyle creep. Scheduling recurring transfers on the morning of payday ensures you pay your future self first before discretionary spending occurs.
Zero Decision Fatigue
Set your investment schedule once, confirm your automated dividend reinvestment (DRIP), and let compounding handle the heavy lifting. A single 15-minute setup powers decades of hands-off growth.
Step-by-Step Instructions (With Screenshots)
Own At Least One Mutual Fund or Target ETF
Before configuring an automated schedule for mutual funds, you must own at least one share or make an initial opening purchase into your chosen mutual fund. If you don't own any index funds yet, place an initial order first:
Access Fidelity's Automatic Investments Portal
Log into Fidelity.com, hover over Accounts & Trade in the top navigation, and select Transfers. Click on Manage recurring transfers or navigate directly to the Fidelity Auto-Invest portal:
Select Account & Choose "Transfer and Then Invest"
Click on your target investment account (e.g., Individual Taxable Brokerage, Traditional IRA, or Roth IRA). When the action prompt appears, select "Transfer and then invest funds" so Fidelity moves cash from your bank and purchases shares simultaneously in a single transaction:
Configure Transfer Amounts, Frequency & Confirm
Choose your linked funding bank account, select which mutual funds or ETFs to purchase, and enter your recurring contribution amount (minimum $10). Set your schedule frequency to monthly, semi-monthly, or weekly:
Buck by Buck
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