Investing regularly is one of the most powerful habits you can cultivate for long-term financial success. It allows you to harness the magic of dollar-cost averaging, reducing the impact of market volatility by buying more shares when prices are low and fewer when prices are high. And when it comes to setting up recurring investments, Fidelity makes the process surprisingly straightforward.
So, are you ready to take control of your financial future and put your money to work consistently? Let's dive in!
How to Set Up Recurring Investments in Fidelity: A Step-by-Step Guide
This guide will walk you through the process of setting up recurring investments on Fidelity's platform, drawing on insights often shared by fellow investors on Reddit's r/fidelityinvestments community.
Step 1: Log In and Navigate to the Right Place (The Quest Begins!)
First things first, you'll need to access your Fidelity account.
Head to Fidelity.com: Open your web browser and go to the official Fidelity website.
Log In: Enter your username and password. If you have multi-factor authentication enabled (which you absolutely should for security!), complete the verification process.
Once you're logged in, finding the recurring investments section might feel like a mini-quest, as some users on Reddit have noted it can be a bit "hidden." Don't worry, we'll guide you.
Sub-heading: Alternative Navigation Paths (Because there's always more than one way!)
While the most direct path is often best, sometimes a quick alternative can save you time. Here are a few ways to get to the recurring investment setup:
Option A (Recommended): Hover over "Accounts & Trade" in the top navigation bar, then select "Transfers." From there, look for "Manage recurring transfers" or "Recurring activity."
Option B (Direct Link): Some Redditors share a direct link:
https://digital.fidelity.com/ftgw/digital/recurring-activity/. If this link still works, it can be a quick shortcut.Option C (Through Account Features): Go to "Accounts & Trade" and select "Account Features." Under "Payments & Transfers," look for "Recurring Transfers" and click "Manage."
Option D (Via Trade Menu): Click on "Trade" in the top navigation, and then select "Recurring Investment" from the dropdown.
Whichever path you choose, the goal is to reach the "Recurring activity" or "Recurring Investments" setup page.
Step 2: Initiate a New Recurring Investment (Your Investment Journey Takes Shape)
Once you're on the "Recurring activity" page, you'll see options to manage existing recurring activities or create new ones.
Click "Create new activity": Look for a button or link that says "Create new activity" or "Set up a recurring investment."
Select "Investment": A dropdown or pop-up will usually ask you to choose the type of recurring activity. Select "Investment" (as opposed to "Transfer" if both options are present).
Step 3: Define Your Investment Details (The Nitty-Gritty)
This is where you specify what you want to invest in, how much, and how often.
Sub-heading: Choosing Your Security Type
Fidelity offers recurring investments for a variety of securities. You'll typically be prompted to select one:
Stocks/ETFs: Yes, you can set up recurring investments for individual stocks and Exchange Traded Funds (ETFs)! This is a fantastic feature for dollar-cost averaging into your favorite companies or broad market index ETFs.
Mutual Funds: Mutual funds, especially Fidelity's own zero-expense ratio index funds (like FZROX or FXIAX), are popular choices for recurring investments due to their inherent diversification.
Fidelity Basket Portfolios: If you've created a Fidelity Basket Portfolio, you can set up recurring investments to automatically contribute to it, maintaining your desired asset allocation.
Sub-heading: Specifying Your Investment and Amount
Enter the Ticker Symbol: For stocks, ETFs, or mutual funds, you'll need to enter the ticker symbol (e.g., VOO, SPY, FZROX). If you're unsure, there's usually a search function next to the input field.
Input the Dollar Amount: Decide how much you want to invest each time. Fidelity typically allows recurring investments between $1 and $100,000 for stocks/ETFs/baskets, and $10-$100,000 for mutual funds. Remember to invest an amount you're comfortable with, consistently.
Add Multiple Investments (Optional): If you want to invest in multiple securities simultaneously with one recurring plan, some users on Reddit have noted that Fidelity allows adding up to 10 symbols at a time. This is especially useful for maintaining a diversified portfolio.
Sub-heading: Setting the Frequency and Schedule
Consistency is key! Choose how often you want your investment to occur.
Frequency Options: Fidelity generally offers:
Weekly
Every 2 weeks (Bi-weekly)
Monthly
(Less common but sometimes available: Quarterly, Semi-Annually, Annually)
Start Date: Select the date you want your first recurring investment to take place. If the selected date falls on a weekend or holiday, the investment will typically execute on the next business day.
End Date (Optional): You might have the option to set an end date for your recurring investment. If not, it will continue indefinitely until you manually stop or modify it.
Step 4: Choose Your Funding Source (Where the Money Comes From)
This is a crucial step! Where will Fidelity pull the money from for your recurring investment?
Sub-heading: Funding from a Linked Bank Account
Toggle "Use a linked bank account" ON: If you want Fidelity to pull money directly from your external bank account, ensure this option is toggled on.
Select Your Bank Account: Choose the specific linked bank account from the dropdown menu. If you haven't linked a bank account yet, you'll need to do that first. This usually involves providing your bank's routing and account numbers and verifying it with micro-deposits.
Sub-heading: Funding from Your Fidelity Core Position
Toggle "Use a linked bank account" OFF: If you want the recurring investment to be funded from the cash held in your Fidelity account's core position (e.g., SPAXX), make sure the "Use a linked bank account" option is toggled off.
Important Note on Core Position Funding: If you plan to fund from your core position, ensure you have sufficient cash available in the account before the investment date. Some users on Reddit have pointed out that if you're transferring money from another Fidelity account to fund an investment in a different Fidelity account, it might be a two-step process:
Set up a recurring transfer from Account A to Account B's core position.
Set up a recurring investment in Account B, funded from Account B's core position. Always leave sufficient time between the transfer and investment dates to ensure funds settle.
Step 5: Review and Confirm (Almost There!)
Before you finalize, carefully review all the details you've entered.
Preview: Click the "Preview" button or similar to see a summary of your recurring investment plan.
Check Everything:
Is the correct security selected?
Is the dollar amount accurate?
Is the frequency what you intended?
Is the start date correct?
Is the funding source correct and does it have enough funds?
Confirm: If everything looks good, click "Confirm" or "Submit."
Congratulations! You've successfully set up a recurring investment in Fidelity. You'll usually receive a confirmation message on screen and possibly an email confirmation.
Step 6: Managing Your Recurring Investments (Stay in Control)
Life changes, and so might your investment goals. Fidelity makes it easy to adjust your recurring plans.
Access Your Recurring Activity: Go back to the "Accounts & Trade" > "Transfers" > "Manage recurring transfers" or "Recurring activity" page.
Edit or Delete: From this page, you can see all your active recurring transfers and investments. You'll have options to:
Edit: Change the amount, frequency, security, or funding source.
Pause: Temporarily stop an investment.
Delete/Cancel: Permanently remove a recurring investment.
It's a good practice to periodically review your recurring investments, especially after major life events or changes in your financial situation.
10 Related FAQ Questions
Here are some frequently asked questions about Fidelity recurring investments, often discussed in communities like Reddit:
How to check the status of my recurring investment?
You can check the status of your recurring investments by logging into Fidelity.com and navigating to the "Recurring activity" page (Accounts & Trade > Transfers > Manage recurring transfers). This page will show you all your active, pending, and past recurring investments.
How to change the amount of my recurring investment?
To change the amount, log in to Fidelity.com, go to "Accounts & Trade," then "Transfers," and click "Manage recurring transfers." Find the recurring investment you wish to modify, click "Edit," and update the dollar amount. Remember to save your changes.
How to stop a recurring investment?
To stop a recurring investment, log in to Fidelity.com, navigate to "Accounts & Trade," then "Transfers," and "Manage recurring transfers." Locate the specific recurring investment and select the option to "Delete" or "Cancel" it.
How to set up recurring investments for multiple stocks/ETFs at once?
When setting up a new recurring investment, after selecting "Stocks/ETFs" as the security type, you should be able to add multiple ticker symbols (often up to 10) and allocate a dollar amount to each within the same recurring plan.
How to ensure my recurring investment is funded if I transfer money from another account?
If you're funding from a Fidelity core position that receives transfers from another account (either internal Fidelity or external bank), ensure your recurring transfer is scheduled to occur before your recurring investment date, allowing sufficient time for funds to settle.
How to deal with recurring investments on weekends or holidays?
If your scheduled recurring investment date falls on a weekend or market holiday, Fidelity will typically execute the order on the next business day.
How to find out which accounts are eligible for recurring investments?
Most non-retirement brokerage accounts, Cash Management Accounts, and retirement accounts (like Traditional, Roth, and Rollover IRAs) are eligible for recurring investments. HSA accounts may also be eligible.
How to know if my recurring stock/ETF order will execute at market open?
Recurring stock and ETF trades are typically processed as market orders and may occur at any point during market hours on the selected investment date, not necessarily at market open. Mutual fund orders are placed at the next available price based on the selected date.
How to set up recurring investments in the Fidelity mobile app?
On the Fidelity Mobile® app, tap the "Transact" icon, then select "Recurring Transfers & Investments." From there, choose "Create" and follow the prompts, similar to the web interface.
How to manage dividend reinvestment with recurring investments?
Recurring investments usually don't automatically set up dividend reinvestment. You'll need to go to your account features (Accounts & Trade > Account Features > Dividends and Capital Gains) and ensure that dividend reinvestment is enabled for the specific securities in your recurring investment plan if you wish for dividends to be automatically reinvested.
