Fidelity automatic investment can help your money grow in an amazing way. All of us who are aware of our future situations and circumstances prefer money investment to face those issues.
But saving money from our earnings and then investing it can be quite labor-intensive as well as mentally heavy. In all this, automating your savings and investment can not only save you a lot of time but also ensure regular transfers to your bank account.
Automating your investment process may seem a very small step but these small steps make a big difference. For example, the invention of the dishwater and the washing machine is not very popular but they have surely revolutionized life at home. Similarly, taking a small step to invest your money automatically can save you a lot of time and some handsome earnings for the future as well.
In this article, we are going to learn about Fidelity automatic investment, an automatic investment service offered by Fidelity, a well-known online brokerage of the market.
Let’s take a closer look at the process and how it’s going to help you grow in a better way.
What is Automatic Investment?
Automatic investment is the process of transferring money to your investment accounts on a regular basis. You can do it by making a direct deposit from your paycheck or your savings account. The main goal of this practice is to establish a regular routine of saving and investing money for the future without applying any extra effort to your work.
Putting your saving and investing processes on automation can help you keep your saving plan on track. Even if other things in your life are not going accordingly, you will never have to compromise here.
Fidelity allows you to automate these processes and make things much more systematic and regular.
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Fidelity automatic investment provides you with plenty of benefits that seem to be simple but can be life-changing. We have mentioned a few of them below;
- Automatic investing reduces your temptation to spend on unnecessary things
- It also controls your reaction to the market’s ups and downs.
- It helps you stay away from overthinking about things that can never help you but sap your brain power
- When your money is saved and invested automatically to your bank account, you will be out of that temptation to try out your luck in the market(which history shows only reduces investors’ wealth).
- Automatic investing allows you to focus on your personal life in a much better way
The very first thing you need to do to make an automatic investment is to create a financial plan. It needs not to be very detailed and extensive. Stop putting all your focus on creating a financial plan. Instead, you should focus on evaluating how much you need to save and how much you can save.
When you are done figuring out these things, it comes to finding the right way to make your automatic investments.
To help you out, we have listed a few good ways you can use fidelity automatic investment.
- Direct deposit from your paycheck: Do your employer offers the ability to set up direct deposit from your paycheck into multiple accounts? If yes, you can have a part of your check sent to a bill-paying account and the other part of your check to an investment account. Once the money is sent to your investment account, you can set up automatic investments. It will then move the money into the funds for you.
- A recurring transfer from your bank account: You can set up recurring transfers from either your bank account or your investment account. But in case your investment account is at a different institution.
- A managed account: Once you have a managed account, you can add extra money to it either through direct deposits or recurring transfers. Once the money is disbursed, it can be invested automatically according to your investment plans.
Fidelity automatic investment allows you to make your investments much more systematic and well-disciplined. Though you need to create a financial plan for your investments, things will be much easier.