Automate Your Investments with Fidelity: A Guide to ETFs and Automatic Investing

Are you tired of constantly monitoring the stock market and trying to time your investments? Do you want to take advantage of the benefits of ETFs (Exchange-Traded Funds) while minimizing the effort required on your part? Look no further than Fidelity's automatic investment options. In this comprehensive guide, we will explore the power of automated investing and how it can help you achieve your financial goals.

Why Automate Your Investments?

Automated investing simply means setting up automatic transfers into your investment accounts to keep you on track to reach your goals. By automating your investments, you can:

• Save time and effort
• Take advantage of dollar-cost averaging
• Reduce emotional decision-making
• Stay disciplined and consistent

These benefits make automated investing a popular choice among both experienced investors and beginners. Let's dive deeper into how Fidelity's automatic investment options can help you on your investment journey.

Harness the Power of Recurring Investments

One of the key features of Fidelity's automatic investment options is the ability to set up recurring investments. Recurring investments allow you to invest similar amounts at regular intervals, helping you reduce price volatility over time. This strategy is particularly effective for long-term investors who want to build wealth gradually.

By investing a fixed amount regularly, you can take advantage of dollar-cost averaging. Dollar-cost averaging is a strategy where you buy more shares when prices are low and fewer shares when prices are high. Over time, this can help lower your average cost per share and potentially increase your overall returns.

Additionally, recurring investments help you build a lasting routine. By automating your investments, you eliminate the need to manually track market trends and make investment decisions. This frees up your time and mental energy, allowing you to focus on other aspects of your life while still working towards your financial goals.

Manage Volatility with ETFs

One of the advantages of Fidelity's automatic investment options is the availability of ETFs. ETFs are investment funds that trade on stock exchanges, similar to individual stocks. They offer several benefits that make them an attractive choice for automated investing.

Firstly, ETFs provide diversification. When you invest in an ETF, you are essentially buying a basket of different securities, such as stocks, bonds, or commodities. This diversification helps reduce the risk associated with investing in a single security, making ETFs a safer option for long-term investors.

Secondly, ETFs have lower expense ratios compared to mutual funds. Expense ratios represent the annual fees charged by the fund manager to cover operating expenses. By choosing ETFs with low expense ratios, you can maximize your investment returns over time.

Lastly, ETFs offer flexibility and liquidity. Unlike mutual funds, which are priced at the end of the trading day, ETFs can be bought and sold throughout the trading day at market prices. This allows you to react quickly to market movements and make adjustments to your portfolio as needed.

Setting Up Automatic Investments

Now that you understand the benefits of automated investing and the power of ETFs, let's explore how to get started with Fidelity's automatic investment options. Follow these simple steps:

1. Open a Fidelity investment account if you don't already have one.
2. Choose the ETFs you want to invest in. Fidelity offers a wide range of ETFs across different asset classes and investment strategies. Consider your risk tolerance, investment goals, and time horizon when selecting ETFs.
3. Set up recurring investments. Specify the amount you want to invest and the frequency of the investments. Fidelity allows you to customize these settings based on your preferences.
4. Monitor and adjust your investments. While automated investing takes care of the day-to-day investment decisions, it is important to regularly review your portfolio and make any necessary adjustments based on changes in your financial situation or market conditions.

By following these steps, you can set up automatic investments that align with your financial goals and take advantage of the benefits of ETFs.

Additional Resources for Education and Information

Fidelity provides a wealth of educational resources and tools to help you make informed investment decisions. Here are some additional resources you may find helpful:

• Learn: Fidelity offers a wide range of educational materials, including articles, videos, and webinars, to help you deepen your understanding of investing and financial planning.
• 4 things you may not know about 529 plans: Explore the benefits of 529 plans and how they can help you save for education expenses.
• Smart automation can make investing easy: Discover how automation can simplify your investment process and help you stay on track towards your goals.
• Subscribe to Fidelity Viewpoints: Stay up to date with the latest insights and market trends by subscribing to Fidelity Viewpoints, Fidelity's online magazine.

These resources can provide valuable information and insights to enhance your investing knowledge and help you make more informed decisions.

key takeaways

Automating your investments with Fidelity's automatic investment options is a smart move for investors of all levels. By taking advantage of recurring investments and ETFs, you can build a solid investment routine, manage volatility, and work towards your financial goals with ease. Remember to stay informed and regularly review your portfolio to ensure it aligns with your changing needs and market conditions.

Start automating your investments with Fidelity today and experience the power of automatic investing.