kennyisnotdead
03/30/2023 at 13:49:53 PDT
I am trying to decide if I should have my side 1099 income added to my brokerage account. This is a weekly deposit into my checking account at my bank which means I have to move money each week if I remember to do it. Since taxes are not withheld can I set up the deposit to only invest a certain amount or would it be better to have another account setup for this?
My main brokerage account starts with an X. I have another that starts with a Z which I only use to fund my crypto since my account with the X was not eligible. I also have a deposit from my full time job going in my X account twice a month.
FidelityJenny
03/30/2023 at 14:07:57 PDT
Thanks for stopping by with your questions, @kennyisnotdead. I can certainly help you out. You actually have the ability to set up automatic investments within your Fidelity account. There are two ways to set this up, and I’ll explain the process below.
The first way is to set up a recurring transfer to your core position and then set up a second plan to auto invest the funds from the core position into an owned mutual fund.
The second, more streamlined process, is to transfer money directly from a linked bank account into an owned mutual fund, skipping the core position completely.
One thing to note is that automatic investments can only be set up for positions that you already own in your account. Therefore, you may need to make an initial one-time transfer and trade to buy the desired mutual fund in the account before you’re able to set up the plan to automatically invest into the specific fund.
To establish an automatic investment from your bank to an owned mutual fund, please follow the steps below after logging in:
1. Select “Accounts & Trade,” then “Account Features”
2. Click “Payments & Transfers,” then “Automatic Transfers and Investments”
3. Select “Schedule a new transfer” and then “Set up an automatic investment”
Feel free to follow up here if you have any additional questions!
kennyisnotdead
03/30/2023 at 14:26:49 PDT
Thanks for the info. Is the core position an account? in this case setup the recurring deposit to the account. then setup the auto invest from the available Fcash which would be the the deposit.
FidelityTaylor
03/30/2023 at 14:30:39 PDT
I can jump in here, @kennyisnotdead! The core position is a position within your brokerage account. It’s a place where the uninvested cash is held and processes your deposits/withdrawals.
If you set up an automatic investment plan from your bank, the funds will first go into your core account, and then be used to purchase your desired mutual fund. With the plan though, this is all automatic so you wouldn’t have to do anything extra!
kennyisnotdead
03/30/2023 at 14:37:58 PDT
Are there instructions for auto investing the available cash? I have some available to set this up.
FidelityTaylor
03/30/2023 at 14:40:23 PDT
What do you mean, instructions? Like do you mean steps for how to set up an automatic investment plan?
Or do you mean you want to set up an automatic investment plan with the cash you have in your account now?
kennyisnotdead
03/30/2023 at 14:42:54 PDT
An automatic investment plan with the cash I have in my account now
I’ve only done it for gains and dividends
FidelityTaylor
03/30/2023 at 14:45:22 PDT
Ah gotchya. So, you totally can. But I guess it just depends on what you want to happen on a monthly basis.
If you set up an automatic investment plan that pulls from your core position (which is where your gains and dividends are probably sitting now) on a monthly basis, then you’d just need to make sure you have sufficient funds in your core every month.
On the other hand, you could just use the cash you currently have now and make a one-time purchase into your desired mutual fund. Then, you could set up an automatic investment plan to pull directly from your bank account on a monthly basis.
Does that make sense? Let me know what I can clarify, I want to make sure we’re on the same page!
kennyisnotdead
03/30/2023 at 15:05:36 PDT
ok so if I understand this I either setup the automatic investment from my bank or the core position. For the core position I need to make sure that amount is there each month. From the core position would be ideal.
FidelityTaylor
03/30/2023 at 15:06:21 PDT
Yes, you got it!
You’ll notice that when you go to set up the automatic investment plan, one of the first questions is asking where you want to pull the funds from- your core position or personal bank account.
kennyisnotdead
03/30/2023 at 15:08:11 PDT
Does it allow a % of core position or only a fixed amount?
FidelityTaylor
03/30/2023 at 15:09:22 PDT
It’s only a fixed dollar amount.
FidelityTaylor
03/30/2023 at 15:17:24 PDT
You can always edit the plan as needed though! So don’t feel like you’re locked in, you can adjust as you go.🟢