Help with Fidelity account

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Topic Author
brett41
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Joined: Mon Mar 09, 2020 10:20 am

Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 3:47 pm

I just opened a Roth IRA in my wife’s name and I am trying to fund it. She will be making contributions once a month. It won’t let her link our bank account since she isn’t primary on it. We had to use mobile check deposit to get money in the account. We are wanting a 4 fund portfolio. Is there a way to select the 4 funds and the percentage we want invested in each or do we have to manually calculate how much from each deposit will go towards the respective fund every time and make 4 separate buys?

mhalley
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Joined: Tue Nov 20, 2007 6:02 am

Re: Help with Fidelity account

Post by mhalley » Wed Mar 25, 2020 3:55 pm

Just starting out with small amounts it would be easier to just put it in a freedom index fund. Why not just open a bank account in her name?
But to setup automatic investments from core position, try this link.

https://moneymovement.fidelity.com/ftgw ... I_SOURCE=A
Last edited by mhalley on Wed Mar 25, 2020 4:00 pm, edited 1 time in total.

Topic Author
brett41
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Re: Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 3:57 pm

We just have a joint bank account and it seems like a hassle to setup a new bank account just to play middle man between our actual bank account and fidelity.

mhalley
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Joined: Tue Nov 20, 2007 6:02 am

Re: Help with Fidelity account

Post by mhalley » Wed Mar 25, 2020 4:01 pm

I edited my post once I found the way to do it.

livesoft
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Re: Help with Fidelity account

Post by livesoft » Wed Mar 25, 2020 4:06 pm

Why a 4-fund portfolio in a small Roth IRA? I would just use one single fund such as US Total Market Stock Index fund, then do rebalancing in your largest-value tax-deferred account as needed to get to the desired asset allocation of your Total Portfolio made up of all your accounts. The Roth IRA could then be in set-and-forget mode until it became the largest-value account that you have.
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Topic Author
brett41
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Re: Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 4:09 pm

livesoft wrote:
Wed Mar 25, 2020 4:06 pm
Why a 4-fund portfolio in a small Roth IRA? I would just use one single fund such as US Total Market Stock Index fund, then do rebalancing in your largest-value tax-deferred account as needed to get to the desired asset allocation of your Total Portfolio made up of all your accounts. The Roth IRA could then be in set-and-forget mode until it became the largest-value account that you have.
This will end up being her main retirement account. Her 403b offers no match and she will only have enough investment money to max this Roth IRA each year for now.

Swivelguy
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Joined: Sun Jan 18, 2009 11:37 pm

Re: Help with Fidelity account

Post by Swivelguy » Wed Mar 25, 2020 4:10 pm

Want four index funds in a small account? Fidelity has you covered!

https://fundresearch.fidelity.com/mutua ... /31634R109

Seriously, it's a decent option for a few years until the account gets large enough to slice into your precise desired allocation. This is exactly what I did when I started investing in a Roth IRA as my first account while in college.

Topic Author
brett41
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Re: Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 4:13 pm

Should we just do like fxaix or Fskax until the account gets to a certain size? This is her first/only retirement account. She is 31 and will be contributing $500 a month.

livesoft
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Re: Help with Fidelity account

Post by livesoft » Wed Mar 25, 2020 4:14 pm

brett41 wrote:
Wed Mar 25, 2020 4:13 pm
Should we just do like fxaix or Fskax until the account gets to a certain size? This is her first/only retirement account. She is 31 and will be contributing $500 a month.
Yes, if you have other accounts that hold your bond funds.
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Silk McCue
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Re: Help with Fidelity account

Post by Silk McCue » Wed Mar 25, 2020 4:16 pm

livesoft wrote:
Wed Mar 25, 2020 4:14 pm
brett41 wrote:
Wed Mar 25, 2020 4:13 pm
Should we just do like fxaix or Fskax until the account gets to a certain size? This is her first/only retirement account. She is 31 and will be contributing $500 a month.
Yes, if you have other accounts that hold your bond funds.
Livesoft. Congratulations on this your 70,000th post.

Cheers

Topic Author
brett41
Posts: 56
Joined: Mon Mar 09, 2020 10:20 am

Re: Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 4:16 pm

livesoft wrote:
Wed Mar 25, 2020 4:14 pm
brett41 wrote:
Wed Mar 25, 2020 4:13 pm
Should we just do like fxaix or Fskax until the account gets to a certain size? This is her first/only retirement account. She is 31 and will be contributing $500 a month.
Yes, if you have other accounts that hold your bond funds.
No bonds right now but would eventually like to be at
Fskax 50%
Ftihx 30%
Fxnax 10%
Fsrnx 10%

RetiredAL
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Location: SF Bay Area

Re: Help with Fidelity account

Post by RetiredAL » Wed Mar 25, 2020 4:30 pm

I can't answer for Fidelity, but had a similar last year at Schwab where at first it could not be done on-line. We had to submit a affidavit form signed by all the owners of the checking account allowing electronic transfers from my Dad's IRA to his checking. Since then, all is fine. I am POA on his IRA, co-owner on his checking, and handle all of his finances.

DW and I recently created a Trust account at Fidelity to receive my Fidelity IRA RMD's as I turn 70 this year. Yeah, I know that RMD's got pushed to 72. I'll have to look into how transfers via her credentials are linked/started in a newer environment. When that account was "me only" before re-titling to our Trust, I had no issues with linking it to our joint checking, but that was like 15 years ago.

I do know that at Fidelity, DW as POA cannot initiate an transfer on-line from my IRA's. She would have to call them. I've never had trouble transferring from our checking to my Roth which was done annually until I retired, but then again, that was set up 20+ years ago.

This hoop jumping at Fidelity contrasts to Schwab, were I an POA to my Dad's IRA can transfer on-line once that affidavit form was submitted. This IRA was new to Schwab last year, having been transferred there from another brokerage.

Swivelguy
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Re: Help with Fidelity account

Post by Swivelguy » Wed Mar 25, 2020 10:07 pm

brett41 wrote:
Wed Mar 25, 2020 4:16 pm
No bonds right now but would eventually like to be at
Fskax 50%
Ftihx 30%
Fxnax 10%
Fsrnx 10%
I believe all of those funds have $0 minimum, so you can get exactly that asset allocation with any contribution amount.

You can set up automatic investments to be split between the funds according to that allocation, but only after you own the funds. So make your first depsit, buy the funds, and then set it up.

To set up the automatic investment splitting, first link the bank account (sorry, can't help with your account owner issues!), then go to:
1. Accounts and trade -> Transfer
2. Click on "Into your fidelity accounts" then click on "Set up automatic investments"
3. Choose the account and click on "Transfer funds from an external bank account"
4. You'll have radio buttons to choose between "Your brokerage core account" or "Mutual funds you own" and you can put a dollar amount for each fund.

Topic Author
brett41
Posts: 56
Joined: Mon Mar 09, 2020 10:20 am

Re: Help with Fidelity account

Post by brett41 » Wed Mar 25, 2020 10:12 pm

Swivelguy wrote:
Wed Mar 25, 2020 10:07 pm
brett41 wrote:
Wed Mar 25, 2020 4:16 pm
No bonds right now but would eventually like to be at
Fskax 50%
Ftihx 30%
Fxnax 10%
Fsrnx 10%
I believe all of those funds have $0 minimum, so you can get exactly that asset allocation with any contribution amount.

You can set up automatic investments to be split between the funds according to that allocation, but only after you own the funds. So make your first depsit, buy the funds, and then set it up.

To set up the automatic investment splitting, first link the bank account (sorry, can't help with your account owner issues!), then go to:
1. Accounts and trade -> Transfer
2. Click on "Into your fidelity accounts" then click on "Set up automatic investments"
3. Choose the account and click on "Transfer funds from an external bank account"
4. You'll have radio buttons to choose between "Your brokerage core account" or "Mutual funds you own" and you can put a dollar amount for each fund.
Thanks! So would I just do if making a $500 initial deposit it would be $250, $150, $50, $50 respectively? Would I be better off doing one of the ones below until reaching a certain dollar amount?

Fidelity® Four-in-One Index Fund/
FFNOX

Fidelity® Total Market Index Fund
FSKAX

Fidelity Freedom® Index 2055 Fund - Investor Class
FDEWX

Swivelguy
Posts: 320
Joined: Sun Jan 18, 2009 11:37 pm

Re: Help with Fidelity account

Post by Swivelguy » Wed Mar 25, 2020 10:25 pm

Given the $0 minimums, I don't see a point starting off with a single fund just to have to go and change it later. Might as well make it once-and-done.

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