Maximizing Fidelity Investments: Strategies For Smart Portfolio Changes

Changing investments in Fidelity is a straightforward process that can be done online. It is important to consider both your short-term financial situation and your long-term investment horizon when making investment decisions. For instance, opting for less risky investments like bonds as you approach retirement age. You can change your investments by logging into your Fidelity account, selecting the relevant account, clicking on Investments, and then Change Investments. You will then need to adjust your current investments and future investment elections. This can be done by choosing the desired funds and inputting the percentage allocation for each. It is also possible to change how you receive your dividends and capital gains distributions, as well as how often you make future investment allocations.

Changing investments in a 401(k) plan

Firstly, log in to your Fidelity account. You will then be able to see your 401(k) plan and investment accounts, along with the value of your investments. Click on the 401(k) plan you want to change. This will bring up a summary of your account, including the vested balance and rate of return.

Next, click on the "Investments" option in the menu bar to see the balance overview of your accounts and the investments made in your 401(k) plan. From the sub-menu under "Investments," click "Change Investments." This will take you to a page where you can change your future and current investments.

If you want to swap one investment for another, select "Exchange one investment." If you want to rebalance your portfolio, select "Exchange Multiple Investments." You can then proceed by clicking "Start your Rebalance."

You will then be asked for the source of the rebalance, meaning you have to describe what investments you want to exchange for new ones. To have complete control over this, click "Rebalance all sources."

On the next page, you will see all the investments in your 401(k) plan, including the current balance and allocation of funds. Enter the desired allocation in the table to rebalance your 401(k) plan. Allocation refers to the percentage of money allocated to a particular fund.

You can click on the fund name to see performance, expense ratio, assets under management, risk, and other details. This information can help you make informed decisions about your allocations and ensure your investments align with your financial goals.

Finally, execute the changes by realigning your investment portfolio and managing your investment account. Begin by carefully reviewing your current investment portfolio and evaluating your asset allocation. Make adjustments based on your risk tolerance and investment goals.

Then, navigate to your account management dashboard on the Fidelity website or app. Locate the option to make changes to your investments and follow the prompts to realign your portfolio. Ensure that you select the appropriate funds or securities that align with your updated strategy.

Monitor your portfolio regularly to track performance and make further adjustments as needed to stay on course with your financial objectives.

Remember that each 401(k) plan is different, and your plan's specific policies on investment choices are typically outlined in the Summary Plan Description (SPD). This document will tell you what your plan allows for. If your employer has provided this document, you can review it online by accessing your plan's "Summary" page and clicking on the "Plan Information" tab.

Fidelity also offers phone support services and educational resources to help guide you through the process of adjusting your 401(k) investments.

Changing dividends and capital gains distributions

Changing how your dividend and capital gains distributions are invested can be done in just a few minutes online. Here is a step-by-step guide on how to do it:

Step 1: Log in to your Fidelity account

Go to the Dividends and Capital GainsLog In Required page on the Fidelity website and log in to your account.

Step 2: Find the security or mutual fund you want to change

On the Dividends and Capital Gains page, find the security or mutual fund that you want to update.

Step 3: Select "Update" under "Action"

Once you have selected the security or mutual fund, click on "Action" and choose "Update". This will take you to the Update Distributions page.

Step 4: Make your selection

On the Update Distributions page, you will see dividends and capital gains either combined in one row (for securities) or in separate rows (for mutual funds). Make your selection, choosing whether you want to apply the change to all current equity positions, mutual funds, and/or future purchases, transfers, and deposits.

Step 5: Select "Update"

After making your selection, click on "Update" to confirm the change.

Step 6: Review your changes

You will be directed to a confirmation page that specifies the change you have made. Here, you can review your changes and see a link to change distributions on another account.

Please note that while you can update most accounts and securities online, you cannot make changes to IRA-BDAs and PAS accounts. Additionally, certain types of business accounts may not permit updates unless you have full authority, and there are some securities that cannot be updated regardless of the account type.

Changing a 529 plan's investment instructions

Step 1: Log In to Your Fidelity Account

Start by accessing your Fidelity account. You will need to provide your login credentials, such as your username and password.

Step 2: Navigate to the 529 Plan Investment Instructions Page

Once you are logged in, find and select the 529 Plan Investment Instructions page. This page should be under the relevant section for your 529 college savings plan.

Step 3: Provide Beneficiary Information

On the 529 Plan Investment Instructions page, you will need to have certain details about the beneficiary of the plan. This includes the beneficiary's name, Social Security number, and date of birth.

Step 4: Review Current and Future Asset Allocations

Before making any changes, review your current and future asset allocations. Current asset allocations refer to how your plan's existing assets are distributed across different investments, while future asset allocations refer to how future contributions will be invested.

Step 5: Make Changes to Future Investment Allocations

You can change how your future investments are allocated as frequently as you like. For example, you can choose to redirect future contributions from a moderate growth portfolio to an age-based portfolio. These changes will take effect the next time you contribute to your 529 college savings plan account.

Step 6: Make Changes to Current Asset Allocations

According to IRS rules, you can change your current investments twice per calendar year or if you change beneficiaries without incurring taxes. For instance, you might decide to move your current assets from a static portfolio to an age-based portfolio.

Step 7: Review Asset Allocation Choices

If you need help deciding how to adjust your asset allocations, Fidelity provides a 529 Plan Investment Options page that outlines various investment choices. This can help you evaluate different portfolios and their associated risks and potential returns.

Step 8: Contact Fidelity for Assistance

If you have any questions or need further clarification about changing your future or current asset allocations, you can contact Fidelity at 800-544-1914. They can provide additional guidance and ensure you make informed decisions about your 529 plan.

By following these steps, you can effectively change the investment instructions for your 529 plan with Fidelity, ensuring that your college savings plan aligns with your financial goals and risk tolerance.

Setting up automatic investments

Step 1: Log in to Your Fidelity Account

Visit the official Fidelity website and log in to your account using your credentials. Make sure you have access to your Portfolio Summary, as you will need it for the following steps.

Step 2: Navigate to the "Set Up an Automatic Investment" Option

Once you are logged in, look for the "Set up an automatic investment" option. This is usually found by navigating to the Customer Service section of the website. From there, you can select the "Investing and trading" option, which should lead you to the "Set up an automatic investment" page.

Step 3: Choose Your Account and Investment Details

On the "Set up an automatic investment" page, you will be able to select the specific account you wish to make automatic investments from. You will also be able to choose the investment type and provide details about the investments you want to set up.

Step 4: Set Up Recurring Automatic Investments

After selecting your account and investment details, you can specify the frequency and amount of your automatic investments. You can choose to make regular contributions, such as monthly or quarterly, and decide on the amount you wish to invest during each contribution.

Step 5: Review and Confirm Your Selections

Before finalizing, carefully review the details of your automatic investment setup. Ensure that the account, investment type, frequency, and amount are all correct. Once you are satisfied, confirm your selections, and your automatic investments will be scheduled according to your preferences.

By following these steps, you can easily set up automatic investments with Fidelity. This allows you to make regular contributions to your chosen investments without having to manually initiate each transaction. Remember that you can always adjust or cancel your automatic investments if your preferences or financial goals change.

Reinvesting dividends and capital gains

First, log in to your Fidelity account and navigate to the "Dividends and Capital Gains" page. Here, you'll be able to view your account information and select the security or mutual fund you want to change. Under the "Action" section, choose "Update" to access the "Update Distributions" page.

On the "Update Distributions" page, you will see dividends and capital gains listed either in separate rows or combined in one row, depending on whether you are updating a security or a mutual fund. Make your selection and choose whether you want to apply the change to all current equity positions, mutual funds, and/or future purchases, transfers, and deposits.

If you are updating a mutual fund, you may also have the option to direct the dividends and capital gains into one of your Fidelity mutual funds. However, this option is unavailable for future purchases, transfers, and deposits.

Once you've made your selection, click "Update" to confirm your changes. You will then see a confirmation page specifying the changes you have made, along with a link to change distributions on another account. The changes you make will be effective immediately and will be reflected on your "Dividends and Capital Gains" summary page.

If you have signed up for email notifications, you will receive a confirmation email within 1-2 business days. If you have not elected for email notifications, you will receive a confirmation by mail within 3-5 business days.

It's important to note that you cannot make changes to IRA-BDAs and PAS accounts online. Additionally, certain types of business accounts will not permit you to update dividends and capital gains distributions online unless you have full authority. There are also some securities that cannot be updated, regardless of the account type, such as fixed-income positions, alternative investments, and convertible securities.

By reinvesting your dividends and capital gains, you are choosing to use those distributions to purchase more shares of the mutual fund or stock. This can be a great way to grow your investments over time, but it may not be the right choice for every investor. It's always a good idea to consult with a financial advisor if you have any questions or concerns.

Frequently asked questions