Managing a Fidelity Investment Account

By Vinayak on Saturday, September 14, 2013 with 0 comments

Managing an investment account is something that people often hire experts to do for them. But chances are that you may not have extra money to do that. Here's a quick guide to managing a Fidelity investment account for yourself. Have a question? Get an answer from a Personal Finance Professional now!

Instructions

    • 1
      Set up an account with regular contributions. You can often do this through your workplace if it offers a 401(k) plan, but if not, you can simply decide to contribute regular amounts every month to your account.
    • 2
      Set up a diverse account after consulting the Fidelity portfolio. You will want to select a mix of investments so that shortfalls in any one area will not destroy your savings.
    • 3
      Consider investing in one of the Fidelity Freedom Funds, which offer a pre-selected mix of various investment types based on risk. You should select a fund based on the year you believe you will retire (e.g. Freedom Fund 2030 if you expect to retire around the year 2030).
    • 4
      Balance your Freedom Fund with individual funds, investing a large portion of money in the Freedom Fund, and 20 percent into value, blend and growth funds.
    • 5
      Re-examine your investments every year to re-balance your funds. If you find that a certain fund has fallen from 20 percent of your portfolio to 10 percent, allocate a little more money to it. Likewise, if a certain fund suddenly makes up a larger percentage of your portfolio than you want, allocate less money to it.
    • 6
      Keep your risk potential in mind when managing your account. If you need more liquid money and can't afford long term investment, move your money to safer funds. If you have more money than you need, invest in higher-return funds.

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