This video is going to be a step-by-step guide on how to open a roth ira with fidelity in less
than 10 minutes. And deposit money into your roth ira account. And please hit the SUBSCRIBE button
if you want to learn more about roth ira's and personal finance.
What's great about fidelity's roth ira is there's no account minimum, you can have zero dollars in
your roth ira and you will not get charged any fees. There's also no transaction fees to deposit
money from your bank account to your fidelity ira and fidelity has over 3,000 different funds to
choose from and there's no trading fees involved at all. Whether you purchase them every day,
once a month, or once a year, you'll pay no fees. You can open up a roth ira account at any age as
long as you have a taxable income. If you are younger than 18 years old you'll need to open
up what's called a custodial ira and you'll need your parents help for that. So how to open the
account- go to fidelity.com and at the top you're going to see something called "open an account".
You're going to click the open the account button and it'll bring up this screen right here.
You can open up different versions of the ira and we want to start today with a roth ira so
we're going to click open a roth ira It's going to ask you are you already a fidelity customer-
most likely it's going to be no and then you hit next. Now it's going to ask you to plug in your
information. Go ahead and do that. It's important that you plug in this information correctly
because this is going to be how you're going to end up withdrawing the money you're going to need
to have the right information in there. And this matters for taxes as well. Now it's going to start
a screen that says tell us about your job. It wants to know if you're employed because it needs
to know whether you're a tax broker or something like that or whether you just have a normal
job. So plug in your informations if you do have a job. Once you have that information plugged in
you have to select are you an immediate family member residing in the same household blah blah
blah.... most people it's going to be "no". Employed by a broker, dealer, stock exchange,
exchange member, firm, financial industry etc... most people it's going to be "no".
So I get a lot of questions about this... Your core position right here- it's asking you
when you deposit money into your account do you want it to go into their fidelity's money market
fund or do you want it to go into the fdic insured program. Basically this is like a savings account
within your fidelity ira when you deposit money in there it doesn't get automatically invested
it needs to sit somewhere until you tell it where to invest. What I'd recommend you do is
the fidelity government money market fund. This does a little bit better than the fdic insured
one as far as interest. It's basically like a high yield interest savings account. And now
just verify all your personal information is correct, all your employment information is
correct and you have to go over the terms and conditions. We got all that done and
then we're just going to hit open account. Congratulations! So now you have a roth ira
open and this is going to be your account number right here. Whatever number it gives you... again
this is a fake account so you're not going to do anything with this number... So now you need to
set up your username and password for the account and you don't have to worry about saving your roth
ira account number. It'll show up every time you log in. And then once you have your username and
password go ahead and create a security question. Fluffy my cat. So now once we hit the next button,
boom you have your username and password and your accounts open. So now after you have your username
and password set up, we're going to come into the sign up for real-time quotes. Again this account
is going to be not for business uses, it's going to be your personal use. So you can just go ahead
and click the first option there. Select that. Review the agreement, they want to make sure again
you're doing everything legally. Hit I agree and again it just gives you a confirmation. We can go
ahead and close that and it'll automatically have you logged in to your roth ira account. Again on
the left, where it's yellow, that's your roth ira with your account number there. And this is the
home screen for your fidelity roth ira account. Now you have zero dollars in your roth ira
so you need to actually deposit money in here. Whether it be
a wire transfer through your bank or anything like that. So that we can actually start investing and
that's going to be part two of this video is how to deposit money into your roth ira.
Once we're on the home page, if you logged out you can go ahead and log back in. At the top tab
here it's going to say accounts and trade and then we're going to go to transfers. Under transfers we
want to "deposit, withdrawal, or transfer money" from our bank account. So right now we don't have
any bank account loaded. Once you have a bank account set up you'll be able to select it and
transfer money easier. But we need to link a bank to our fidelity account. So it's going to have to
send you a text message or an automated code. Once you get that code just go ahead and plug it in.
Now we're going to want to select the electronics funds transfer because that is absolutely free
and it's easy to do. I'm just going to link a new bank. Who owns this bank, I am the owner,
and it is a checking or a brokerage account or if there's a savings account click that. And
then you need to plug in your bank information. So the routing number and the account number
and then just re-enter the account number. Once you have that we're going to come down here and
click agree and continue. Now it'll have your bank information for you to verify at the top
of the screen and then we'll come down here and you're going to enter your bank login. So this
is where your username and password is going to be. When you log into either your wells fargo app
or when you go online to your chase bank app or whatever it may be and you plug in your username
and password for that. So then it'll bring you to this screen. Which is the success your bank
account has been linked and this is going to be the last screen. But this is only linking your
bank account and then we could deposit money into your roth ira from that bank account.
So now once you have your bank account linked and this may take a day or two to happen.
But as soon as it's ready to go we need to go ahead and actually transfer money from that bank
account into your roth ira. Go to the accounts tab at the top corner and then go ahead and click on
transfers. Once you're into this screen with transfers we're going to manage our automatic
investments. And it's going to show you your roth ira account number, should be right here.
And we're going to click this blue thing over here. That's going to say set up an
automatic transfer. Go ahead and click that. And then we're going to click transfer funds
from an external bank account. Now at the top of the screen it'll show you your bank account
go ahead and select your bank account and then come down here to transfer to.
So we're going to want to transfer it to your brokerage core account which is going to be
that spaxx- the money market fund. That's where the money is going to get loaded into
until you actually invest the money. You can do automatic investments this way.
Once you actually purchase the mutual funds then you can choose funds to automatically invest in.
But if you haven't purchased any mutual funds you can't transfer right into a mutual fund. You have
to go into that core account. So if you want to do one automatic transfer you can go ahead and do
$6,000 dollars or however much you want to do. $100 dollars, $1,000 dollars. The limit you can do
over one calendar year is $6,000 dollars unless you're age 50 and older you can do $7,000 dollars.
So if you want to do a lump sum $6,000 all at once you can plug in $6,000 dollars right here or
if you want to set up automatic transfers every month. $6k divided by 12 will be $500 dollars.
So you can set up. So that $500 dollars gets transferred every single month and you can
choose the day of the month too. So if you want to go on the second of every month... You should have
the day second here, the frequency monthly and then have monthly selected. So on the second of
every month and just leave it at no stop date. So that it'll continue to withdraw money from
your bank account every single month until you go in here and tell it to stop doing that. Once you
have that complete go ahead hit next and then hit I agree and it's not going to do it for me
because I already have my transfer set up but go ahead after you hit agree. Just go ahead and hit
confirm. Make sure everything's set up. You want to do $500 on the second of every month or whether
it's just a one-time transfer and the money will start going into that money market account.
But it still needs to be invested and I have a video coming out next monday on how to invest
within your roth ira account. So if it's been a week I'll go ahead and put the card up here
for you to click or the link in the description below and that'll walk you through how to actually
invest the money. Thanks for watching guys be sure to hit SUBSCRIBE if you're not and as always hit
the thumbs up LIKE button to help this video out! I'll see you guys for next week's video!