How To Open a Roth IRA with Fidelity for Beginners - YouTube

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!