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oneiromantic_ulysses

Fidelity lets you invest in pretty much anything...stocks, exchange traded funds, mutual funds, various derivatives, etc. Fractional shares thereof for ETFs and stocks. SPAXX is their money market fund (more or less a cash equivalent) and FDIC is an FDIC insured bank account. Core position is where uninvested funds go before you invest them. The terminology is a bit confusing, as position usually refers to a position in the context of an investment. Different brokers use different terminology. Just invest in a total market ETF if you're an invest and forget type. Make sure you follow all Roth IRA rules so you're not subject to any penalties. Edits: reordering


flapjack293

Thank you so much, this is the exact information I was looking for. Wish they would've specified that a bit clearer, but maybe that's my fault.


oneiromantic_ulysses

Honestly their UI is pretty bad. Took me a week or two to figure out how to buy fractional shares of an ETF when my work picked them for its retirement contributions matching plan.


Scr0bD0b

Are you going for the $100 bonus? There was something in the T&Cs about core positions: > "The bonus award will be deposited directly to the eligible account within 10 calendar days after the qualification period. Amounts deposited by you to qualify for the offer and by Fidelity in the form of the bonus award will be initially held in the eligible account’s core position. You will be provided information regarding the available core positions for the account type you select during the account opening process. Depending on the account type you select, you may have the option of selecting a money market fund sponsored by a Fidelity affiliate as your core position. No further investment or trading is required to qualify for the offer." I'm not sure if this implies that you must keep them in a core position for the reward initially or if you can immediately choose the investments you really want.


BouncyEgg

> you can immediately choose the investments you really want. This one. There is no stipulation that the money must be kept in the core position.


Scr0bD0b

Nice, thanks! Wish they made that language a little more clear.


BouncyEgg

Yeah, it's a lot of words to say, "Just deposit $50 bucks. We don't care what you do after that."


nothlit

You will be able to invest in other things. They’re just asking you to choose between two options for where any uninvested cash will go. Ultimately it doesn’t really matter which one you choose, because they are very similar, and you won’t let your cash sit around uninvested for very long anyway.


flapjack293

Thank you, I really appreciate it!


fidelityinvestments

Hey u/flapjack293! This is u/FidelityJosh with r/fidelityinvestments. Fidelity's Roth IRA is considered a brokerage account, which offers a wide variety of investments for you to choose from. When opening the account, you do have to choose a core cash position. However, that position is only where your cash is held when it is not invested. For example, when a deposit is first made to the account it goes into the core cash position. Then you can use the cash to buy other investments. [Here's a video on our site that explains what the core position is.](https://www.fidelity.com/learning-center/investment-products/mutual-funds/core-position-video) [Learn more about the IRA Investment Choices at Fidelity.](https://www.fidelity.com/building-savings/learn-about-iras/ira-choosing-investments) Thanks for your question/comments. We hope that the answer was helpful. We are closing out our response here, and we are not planning on checking back in on this one. If you still have questions for us, please head over to r/fidelityinvestments.


grayputer

I have a fidelity account. They are asking you to pick the default cash bucket. If you deposit money it goes here. If you sell stock the cash proceeds go here. If you buy stock the cash is taken from here. If you transfer cash from fidelity to your bank, it comes from there. It is a where cash lives in your brokerage account.