1 million minimum MM at Fidelity

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exoilman
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1 million minimum MM at Fidelity

Postby exoilman » Thu Apr 20, 2017 10:32 am

While looking at some funds FMPXX (1.02% taxable) and FTCXX (.75% tax exempt) the minimum for entry is 1 million dollars. These are available to individuals. Used to be institutional only. I guess a good place for wealthy investors waiting for market correction.

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Sam

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DaftInvestor
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Re: 1 million minimum MM at Fidelity

Postby DaftInvestor » Thu Apr 20, 2017 3:10 pm

Or you can put $250K into 4 different High-Yield Savings accounts that pay 1.05% (gsbank, synchrony, etc.).
I don't get why people are putting money in MMs that are below savings account rates. Is it so money can be moved without 24-hour ACH transfer (e.g. in case I want to time the market and shift my $1M in the middle of the day).

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goodenyou
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Re: 1 million minimum MM at Fidelity

Postby goodenyou » Thu Apr 20, 2017 3:19 pm

DaftInvestor wrote:Or you can put $250K into 4 different High-Yield Savings accounts that pay 1.05% (gsbank, synchrony, etc.).
I don't get why people are putting money in MMs that are below savings account rates. Is it so money can be moved without 24-hour ACH transfer (e.g. in case I want to time the market and shift my $1M in the middle of the day).



I would bet it is for consolidation and convenience.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

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DaftInvestor
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Re: 1 million minimum MM at Fidelity

Postby DaftInvestor » Thu Apr 20, 2017 3:21 pm

goodenyou wrote:
DaftInvestor wrote:Or you can put $250K into 4 different High-Yield Savings accounts that pay 1.05% (gsbank, synchrony, etc.).
I don't get why people are putting money in MMs that are below savings account rates. Is it so money can be moved without 24-hour ACH transfer (e.g. in case I want to time the market and shift my $1M in the middle of the day).



I would bet it is for consolidation and convenience.


yeah - and I guess the difference between 1.02% and 1.05% on $1M is only $300 per year. Chump-change for someone holding $1M in a money market.

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flamesabers
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Re: 1 million minimum MM at Fidelity

Postby flamesabers » Thu Apr 20, 2017 3:34 pm

goodenyou wrote:
DaftInvestor wrote:Or you can put $250K into 4 different High-Yield Savings accounts that pay 1.05% (gsbank, synchrony, etc.).
I don't get why people are putting money in MMs that are below savings account rates. Is it so money can be moved without 24-hour ACH transfer (e.g. in case I want to time the market and shift my $1M in the middle of the day).



I would bet it is for consolidation and convenience.


I imagine some wealthy investors may also want to be in Fidelity's Private Client Group without having to invest all their money in stocks and bonds.


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