What to do with my new Fidelity accounts

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Topic Author
mrmass
Posts: 275
Joined: Thu Jul 26, 2018 6:35 pm

What to do with my new Fidelity accounts

Post by mrmass » Thu Sep 27, 2018 2:48 pm

I'm this guy. The former cash user that only used cash. See this thread if you want
viewtopic.php?f=2&t=257290&p=4084839#p4084839

I'm now a convert. I have a Capital One QS that I'm about to get $200 for hitting $1000 within 3 months. I also stuck some emergency $$ at Capital one. I really like their interface. I can see my charges, and categories. I'm happy I stopped using cash.

So now I went ahead and opened a Fidelity card for the 2%. Put $2500 in the "savings account/CMA. I then opened and funded a brokerage account for $2500 at Fidelity.

I really don't understand the CMA/Brokerage yet but I'm reading up on it.

Can someone toss me some advise on this---Aside from my retirement accounts I'll post something about them later. I want to get my daily cash in order.

I had dreams of getting away from my Brick and Mortar bank and moving to either Fidelity, and or Capital One. But am now doubting that move but can't explain why.

I have $200K in Citizens Bank (I'm in MA)
I have $62K in Etrade (in my available funds account)

I have no mortgage, I don't spend too much. My work DD goes to Citizens.

123
Posts: 5223
Joined: Fri Oct 12, 2012 3:55 pm

Re: What to do with my new Fidelity accounts

Post by 123 » Thu Sep 27, 2018 3:28 pm

I think there's a place for B&M bank accounts in just about everyone's financial portfolio. We use the B&M accounts for direct deposits of payroll, etc and for automatic bill pay services and, of course, a little bit (smaller all the time) of checking. That said it's easy to move money back and forth to Fidelity as needed. It's so easy to manage cash with a brokerage account, like default and purchased money market funds, CDs, etc it just seems silly to waste an afternoon in a bank branch opening a CD, if they've got coffee it's usually not very good and few of them serve cookies anymore.
The closest helping hand is at the end of your own arm.

arf30
Posts: 619
Joined: Sat Dec 28, 2013 11:55 am

Re: What to do with my new Fidelity accounts

Post by arf30 » Thu Sep 27, 2018 4:50 pm

Fidelity has super powerful accounts compared to other banks/brokerages I've used:

Fidelity CMA: It's a checking account. It's also a brokerage account, so you can optionally hold money market funds and CDs here for a combined checking + savings account. Some people don't like mixing, so you don't have to do it this way. Can be set up to pull money from other accounts (include outside banks) using the Cash Manager tool - either on a nightly basis or an "on demand" basis. You could hold stocks/bonds/funds here if you were really crazy for an all-in-one checking/savings/investment account.

Fidelity Brokerage: Hold stocks, bonds, funds here. Core position is a money market fund that can double as a savings/emergengy fund.

Both accounts have routing numbers, free checkwriting, bill pay, ATM/debit (brokerage doesn't refund ATM fees unless you have a certain amount of assets at Fidelity). Both accounts automatically sell money market funds to cover debits if there's no cash in the account.

Topic Author
mrmass
Posts: 275
Joined: Thu Jul 26, 2018 6:35 pm

Re: What to do with my new Fidelity accounts

Post by mrmass » Thu Sep 27, 2018 5:23 pm

arf30 wrote:
Thu Sep 27, 2018 4:50 pm
Fidelity has super powerful accounts compared to other banks/brokerages I've used:

Fidelity CMA: It's a checking account. It's also a brokerage account, so you can optionally hold money market funds and CDs here for a combined checking + savings account. Some people don't like mixing, so you don't have to do it this way. Can be set up to pull money from other accounts (include outside banks) using the Cash Manager tool - either on a nightly basis or an "on demand" basis. You could hold stocks/bonds/funds here if you were really crazy for an all-in-one checking/savings/investment account.

Fidelity Brokerage: Hold stocks, bonds, funds here. Core position is a money market fund that can double as a savings/emergengy fund.

Both accounts have routing numbers, free checkwriting, bill pay, ATM/debit (brokerage doesn't refund ATM fees unless you have a certain amount of assets at Fidelity). Both accounts automatically sell money market funds to cover debits if there's no cash in the account.
Thank you for the detail. That adds clarity. I now am wondering If I should go all in with Fidelity. I don't do much trading. I do have 50K ish in stocks but these stocks are from current and old jobs that offered restricted stock as part of a bonus.

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Mursili
Posts: 103
Joined: Tue May 15, 2012 8:32 pm

Re: What to do with my new Fidelity accounts

Post by Mursili » Sat Sep 29, 2018 9:23 am

mrmass wrote:
Thu Sep 27, 2018 5:23 pm
Thank you for the detail. That adds clarity. I now am wondering If I should go all in with Fidelity. I don't do much trading. I do have 50K ish in stocks but these stocks are from current and old jobs that offered restricted stock as part of a bonus.
We have recently started using the Fidelity CMA heavily. It is a very convenient account other than money transferred in from other banks takes a while before it is usable.

Yes, the CMA will draw funds from a money market fund in your brokerage account (or in the CMA account itself), but, from another thread, may also withdraw funds from margin if that is enabled in your brokerage account. I checked recently and margin is not enabled in our account. I intend to keep it that way.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

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