Fidelity cash position

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welderwannabe
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Re: Fidelity cash position

Post by welderwannabe » Sat Jul 21, 2018 8:28 pm

Spirit Rider wrote:
Sat Jul 21, 2018 8:21 pm
Then I would call Fidelity and ask why explicitly documented limits for FZDXX are not followed.
My 401k has the same issue. $10K minimum.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

jjface
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Re: Fidelity cash position

Post by jjface » Sun Jul 22, 2018 1:25 pm

Spirit Rider wrote:
Sat Jul 21, 2018 8:21 pm
jjface wrote:
Sat Jul 21, 2018 6:55 pm
Spirit Rider wrote:
Sat Jul 21, 2018 3:58 pm
jjface wrote:
Sat Jul 21, 2018 3:50 pm
It is 10k in my se401k.
You did not click on the note4 "Initial Group Retirement Investment4" listing $10K.

"4. Initial minimum investments into group retirement accounts such as Fidelity Simplified Employee Pension-IRA, Keogh, Self-Employed 401(k), and Non-Fidelity Prototype Retirement accounts are $500 or higher. There is no minimum for additional investments in any type of Fidelity fund you already own."
No I actually tried to buy less than $10k and the system would not let me and said I needed a min of $10k. Somewhere there is an error.
Then I would call Fidelity and ask why explicitly documented limits for FZDXX are not followed.
Well it does say $500 or higher

I think they probably do it on an account by account basis based on your status ie between $500-$10000. I don't have any special status or a large balance. Anyway $10k isn't too bad to join this fund. The $100k into a brokerage is restrictive.

Duffydog1
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Re: Fidelity cash position

Post by Duffydog1 » Mon Jul 23, 2018 7:10 am

abuss368 wrote:
Wed Jul 04, 2018 4:01 pm
While I am not familiar with Fidelity's investment offerings, Vanguard's Prime Money Market Fund is yielding 2.04% presently.
I don't see how the Prime MM fund is yielding over 2%.I always look at year to date and its under 1% even though only 1/2 year has gone by.Perhaps I am missing something. Would appreciate your explanation as I was going to purchase CDs at 2% and take money from the Prime Fund.

Katietsu
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Re: Fidelity cash position

Post by Katietsu » Mon Jul 23, 2018 7:36 am

Duffydog1 wrote:
Mon Jul 23, 2018 7:10 am
abuss368 wrote:
Wed Jul 04, 2018 4:01 pm
While I am not familiar with Fidelity's investment offerings, Vanguard's Prime Money Market Fund is yielding 2.04% presently.
I don't see how the Prime MM fund is yielding over 2%.I always look at year to date and its under 1% even though only 1/2 year has gone by.Perhaps I am missing something. Would appreciate your explanation as I was going to purchase CDs at 2% and take money from the Prime Fund.
Since it is a money market, you do not need to account for fluctuations in the NAV. Therefore, you can look at the SEC yield, currently 2.05%, to represent your expected return. The YTD is less than 1% because the yield has not over 2% all of 2018. For instance, in March, the 7 day SEC yield was around 1.7%.

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Kevin M
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Re: Fidelity cash position

Post by Kevin M » Mon Jul 23, 2018 11:15 am

Katietsu wrote:
Mon Jul 23, 2018 7:36 am
Duffydog1 wrote:
Mon Jul 23, 2018 7:10 am
abuss368 wrote:
Wed Jul 04, 2018 4:01 pm
While I am not familiar with Fidelity's investment offerings, Vanguard's Prime Money Market Fund is yielding 2.04% presently.
I don't see how the Prime MM fund is yielding over 2%.I always look at year to date and its under 1% even though only 1/2 year has gone by.Perhaps I am missing something. Would appreciate your explanation as I was going to purchase CDs at 2% and take money from the Prime Fund.
Since it is a money market, you do not need to account for fluctuations in the NAV. Therefore, you can look at the SEC yield, currently 2.05%, to represent your expected return. The YTD is less than 1% because the yield has not over 2% all of 2018. For instance, in March, the 7 day SEC yield was around 1.7%.
Right, looking at past returns tells you nothing about the current SEC yield for this or any other fund. You can see the SEC yield for all Vanguard funds on the Vanguard mutual funds web page. Prime MM is near the top.

If you want to see the historical SEC yields, click on the fund name, click Price & Performance, then click on the Price history search link under Price near the top. For bond funds, the fund will be pre-filled, but for money market funds you must enter the fund number or select it from the list. Enter 30 as fund number for Prime MM. Then enter start date and end date, with a maximum of about one year, then click Get History.

For example, I'll enter 01/01/2018 as start date, and 07/23/2018 as end date. I note that SEC yield on 1/2/2018 was only 1.37%, but it climbed steadily during the year to the value of 2.05% on 7/20/2018. The current SEC yield reflects what you actually are earning right now.

Kevin
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abuss368
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Re: Fidelity cash position

Post by abuss368 » Mon Jul 23, 2018 8:28 pm

Duffydog1 wrote:
Mon Jul 23, 2018 7:10 am
I don't see how the Prime MM fund is yielding over 2%.I always look at year to date and its under 1% even though only 1/2 year has gone by.Perhaps I am missing something. Would appreciate your explanation as I was going to purchase CDs at 2% and take money from the Prime Fund.
Hi Duffydog1 -

Check Vanguard's website directly for the most up to date yield. The SEC yield is 2.05% as of today.

https://investor.vanguard.com/mutual-fu ... file/VMMXX

Best.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

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