Brokerage checking: Fidelity, Schwab, or Vanguard

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Elysium
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Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Elysium » Tue Aug 14, 2018 7:22 pm

After years of having one joint checking account for all our needs, I am now considering another separate brokerage checking account. I am trying to send any excess that we think we don't need away from our regular checking account. The primary goal for this account is not to act as a checking account, but for emergency funds / investment account / sweep, with some flexibility for check writing and ATM access in case we need it. Fidelity Cash Management account and Schwab brokerage checking are the ones that comes to my mind. Most of my accounts are with Vanguard, so I have looked at Vanguard advantage account as well. It does appear though the Vanguard option isn't very attractive compared to other two.

I also have a Solo 401(k) with Vanguard that I am now seriously considering shifting out since there are no benefits, and the costs are higher since they do not allow purchasing of admiral shares. It does appear from looking up previous threads both Fidelity and Schwab offer better Solo 401(k) plans, and given I also need to open a Cash Management account, either one of these are better. I will be opening this new account and moving the Solo 401(k).

Between Fidelity and Schwab, what are the pros / cons.

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whodidntante
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by whodidntante » Tue Aug 14, 2018 7:33 pm

I have both Fidelity CMA and Schwab Investor Checking in my account buffet. Fidelity's offering is better. Fidelity has a loose definition of core account, so I can earn 1.83% on my money and the debits will automatically liquidate a MMF. The only advantages for Schwab that I have found is they are willing to link to any account for ACH where Fidelity's system is finicky. Also with Schwab I can do a travel notification online, but with Fidelity I have to call. On the phone. Like it's the 80's.

stlutz
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by stlutz » Tue Aug 14, 2018 8:38 pm

The primary goal for this account is not to act as a checking account, but for emergency funds / investment account / sweep, with some flexibility for check writing and ATM access in case we need it.
Regarding the checkwriting/ATM access: What is the timing of when you want access to funds? Money gets from Vanguard to my bank in 1-2 business days. Is that too slow? If you do need immediate access, I like Schwab of these three options as they are the only one who is truly a bank and thus they respond the best to any issues that may occur, like asking for $80 from the ATM and only getting $40 or a check getting cashed for the incorrect amount (both actual scenarios that have been discussed on BH).

Regarding using it as a sweep account, where do you actually do or want to do your investing? At Vanguard I can buy a fund using money from my sweep account or using money from Fidelity or Schwab and get that day's price on a mutual fund or trade immediately with an ETF. At Fidelity I can pull from Schwab Bank and also trade immediately. I haven't actually checked this with Schwab.

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Elysium
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Elysium » Tue Aug 14, 2018 8:53 pm

Regarding access to check writing / ATM, it isn't about timing, but being able to narrow it down to only what I really need. For instance, I may need to write a few smaller checks or odd amounts, and may not know cash withdrawal needs. If I keep money at Vanguard and transfer out to my regular bank, I may end up withdrawing more than I need. This is what is happening now, as I am keeping more money than I need in checking that gets spent eventually. I am leaning towards Fidelity since the transfer of Solo 401(k) is another consideration, and I have heard good things about it here.

Nthomas
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Nthomas » Tue Aug 14, 2018 9:02 pm

IMO Schwab bank and solo/individual 401k are both excellent.

arf30
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by arf30 » Tue Aug 14, 2018 9:34 pm

I think Fidelity has the edge. Schwab bank is very basic - it lacks things like transaction alert emails. The Fidelity CMA is very powerful, I haven't seen another banking product quite like it.

mpsz
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by mpsz » Tue Aug 14, 2018 9:37 pm

Very happy with Fidelity CMA, which I use now. I've used Schwab checking in the past and it was fine. I agree that Vanguard Advantage is not competitive.

baliktad
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by baliktad » Wed Aug 15, 2018 1:06 am

If you have enough assets to qualify for Vanguard Advantage ($500K minimum in Vanguard funds), then you will also qualify for Fidelity's Premium Services ($250K in ANY assets held at Fidelity). This means you will be eligible for ATM service fee rebates even on the normal Fidelity brokerage account. So you don't need a Fidelity Cash Management Account; you can open a regular Fidelity brokerage account. The difference is that the Fidelity brokerage account can be enabled for margin and options trading if you desire; the CMA cannot. Both the brokerage and CMA can be enabled for checkwriting and debit card access on request, conduct normal trading in securities, mutual funds, etc., and hold cash/money market funds.

I do like that Fidelity will automatically liquidate money market funds to process trades or withdrawals, and they recently dropped almost all fees/minimums to $0. Hard to go wrong.

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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by iamblessed » Wed Aug 15, 2018 1:35 am

whodidntante wrote:
Tue Aug 14, 2018 7:33 pm
I have both Fidelity CMA and Schwab Investor Checking in my account buffet. Fidelity's offering is better. Fidelity has a loose definition of core account, so I can earn 1.83% on my money and the debits will automatically liquidate a MMF. The only advantages for Schwab that I have found is they are willing to link to any account for ACH where Fidelity's system is finicky. Also with Schwab I can do a travel notification online, but with Fidelity I have to call. On the phone. Like it's the 80's.
If you don't mind me asking what fund it that at 1.83%

baliktad
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by baliktad » Wed Aug 15, 2018 1:37 am

iamblessed wrote:
Wed Aug 15, 2018 1:35 am
whodidntante wrote:
Tue Aug 14, 2018 7:33 pm
I have both Fidelity CMA and Schwab Investor Checking in my account buffet. Fidelity's offering is better. Fidelity has a loose definition of core account, so I can earn 1.83% on my money and the debits will automatically liquidate a MMF. The only advantages for Schwab that I have found is they are willing to link to any account for ACH where Fidelity's system is finicky. Also with Schwab I can do a travel notification online, but with Fidelity I have to call. On the phone. Like it's the 80's.
If you don't mind me asking what fund it that at 1.83%
https://fundresearch.fidelity.com/mutua ... /31617H201

Dandy
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Dandy » Wed Aug 15, 2018 6:11 am

I have a Vanguard Advantage Account. If you never heard of it-- no wonder they don't make it easy to find out about it. It is a cash management account which uses the Fed Money Market Fund currently yielding 1.89%. I opened it about 10 years ago and was going to use it as my main checking account but the money market yields went to almost zero. I kept the account but never used it until last year when I wrote some checks - no problem. Never used their bill pay or ATM card.

Since they don't feature it I would guess that Fidelity or Schwab have kept their CMA up to date. But for those who don't want to move from Vanguard you might look into their Advantage Account. As the interest rates have gone up my interest in this account has too. You might have to use the VG search feature to find out about it. For me there was no charge but smaller account might incur one.

student
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by student » Wed Aug 15, 2018 6:19 am

baliktad wrote:
Wed Aug 15, 2018 1:06 am
If you have enough assets to qualify for Vanguard Advantage ($500K minimum in Vanguard funds), then you will also qualify for Fidelity's Premium Services ($250K in ANY assets held at Fidelity). This means you will be eligible for ATM service fee rebates even on the normal Fidelity brokerage account. So you don't need a Fidelity Cash Management Account; you can open a regular Fidelity brokerage account. The difference is that the Fidelity brokerage account can be enabled for margin and options trading if you desire; the CMA cannot. Both the brokerage and CMA can be enabled for checkwriting and debit card access on request, conduct normal trading in securities, mutual funds, etc., and hold cash/money market funds.

I do like that Fidelity will automatically liquidate money market funds to process trades or withdrawals, and they recently dropped almost all fees/minimums to $0. Hard to go wrong.
I thought Fidelity has phrased out the Premium Services tier for new customers. It no longer mentions it on the website. (Well, at least I cannot find it.)

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slayed
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by slayed » Wed Aug 15, 2018 6:31 am

I have been using the Fidelity CMA for a few years now. Very happy with it. Has all of the usual perks without any minimum balance requirement (free checks, ATM fee rebate, free bill pay, etc).

Therapist Investor
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Therapist Investor » Wed Aug 15, 2018 8:04 am

Regarding the solo 401k accounts, I have mine set up with Fidelity and have been pretty happy. You can learn more about both Fidelity and Schwab solo 401k accounts here: https://thecollegeinvestor.com/18174/co ... k-options/. Neither have a Roth option. Neither allow loans. The main difference is the index funds/etfs you would have the ability to invest in commission free. If I were you, I'd compare the funds in both to what you're currently invested in at your solo 401k with Vanguard. It's true the ER for the funds in a solo 401k may be better at Fidelity and Schwab , but there are other ways a Vanguard fund may make up the difference in ER (e.g., overall fund performance, lower tracking error, etc). I pulled the trigger on Fidelity a few months ago and have been happy, but I do plan to keep my taxable brokerage account with Vanguard since their funds are more tax efficient.
"Get what you can, and what you get hold, 'Tis the stone that will turn all your lead into gold." | -Benjamin Franklin

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heartwood
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by heartwood » Wed Aug 15, 2018 8:56 am

Dandy wrote:
Wed Aug 15, 2018 6:11 am
I have a Vanguard Advantage Account. If you never heard of it-- no wonder they don't make it easy to find out about it. It is a cash management account which uses the Fed Money Market Fund currently yielding 1.89%. I opened it about 10 years ago and was going to use it as my main checking account but the money market yields went to almost zero. I kept the account but never used it until last year when I wrote some checks - no problem. Never used their bill pay or ATM card.

Since they don't feature it I would guess that Fidelity or Schwab have kept their CMA up to date. But for those who don't want to move from Vanguard you might look into their Advantage Account. As the interest rates have gone up my interest in this account has too. You might have to use the VG search feature to find out about it. For me there was no charge but smaller account might incur one.
We have had Advantage accounts for longer than I can remember. We use one as our main checking/billpay account. At least two downsides: free ATM withdrawal at PNC only, and major for us, no mobile check deposit since we switched to the brokerage account format. Fidelity offers both, but it's too much trouble to change. The billpay works well, so does checking. Both are free for us. Any hiccups, my representative has handled for us.

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Nate79
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Nate79 » Wed Aug 15, 2018 9:31 am

We have transferred everything over to Schwab and couldn't be happier. Brokerage and checking accounts. Awesome customer service, especially the chat feature. Excellent no fee debit card.

Topic Author
Elysium
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Elysium » Wed Aug 15, 2018 10:05 am

SelfEmployed123 wrote:
Wed Aug 15, 2018 8:04 am
Regarding the solo 401k accounts, I have mine set up with Fidelity and have been pretty happy. You can learn more about both Fidelity and Schwab solo 401k accounts here: https://thecollegeinvestor.com/18174/co ... k-options/. Neither have a Roth option. Neither allow loans. The main difference is the index funds/etfs you would have the ability to invest in commission free. If I were you, I'd compare the funds in both to what you're currently invested in at your solo 401k with Vanguard. It's true the ER for the funds in a solo 401k may be better at Fidelity and Schwab , but there are other ways a Vanguard fund may make up the difference in ER (e.g., overall fund performance, lower tracking error, etc). I pulled the trigger on Fidelity a few months ago and have been happy, but I do plan to keep my taxable brokerage account with Vanguard since their funds are more tax efficient.
I do not have many good options with the Solo 401(k) at Vanguard that can help me maintain my overall AA for the overall portfolio across all of our accounts. The Solo 401(k) is a small part of the overall allocation as of now, and may not grow up to no more than 25% if ever. As of now most of the new money is going into Short Term Bond Idx Fund since my equity allocation is coming down gradually as the need to take risk is lower. If I were to just keep buying bond funds and keep some small equity allocation in the Solo 401(k), then Vanguard is not doing anything by giving me access to investor class shares only. The other large funds I have with Vanguard are closed (Primecap, Capital Oppt.) But they are in different accounts, and if I had access to those in Solo 401(k), I would keep the account with Vanguard in a heart beat. They have been great performers for me.

I am leaning towards Fidelity CMA and Solo 401(k). I am somewhat skeptical of Schwab in terms of security, may be misplaced.

iamblessed
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by iamblessed » Wed Aug 15, 2018 10:56 am

Brand new to Fedelity will I need both Brokerage and Cash Management accounts or just the Cash Management? I would like to link the
Fidelity® Money Market Fund to the CMA.

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Elysium
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Elysium » Wed Aug 15, 2018 1:32 pm

Talked to a Fidelity rep and they were very helpful. Opening a CMA account looks like a no brainer and simple process, but the Solo 401(k) is giving me some second thoughts based on the conversation.

First, most of the usual things about the Solo 401(k) pros/cons at Vanguard vs Fidelity, Schwab etc are well known to me from discussions here. The one thing that wasn't well understood is early retirement withdrawal options.

According to the Fidelity retirement specialist, there are no distributions allowed from the plan unless through termination. So, if I were to consider early retirement at 55 that would require termination of plan which will result in all proceeds to be taxable at once. I can no longer keep the money in the plan and withdraw partially. There will be no penalty for early withdrawal, but tax will be due on the entire amount, unless of course rolling over into an IRA. A rollover would mean no longer eligible for age 55 rule.

This is going to be conundrum for me, as I would like to have the option for age 55 withdrawal. I don't think Vanguard supports it either, but it doesn't make sense to move to Fidelity if they don't allow it, rather find someone who may.

The other option is to rollover into a 401(k) from a previous employer that I still have open, although remains to be seen if they allow incoming transfers into the plan several years after you have left the company.

TOJ
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by TOJ » Wed Aug 15, 2018 1:59 pm

No complaints with my Fidelity cash management account. I quite like it, actually. But admittedly, I've never had the Vanguard or Schwab equivalent.

FunnelCakeBob
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by FunnelCakeBob » Wed Aug 15, 2018 2:26 pm

I like Schwab Investor Checking. Refunds ATM fees and no foreign transaction fee. The disadvantage is that it pays pittance as far as interest. I move excess funds to the linked Schwab brokerage account and keep it in SWVXX, currently @ 1.89% 7-day yield.

Therapist Investor
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Therapist Investor » Wed Aug 15, 2018 3:35 pm

Elysium wrote:
Wed Aug 15, 2018 1:32 pm
According to the Fidelity retirement specialist, there are no distributions allowed from the plan unless through termination. So, if I were to consider early retirement at 55 that would require termination of plan which will result in all proceeds to be taxable at once. I can no longer keep the money in the plan and withdraw partially. There will be no penalty for early withdrawal, but tax will be due on the entire amount, unless of course rolling over into an IRA. A rollover would mean no longer eligible for age 55 rule.
I don't think anyone would allow you access to your funds until you are 59.5 years old unless you have funds in a 457 plan. One option you have is roll over your 401k to an IRA and build a Roth Conversion Ladder (see here: https://rootofgood.com/roth-ira-convers ... etirement/). That takes some planning and you won't have access to the funds for 5 years. You either have to keep working a different job or live off your taxable investments. There's a few other options here as well: https://www.mrmoneymustache.com/2011/11 ... your-401k/.
"Get what you can, and what you get hold, 'Tis the stone that will turn all your lead into gold." | -Benjamin Franklin

snowman
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by snowman » Wed Aug 15, 2018 7:07 pm

No experience with Schwab or Vanguard, but Fidelity CMA is outstanding! Free checks, ATMs, bill pay etc. You can purchase MMF within CMA account to earn higher interest (which also acts as free overdraft protection). Plus their excellent customer service. Really cannot think of any negative.

Topic Author
Elysium
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Elysium » Wed Aug 15, 2018 8:56 pm

SelfEmployed123 wrote:
Wed Aug 15, 2018 3:35 pm
Elysium wrote:
Wed Aug 15, 2018 1:32 pm
According to the Fidelity retirement specialist, there are no distributions allowed from the plan unless through termination. So, if I were to consider early retirement at 55 that would require termination of plan which will result in all proceeds to be taxable at once. I can no longer keep the money in the plan and withdraw partially. There will be no penalty for early withdrawal, but tax will be due on the entire amount, unless of course rolling over into an IRA. A rollover would mean no longer eligible for age 55 rule.
I don't think anyone would allow you access to your funds until you are 59.5 years old unless you have funds in a 457 plan. One option you have is roll over your 401k to an IRA and build a Roth Conversion Ladder (see here: https://rootofgood.com/roth-ira-convers ... etirement/). That takes some planning and you won't have access to the funds for 5 years. You either have to keep working a different job or live off your taxable investments. There's a few other options here as well: https://www.mrmoneymustache.com/2011/11 ... your-401k/.
The IRS would allow it, under the age 55 rule. You just have to find a Solo 401(k) provider who will allow terminating the account and taking partial withdrawals. Many company 401(k) plans would allow this as well so long as you are retiring after you turn 55. The Roth ladder option is more complicated, better option is a Solo 401(k) ladder. That will require some work. As of now, I would like to keep that option available if I am able to retire early. However, this is something that can be figured out once I turn 55.

Cash
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Cash » Thu Aug 16, 2018 9:07 pm

baliktad wrote:
Wed Aug 15, 2018 1:06 am
If you have enough assets to qualify for Vanguard Advantage ($500K minimum in Vanguard funds), then you will also qualify for Fidelity's Premium Services ($250K in ANY assets held at Fidelity). This means you will be eligible for ATM service fee rebates even on the normal Fidelity brokerage account. So you don't need a Fidelity Cash Management Account; you can open a regular Fidelity brokerage account. The difference is that the Fidelity brokerage account can be enabled for margin and options trading if you desire; the CMA cannot. Both the brokerage and CMA can be enabled for checkwriting and debit card access on request, conduct normal trading in securities, mutual funds, etc., and hold cash/money market funds.
One big difference: Cash in the CMA is FDIC insured. Cash in the brokerage account is not.

Cash
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Cash » Thu Aug 16, 2018 9:08 pm

iamblessed wrote:
Wed Aug 15, 2018 10:56 am
Brand new to Fedelity will I need both Brokerage and Cash Management accounts or just the Cash Management? I would like to link the
Fidelity® Money Market Fund to the CMA.
They don’t like to advertise it, but the CMA is a brokerage account and can be used to trade. You don’t necessarily need both accounts.

47Percent
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by 47Percent » Thu Aug 16, 2018 9:48 pm

FunnelCakeBob wrote:
Wed Aug 15, 2018 2:26 pm
I like Schwab Investor Checking. Refunds ATM fees and no foreign transaction fee. The disadvantage is that it pays pittance as far as interest. I move excess funds to the linked Schwab brokerage account and keep it in SWVXX, currently @ 1.89% 7-day yield.
+1
I wish they made this easier. But other than this they are so much easier to deal with. So, Schwab it is for me.

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WingsFan4Life
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by WingsFan4Life » Fri Aug 17, 2018 10:04 am

My cash management account only has FDIC sweep available as the core position. How do you set up the account using money market? Do you just purchase the fund? How do you get it to auto liquidate when cash is needed? Thanks.

abner kravitz
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by abner kravitz » Fri Aug 17, 2018 10:27 am

WingsFan4Life wrote:
Fri Aug 17, 2018 10:04 am
My cash management account only has FDIC sweep available as the core position. How do you set up the account using money market? Do you just purchase the fund? How do you get it to auto liquidate when cash is needed? Thanks.
Yes, just buy SPRXX (or another Fidelity MMF) and it will be liquidated as necessary - no need to do anything else. It would be nice if you could set up a MMF as core, but you can't. I do a purchase of SPRXX whenever something hits my core account.

informal guide
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by informal guide » Fri Aug 17, 2018 11:17 am

Fidelity's expense ratio on SPRXX (Government money market) is 0.42% vs. Vanguard's Federal money market of 0.11% (yields before expense reductions are virtually identical). On an average balance of $10k, that is $30 per year. If one does 10 or more ATM withdrawals annually at $3 per withdrawal, then the Fidelity account is better (ignoring that fact that the extra interest from Vanguard is taxable). If one does only a couple ATM transactions a year, (or less) the Fidelity deal is better financially. This assumes that you have a sufficient balance at Vanguard to qualify for the Advantage account.

I would personally choose money funds (without FDIC) rather than FDIC insured bank accounts, because yields these days are significantly lower in almost all FDIC insured bank products.

arf30
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by arf30 » Fri Aug 17, 2018 11:44 am

If you don't want to hold a money market fund in the CMA you can always set up the cash manager to pull money from an outside account (like a high yield savings account or Vanguard sweep MMF) when the balance drops below a certain threshold or on a schedule.

MichCPA
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by MichCPA » Fri Aug 17, 2018 12:01 pm

informal guide wrote:
Fri Aug 17, 2018 11:17 am
Fidelity's expense ratio on SPRXX (Government money market) is 0.42% vs. Vanguard's Federal money market of 0.11% (yields before expense reductions are virtually identical). ....
Money market yields are normally after expense ratios. so the .05 difference is the difference.

MnD
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by MnD » Fri Aug 17, 2018 12:58 pm

A Schwab brokerage account alone will do everything the OP is looking for. It has a routing and account number for ACH, paper checks, debit/ATM card with ATM fee rebates and lots of options for savings such as Money Market funds, T-bills, CD's etc. If the OP insists on keeping an outside "regular" checking account, the Schwab checking account is redundant and won't do a lot of the things desired.
70/30 AA, Global market cap equity. Rebalance if FI <25% or >35%. Weighted ER< .10%. 5% of annual portfolio balance SWR, Proportional (to AA) withdrawals.

iamblessed
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by iamblessed » Fri Aug 17, 2018 2:09 pm

abner kravitz wrote:
Fri Aug 17, 2018 10:27 am
WingsFan4Life wrote:
Fri Aug 17, 2018 10:04 am
My cash management account only has FDIC sweep available as the core position. How do you set up the account using money market? Do you just purchase the fund? How do you get it to auto liquidate when cash is needed? Thanks.
Yes, just buy SPRXX (or another Fidelity MMF) and it will be liquidated as necessary - no need to do anything else. It would be nice if you could set up a MMF as core, but you can't. I do a purchase of SPRXX whenever something hits my core account.
So if the core fund goes to $0 then they will take from the SPRXX?

abner kravitz
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by abner kravitz » Fri Aug 17, 2018 2:17 pm

iamblessed wrote:
Fri Aug 17, 2018 2:09 pm
abner kravitz wrote:
Fri Aug 17, 2018 10:27 am
WingsFan4Life wrote:
Fri Aug 17, 2018 10:04 am
My cash management account only has FDIC sweep available as the core position. How do you set up the account using money market? Do you just purchase the fund? How do you get it to auto liquidate when cash is needed? Thanks.
Yes, just buy SPRXX (or another Fidelity MMF) and it will be liquidated as necessary - no need to do anything else. It would be nice if you could set up a MMF as core, but you can't. I do a purchase of SPRXX whenever something hits my core account.
So if the core fund goes to $0 then they will take from the SPRXX?
Yes

If you deplete the core position (FDIC insured) and you have a money market, it will then pull from the money market to cover the rest of the transaction.


The above sentence in italics is from a Fidelity rep in a chat I had

iamblessed
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Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by iamblessed » Fri Aug 17, 2018 2:20 pm

abner kravitz wrote:
Fri Aug 17, 2018 2:17 pm
iamblessed wrote:
Fri Aug 17, 2018 2:09 pm
abner kravitz wrote:
Fri Aug 17, 2018 10:27 am
WingsFan4Life wrote:
Fri Aug 17, 2018 10:04 am
My cash management account only has FDIC sweep available as the core position. How do you set up the account using money market? Do you just purchase the fund? How do you get it to auto liquidate when cash is needed? Thanks.
Yes, just buy SPRXX (or another Fidelity MMF) and it will be liquidated as necessary - no need to do anything else. It would be nice if you could set up a MMF as core, but you can't. I do a purchase of SPRXX whenever something hits my core account.
So if the core fund goes to $0 then they will take from the SPRXX?
Yes

If you deplete the core position (FDIC insured) and you have a money market, it will then pull from the money market to cover the rest of the transaction.


The above sentence in italics is from a Fidelity rep in a chat I had
Thanks I am new to this.

Jonathan685
Posts: 2
Joined: Thu Aug 09, 2018 3:58 pm

Re: Brokerage checking: Fidelity, Schwab, or Vanguard

Post by Jonathan685 » Sat Aug 18, 2018 6:34 am

whodidntante wrote:
Tue Aug 14, 2018 7:33 pm
I have both Fidelity CMA and Schwab Investor Checking in my account buffet. Fidelity's offering is better. Fidelity has a loose definition of core account, so I can earn 1.83% on my money and the debits will automatically liquidate a MMF. The only advantages for Schwab that I have found is they are willing to link to any account for ACH where Fidelity's system is finicky. Also with Schwab I can do a travel notification online, but with Fidelity I have to call. On the phone. Like it's the 80's.
I prefer the Vanguard prime money market account where i earn a solid 2.05 daily rate and can switch it into my federal money market at any time which pays 1.84 daily rate. Vanguard prime with the 2.05 has free stop payments on checks and unlimited free checks. The 2.05 is the highest rate for a liquid money market rate that i have seen thus far,

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