Fidelity as a one stop shop

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BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Wed Dec 19, 2018 12:17 am

JoMoney wrote:
Tue Dec 18, 2018 11:53 pm
BUBear29 wrote:
Tue Dec 18, 2018 11:01 pm
Alliant offers free overdraft protection via transfer from savings. Same thing as the whole fiedlity cma thing but with ncua insurance
But do they have an integrated brokerage to hold your investments, and a 2% cashback credit card, to make it a "one stop shop" for all your finance needs ?
they have a 2.5% cashback card. i would never brokerGe where i bank personally. Alliant for banking for me and vanguard for investing.

i did try the fidelity cma but found it slightly confusing vs a smooth banking interface. to each their own.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Wed Dec 19, 2018 5:46 am

BUBear29 wrote:
Wed Dec 19, 2018 12:17 am
JoMoney wrote:
Tue Dec 18, 2018 11:53 pm
BUBear29 wrote:
Tue Dec 18, 2018 11:01 pm
Alliant offers free overdraft protection via transfer from savings. Same thing as the whole fiedlity cma thing but with ncua insurance
But do they have an integrated brokerage to hold your investments, and a 2% cashback credit card, to make it a "one stop shop" for all your finance needs ?
they have a 2.5% cashback card. i would never brokerGe where i bank personally. Alliant for banking for me and vanguard for investing.

i did try the fidelity cma but found it slightly confusing vs a smooth banking interface. to each their own.
I like Alliant. It was my primary online bank before Fidelity. But there is nothing Alliant can do that Fidelity can’t, but lots that Fidelity can do that Alliant can’t. And even the things that they can both do are usually easier with Fidelity.

For instance, sending a wire with Alliant requires faxing or emailing in a form, waiting for them to call you to verify everything, including the fee, and then waiting for the funds to actually go out. With Fidelity, you can send a wire online in just a couple of minutes (even less time than that if you’ve sent a wire to the same place previously), and it’s free.

Socal77
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Re: Fidelity as a one stop shop

Post by Socal77 » Wed Dec 19, 2018 6:24 am

Seems the biggest trade off is not getting better high yield savings elsewhere.

That's why I have not done it.

Although I would very much like the convenience of having all in one login etc., I don't like that they do not have a better high yield savings option.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Wed Dec 19, 2018 7:10 am

The advantage of the Fidelity account is you can get that 2% savings/checking without the 6 transaction limit that real savings accounts have. Drawback is it's not FDIC.

mptfan
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Re: Fidelity as a one stop shop

Post by mptfan » Wed Dec 19, 2018 8:16 am

BUBear29 wrote:
Wed Dec 19, 2018 12:17 am
i would never brokerGe where i bank personally.
Why is that?

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Wed Dec 19, 2018 8:20 am

OP here, now I am curious, how to compare Schwab Vs Fidelity as a on stop shop (Pros and cons of each?). I have a checking account already at Schwab but I like more how intuitive Fido interface is.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Wed Dec 19, 2018 8:21 am

Cash wrote:
Wed Dec 19, 2018 5:46 am
BUBear29 wrote:
Wed Dec 19, 2018 12:17 am
JoMoney wrote:
Tue Dec 18, 2018 11:53 pm
BUBear29 wrote:
Tue Dec 18, 2018 11:01 pm
Alliant offers free overdraft protection via transfer from savings. Same thing as the whole fiedlity cma thing but with ncua insurance
But do they have an integrated brokerage to hold your investments, and a 2% cashback credit card, to make it a "one stop shop" for all your finance needs ?
they have a 2.5% cashback card. i would never brokerGe where i bank personally. Alliant for banking for me and vanguard for investing.

i did try the fidelity cma but found it slightly confusing vs a smooth banking interface. to each their own.
I like Alliant. It was my primary online bank before Fidelity. But there is nothing Alliant can do that Fidelity can’t, but lots that Fidelity can do that Alliant can’t. And even the things that they can both do are usually easier with Fidelity.

For instance, sending a wire with Alliant requires faxing or emailing in a form, waiting for them to call you to verify everything, including the fee, and then waiting for the funds to actually go out. With Fidelity, you can send a wire online in just a couple of minutes (even less time than that if you’ve sent a wire to the same place previously), and it’s free.
while that is nice from a ease of use standpoint. I work for a bank and value the wire callback for verification. wire fraud today is highly prevalent.

not knocking the fidelity cma, i just didnt find it as sinple to use as a banking app (alliant, chase, ally, etc)
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Wed Dec 19, 2018 8:24 am

mptfan wrote:
Wed Dec 19, 2018 8:16 am
BUBear29 wrote:
Wed Dec 19, 2018 12:17 am
i would never brokerGe where i bank personally.
Why is that?
i value keeping a certain amount of funds (up to 1 year of operating and emergency) under federal insurance. and i like the separation of know what is for use as investment funds vs what is for use as day to day living funds. so anything in my brokerage at this point is for growth/future. However, I know this will change when I get into retirement.
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

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SagaciousTraveler
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Re: Fidelity as a one stop shop

Post by SagaciousTraveler » Wed Dec 19, 2018 9:41 am

The wife and I have been meaning to consolidate our Checking, Savings, Broker and IRAs. The thread helped me get the ball rolling moving everything to Fidelity.

While I did read on here you can open one Brokerage account that can act as a checking account, that is not the route i took.

I followed their prompts and they land up creating two accounts for you: Cash Management Account and a Brokerage account. To me, its not a huge deal, they are linked and looks like easy to move money back and forth.

Only real minimal gripe was having to print off a form for checking but they allow you to upload and submit.


Question for Fidelity users:

Do they allow you to freeze your debit card via the app/online? I really enjoyed this feature at my previous bank. We would only use the card for ATM visits and we like freezing it when not in use.

Thanks.

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Wed Dec 19, 2018 10:13 am

I'm not understanding the appeal of moving a few fragments of your financial life into one place, only to get an inferior combination, that's not even any simpler. :oops:

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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney » Wed Dec 19, 2018 10:25 am

b0B wrote:
Wed Dec 19, 2018 10:13 am
I'm not understanding the appeal of moving a few fragments of your financial life into one place, only to get an inferior combination, that's not even any simpler. :oops:
Are you trying to understand? An "inferior combination" doesn't sound appealing, but Fidelity offers a great "CMA" account that has great features that would fully replace a checking account for most people and offers fully refunded ATM fees. Along with that account, which is defaults to fully FDIC insured bank accounts, you can link a Money Market fund that offers rates competitive with other top rates (around 2%) and no transaction limits like you would have with a bank high-yield savings/MM.
On top of that, it gives you an account eligible to receive cash-back rewards from there 2% Cash Back Visa card.
If you can also consolidate your brokerage/retirement accounts there, it gives you consolidated statements, tax forms, fewer logins to remember and manage and pass on to heirs.
It may not be "simple" or "best" for everyone, but it offers an above average compliment of features for some.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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SagaciousTraveler
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Re: Fidelity as a one stop shop

Post by SagaciousTraveler » Wed Dec 19, 2018 10:37 am

b0B wrote:
Wed Dec 19, 2018 10:13 am
I'm not understanding the appeal of moving a few fragments of your financial life into one place, only to get an inferior combination, that's not even any simpler. :oops:
I'm not seeing what's inferior? Granted you don't have all the information regarding my personal situation.

In the event I pass away, I would like my wife to know that everything (minus my TSP) is in one place. She is not involved with finances and the last thing I want is for her to hunt down every account.

As for inferior combination, I get closer branches, more ATMs, funds that are just as cheap as Vanguards, more modern website and better customer service (not personally verified, but ratings have suggested this). By all means, please let me know what I' missing.

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Wed Dec 19, 2018 10:47 am

JoMoney wrote:
Wed Dec 19, 2018 10:25 am
b0B wrote:
Wed Dec 19, 2018 10:13 am
I'm not understanding the appeal of moving a few fragments of your financial life into one place, only to get an inferior combination, that's not even any simpler. :oops:
Are you trying to understand? An "inferior combination" doesn't sound appealing, but Fidelity offers a great "CMA" account that has great features that would fully replace a checking account for most people and offers fully refunded ATM fees. Along with that account, which is defaults to fully FDIC insured bank accounts, you can link a Money Market fund that offers rates competitive with other top rates (around 2%) and no transaction limits like you would have with a bank high-yield savings/MM.
On top of that, it gives you an account eligible to receive cash-back rewards from there 2% Cash Back Visa card.
If you can also consolidate your brokerage/retirement accounts there, it gives you consolidated statements, tax forms, fewer logins to remember and manage and pass on to heirs.
It may not be "simple" or "best" for everyone, but it offers an above average compliment of features for some.
This is obviously inferior to what you can get elsewhere. It's no simpler. It only includes a few fragments of your financial life. Also the notion that Fidelity has better website and customer service that other places is an utter myth.

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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney » Wed Dec 19, 2018 11:00 am

b0B wrote:
Wed Dec 19, 2018 10:47 am
JoMoney wrote:
Wed Dec 19, 2018 10:25 am
b0B wrote:
Wed Dec 19, 2018 10:13 am
I'm not understanding the appeal of moving a few fragments of your financial life into one place, only to get an inferior combination, that's not even any simpler. :oops:
Are you trying to understand? An "inferior combination" doesn't sound appealing, but Fidelity offers a great "CMA" account that has great features that would fully replace a checking account for most people and offers fully refunded ATM fees. Along with that account, which is defaults to fully FDIC insured bank accounts, you can link a Money Market fund that offers rates competitive with other top rates (around 2%) and no transaction limits like you would have with a bank high-yield savings/MM.
On top of that, it gives you an account eligible to receive cash-back rewards from there 2% Cash Back Visa card.
If you can also consolidate your brokerage/retirement accounts there, it gives you consolidated statements, tax forms, fewer logins to remember and manage and pass on to heirs.
It may not be "simple" or "best" for everyone, but it offers an above average compliment of features for some.
This is obviously inferior to what you can get elsewhere. It's no simpler. It only includes a few fragments of your financial life. Also the notion that Fidelity has better website and customer service that other places is an utter myth.
Fidelity's CMA account amounts to a free FDIC insured checking account with free checks and fully refunded ATM fees.
Fidelity's VISA credit card has no annual fee and offers 2% cash back on all purchases.
Fidelity offers a host of low-cost index funds, some at "zero" expense ratio.
Please provide some examples of you feel this is inferior too.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

grp2c
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Re: Fidelity as a one stop shop

Post by grp2c » Wed Dec 19, 2018 11:20 am

arf30 wrote:
Wed Dec 19, 2018 7:10 am
The advantage of the Fidelity account is you can get that 2% savings/checking without the 6 transaction limit that real savings accounts have. Drawback is it's not FDIC.
If you're concerned about FDIC insurance just buy the Fidelity Treasury Only Money Market Fund. Current yield is 1.87%.

"The fund will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors."
Last edited by grp2c on Wed Dec 19, 2018 11:32 am, edited 1 time in total.

iamblessed
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Re: Fidelity as a one stop shop

Post by iamblessed » Wed Dec 19, 2018 11:26 am

Love this thread. I went from eight accounts to three. Still a lot but much better than eight.

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Wed Dec 19, 2018 11:39 am

Okay one example. Anyone who knows anything about credit cards knows that 2% cash back is the baseline worst case scenario (unless you are getting a signup bonus, or are using some other features). The Fidelity card is a sockdrawer card.

The banking features are meh. Nothing special at all, and the interest is not the best. You can do better with Ally and Vanguard.

You can't avoid having many accounts (401, 403, 457, 529, HSA, IRA, taxable - these are necessarily in many locations, some of them captive), there are bank accounts, there are credit cards (in many locations if you want to optimize - it's a choice as to what's worth it, but there are many bonuses, more cash bank, higher interest etc), you need various kinds of insurance (house, car, medical, maybe dental, vision, and you almost certainly need multiple locations for these), then you might sometimes want some kind of loan (mortgage, HELOC, auto, other - and you should certainly shop around for that, since being "loyal" to your one bank will cost you big time), and you may possibly consider an annuity (SPIA) sometime (again obviously you'd shop around and not be "loyal" to your one bank).

I'm sure I've missed a bunch of things, but you can see that the consolidation idea is a fool's errand. It's basically impossible anyway, and often very suboptimal to always consolidate. It's often much better to pick and choose from each place. (E.g. get your plumber and electrician, from separate local businesses, because if you can access both through a single phone number, you're probably paying an extra referral fee.)

Financial institutions can have some loss leaders, to try to sucker you into the profit centers. Or sometimes they just do some things well and other things badly. Just pick and choose. You're forced to use multiple financial institutions anyway, so it's pointless consolidating a few fragments of your financial life to get an inferior combination, which costs you money, and doesn't really simplify anything.

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SagaciousTraveler
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Re: Fidelity as a one stop shop

Post by SagaciousTraveler » Wed Dec 19, 2018 11:50 am

b0B wrote:
Wed Dec 19, 2018 11:39 am
Okay one example. Anyone who knows anything about credit cards knows that 2% cash back is the baseline worst case scenario (unless you are getting a signup bonus, or are using some other features). The Fidelity card is a sockdrawer card.

The banking features are meh. Nothing special at all, and the interest is not the best. You can do better with Ally and Vanguard.

You can't avoid having many accounts (401, 403, 457, 529, HSA, IRA, taxable - these are necessarily in many locations, some of them captive), there are bank accounts, there are credit cards (in many locations if you want to optimize - it's a choice as to what's worth it, but there are many bonuses, more cash bank, higher interest etc), you need various kinds of insurance (house, car, medical, maybe dental, vision, and you almost certainly need multiple locations for these), then you might sometimes want some kind of loan (mortgage, HELOC, auto, other - and you should certainly shop around for that, since being "loyal" to your one bank will cost you big time), and you may possibly consider an annuity (SPIA) sometime (again obviously you'd shop around and not be "loyal" to your one bank).

I'm sure I've missed a bunch of things, but you can see that the consolidation idea is a fool's errand. It's basically impossible anyway, and often very suboptimal to always consolidate. It's often much better to pick and choose from each place. (E.g. get your plumber and electrician, from separate local businesses, because if you can access both through a single phone number, you're probably paying an extra referral fee.)

Financial institutions can have some loss leaders, to try to sucker you into the profit centers. Or sometimes they just do some things well and other things badly. Just pick and choose. You're forced to use multiple financial institutions anyway, so it's pointless consolidating a few fragments of your financial life to get an inferior combination, which costs you money, and doesn't really simplify anything.
Thank you.

Credit Card: The 2% card isn't' for me. I have the Citi Double and like you said, its my baseline card used when my others aren't.

Bank: We don't take on debt, all we used our Credit Union for was Bill Pay, Checks, Direct Deposit and ATM. So moving from our Credit Union to Fidelity actually helped us due to more ATM options and Branches.

Accounts: We had four accounts at Vanguard, we now have four accounts at fidelity. There is literally very little downside here as the funds we are invested in all have low expense fees across all the investment firms. The only thing I saw that Vanguard was better was the settlement fund. Fidelity i believe is 1.97% while Vanguard is 2.15%ish. Nothing to lose sleep over.

I also mentioned in another post that the consolidation makes it easier on my wife if something were to happen to me.

In conclusion I do not agree with your blanket statement that consolidation is inferior. For my family, it was an upgrade. However, I will agree that its not for everyone's situation.

Thanks.

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Wed Dec 19, 2018 12:04 pm

I certainly never said that consolidation is necessarily always inferior, but rather, that consolidation is not necessarily always superior. In fact consolidation for consolidation's sake will in fact often be a bad idea. Insisting on consolidation merely restricts your options.

Fidelity is the kind of place where the financially astute can pick and choose a few good features. E.g. my Fidelity 403b had a few low cost funds amongst a large minefield of expensive ones, abbreviated names listed only, with confusingly similar names, no tickers or ERs, definitely intentionally designed to trick and trap the unaware. Don't for a second be lulled into thinking Fidelity is an ethical company or a friend.

Which leads to this. If you, as the financially active spouse/partner are to be survived by the less financially involved one, you have to think about where your assets will be sitting at that time. Fidelity is definitely not the place I would want my assets to be, as the vultures will be circling.

PatrickA5
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Re: Fidelity as a one stop shop

Post by PatrickA5 » Wed Dec 19, 2018 12:18 pm

There's nothing wrong with trying to simplify your financial life. I used to be one of those people that tried to optimize everything financially. The result was to have a bunch of different accounts at different places - just to make (or save) a few bucks. Now that I'm older, I like the idea of having few accounts. The main reason for this was to make things easier for DW and kids when I'm gone.

I've gone from over a dozen financial institutions to just a few:

Local B&M Regional Bank (bill paying, safe deposit box, cash withdrawals, etc)
Vanguard (all retirement accounts and checking/MM accounts)
529 Plan (will be closed when DS gets out of college)
DW's 401K (will be moved to VG when she quits)
Chase - Credit cards

NYC_Guy
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Re: Fidelity as a one stop shop

Post by NYC_Guy » Wed Dec 19, 2018 12:29 pm

I have over 10 accounts at Fido (his and hers of taxable, roth ira, trad ira (for backdoor), 401k, HSAs). For extra security, we do not have ATM or checkwriting privileges on any account except a separate CMA. All wire transfers, checks and ATM withdrawals come from this separate CMA. When I need to move funds into the CMA, I do it via an instant funds transfer on the Fido app. The CMA does not automatically draw from another account to fund an overdraft.

In the main taxable account (where I keep my cash reserves), the cash sweeps into a US gov money mkt fund (SPAXX) currently yielding 1.9% (weighted maturity under 30 days).

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SagaciousTraveler
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Re: Fidelity as a one stop shop

Post by SagaciousTraveler » Wed Dec 19, 2018 12:34 pm

NYC_Guy wrote:
Wed Dec 19, 2018 12:29 pm
I have over 10 accounts at Fido (his and hers of taxable, roth ira, trad ira (for backdoor), 401k, HSAs). For extra security, we do not have ATM or checkwriting privileges on any account except a separate CMA. All wire transfers, checks and ATM withdrawals come from this separate CMA. When I need to move funds into the CMA, I do it via an instant funds transfer on the Fido app. The CMA does not automatically draw from another account to fund an overdraft.

In the main taxable account (where I keep my cash reserves), the cash sweeps into a US gov money mkt fund (SPAXX) currently yielding 1.9% (weighted maturity under 30 days).
This is most likely how we will set things up.

One question i have that got buried above, do you have the ability on demand to 'freeze' or inactivate the debit card? This was a nice feature at our other bank since we would only use it for ATM withdrawals.

jsmoove123
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Re: Fidelity as a one stop shop

Post by jsmoove123 » Wed Dec 19, 2018 1:00 pm

Does it concern any of you guys that the CMA/"checking" account is directly linked to the brokerage account, whether by explicit overdraft protection or not? Not only is a one-stop shop equal to "putting all your eggs in one basket", but now there's even a direct linkage between a checking account and a potentially 6-7 figure brokerage account.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Wed Dec 19, 2018 1:11 pm

jsmoove123 wrote:
Wed Dec 19, 2018 1:00 pm
Does it concern any of you guys that the CMA/"checking" account is directly linked to the brokerage account, whether by explicit overdraft protection or not? Not only is a one-stop shop equal to "putting all your eggs in one basket", but now there's even a direct linkage between a checking account and a potentially 6-7 figure brokerage account.
Shouldn't matter - the overdraft can only access money market in the brokerage. Overdraft and margin have to be enabled manually.

Horsefly
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Re: Fidelity as a one stop shop

Post by Horsefly » Wed Dec 19, 2018 1:15 pm

I've got almost everything at Fidelity, except my banking. Five years ago I was ready to go all-in as the OP was suggesting, having the CMA be my banking source. I tried it for several months, moving some of my bill pay from Wells Fargo to the CMA.

On the positive side, they paid the bills as directed and on-time. But - as others have said - the interface just doesn't feel right. The account is handled like a brokerage account instead of a bank account, so it is pretty hard to find things. It's hard to see records of checks you may have written past a short period of time. One of the things that really drove me crazy is that from the time they process a payment to the time the payment has cleared, there is no record of it. It's no longer in the pending payments, and it doesn't show up in the transaction history until the payee has received and processed it. Not good.

Someone asked about the risk of automatic overdraft of the CMA tied to a brokerage account. I never turned that on, so I don't think that is a real problem.

My main goal wasn't really to do everything at Fidelity, but to get away from the thieves at Wells Fargo. After being less than happy with the Fidelity CMA alternative, I moved all my banking to Ally. So now I have my Ally checking and savings accounts linked both ways to my main taxable Fidelity brokerage account: I can send money out from Fidelity, or I can pull it over from my Ally account. I'm very happy with this setup.

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SagaciousTraveler
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Re: Fidelity as a one stop shop

Post by SagaciousTraveler » Wed Dec 19, 2018 1:15 pm

jsmoove123 wrote:
Wed Dec 19, 2018 1:00 pm
Does it concern any of you guys that the CMA/"checking" account is directly linked to the brokerage account, whether by explicit overdraft protection or not? Not only is a one-stop shop equal to "putting all your eggs in one basket", but now there's even a direct linkage between a checking account and a potentially 6-7 figure brokerage account.
This is something that needs to be turned on. With that said, you can also turn it off.

-----------------------------------------------------
Cash Manager

Manage your cash automatically by linking your eligible Fidelity brokerage accounts and bank account to you rFidelity® Cash Management Account. Simply set a balance range that is right for you based on your spending needs and choose how you want to fund your account.

Help ensure your money is where you need it to be - automatically.
Set a minimum balance and relax
Automatically transfer available cash to maintain your balance and prevent over drafts

Put extra cash to work and potentially earn more.
Receive timely alerts when your account reaches the maximumbalance you set
Move excess cash to your investment accounts to pursue a greaterreturn


Cash Manager is free and easy to set up.

yeahman
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Re: Fidelity as a one stop shop

Post by yeahman » Wed Dec 19, 2018 1:57 pm

The easiest setup is to keep the CMA balance at 0 and use it ONLY for cash withdraws since the ATM fees are reimbursed. The brokerage account can be used for all your other needs. Direct deposit, check-writing, bill pay, etc. Money market sweep is automatic. No need to buy anything. To deposit cash, keep a no/low fee checking account at a local brick & mortar. Having said that, as others have mentioned, the Fidelity UI leaves a lot to be desired. It's pretty mind-boggling that they kept it in some 1990's state.

inbox788
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Re: Fidelity as a one stop shop

Post by inbox788 » Wed Dec 19, 2018 5:21 pm

b0B wrote:
Wed Dec 19, 2018 11:39 am
I'm sure I've missed a bunch of things, but you can see that the consolidation idea is a fool's errand. It's basically impossible anyway, and often very suboptimal to always consolidate. It's often much better to pick and choose from each place. (E.g. get your plumber and electrician, from separate local businesses, because if you can access both through a single phone number, you're probably paying an extra referral fee.)

Financial institutions can have some loss leaders, to try to sucker you into the profit centers. Or sometimes they just do some things well and other things badly. Just pick and choose. You're forced to use multiple financial institutions anyway, so it's pointless consolidating a few fragments of your financial life to get an inferior combination, which costs you money, and doesn't really simplify anything.
I'm a fool that that tries to consolidate wherever possible, but you're right, it's challenging. Still, if it means 20 accounts vs 30, I'll take the simplification. One place where it's a tiny bit better is when there playing ping pong with some issue. When it's at 2 different financial institutions, you can bet they'll point you to the other as the problem. When it's one and the same, they will bounce you around departments similarly, but eventually they'll realize they have to solve the issue one way or another. Sometimes with 2 institutions, you never get resolution and are in limbo.

One stop shop? No, but I can see several different useful long term services that Fidelity (or Vanguard or Schwab) that can handle a large fraction of ones retirement.

Captain kangaroo
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Re: Fidelity as a one stop shop

Post by Captain kangaroo » Wed Dec 19, 2018 8:43 pm

Not to continue the war of "My brokerage can beat up your brokerage" going on in this thread..


..but I have been using Merrill Edge/BoA as a one stop shop for the past 3 months and it has been amazing. I like having a physical bank (and free safety deposit box) nearby.

BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Wed Dec 19, 2018 9:09 pm

Captain kangaroo wrote:
Wed Dec 19, 2018 8:43 pm
Not to continue the war of "My brokerage can beat up your brokerage" going on in this thread..


..but I have been using Merrill Edge/BoA as a one stop shop for the past 3 months and it has been amazing. I like having a physical bank (and free safety deposit box) nearby.
but its Bank of America..... :)
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

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smarcus3
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Re: Fidelity as a one stop shop

Post by smarcus3 » Wed Dec 19, 2018 9:11 pm

I opened up two introductory offer credit cards at BOA specifically to spend the minimum and collect the payout just because it was BOA. :) Though I guess in all fairness I would have done it as I always churn CCs.
This is my personal opinion. I'm an engineer not a financial advisor.

ThriftyPhD
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Re: Fidelity as a one stop shop

Post by ThriftyPhD » Wed Dec 19, 2018 9:14 pm

Captain kangaroo wrote:
Wed Dec 19, 2018 8:43 pm
Not to continue the war of "My brokerage can beat up your brokerage" going on in this thread..


..but I have been using Merrill Edge/BoA as a one stop shop for the past 3 months and it has been amazing. I like having a physical bank (and free safety deposit box) nearby.
The criticism of BoA/ME is that there isn't a good money market settlement fund in ME, and the cash sitting in BoA checking/savings earns nothing. Many buy ultrashort treasury ETFs (BIL, for example) to hold short term cash in ME, but that requires selling and waiting 2 days before the money is available to withdraw/transact.

Have they recently added a good money market settlement option?

ThriftyPhD
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Re: Fidelity as a one stop shop

Post by ThriftyPhD » Wed Dec 19, 2018 9:28 pm

b0B wrote:
Wed Dec 19, 2018 11:39 am
Okay one example. Anyone who knows anything about credit cards knows that 2% cash back is the baseline worst case scenario (unless you are getting a signup bonus, or are using some other features). The Fidelity card is a sockdrawer card.
What card do you use that provides >2% cash back in all categories? I have some that are >2% in select categories, but it seems that a 2% card is hard to beat for general spend.
b0B wrote:
Wed Dec 19, 2018 11:39 am
The banking features are meh. Nothing special at all, and the interest is not the best. You can do better with Ally and Vanguard.
Banking features are, at best, meh everywhere. Enter an amount and when I want it sent. Not going to be anything exciting here. You mention Vanguard. They have a a VanguardAdvantage account which functions like a CMA, but you need $500,000 at Vanguard to open one. People on this board have reported Vanguard reps to not use it because it's not heavily supported. Is this what you're using at Vanguard to do better than Fidelity? I guess the settlement fund pays a few bps higher, if you have the deposits to open the account.
b0B wrote:
Wed Dec 19, 2018 11:39 am
You can't avoid having many accounts (401, 403, 457, 529, HSA, IRA, taxable - these are necessarily in many locations, some of them captive), there are bank accounts, there are credit cards (in many locations if you want to optimize - it's a choice as to what's worth it, but there are many bonuses, more cash bank, higher interest etc), you need various kinds of insurance (house, car, medical, maybe dental, vision, and you almost certainly need multiple locations for these), then you might sometimes want some kind of loan (mortgage, HELOC, auto, other - and you should certainly shop around for that, since being "loyal" to your one bank will cost you big time), and you may possibly consider an annuity (SPIA) sometime (again obviously you'd shop around and not be "loyal" to your one bank).
Insurance and loans (mortgage), after I set them up, I treat like a simple expense. They're a line item in my online bill pay. The rest are what we're talking about in this thread. Most of the accounts you list can easily be moved to Fidelity. HSA, IRA, taxable, bank accounts, credit card for example are easily moved.
b0B wrote:
Wed Dec 19, 2018 11:39 am
I'm sure I've missed a bunch of things, but you can see that the consolidation idea is a fool's errand. It's basically impossible anyway, and often very suboptimal to always consolidate. It's often much better to pick and choose from each place. (E.g. get your plumber and electrician, from separate local businesses, because if you can access both through a single phone number, you're probably paying an extra referral fee.)

Financial institutions can have some loss leaders, to try to sucker you into the profit centers. Or sometimes they just do some things well and other things badly. Just pick and choose. You're forced to use multiple financial institutions anyway, so it's pointless consolidating a few fragments of your financial life to get an inferior combination, which costs you money, and doesn't really simplify anything.
Well, sure. But people in this thread are exploring the degree to which consolidation can happen without sacrificing anything. IRAs, taxable, checking, savings, and credit card seem to be an easy consolidation without any sacrifice. If your 401k is somewhere else, not much you can do about that.

And back to the original question, why do you view this as inferior? The CMA account is equivalent to a 2% interest checking with no balance requirement, hoops, etc. Do you have a checking account paying more? You mentioned Ally. Looks like they're paying 0.1% interest. Yikes.

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Wed Dec 19, 2018 11:03 pm

There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.

sabtastic
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Re: Fidelity as a one stop shop

Post by sabtastic » Thu Dec 20, 2018 1:26 am

What kind of insurance or fraud protection is enabled on these accounts? (obviously not FDIC but that's not what I am worried about, see example below)

Let's say I have a few thousand to cover expenses in SPRXX and another 40k in FSKAX. If someone starts cashing fake checks or doing funny business with the ATM card, will it start selling stocks to cover the charges? I've had a few instances of stolen cards before and it gives me a little pause considering the potential damage with a brokerage.

Horsefly
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Re: Fidelity as a one stop shop

Post by Horsefly » Thu Dec 20, 2018 1:35 am

sabtastic wrote:
Thu Dec 20, 2018 1:26 am
What kind of insurance or fraud protection is enabled on these accounts? (obviously not FDIC but that's not what I am worried about, see example below)

Let's say I have a few thousand to cover expenses in SPRXX and another 40k in FSKAX. If someone starts cashing fake checks or doing funny business with the ATM card, will it start selling stocks to cover the charges? I've had a few instances of stolen cards before and it gives me a little pause considering the potential damage with a brokerage.
This has kind of been addressed up thread. The Cash Management Account is just cash. No other holdings will be in there for someone to steal. If you enable overdraft protection by linking to your brokerage, then enough cash will be transferred from your core account, money market, or available margin to cover the expense. Again, no mutual funds, stocks, or ETFs will be sold. At least that's how I understand it.

zuma
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Re: Fidelity as a one stop shop

Post by zuma » Thu Dec 20, 2018 2:12 am

b0B wrote:
Wed Dec 19, 2018 11:03 pm
There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.
What "significant" cost are you talking about in the OP's case? Maybe I missed it.

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Thu Dec 20, 2018 6:47 am

Horsefly wrote:
Thu Dec 20, 2018 1:35 am
sabtastic wrote:
Thu Dec 20, 2018 1:26 am
What kind of insurance or fraud protection is enabled on these accounts? (obviously not FDIC but that's not what I am worried about, see example below)

Let's say I have a few thousand to cover expenses in SPRXX and another 40k in FSKAX. If someone starts cashing fake checks or doing funny business with the ATM card, will it start selling stocks to cover the charges? I've had a few instances of stolen cards before and it gives me a little pause considering the potential damage with a brokerage.
This has kind of been addressed up thread. The Cash Management Account is just cash. No other holdings will be in there for someone to steal. If you enable overdraft protection by linking to your brokerage, then enough cash will be transferred from your core account, money market, or available margin to cover the expense. Again, no mutual funds, stocks, or ETFs will be sold. At least that's how I understand it.
No, the CMA itself is a full-fledged brokerage account. But you are correct that the overdraft feature will not sell stocks.

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Thu Dec 20, 2018 6:49 am

zuma wrote:
Thu Dec 20, 2018 2:12 am
b0B wrote:
Wed Dec 19, 2018 11:03 pm
There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.
What "significant" cost are you talking about in the OP's case? Maybe I missed it.
[OT comment removed by admin LadyGeek]

mw1739
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Re: Fidelity as a one stop shop

Post by mw1739 » Thu Dec 20, 2018 7:37 am

I prefer to keep my money invested as much as possible. Can I setup the Cash Management Account to automatically sell shares of a mutual fund when I write a check? Or if I overdraw the account (which would be intentional in my case), can Fidelity automatically sell shares of a mutual fund to bring the account back to zero?

b0B
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Re: Fidelity as a one stop shop

Post by b0B » Thu Dec 20, 2018 7:46 am

Cash wrote:
Thu Dec 20, 2018 6:49 am
zuma wrote:
Thu Dec 20, 2018 2:12 am
b0B wrote:
Wed Dec 19, 2018 11:03 pm
There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.
What "significant" cost are you talking about in the OP's case? Maybe I missed it.
[OT comment removed by admin LadyGeek]
E.g. as I have already been explaining, getting lower cash back on CC, and getting lower interest on cash.

Generally, many financial institutions may have loss leaders in order to lure you into their profit centers.

Strayshot
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Re: Fidelity as a one stop shop

Post by Strayshot » Thu Dec 20, 2018 7:56 am

Been with Fidelity over 2 decades, no complaints. 2 brokerage accounts, 3 cash management accounts, 2 IRA’s, a 401K, a DAF, ATM and 2% credit card. Soon there will be a UTMA in the mix.

Free checks and mobile check deposit, no gimmick ATM charge rebates, fund ER’s and trade fees that are the lowest or close to lowest in the industry, excellent customer service, decent website and great Apps (well, the 401k app could use some work but the Fidelity app is awesome), local offices if I need to get something done in person, etc.

I use a local credit union for safe deposit box and very infrequent cash or savings bond transactions, I play credit card games with many providers, and I use Sebonic Financial when I need mortgage work, but other than those items Fidelity meets all of my banking and investment needs and has continued to keep pace such that there is no incentive for me to go elsewhere.

If they ever IPO’d, I would break my own rules and put 5% of my portfolio into that company.....

ThriftyPhD
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Re: Fidelity as a one stop shop

Post by ThriftyPhD » Thu Dec 20, 2018 9:23 am

b0B wrote:
Thu Dec 20, 2018 7:46 am
Cash wrote:
Thu Dec 20, 2018 6:49 am
zuma wrote:
Thu Dec 20, 2018 2:12 am
b0B wrote:
Wed Dec 19, 2018 11:03 pm
There's absolutely no reason to want banking and investment in the same place. I find it interesting that people are willing to endure a significant financial cost for the illusion of simplification.
What "significant" cost are you talking about in the OP's case? Maybe I missed it.
[OT comment removed by admin LadyGeek]
E.g. as I have already been explaining
You haven't been explaining. You've been implying, but when I and others asked you to explain, you haven't responded.
b0B wrote:
Thu Dec 20, 2018 7:46 am
getting lower cash back on CC
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
b0B wrote:
Thu Dec 20, 2018 7:46 am
getting lower interest on cash.
The Fidelity CMA allows you to keep your money in a number of money market funds, all paying ~2%. There is no minimum balance requirement, no direct deposit requirement, no debit card usage requirement. All ATM fees are reimbursed, checks are free, debit cards are free, etc. Do you have a link to a 100% free checking account that is paying > 2% interest? If so, please provide the link because I would like to sign up. You've mentioned Ally, they're paying 0.1%. Ally has a lower interest rate on cash. Do you have a source paying more?
b0B wrote:
Thu Dec 20, 2018 7:46 am
Generally, many financial institutions may have loss leaders in order to lure you into their profit centers.
Exactly, and the Fidelity CMA is one of Fidelity's loss leaders. It's a 100% free account that pays more interest than anywhere else and even reimburses you for fees other places charge you.

Perhaps you're unaware of what the Fidelity CMA is? You should take a look here to learn more about how the account works.

If you have something better, PLEASE SHARE. I am actively trying out different banking options, so if I've missed something that is better I would like to give it a shot. Please provide a link to an account that pays > 2% interest on cash with free checking and ATM with no hoops to jump through.

YoungSisyphus
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Re: Fidelity as a one stop shop

Post by YoungSisyphus » Thu Dec 20, 2018 9:34 am

Personal +1 for Fidelity:

I've been using them for everything for years. I LOVE their checking / money market account that refunds ATM fees anywhere in the world. Had some ridiculous fees waived when I went to Vegas for the first time last year. If you happen to still be working, I get my paychecks extremely early. Like, 4 days before I'm usually paid early (although recently it has moved to just two days).

Internal transfers from that account to HSA / Roth / taxable accounts has also been extremely simple. Their chat service has always been fast for issue resolution as well. Overall, very pleased.

arf30
Posts: 525
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Re: Fidelity as a one stop shop

Post by arf30 » Thu Dec 20, 2018 9:36 am

ThriftyPhD wrote:
Thu Dec 20, 2018 9:23 am
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
I use the Fidelity card myself, but -

* Alliant CU has a 3% first year, 2.5% after card with an annual fee (12k/year spend breakeven point)
* BofA has preferred rewards cards that pay 2.65% and higher, catch is you need to have 100k there, some have annual fees, and you have to deal with BofA

BUBear29
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Location: Dallas, TX

Re: Fidelity as a one stop shop

Post by BUBear29 » Thu Dec 20, 2018 9:42 am

arf30 wrote:
Thu Dec 20, 2018 9:36 am
ThriftyPhD wrote:
Thu Dec 20, 2018 9:23 am
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
I use the Fidelity card myself, but -

* Alliant CU has a 3% first year, 2.5% after card with an annual fee (12k/year spend breakeven point)
* BofA has preferred rewards cards that pay 2.65% and higher, catch is you need to have 100k there, some have annual fees, and you have to deal with BofA
Pretty sure breakeven for Alliant card is $2,360 as the AF is $59 (assuming 2.5% cashback)

but this card is easily better than 2% fido card if utilized for general spending
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

ThriftyPhD
Posts: 841
Joined: Mon Jul 31, 2017 10:43 am

Re: Fidelity as a one stop shop

Post by ThriftyPhD » Thu Dec 20, 2018 9:44 am

arf30 wrote:
Thu Dec 20, 2018 9:36 am
ThriftyPhD wrote:
Thu Dec 20, 2018 9:23 am
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
I use the Fidelity card myself, but -

* Alliant CU has a 3% first year, 2.5% after card with an annual fee (12k/year spend breakeven point)
* BofA has preferred rewards cards that pay 2.65% and higher, catch is you need to have 100k there, some have annual fees, and you have to deal with BofA
I was aware of the BofA card, not the Alliant. ~50 bps increase but with annual fees and a large deposit requirement. If I'm going to pay annual fees, there are cards that give much better cash back on certain categories. 6% grocery, 5+% gas, 4+ dining, 5% rotating, etc. Once those are handled, I don't think I would have 12k/year on general spend.

Any cards with no hoops no fees paying > 2%?

Not saying the Fido card is so good it throws all the others away, but it seems like a good general spend card.

ThriftyPhD
Posts: 841
Joined: Mon Jul 31, 2017 10:43 am

Re: Fidelity as a one stop shop

Post by ThriftyPhD » Thu Dec 20, 2018 9:46 am

BUBear29 wrote:
Thu Dec 20, 2018 9:42 am
arf30 wrote:
Thu Dec 20, 2018 9:36 am
ThriftyPhD wrote:
Thu Dec 20, 2018 9:23 am
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
I use the Fidelity card myself, but -

* Alliant CU has a 3% first year, 2.5% after card with an annual fee (12k/year spend breakeven point)
* BofA has preferred rewards cards that pay 2.65% and higher, catch is you need to have 100k there, some have annual fees, and you have to deal with BofA
Pretty sure breakeven for Alliant card is $2,360 as the AF is $59 (assuming 2.5% cashback)

but this card is easily better than 2% fido card if utilized for general spending
You need to do breakeven relative to 2% Fido, not 0%.

You have a 0.5% increase with that card, so you would need to spend $59/0.005 = $11,800 before it has better cash back than Fido.

BUBear29
Posts: 237
Joined: Wed Aug 19, 2015 4:20 pm
Location: Dallas, TX

Re: Fidelity as a one stop shop

Post by BUBear29 » Thu Dec 20, 2018 9:48 am

ThriftyPhD wrote:
Thu Dec 20, 2018 9:44 am
arf30 wrote:
Thu Dec 20, 2018 9:36 am
ThriftyPhD wrote:
Thu Dec 20, 2018 9:23 am
Fidelity's credit card is 2% cash back on all categories. I've asked above, I'll ask again. Do you have a link to a card I can apply for that has > 2% cash back on general spend? If so, I want to sign up. Please provide a link to a credit card signup.
I use the Fidelity card myself, but -

* Alliant CU has a 3% first year, 2.5% after card with an annual fee (12k/year spend breakeven point)
* BofA has preferred rewards cards that pay 2.65% and higher, catch is you need to have 100k there, some have annual fees, and you have to deal with BofA
I was aware of the BofA card, not the Alliant. ~50 bps increase but with annual fees and a large deposit requirement. If I'm going to pay annual fees, there are cards that give much better cash back on certain categories. 6% grocery, 5+% gas, 4+ dining, 5% rotating, etc. Once those are handled, I don't think I would have 12k/year on general spend.

Any cards with no hoops no fees paying > 2%?

Not saying the Fido card is so good it throws all the others away, but it seems like a good general spend card.
since you value simplicity....your card portfolio could look like:
Amex Blue Cash Preferred (6%grocery and 3% gas)
Alliant 2.5%
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

yeahman
Posts: 192
Joined: Thu Mar 02, 2017 11:27 am

Re: Fidelity as a one stop shop

Post by yeahman » Thu Dec 20, 2018 11:28 am

I find that I can put 90+% of my credit card spending on 3+% category cards. That includes food, travel, gas, Amazon, and Target. For other purchases, if it's large (e.g., large appliance), I'll open a new card to get the easy bonus and not use it again, effectively a large discount. The miscellaneous rest (e.g., entertainment) doesn't amount to enough to justify jumping through hoops to get more than 2%.

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