Fidelity as a one stop shop

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arf30
Posts: 738
Joined: Sat Dec 28, 2013 11:55 am

Re: Fidelity as a one stop shop

Post by arf30 »

DaftInvestor wrote: Tue Sep 22, 2020 12:01 pm Each account is treated as a stand-alone.
So much so that when I initiated a cash move from my CMA to my brokerage account it doesn't move the money instantly - it shows status "Processing" and I can't use the money to buy anything yet. This is the OPPOSITE of what Fidelity customer service told me yesterday (they said there was no waiting period when moving money between accounts at fidelity - only if pulling money in from external accounts). This is a big annoyance for me. Perhaps others simply buy directly into their CMA account rather than their brokerage account? Or always move cash directly into Brokerage (and move 2% rebates from credit card directly to brokerage versus through CMA first). Having to wait for cash to clear between two accounts at the same institution is not anything I experienced before.
It seems there are a lot similarities between CMA and Brokerage account types (both can have Debit Cards; both can hold securities; former has FDIC while latter does not).
Moves between accounts are near-instant for me, less than a minute and the money can be used - you should contact support.
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SmileyFace
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Re: Fidelity as a one stop shop

Post by SmileyFace »

arf30 wrote: Fri Sep 25, 2020 7:05 am
DaftInvestor wrote: Tue Sep 22, 2020 12:01 pm Each account is treated as a stand-alone.
So much so that when I initiated a cash move from my CMA to my brokerage account it doesn't move the money instantly - it shows status "Processing" and I can't use the money to buy anything yet. This is the OPPOSITE of what Fidelity customer service told me yesterday (they said there was no waiting period when moving money between accounts at fidelity - only if pulling money in from external accounts). This is a big annoyance for me. Perhaps others simply buy directly into their CMA account rather than their brokerage account? Or always move cash directly into Brokerage (and move 2% rebates from credit card directly to brokerage versus through CMA first). Having to wait for cash to clear between two accounts at the same institution is not anything I experienced before.
It seems there are a lot similarities between CMA and Brokerage account types (both can have Debit Cards; both can hold securities; former has FDIC while latter does not).
Moves between accounts are near-instant for me, less than a minute and the money can be used - you should contact support.
Thanks - I will call them and find out why it's just me (sits in "processing" for 3-6 hours or more - and I can't buy ETFs from either place during the full extent of time).
masrepus
Posts: 57
Joined: Fri Apr 24, 2015 12:14 pm

Re: Fidelity as a one stop shop

Post by masrepus »

Are you sure you can't use the money immediately after the transfer request? In my case it shows processing and not settled but I can use the money right away to buys shares.
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imak
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Joined: Fri Mar 22, 2019 5:18 pm
Location: Austin, TX

Re: Fidelity as a one stop shop

Post by imak »

Just curious if anyone here has any experience with Fidelity securities lending program?
Is it worthwhile to enable securities lending for taxable/IRA accounts? Any tax related or dividend related consequences to be considered?

https://www.fidelity.com/trading/fully-paid-lending

From the above site:

What is the Fully Paid Lending Program?
Fidelity's Fully Paid Lending Program provides you with the opportunity to lend securities in your portfolio and earn income. If there is demand in the securities lending market, generally due to short selling, scarce lending supply, or corporate events, Fidelity may borrow certain eligible securities until either you or Fidelity elect to close the loan.
AA: 30% FNDX, 30% FNDA, 10% FNDF, 10% FNDC, 10% REET+VWO+DGS, 10% TMF; EF = VTEB; "Discipline matters more than allocation" ~ W Bernstein
arf30
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Joined: Sat Dec 28, 2013 11:55 am

Re: Fidelity as a one stop shop

Post by arf30 »

imak wrote: Wed Oct 07, 2020 2:17 pm Just curious if anyone here has any experience with Fidelity securities lending program?
It's generally not recommended as there are some drawbacks:

1. You don't receive dividends, you instead receive "payments in lieu of dividend" from the borrower. This is taxed as income instead of dividends (generally a much higher tax rate). This is the main drawback - you'll probably pay more in taxes than you make. Some brokers try not to lend around dividend record dates but it's not guaranteed.

2. The interest rate is very low unless you're lending shares of something in high demand (ie. garbage stocks), you won't make much lending index funds.

3. It's not SIPC insured
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imak
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Location: Austin, TX

Re: Fidelity as a one stop shop

Post by imak »

arf30 wrote: Wed Oct 07, 2020 2:38 pm
imak wrote: Wed Oct 07, 2020 2:17 pm Just curious if anyone here has any experience with Fidelity securities lending program?
It's generally not recommended as there are some drawbacks:

1. You don't receive dividends, you instead receive "payments in lieu of dividend" from the borrower. This is taxed as income instead of dividends (generally a much higher tax rate). This is the main drawback - you'll probably pay more in taxes than you make. Some brokers try not to lend around dividend record dates but it's not guaranteed.

2. The interest rate is very low unless you're lending shares of something in high demand (ie. garbage stocks), you won't make much lending index funds.

3. It's not SIPC insured
Thanks! Looks like its more trouble than worth it.
AA: 30% FNDX, 30% FNDA, 10% FNDF, 10% FNDC, 10% REET+VWO+DGS, 10% TMF; EF = VTEB; "Discipline matters more than allocation" ~ W Bernstein
Aelron
Posts: 1
Joined: Wed Oct 07, 2020 6:49 pm

Re: Fidelity as a one stop shop

Post by Aelron »

I just wanted to say that this forum and this thread in particular are just wonderful. I've learned a lot, and I thought I'd register for the forum to share a couple of small things on this topic that people might find useful.

1. I asked a Fidelity chat rep what the order of Fidelity money market automatic sales was (to fund a purchase or withdrawal). This answer appeared to be researched, so I'd rank it as "probably true": core is used first, taxable money market funds are used second in order from highest to lowest balance, and non-taxable money market funds are used third in order from highest to lowest balance. I didn't have the heart to be "that guy" and ask what happens if two funds have exactly the same balance, but it does bug me that I don't know the answer to that. :happy

2. I was curious if a CMA could be a funding account (for purposes of minimum target balance or automatic overdraft)--after all, a CMA is itself a brokerage account. So, I created another CMA account specifically to determine that through experimentation--a chat rep told me this wasn't possible, but I wasn't convinced. It turns out that a CMA can be used as a funding account for another CMA. However, a CMA that is used as a funding account cannot itself have minimum target balance or automatic overdraft enabled. That's too bad, because I was hoping to create a chain of CMAs drawing from one another (a debit card CMA funded by a "checking" CMA which was in turn funded by a "savings" brokerage account). I can see why that's not allowed, though, because that would create some peculiar order-of-operations cases to worry about in their software.
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TimeRunner
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Joined: Sat Dec 29, 2012 9:23 pm

Re: Fidelity as a one stop shop

Post by TimeRunner »

Aelron wrote: Wed Oct 07, 2020 7:10 pm I just wanted to say that this forum and this thread in particular are just wonderful. I've learned a lot, and I thought I'd register for the forum to share a couple of small things on this topic that people might find useful.

1. I asked a Fidelity chat rep what the order of Fidelity money market automatic sales was (to fund a purchase or withdrawal). This answer appeared to be researched, so I'd rank it as "probably true": core is used first, taxable money market funds are used second in order from highest to lowest balance, and non-taxable money market funds are used third in order from highest to lowest balance. I didn't have the heart to be "that guy" and ask what happens if two funds have exactly the same balance, but it does bug me that I don't know the answer to that. :happy

2. I was curious if a CMA could be a funding account (for purposes of minimum target balance or automatic overdraft)--after all, a CMA is itself a brokerage account. So, I created another CMA account specifically to determine that through experimentation--a chat rep told me this wasn't possible, but I wasn't convinced. It turns out that a CMA can be used as a funding account for another CMA. However, a CMA that is used as a funding account cannot itself have minimum target balance or automatic overdraft enabled. That's too bad, because I was hoping to create a chain of CMAs drawing from one another (a debit card CMA funded by a "checking" CMA which was in turn funded by a "savings" brokerage account). I can see why that's not allowed, though, because that would create some peculiar order-of-operations cases to worry about in their software.
Cool first post. Welcome aboard! :beer
One cannot enlighten the unconscious.
VictorStarr
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Joined: Sat Jan 04, 2020 10:13 pm
Location: California

Re: Fidelity as a one stop shop

Post by VictorStarr »

Lately, I faced a problem of transfering money to accounts that I do not own (my adult children).
If you co-own an account you can use ACH transfer, but it is not possible to link account that does not belong to you.
I found that I can use BillPay to transfer money to arbitrary Fidelity accounts (and bank accounts).

Create BillPay payee using "Add a company".
For brokerage or CMA accounts use
Company: "Fidelity Brokerage Services LLC"
Account number: <account-number>

For IRA accounts use
Company name: "FIDELITY INVESTMENTS"
Account number: <account-number>

Fidelity BillPay "knows" about these companies so no need to type address and phone number.

For brokerage account (company - "Fidelity Brokerage Services LLC") payment is electronic and takes one day.
For IRA account (company - "Fidelity Investments") payment is by check and takes longer.

I used the same approach to transfer money to bank accounts that I do not own - find address to deposit checks by mail and use this address to create payee. For payments made with check I usually add "FBO <account-number>".
wanderer
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Location: Houston, Texas, USA

Re: Fidelity as a one stop shop

Post by wanderer »

Great suggestion.

I've used bill pay to send money to adult children, but to these were traditional banking accounts. never thought about how to transfer within Fido. Thanks!
HomeStretch
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Joined: Thu Dec 27, 2018 3:06 pm

Re: Fidelity as a one stop shop

Post by HomeStretch »

VictorStarr wrote: Wed Oct 14, 2020 6:48 pm Lately, I faced a problem of transfering money to accounts that I do not own (my adult children).
If you co-own an account you can use ACH transfer, but it is not possible to link account that does not belong to you.
I found that I can use BillPay to transfer money to arbitrary Fidelity accounts (and bank accounts).
Another option is to call Fidelity to have a rep transfer funds from your account to your adult child’s account (you need their Fidelity account #). The transfer posts immediately. But unfortunately there is no way to do this online oneself.
VictorStarr
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Joined: Sat Jan 04, 2020 10:13 pm
Location: California

Re: Fidelity as a one stop shop

Post by VictorStarr »

HomeStretch wrote: Wed Oct 14, 2020 6:58 pm
VictorStarr wrote: Wed Oct 14, 2020 6:48 pm Lately, I faced a problem of transfering money to accounts that I do not own (my adult children).
If you co-own an account you can use ACH transfer, but it is not possible to link account that does not belong to you.
I found that I can use BillPay to transfer money to arbitrary Fidelity accounts (and bank accounts).
Another option is to call Fidelity to have a rep transfer funds from your account to your adult child’s account (you need their Fidelity account #). The transfer posts immediately. But unfortunately there is no way to do this online oneself.
Calling Fidelity and asking CSR to do a transfer is certainly an option. In my case, I wanted automatic solution to send money periodically.
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Leif
Posts: 3031
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Re: Fidelity as a one stop shop

Post by Leif »

VictorStarr wrote: Wed Oct 14, 2020 7:11 pm Calling Fidelity and asking CSR to do a transfer is certainly an option. In my case, I wanted automatic solution to send money periodically.
You can also fill a form at Fidelity and have them periodically send a fixed amount. But, I like the BillPay option, since that gives you the flexibility to change amounts/dates easily online. Thanks for the heads up.
VictorStarr
Posts: 11
Joined: Sat Jan 04, 2020 10:13 pm
Location: California

Re: Fidelity as a one stop shop

Post by VictorStarr »

FYI: it seems that it became easier to change ATM daily limit for CMA accounts.

Six month ago my wife spent at least half an hour on a phone with CSR to increase ATM limit to $1000 and decrease other limits to $1000.
This week, I decided to increase withdrawal limit to $1020 for another CMA account. I requested this change by secure message and next day got positive reply.
So if your request was rejected before maybe give it another try.

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mervinj7
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Joined: Thu Mar 27, 2014 3:10 pm

Re: Fidelity as a one stop shop

Post by mervinj7 »

VictorStarr wrote: Thu Oct 15, 2020 10:40 pm FYI: it seems that it became easier to change ATM daily limit for CMA accounts.

Six month ago my wife spent at least half an hour on a phone with CSR to increase ATM limit to $1000 and decrease other limits to $1000.
This week, I decided to increase withdrawal limit to $1020 for another CMA account. I requested this change by secure message and next day got positive reply.
So if your request was rejected before maybe give it another try.

Image
In general, secure message is my first go to fire ant requests. I did this six months ago with similar success.
arsenal_fan
Posts: 52
Joined: Tue Nov 17, 2015 8:57 pm

Re: Fidelity as a one stop shop

Post by arsenal_fan »

Does anyone use the Net Worth link in the Fidelity Mobile App? I was hoping it would display data from Full View but those net worth numbers are just wrong and don't seem to have refreshed since months. Fidelity Full View is up to date. Anyone have any luck using Full View/Net Worth from their mobile phones/apps?
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