Fidelity as a one stop shop

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arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Sun Oct 20, 2019 4:36 pm

Fidelity and Schwab are basically the two best ATM cards for international travel, I would keep both.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Sun Oct 20, 2019 4:40 pm

bostondan wrote:
Sun Oct 20, 2019 4:29 pm
walletless wrote:
Sun Oct 20, 2019 5:21 am
I extensively used my debit card for CMA during a recent trip to Japan. The 7/11s there have international ATMs that charge 220 yen as fees. I can confirm that Fidelity reimbursed that fee every single time. I also got decent foreign exchange rates there. I just had to inform Fidelity ahead of time about my trip in order to use the ATM in Japan; that required a phone call to Fidelity (no way to specify that online, with Banks like Chase I could just do that online). Besides that minor inconvenience, I'm glad I had the CMA account and debit card during the trip!
How does it compare to Schwab? I keep a Schwab account purely for the international ATM feature. It charges absolutely no fees and the exchange rate always perfectly matched what google said was the current rate.

If the Fidelity international ATM features are comparable then I’ll provably close the Schwab account.
I have no experience with Schwab, but I'm very happy with my Fidelity CMA + Brokerage combo.

Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad » Sun Oct 20, 2019 5:00 pm

bostondan wrote:
Sun Oct 20, 2019 4:29 pm
How does it compare to Schwab? I keep a Schwab account purely for the international ATM feature. It charges absolutely no fees and the exchange rate always perfectly matched what google said was the current rate.

If the Fidelity international ATM features are comparable then I’ll provably close the Schwab account.
They’re similar. They should have the same Visa exchange rate.
- Fidelity allows one to invest in their Money market funds which pay a higher rate than either Fidelity’s or Schwab’s cash rate. Funds in Fidelity run MM funds are available immediately for ATM withdrawal.
- Fidelity reimburses ATM fees in about a business day or two. I believe Schwab does it at the end of the statement.
- I believe that Schwab uses its own bank while Fidelity uses a third party bank for ATM cards
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
- Fidelity appears to charge a 1% forex fee for foreign debit card purchases.

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jpsfranks
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Re: Fidelity as a one stop shop

Post by jpsfranks » Sun Oct 20, 2019 5:11 pm

The Fidelity card has a 1% foreign transaction fee on purchases, the Schwab card has none (i.e. using it as a debit card rather than at an ATM to make a withdrawal, neither card has fee on ATM withdrawals). I never use debit cards for purchases so this does not matter to me.

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Sun Oct 20, 2019 5:40 pm

Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
bostondan wrote:
Sun Oct 20, 2019 4:29 pm
How does it compare to Schwab? I keep a Schwab account purely for the international ATM feature. It charges absolutely no fees and the exchange rate always perfectly matched what google said was the current rate.

If the Fidelity international ATM features are comparable then I’ll provably close the Schwab account.
They’re similar. They should have the same Visa exchange rate.
- Fidelity allows one to invest in their Money market funds which pay a higher rate than either Fidelity’s or Schwab’s cash rate. Funds in Fidelity run MM funds are available immediately for ATM withdrawal.
- Fidelity reimburses ATM fees in about a business day or two. I believe Schwab does it at the end of the statement.
- I believe that Schwab uses its own bank while Fidelity uses a third party bank for ATM cards
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
- Fidelity appears to charge a 1% forex fee for foreign debit card purchases.
The $500 daily limit is probably the only drawback I have found with my card. Interesting to know you can have multiple CMA's though; can they be tied to the same brokerage? I may make a 2nd one for DW instead of using a single joint one.

I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.

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walletless
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Re: Fidelity as a one stop shop

Post by walletless » Sun Oct 20, 2019 6:08 pm

Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- I believe that Schwab uses its own bank while Fidelity uses a third party bank for ATM cards
I think Fidelity ATM cards are issued by PNC Bank, not that it matters to me

Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad » Mon Oct 21, 2019 1:17 am

MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
The $500 daily limit is probably the only drawback I have found with my card. Interesting to know you can have multiple CMA's though; can they be tied to the same brokerage? I may make a 2nd one for DW instead of using a single joint one.
I don’t think more than one CM account can be connected to a brokerage account for overdraft since I remember trying to do so and getting an error. You could keep one day of ATM funds in each CM account in a MM fund or decide to transfer funds in when one believes they may need more than $500 cash in a day.

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Thu Oct 24, 2019 10:19 pm

walletless wrote:
Sun Oct 20, 2019 6:08 pm
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- I believe that Schwab uses its own bank while Fidelity uses a third party bank for ATM cards
I think Fidelity ATM cards are issued by PNC Bank, not that it matters to me
"The Fidelity® Debit Card is issued by PNC Bank, N.A., and the debit card program is administered by BNY Mellon Investment Servicing Trust Company."

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Oct 25, 2019 1:56 pm

MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.
I totally agree. I have CMA and some of my taxable investments at Fidelity. Really happy with it. Their index funds are great. DW and I also use the 2% cash back card for almost all bill paying, spending, etc. My only disappointment is with their money market funds. I know something has to finance the cash management services but their expense ratios are high and their yields are low. I keep just what I need for spending in the CMA, and the rest of my cash reserves I keep in Vanguard Federal MMF. But the debit card is very convenient and I just replenish the CMA as needed.

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Fri Oct 25, 2019 2:03 pm

bck63 wrote:
Fri Oct 25, 2019 1:56 pm
MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.
I totally agree. I have CMA and some of my taxable investments at Fidelity. Really happy with it. Their index funds are great. DW and I also use the 2% cash back card for almost all bill paying, spending, etc. My only disappointment is with their money market funds. I know something has to finance the cash management services but their expense ratios are high and their yields are low. I keep just what I need for spending in the CMA, and the rest of my cash reserves I keep in Vanguard Federal MMF. But the debit card is very convenient and I just replenish the CMA as needed.
You could also keep your cash reserves in auto-rolled treasury bills and just sell them as needed to replenish the CMA.

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Oct 25, 2019 2:14 pm

MotoTrojan wrote:
Fri Oct 25, 2019 2:03 pm
bck63 wrote:
Fri Oct 25, 2019 1:56 pm
MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.
I totally agree. I have CMA and some of my taxable investments at Fidelity. Really happy with it. Their index funds are great. DW and I also use the 2% cash back card for almost all bill paying, spending, etc. My only disappointment is with their money market funds. I know something has to finance the cash management services but their expense ratios are high and their yields are low. I keep just what I need for spending in the CMA, and the rest of my cash reserves I keep in Vanguard Federal MMF. But the debit card is very convenient and I just replenish the CMA as needed.
You could also keep your cash reserves in auto-rolled treasury bills and just sell them as needed to replenish the CMA.
True. But the current yield for VMFXX beats the yields for T-bills (unless I'm misreading them). Current yield is 1.85%.

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Fri Oct 25, 2019 2:34 pm

just came back from a 10 day trip to Italy, had zero issues withdrawing $ with my Fidelity CMA, no transaction fees at all and very good same day conversion rates, very pleasant experience, very glad I joined Fidelity

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Oct 25, 2019 2:55 pm

engineerbme wrote:
Fri Oct 25, 2019 2:34 pm
just came back from a 10 day trip to Italy, had zero issues withdrawing $ with my Fidelity CMA, no transaction fees at all and very good same day conversion rates, very pleasant experience, very glad I joined Fidelity
That is great to hear. We are going to England in June and hope we have the same experience.

Hope you had a great trip!

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corn18
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Re: Fidelity as a one stop shop

Post by corn18 » Fri Oct 25, 2019 2:58 pm

bck63 wrote:
Fri Oct 25, 2019 2:55 pm
engineerbme wrote:
Fri Oct 25, 2019 2:34 pm
just came back from a 10 day trip to Italy, had zero issues withdrawing $ with my Fidelity CMA, no transaction fees at all and very good same day conversion rates, very pleasant experience, very glad I joined Fidelity
That is great to hear. We are going to England in June and hope we have the same experience.

Hope you had a great trip!
Same here on our Africa trip. Fido debit card worked great at atms. Didn’t use their cc as they charge a transaction fee for international.
Don't do something, just stand there!

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Fri Oct 25, 2019 3:12 pm

bck63 wrote:
Fri Oct 25, 2019 2:14 pm
MotoTrojan wrote:
Fri Oct 25, 2019 2:03 pm
bck63 wrote:
Fri Oct 25, 2019 1:56 pm
MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.
I totally agree. I have CMA and some of my taxable investments at Fidelity. Really happy with it. Their index funds are great. DW and I also use the 2% cash back card for almost all bill paying, spending, etc. My only disappointment is with their money market funds. I know something has to finance the cash management services but their expense ratios are high and their yields are low. I keep just what I need for spending in the CMA, and the rest of my cash reserves I keep in Vanguard Federal MMF. But the debit card is very convenient and I just replenish the CMA as needed.
You could also keep your cash reserves in auto-rolled treasury bills and just sell them as needed to replenish the CMA.
True. But the current yield for VMFXX beats the yields for T-bills (unless I'm misreading them). Current yield is 1.85%.
Correct, but you need to consider that VMFXX had about 78% of income from USGO (exempt from state tax) in 2018, while Treasuries or Vanguard Treasury MM fund are 100% exempt from state tax. I assume 78% of Fed MM in USGO for taxable-equivalent yield (TEY) calculations.

At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.

Current Treasury Bill yields are:

Code: Select all

1m   2m   3m   6m   1y
1.75 1.73 1.67 1.65 1.59
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.

Treasury MM holds Tbills mostly in the 1m to 3m maturity range. The reason Treasury MM yield is higher than current 1m to 3m Treasury yields, even after subtracting the 0.09% ER is that the Treasuries are still accruing interest at the yield when purchased, so some of the Treasuries bought at original maturity of three months are earning the yield from almost three months ago.

Still, now and then even that can't explain all of the excess yield of Treasury MM. After doing the appropriate averaging of Tbills over the last 3m, 2m and 1m, taking the 7-day trailing average of that, and subtracting the ER, I get 1.79% as the expected SEC yield, but it's actually 1.85%.

Here is a chart showing some history of average Treasury yields minus ER, 7-day average of that minus ER, and actual SEC yield:

Image

In a Fidelity IRA, I'd compare rolling Tbills to the best money market fund you can get in the IRA. In one of my IRAs, I have FZDXX ($10K min in an IRA), with SEC yield of 1.80%, so better at this point than Tbills. In another Fidelity IRA I have SPRXX at SEC yield of 1.68%, so Tbills might be worth considering, but the amount is so small I think I'll just wait until one of my CDs in this account matures in Jan 2020, then open FZDXX.

In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

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Leif
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Re: Fidelity as a one stop shop

Post by Leif » Fri Oct 25, 2019 3:20 pm

corn18 wrote:
Fri Oct 25, 2019 2:58 pm
Same here on our Africa trip. Fido debit card worked great at atms. Didn’t use their cc as they charge a transaction fee for international.
The international transaction fee is 1%, their reward is 2%, for purchases. You net 1%. Using cash from an ATM from the debit card you net 0%. I only use local cash for small carry around money.

bck63
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Re: Fidelity as a one stop shop

Post by bck63 » Fri Oct 25, 2019 3:29 pm

Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Kevin thanks for this whole post and I am going to read it in depth. But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.

The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.

Horsefly
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Re: Fidelity as a one stop shop

Post by Horsefly » Fri Oct 25, 2019 3:36 pm

Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Fri Oct 25, 2019 3:37 pm

Leif wrote:
Fri Oct 25, 2019 3:20 pm
corn18 wrote:
Fri Oct 25, 2019 2:58 pm
Same here on our Africa trip. Fido debit card worked great at atms. Didn’t use their cc as they charge a transaction fee for international.
The international transaction fee is 1%, their reward is 2%, for purchases. You net 1%. Using cash from an ATM from the debit card you net 0%. I only use local cash for small carry around money.
Other cards are 0% and even have higher rewards...

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Leif
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Re: Fidelity as a one stop shop

Post by Leif » Fri Oct 25, 2019 4:12 pm

MotoTrojan wrote:
Fri Oct 25, 2019 3:37 pm

Other cards are 0% and even have higher rewards...
I'm sure that is true. But my point above was that the Fidelity CC should not be avoided due to the 1% fee if those are the cards (Fidelity CC and debit) that you have.

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Fri Oct 25, 2019 6:29 pm

Leif wrote:
Fri Oct 25, 2019 4:12 pm
MotoTrojan wrote:
Fri Oct 25, 2019 3:37 pm

Other cards are 0% and even have higher rewards...
I'm sure that is true. But my point above was that the Fidelity CC should not be avoided due to the 1% fee if those are the cards (Fidelity CC and debit) that you have.
Ah I see, indeed good point.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Oct 25, 2019 6:40 pm

Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.

[...]

My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.

[...]

In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. For a 6-month Tbill at 1.65% it's 1.79%. For SPAXX at 1.55%, it should be about 1.62% given a 56% content of government securities. The other TEY numbers are similarly high.

Am I missing something, or calculating TEY incorrectly?

hap_ca
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Re: Fidelity as a one stop shop

Post by hap_ca » Fri Oct 25, 2019 8:50 pm

Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
bck63 wrote:
Fri Oct 25, 2019 2:14 pm
MotoTrojan wrote:
Fri Oct 25, 2019 2:03 pm
bck63 wrote:
Fri Oct 25, 2019 1:56 pm
MotoTrojan wrote:
Sun Oct 20, 2019 5:40 pm
I just moved my taxable to Fidelity, opened Roths for DW and I, got a 2% Visa card, and have been using the CMA/brokerage for a few months now. I am extremely pleased with Fidelity; customer service via chat has been top notch.
I totally agree. I have CMA and some of my taxable investments at Fidelity. Really happy with it. Their index funds are great. DW and I also use the 2% cash back card for almost all bill paying, spending, etc. My only disappointment is with their money market funds. I know something has to finance the cash management services but their expense ratios are high and their yields are low. I keep just what I need for spending in the CMA, and the rest of my cash reserves I keep in Vanguard Federal MMF. But the debit card is very convenient and I just replenish the CMA as needed.
You could also keep your cash reserves in auto-rolled treasury bills and just sell them as needed to replenish the CMA.
True. But the current yield for VMFXX beats the yields for T-bills (unless I'm misreading them). Current yield is 1.85%.
Correct, but you need to consider that VMFXX had about 78% of income from USGO (exempt from state tax) in 2018, while Treasuries or Vanguard Treasury MM fund are 100% exempt from state tax. I assume 78% of Fed MM in USGO for taxable-equivalent yield (TEY) calculations.

At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.

Current Treasury Bill yields are:

Code: Select all

1m   2m   3m   6m   1y
1.75 1.73 1.67 1.65 1.59
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.

Treasury MM holds Tbills mostly in the 1m to 3m maturity range. The reason Treasury MM yield is higher than current 1m to 3m Treasury yields, even after subtracting the 0.09% ER is that the Treasuries are still accruing interest at the yield when purchased, so some of the Treasuries bought at original maturity of three months are earning the yield from almost three months ago.

Still, now and then even that can't explain all of the excess yield of Treasury MM. After doing the appropriate averaging of Tbills over the last 3m, 2m and 1m, taking the 7-day trailing average of that, and subtracting the ER, I get 1.79% as the expected SEC yield, but it's actually 1.85%.

Here is a chart showing some history of average Treasury yields minus ER, 7-day average of that minus ER, and actual SEC yield:

Image

In a Fidelity IRA, I'd compare rolling Tbills to the best money market fund you can get in the IRA. In one of my IRAs, I have FZDXX ($10K min in an IRA), with SEC yield of 1.80%, so better at this point than Tbills. In another Fidelity IRA I have SPRXX at SEC yield of 1.68%, so Tbills might be worth considering, but the amount is so small I think I'll just wait until one of my CDs in this account matures in Jan 2020, then open FZDXX.

In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Is SPAXX exempts from California taxes? I thought I’d have to hold FDLXX Fidelity® Treasury Only Money Market Fund for that. I’ve been buying SPRXX in my account for the higher yield not knowing it’s probably about the same or lower than SPAXX tey :oops:

stlutz
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Re: Fidelity as a one stop shop

Post by stlutz » Fri Oct 25, 2019 8:55 pm

Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Fri Oct 25, 2019 9:31 pm

stlutz wrote:
Fri Oct 25, 2019 8:55 pm
Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.
Fidelity has been offering same day ACH for a while. I think this has been discussed upthread.

These are my observations:

○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.

The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).

All times are ET.
My signature has been deleted.

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Fri Oct 25, 2019 9:42 pm

indexfundfan wrote:
Fri Oct 25, 2019 9:31 pm
stlutz wrote:
Fri Oct 25, 2019 8:55 pm
Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.
Fidelity has been offering same day ACH for a while. I think this has been discussed upthread.

These are my observations:

○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.

The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).

All times are ET.
I noted earlier that a transfer I submitted around 10 p.m. EDT (less than $25k) was at my bank by 8 a.m. the following morning.

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Re: Fidelity as a one stop shop

Post by mervinj7 » Sat Oct 26, 2019 1:03 am

hap_ca wrote:
Fri Oct 25, 2019 8:50 pm
Is SPAXX exempts from California taxes? I thought I’d have to hold FDLXX Fidelity® Treasury Only Money Market Fund for that. I’ve been buying SPRXX in my account for the higher yield not knowing it’s probably about the same or lower than SPAXX tey :oops:
56.16% CA tax exempt. The rest is not.

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Re: Fidelity as a one stop shop

Post by bawr » Sat Oct 26, 2019 5:45 am

Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 1:05 pm

bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:39 pm

bck63 wrote:
Fri Oct 25, 2019 3:29 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Kevin thanks for this whole post and I am going to read it in depth.
You're welcome! Glad you find it useful.
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.

The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.

SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.

I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.

If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.

I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:50 pm

boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

Kevin
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:58 pm

mervinj7 wrote:
Sat Oct 26, 2019 1:03 am
hap_ca wrote:
Fri Oct 25, 2019 8:50 pm
Is SPAXX exempts from California taxes? I thought I’d have to hold FDLXX Fidelity® Treasury Only Money Market Fund for that. I’ve been buying SPRXX in my account for the higher yield not knowing it’s probably about the same or lower than SPAXX tey :oops:
56.16% CA tax exempt. The rest is not.
Correct, for 2018. For 2019 I use 56% exempt in estimating TEY, but there is some uncertainty in it. If percent of assets in USGO at the end of any quarter dropped below 50%, none of the income would be tax exempt in CA (my state), CT, and NY.

I also show the derivation for TEY for income that is partially exempt from state income tax in my TEY post.

Kevin
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rama13
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Re: Fidelity as a one stop shop

Post by rama13 » Sat Oct 26, 2019 2:15 pm

Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
It appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.

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Re: Fidelity as a one stop shop

Post by Lyrrad » Sat Oct 26, 2019 2:30 pm

heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Sat Oct 26, 2019 3:08 pm

Kevin M wrote:
Sat Oct 26, 2019 1:50 pm
boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

Kevin
I'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.

If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.

There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.



EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.

I still have trouble getting to 1.97 using any federal tax bracket, though. By my calculation you'd need to be in a 28% bracket for that, but there are no federal tax brackets between 24% and 32%.
Last edited by boston10 on Sat Oct 26, 2019 3:24 pm, edited 3 times in total.

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 3:19 pm

Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.

Major Edit: My limits as reported above are for my BOA debit card, not Fidelity. My apology for my confusion.
Last edited by heartwood on Sat Oct 26, 2019 10:09 pm, edited 1 time in total.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 4:21 pm

rama13 wrote:
Sat Oct 26, 2019 2:15 pm
Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
It appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.
Hmm, surprised I missed that, but you're right. Now I get these yields, sorted descending by compound TEY:

Code: Select all

 Fund   SEC    Cmpd   TEY   Cmpd TEY
-----  -----  -----  -----  -----
FZDXX  1.79%  1.81%  1.79%  1.81%
FDRXX  1.59%  1.60%  1.70%  1.72%
FDLXX  1.51%  1.52%  1.70%  1.71%
SPRXX  1.67%  1.68%  1.67%  1.68%
SPAXX  1.54%  1.55%  1.65%  1.66%
So, SPAXX actually is the lowest TEY, but it's available as a core fund, whereas none of the others are (only other choice is FZFXX, with SEC yield of only 1.62%, and no state tax exemption for 2018), and I estimate I lose about $0.15 per month after tax compared to top choice FZDXX, so not worth messing with.

Thanks!

Kevin
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 4:30 pm

boston10 wrote:
Sat Oct 26, 2019 3:08 pm
Kevin M wrote:
Sat Oct 26, 2019 1:50 pm
boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
<snip>
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

Kevin
I'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.

If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.

There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.


EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.
Right. It all comes out in the algebra in my TEY post. In that post I show how terms in the numerator and denominator cancel out if you deduct state income taxes, which leaves you with the simpler formula of just dividing by (1 - s), but there are no factors that cancel out like that if you don't deduct state income tax.

Basically, you calculate after-tax yield, then divide by (1 - total marginal tax rate) to get TEY.
boston10 wrote:
Sat Oct 26, 2019 3:08 pm
I still have trouble getting to 1.97 using any federal tax bracket, though. By my calculation you'd need to be in a 28% bracket for that, but there are no federal tax brackets between 24% and 32%.
You don't use tax brackets, you use marginal tax rates. My fed marginal tax rate is 27%, which is 12% (bracket) plus 15% as each marginal dollar of ordinary income (e.g., interest income) pushes an extra dollar of QD/LTCG from 0% to 15% tax rate. You also need to consider any phase-outs or phase-ins of deductions, credits, etc., as well as things like NIIT.

Kevin
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skyghost
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Re: Fidelity as a one stop shop

Post by skyghost » Sat Oct 26, 2019 8:17 pm

This thread got me thinking if I should open accounts at Fidelity. I currently use Schwab for my checking accounts, bill pay, and T bills that I buy at auction as part of my emergency fund / bond allocation. Only time I use my Schwab debit card is to pull out cash every now and then and to pull out cash when I travel internationally (few times a year). All of my other accounts are with Vanguard.

Reasons I could see for switching.

1. Auto repurchase T bills when they expire.
2. Have another debit card to use at ATMs overseas (Although to be honest, I'd probably end up moving everything to Fidelity if I liked it better).
3. Better money market rate on the cash sitting in my "savings" account. Not more than 3k so this is really splitting hairs.
4. Opportunity to try Fidelity which I haven't used in the past.

I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.

rama13
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Re: Fidelity as a one stop shop

Post by rama13 » Sat Oct 26, 2019 8:21 pm

skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals.
No, that's just for purchases.

I recently switched from Schwab's "High-Yield" Checking to using Fidelity as my primary cash management. So far I'm quite happy with it.

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Re: Fidelity as a one stop shop

Post by indexfundfan » Sat Oct 26, 2019 8:22 pm

skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.
No FTF if the Fidelity debit card is used for ATM cash withdrawals. The 1% FTF applies only if you use the card at a POS terminal -- but you are definitely better off using a credit card for that.
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Re: Fidelity as a one stop shop

Post by bawr » Sat Oct 26, 2019 8:56 pm

heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
This is interesting. I don't have the ability to edit the debit card's limits. I can only view them. Perhaps this is a new feature that has been made available to only a subset of Fidelity's customers.

MisterBill
Posts: 438
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Re: Fidelity as a one stop shop

Post by MisterBill » Sat Oct 26, 2019 9:12 pm

heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
How can you change it? Mine is $1,020.

As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.

MotoTrojan
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Sat Oct 26, 2019 9:43 pm

Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Kevin thanks for this whole post and I am going to read it in depth.
You're welcome! Glad you find it useful.
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.

The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.

SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.

I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.

If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.

I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).

Kevin
I hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.

Is this all handled automatically on tax-forms or must someone manually perform these deductions?

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 10:06 pm

MisterBill wrote:
Sat Oct 26, 2019 9:12 pm
heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am


For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
How can you change it? Mine is $1,020.

As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.
Mrbill and bawr and all others.

DOH! I apologize. Clearly the thread is Fidelity based. I somehow checked my BOA debit card as reported above.

I cannot edit my Fidelity debit card. My ATM/purchases/cash advance are currently $520/$10000/$2500. I am very uncomfortable with those last two limits. I will investigate with Fidelity next week.

Again, my apology for my mistake. I will edit my original post.

Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad » Sat Oct 26, 2019 10:45 pm

MisterBill wrote:
Sat Oct 26, 2019 9:12 pm
As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.
It’s Fidelity. I have the same limit for CMA and Brokerage, but I don’t have enough assets at Fidelity for Private Client.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Oct 27, 2019 12:24 pm

MotoTrojan wrote:
Sat Oct 26, 2019 9:43 pm
Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
<snip>
I hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.
For me, only two basis points difference, so wouldn't pay any attention to getting funds swapped to SPRXX.
MotoTrojan wrote:
Sat Oct 26, 2019 9:43 pm
Is this all handled automatically on tax-forms or must someone manually perform these deductions?
You need to calculate the percentage of income exempt from state tax using the "YYYY Percentage of Income from U.S. Government Securities" that Fidelity provides. Here is the Fidelity form for 2018.

Tax software typically asks for the percent or amount exempt from state income tax after you enter the dividend income into the tax software 1099-DIV form for the payer, and check a box indicating that some of the income is from US Treasury obligations.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

skyghost
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Re: Fidelity as a one stop shop

Post by skyghost » Sun Oct 27, 2019 6:33 pm

rama13 wrote:
Sat Oct 26, 2019 8:21 pm
skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals.
No, that's just for purchases.

I recently switched from Schwab's "High-Yield" Checking to using Fidelity as my primary cash management. So far I'm quite happy with it.
Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.

Workable Goblin
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Re: Fidelity as a one stop shop

Post by Workable Goblin » Sun Oct 27, 2019 7:23 pm

skyghost wrote:
Sun Oct 27, 2019 6:33 pm
Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.
I believe this is actually the default, but the trick is that Schwab doesn't auto-liquidate money market funds to fulfill cash demands like Fidelity does, so you would be limited to their terrible sweep rates if you wanted to use a brokerage account as your cash backup. You'd be better off (though not that much better off) opening a savings account with them and using that to provide overdraft protection--or, in fact, just stashing the money in your checking account to begin with.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Sun Oct 27, 2019 8:05 pm

Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.

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