Fidelity as a one stop shop

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ecbxqxjy
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Joined: Fri Nov 08, 2019 9:17 pm

Re: Fidelity as a one stop shop

Post by ecbxqxjy » Fri Nov 08, 2019 9:42 pm

Firstly I wanted to thank everyone that's contributed this thread, I've decided to take the plunge and consolidate my accounts with Fidelity.

My idea is to setup 3 accounts:
  • CMA (ATM Only)
  • Brokerage A ("Checking" - direct deposit, credit card payments, payments that don't accept credit cards)
  • Brokerage B ("Savings" - Any excess above regular spending covered by the checking brokerage, held for longer term goals)
A little overkill, but here's my reasoning... I want to use the CMA for the ATM reimbursement, so the account will only get used for fairly rare ATM withdrawals. I dislike the idea of having to either keep cash sitting in there, or having to manually move it over. I want to use the overdraft protection function, but I am weary of linking that to my larger/longer term holdings.

So my plan is to link the CMA to Brokerage A, the "checking" account, for overdraft protection, and use that brokerage as I do my checking account today. Brokerage B, the "savings" account, won't be linked to anything external, and will just move money in/out from Brokerage A.

I'm probably over complicating it, but it does check a couple of boxes for me: automagic handling of overdrafts from the CMA without the risk of emptying out my larger holdings if the ATM card is compromised and a logical separation of my day to day funds versus funds held for longer term. The only other alternative I can think of is just using the CMA as the "checking" account and a single brokerage as my "savings". The drawback here, from what I gather, is that I would have to regularly trade for something like SPRXX in the CMA.

I've read of a least one or two other people running with a 3 account setup, I'm curious if anyone has used something like the above and how their mileage has been with it. Would also love some input if I'm overlooking a way to accomplish the same goal(s) but simpler.

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Sat Nov 09, 2019 4:58 am

ecbxqxjy wrote:
Fri Nov 08, 2019 9:42 pm
The only other alternative I can think of is just using the CMA as the "checking" account and a single brokerage as my "savings". The drawback here, from what I gather, is that I would have to regularly trade for something like SPRXX in the CMA.
Welcome to the forum. It's not much of a drawback, IMO. When your sweep grows too large, buy some MM fund. Having a few thousand dollars, sitting in sweep and earning a few tenths of a percent less than the best money market fund, will cost you very little (do the math) and means you only need two accounts.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Nov 09, 2019 1:49 pm

ecbxqxjy wrote:
Fri Nov 08, 2019 9:42 pm
Firstly I wanted to thank everyone that's contributed this thread, I've decided to take the plunge and consolidate my accounts with Fidelity.

My idea is to setup 3 accounts:
  • CMA (ATM Only)
  • Brokerage A ("Checking" - direct deposit, credit card payments, payments that don't accept credit cards)
  • Brokerage B ("Savings" - Any excess above regular spending covered by the checking brokerage, held for longer term goals)
<snip>

So my plan is to link the CMA to Brokerage A, the "checking" account, for overdraft protection, and use that brokerage as I do my checking account today. Brokerage B, the "savings" account, won't be linked to anything external, and will just move money in/out from Brokerage A.
<snip>

how their mileage has been with it. Would also love some input if I'm overlooking a way to accomplish the same goal(s) but simpler.
Yep, that's my setup, except no overdraft link from CMA to Brokerage A, to reduce fraud exposure even more. It's easy enough to transfer from Brokerage A to CMA in anticipation of ATM withdrawals, and just keep $200-$400 or whatever in the CMA. It's been working great for me.

I've had Brokerage B at Fidelity for a long time, so no change there. Also, I do not use Fidelity as a one-stop shop, as other brokers provide distinct advantages for certain products. For example, Vanguard money market funds have consistently higher yields than Fidelity MM funds, Vanguard has a much broader range of low-cost bond funds, Schwab has had lower bid/ask spreads on Treasuries in secondary market, etc.

Kevin
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StandingRock
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Re: Fidelity as a one stop shop

Post by StandingRock » Sat Nov 09, 2019 4:40 pm

Right now I have accounts at both Vanguard and Fidelity. I'm going to switch everything to Fidelity once I get the mess at Vanguard straightened out. It seems like they have a lot of interesting features and I know their customer service is better too.

zeal
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Re: Fidelity as a one stop shop

Post by zeal » Sat Nov 09, 2019 11:55 pm

ecbxqxjy wrote:
Fri Nov 08, 2019 9:42 pm
Firstly I wanted to thank everyone that's contributed this thread, I've decided to take the plunge and consolidate my accounts with Fidelity.

My idea is to setup 3 accounts:
  • CMA (ATM Only)
  • Brokerage A ("Checking" - direct deposit, credit card payments, payments that don't accept credit cards)
  • Brokerage B ("Savings" - Any excess above regular spending covered by the checking brokerage, held for longer term goals)
A little overkill, but here's my reasoning... I want to use the CMA for the ATM reimbursement, so the account will only get used for fairly rare ATM withdrawals. I dislike the idea of having to either keep cash sitting in there, or having to manually move it over. I want to use the overdraft protection function, but I am weary of linking that to my larger/longer term holdings.

So my plan is to link the CMA to Brokerage A, the "checking" account, for overdraft protection, and use that brokerage as I do my checking account today. Brokerage B, the "savings" account, won't be linked to anything external, and will just move money in/out from Brokerage A.

I'm probably over complicating it, but it does check a couple of boxes for me: automagic handling of overdrafts from the CMA without the risk of emptying out my larger holdings if the ATM card is compromised and a logical separation of my day to day funds versus funds held for longer term. The only other alternative I can think of is just using the CMA as the "checking" account and a single brokerage as my "savings". The drawback here, from what I gather, is that I would have to regularly trade for something like SPRXX in the CMA.

I've read of a least one or two other people running with a 3 account setup, I'm curious if anyone has used something like the above and how their mileage has been with it. Would also love some input if I'm overlooking a way to accomplish the same goal(s) but simpler.
Your idea is almost exactly what we do and it works great. Our setup (minor difference):
  • CMA (ATM, credit card payments, payments that don't accept credit cards, linked to Brokerage A for overdraft)
  • Brokerage A ("Checking" - direct deposit)
  • Brokerage B ("Savings" - Any excess above regular spending covered by the checking brokerage, held for longer term goals)
We've never given out the account numbers to Brokerages A&B (except to direct deposit) but have overdraft turned on--so the only account number "floating around" on the internet is the CMA. This way, if something were to happen, we just turn off overdraft and the money is locked in the Brokerage accounts. I have our direct deposit set to go 80/20 Brokerage A/B so it is all very hands-off and automated--rarely need to make transfers and never have to manually purchase money market funds, all automatically swept to SPAXX. One key difference between your and our strategies is that we almost never use the ATM, so we feel pretty safe letting the CMA be linked to Brokerage A. I also don't allow Brokerage A to grow any larger than one month's expenses so if something were to happen we wouldn't be too far up the creek. Another bonus is that I set up alerts to go through every time there is an overdraft--so I would hopefully catch anything fishy ASAP.

One of the real joys of this setup for me was it gave me kind of a mindset shift. I've always deposited money into checking, used what I had to for expenses, then moved the remainder to savings. Now, I deposit money into savings, then only use what I have to for expenses. Not sure if that makes sense but in my head it feels like a win, haha!

muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 » Sun Nov 10, 2019 3:51 am

bostondan wrote:
Thu Nov 07, 2019 3:47 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
There’s no downside to getting the card. You can always throw it away (after shredding it). Or call Fidelity and ask if you qualify for free ATMs. They were able to tell me that I am just now. Total call time was 4 minutes.
I did the same last week, and am planning to just use the single brokerage account and close the CMA. I found it occasionally annoying to understand my balance in real time with all the transfers between CMA and brokerage when overdrafts or ATM fee reimbursements or incoming deposits that take a while to reflect in your holdings.

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Sun Nov 10, 2019 6:04 am

muffins14 wrote:
Sun Nov 10, 2019 3:51 am
I found it occasionally annoying to understand my balance in real time with all the transfers between CMA and brokerage
We don't even have a Fidelity brokerage (we have IRAs and CMA), and I do find it confusing to know where the money is in the CMA. One example: sometimes a bill is paid, but there is a lag time before the available balance decreases to reflect the payment. Transfers from IRA to CMA have similar lag times before all the money in the accounts adds up correctly.

To be fair, I also notice lag times at Ally and other financial institutions, but I think it's worse at the CMA. I think this reflects the fact that Fidelity is not a bank and the CMA is sweeping money around inside itself.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Nov 10, 2019 2:23 pm

vtMaps wrote:
Sun Nov 10, 2019 6:04 am
muffins14 wrote:
Sun Nov 10, 2019 3:51 am
I found it occasionally annoying to understand my balance in real time with all the transfers between CMA and brokerage
We don't even have a Fidelity brokerage (we have IRAs and CMA), <snip>
An IRA account at Fidelity is a brokerage, but I get your point--you don't have a taxable brokerage account. Fidelity lists taxable brokerage accounts as "Investment Accounts", IRAs as "Retirement Accounts", and CMAs as "Savings, Checking, and Spending Accounts".
vtMaps wrote:
Sun Nov 10, 2019 6:04 am
<snip ...> and I do find it confusing to know where the money is in the CMA. One example: sometimes a bill is paid, but there is a lag time before the available balance decreases to reflect the payment. Transfers from IRA to CMA have similar lag times before all the money in the accounts adds up correctly.
I haven't used bill pay yet (still use Ally for that), and I don't do transfers between my Fidelity IRA and the CMA, but transfers between my taxable brokerage accounts and my CMA are instantaneous.
vtMaps wrote:
Sun Nov 10, 2019 6:04 am
To be fair, I also notice lag times at Ally and other financial institutions, but I think it's worse at the CMA. I think this reflects the fact that Fidelity is not a bank and the CMA is sweeping money around inside itself.
Hmm, I've found internal transfers at Ally to be instantaneous--just like transfers between taxable brokerage and CMA is instantaneous at Fidelity.

Kevin
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ecbxqxjy
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Re: Fidelity as a one stop shop

Post by ecbxqxjy » Sun Nov 10, 2019 2:49 pm

zeal wrote:
Sat Nov 09, 2019 11:55 pm
Your idea is almost exactly what we do and it works great. Our setup (minor difference):
  • CMA (ATM, credit card payments, payments that don't accept credit cards, linked to Brokerage A for overdraft)
  • Brokerage A ("Checking" - direct deposit)
  • Brokerage B ("Savings" - Any excess above regular spending covered by the checking brokerage, held for longer term goals)
We've never given out the account numbers to Brokerages A&B (except to direct deposit) but have overdraft turned on--so the only account number "floating around" on the internet is the CMA. This way, if something were to happen, we just turn off overdraft and the money is locked in the Brokerage accounts. I have our direct deposit set to go 80/20 Brokerage A/B so it is all very hands-off and automated--rarely need to make transfers and never have to manually purchase money market funds, all automatically swept to SPAXX. One key difference between your and our strategies is that we almost never use the ATM, so we feel pretty safe letting the CMA be linked to Brokerage A. I also don't allow Brokerage A to grow any larger than one month's expenses so if something were to happen we wouldn't be too far up the creek. Another bonus is that I set up alerts to go through every time there is an overdraft--so I would hopefully catch anything fishy ASAP.

One of the real joys of this setup for me was it gave me kind of a mindset shift. I've always deposited money into checking, used what I had to for expenses, then moved the remainder to savings. Now, I deposit money into savings, then only use what I have to for expenses. Not sure if that makes sense but in my head it feels like a win, haha!
Thanks for the input! I had thought about routing everything through the CMA as you do, in fact that was my original plan. After reading of a couple of instances where there were issues with the overdraft hiccuping on certain holidays I decided to be extra cautious and just have everything hit the brokerage except for ATM withdrawals.

I'm probably worrying too much about it, since there are (I think) only two instances of it happening this 24 page thread and they both are related to the same holiday if I remember correctly.

wanderer
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Re: Fidelity as a one stop shop

Post by wanderer » Sun Nov 10, 2019 3:00 pm

We find the CMA account (joint) as easy to use as our previous checking accounts at WF and USBank.

We are retired and keep a 3-6 month expense buffer in the CMA in the MM (SPRXX) and $0 in the core (cash) sort of like our old emergency saving accounts at the other banks. We keep the CMA separate from our other taxable investment and retirement accounts, transferring money as needed about quarterly manually.

We see no significant delays when transferring money between accounts, and can always track them in the "pending/future" transfers and payments section. This is an improvement from our old method of transferring from Fido to our WF and US Bank checking accounts where the money was in "limbo" for 3-5 days. Seeing the CMA's core balance at $0 and trusting the automatic transfers from SPRXX took a month or so to recognize routinely, but smooth sailing now.

Our CMA account is not linked to the other accounts just in case we screw up or some crook drains our checking/CMA account.

saulg
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Re: Fidelity as a one stop shop

Post by saulg » Sun Nov 10, 2019 4:16 pm

wanderer wrote:
Sun Nov 10, 2019 3:00 pm
Seeing the CMA's core balance at $0 and trusting the automatic transfers from SPRXX took a month or so to recognize routinely, but smooth sailing now.

Our CMA account is not linked to the other accounts just in case we screw up or some crook drains our checking/CMA account.
Within the unlinked CMA, if you put everything in the SPRXX money market fund and leave the Core position at $0, will the CMA automatically sell/liquidate SPRXX into Core to satisfy incoming debit transactions (eg, checks, BillPay, ATM withdrawals) as they come in?

rama13
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Re: Fidelity as a one stop shop

Post by rama13 » Sun Nov 10, 2019 4:23 pm

saulg wrote:
Sun Nov 10, 2019 4:16 pm
Within the unlinked CMA, if you put everything in the SPRXX money market fund and leave the Core position at $0, will the CMA automatically sell/liquidate SPRXX into Core to satisfy incoming debit transactions (eg, checks, BillPay, ATM withdrawals) as they come in?
Yes.

wanderer
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Re: Fidelity as a one stop shop

Post by wanderer » Sun Nov 10, 2019 8:11 pm

rama13 » Sun Nov 10, 2019 4:23 pm
saulg wrote: ↑
Sun Nov 10, 2019 4:16 pm
Within the unlinked CMA, if you put everything in the SPRXX money market fund and leave the Core position at $0, will the CMA automatically sell/liquidate SPRXX into Core to satisfy incoming debit transactions (eg, checks, BillPay, ATM withdrawals) as they come in?
Yes.
Yes. If a bill exceeds the amount available in the core (cash) position a "sell SPRXX" transaction is generated. This funds the "core" position to the exact amount needed to pay the bill. This all happens the same day. Works the same if the core/cash position is $0 (full amount of bill). As I recall this happens once/day if there were multiple bills posting in one day. You can set up the account with all sorts of emails/text message alerts to track the process.

As noted above, it took a month or so to get comfortable with the process (and no bills were returned with insufficient funds). The "Manage Cash" tab can be a bit confusing. It shows both the $0 balance in the core position at one spot on the screen, but also shows the total account value, including SPRXX as "cash available to withdraw".

The ATM transactions also show up in the account.

We are old-fashioned enough to still cheep a checkbook register and manually reconcile the balance monthly from the statements. The SPRXX and ATM fee refund transactions all show up, but we have learned how to sort through these without messing up the reconciliations.

Constraints:
-It's my understanding that you cannot automate the "buy" SPRXX when depositing cash. This might be a pain if you are relying on a regular deposit such as a paycheck. We just fund the account as needed in larger amounts on a nominal quarterly basis. The SPRXX serves as part of our emergency cash.

-The yield for these Fido MM funds are slightly less than similar Vanguard MM funds.

-Fido only applies this auto sell to selected MM funds.

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Mon Nov 11, 2019 5:43 am

wanderer wrote:
Sun Nov 10, 2019 8:11 pm
-Fido only applies this auto sell to selected MM funds.
Please elaborate. I thought any MM fund would be sold to prevent overdraft of the core. I don't recall ever selecting a MM fund for overdraft. Don't all MM funds automatically show up in the "cash available to withdraw" field?

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Mon Nov 11, 2019 6:31 am

808 wrote:
Fri Nov 08, 2019 6:09 pm
boston10 wrote:
Fri Aug 23, 2019 5:57 am
To provide an updated strategy (new parts bolded, old parts struck through):
  • ...
  • CMA (not linked/no overdraft) for ATM and check use, and for any use case where my account number would be exposed to a third party (for example, bill pay where they are sending a paper check, or "pull" ACH transactions). These transactions are few and far between for me (zero most months) generally predictable and only happen a few times a month, so I set up several automatic monthly transfers from my brokerage to my CMA to cover them before they're pulled and keep it manually topped off at ~$500 in SPRXX in this account. So everything stays in a MM.
  • ...
  • ...
Are your automatic monthly transfers to CORE or to the MMA within the CMA?

If it's to the MMA, can you (or anyone else) confirm that you have had a "pull" ACH, initiated from an external-to-Fidelity account, successfully processed with the CORE at $0 but with sufficient funds in the MMA within the CMA?
The automatic transfers are to CORE, but I manually go in on the transfer date and buy MM funds, so my core FDIC balance is almost always zero. So yup, I can confirm that, I do lots of debits initiated externally. Fidelity treats any Fidelity MM funds as cash available to liquidate.

zeal
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Re: Fidelity as a one stop shop

Post by zeal » Mon Nov 11, 2019 6:35 am

ecbxqxjy wrote:
Sun Nov 10, 2019 2:49 pm
Thanks for the input! I had thought about routing everything through the CMA as you do, in fact that was my original plan. After reading of a couple of instances where there were issues with the overdraft hiccuping on certain holidays I decided to be extra cautious and just have everything hit the brokerage except for ATM withdrawals.

I'm probably worrying too much about it, since there are (I think) only two instances of it happening this 24 page thread and they both are related to the same holiday if I remember correctly.
I remember seeing those posts and wondering if it would affect our setup. However, I have all our bills set to autopay the day the bill arrives rather than the actual due date. I know it's inefficient if you're trying to optimize SPAXX/SPRXX earnings, but I'd rather be sure the bills are paid on time or early than squeeze out an extra couple dollars a month. Our only non-credit card bills are the mortgage (~$1200) and electricity (~$100), so the opportunity cost is about $1-2/month. A small price for peace of mind for me, as I don't like owing anything to anyone. Your approach is probably the more efficient option though, so I'm sure it will work great!

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Mon Nov 11, 2019 7:25 am

vtMaps wrote:
Mon Nov 11, 2019 5:43 am
wanderer wrote:
Sun Nov 10, 2019 8:11 pm
-Fido only applies this auto sell to selected MM funds.
Please elaborate. I thought any MM fund would be sold to prevent overdraft of the core. I don't recall ever selecting a MM fund for overdraft. Don't all MM funds automatically show up in the "cash available to withdraw" field?

--vtMaps
Non-Fidelity money market funds don't count, so don't try to buy VMMXX, PCOXX, etc. I think that's the only caveat, and I think it makes sense. Fidelity is going to treat outside MMFs as regular mutual funds.

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Mon Nov 11, 2019 8:48 am

heartwood wrote:
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


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.
I did call Fidelity last week and asked to either have an ATM-only card, or have my purchase/cash advance limits reduced to $1 each. The rep noted he'd never heard of anyone wanting to reduce their limits. I spent some time on hold while he queried others, then said he'd submit a request upward to see if it could be done and I should check back in 24 - 48 hrs.

Your mileage may vary, but apparently there is no ATM only card, no way to reduce limits. :oops:

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Mon Nov 11, 2019 9:18 am

I found something interesting, not sure if anyone else noticed it.
I had one CMA account for both ATM and investing. I used to leave some cash (say $500) at the core MM fund for ATM withdrawls, then the rest is invested in ETF's in the same CMA account. I found that whenever I initiate a transfer from Ally bank (using fidelity website to pull), and since these funds (Ally funds) become available to trade instantly, I was investing this money right after initiating the transfer. However, since the money is not settled yet, the CMA was putting a hold on the $500 in the mm cash, making the (cash amount available to withdraw) is zero (as if I have a negative balance for investing money I don't have yet, thus I can't touch the $500).
Because of this, I opened a new brokerage account to separate investing and ATM withdrawals. If Fidelity allows investing money that isn't yet settled, then they shouldn't disallow me to use my MM fund cash during that period.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Mon Nov 11, 2019 10:29 am

BogleMelon wrote:
Mon Nov 11, 2019 9:18 am
However, since the money is not settled yet, the CMA was putting a hold on the $500 in the mm cash, making the (cash amount available to withdraw) is zero (as if I have a negative balance for investing money I don't have yet, thus I can't touch the $500).
Because of this, I opened a new brokerage account to separate investing and ATM withdrawals. If Fidelity allows investing money that isn't yet settled, then they shouldn't disallow me to use my MM fund cash during that period.
Fidelity's position makes perfect sense. There is no margin in the CMA. In a brokerage with margin you may invest unsettled money.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Mon Nov 11, 2019 10:31 am

vtMaps wrote:
Mon Nov 11, 2019 10:29 am
BogleMelon wrote:
Mon Nov 11, 2019 9:18 am
However, since the money is not settled yet, the CMA was putting a hold on the $500 in the mm cash, making the (cash amount available to withdraw) is zero (as if I have a negative balance for investing money I don't have yet, thus I can't touch the $500).
Because of this, I opened a new brokerage account to separate investing and ATM withdrawals. If Fidelity allows investing money that isn't yet settled, then they shouldn't disallow me to use my MM fund cash during that period.
Fidelity's position makes perfect sense. There is no margin in the CMA. In a brokerage with margin you may invest unsettled money.

--vtMaps
Well, then having a brokerage account "without a margin feature" plus another CMA account is a perfect workaround so I can invest unsetlled money coming from a bank, and in the same time having the MM fund in the CMA available all the time
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Mon Nov 11, 2019 10:36 am

BogleMelon wrote:
Mon Nov 11, 2019 10:31 am
Well, then having a brokerage account "without a margin feature" plus another CMA account is a perfect workaround so I can invest unsetlled money coming from a bank, and in the same time having the MM fund in the CMA available all the time
Huh?? Why would you want a brokerage account without margin? You need margin in order to invest unsettled money.

--vtMaps
The optimist proclaims that we live in the best of all possible worlds; and the pessimist fears this is true. --James Branch Cabell

Topic Author
BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Mon Nov 11, 2019 11:03 am

vtMaps wrote:
Mon Nov 11, 2019 10:36 am
BogleMelon wrote:
Mon Nov 11, 2019 10:31 am
Well, then having a brokerage account "without a margin feature" plus another CMA account is a perfect workaround so I can invest unsetlled money coming from a bank, and in the same time having the MM fund in the CMA available all the time
Huh?? Why would you want a brokerage account without margin? You need margin in order to invest unsettled money.

--vtMaps
I never applied for a margin in CMA, yet I could invest unsettled money. Opening the brokerage account process didn't involve a question if I wanted a margin feature. Is it on by default?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Mon Nov 11, 2019 11:11 am

vtMaps wrote:
Mon Nov 11, 2019 10:36 am
BogleMelon wrote:
Mon Nov 11, 2019 10:31 am
Well, then having a brokerage account "without a margin feature" plus another CMA account is a perfect workaround so I can invest unsetlled money coming from a bank, and in the same time having the MM fund in the CMA available all the time
Huh?? Why would you want a brokerage account without margin? You need margin in order to invest unsettled money.

--vtMaps
I don't think this is correct, because I think you're mixing up a few different concepts. Funds availability policies are separate from your ability to buy securities, which are separate from the need for margin.

BogleMelon can't withdraw or spend money because he initiated a "pull" transaction, which triggers Fidelity's funds availability policy. You can't spend or transfer money that hasn't arrived, because Fidelity doesn't know if the account you're pulling from actually has the funds until they arrive.

That's separate from the question of trading. Fidelity does let you buy securities with money after initiating a "pull" transfer, and margin is not required to do so. But you can't then sell the security before the funds arrive, because that's a good faith violation.

It's especially confusing because Fido is acting both as a bank account and a brokerage account. More here: https://www.fidelity.com/learning-cente ... violations

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Re: Fidelity as a one stop shop

Post by MotoTrojan » Mon Nov 11, 2019 12:46 pm

Just opened an HSA and my SO opened a Roth which I have linked access to view from my account. I’m quite close to one stop shop now with my taxable and banking at Fidelity too. Loving the customer support; great help even in live chat.

ecbxqxjy
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Re: Fidelity as a one stop shop

Post by ecbxqxjy » Tue Nov 12, 2019 4:44 pm

heartwood wrote:
Mon Nov 11, 2019 8:48 am
I did call Fidelity last week and asked to either have an ATM-only card, or have my purchase/cash advance limits reduced to $1 each. The rep noted he'd never heard of anyone wanting to reduce their limits. I spent some time on hold while he queried others, then said he'd submit a request upward to see if it could be done and I should check back in 24 - 48 hrs.

Your mileage may vary, but apparently there is no ATM only card, no way to reduce limits. :oops:
What I'm doing as an extra measure of security on the debit card is keeping it locked, I think this is a newer feature based on the note on the Manage Cash page. Since we only use it for very rare ATM withdrawals, all I have to do is unlock it prior to that.

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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Nov 12, 2019 4:56 pm

ecbxqxjy wrote:
Tue Nov 12, 2019 4:44 pm
heartwood wrote:
Mon Nov 11, 2019 8:48 am
I did call Fidelity last week and asked to either have an ATM-only card, or have my purchase/cash advance limits reduced to $1 each. The rep noted he'd never heard of anyone wanting to reduce their limits. I spent some time on hold while he queried others, then said he'd submit a request upward to see if it could be done and I should check back in 24 - 48 hrs.

Your mileage may vary, but apparently there is no ATM only card, no way to reduce limits. :oops:
What I'm doing as an extra measure of security on the debit card is keeping it locked, I think this is a newer feature based on the note on the Manage Cash page. Since we only use it for very rare ATM withdrawals, all I have to do is unlock it prior to that.
Is it possible to do this from the app? If so, that would be wonderful.

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Re: Fidelity as a one stop shop

Post by arf30 » Tue Nov 12, 2019 5:09 pm

I've tried several times to get Fidelity to modify the limits on the debit card without luck, although one particularly knowledgeable rep recommended creating a separate CMA just for ATM/debit activity (which everyone here has already figured out).

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Re: Fidelity as a one stop shop

Post by ecbxqxjy » Tue Nov 12, 2019 8:03 pm

mervinj7 wrote:
Tue Nov 12, 2019 4:56 pm
Is it possible to do this from the app? If so, that would be wonderful.
Not that I've found, but you can do it by hitting the site from the browser on your mobile. I'm guessing maybe since this is a newish feature maybe it'll get added to the app in the future.

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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Tue Nov 12, 2019 8:39 pm

ecbxqxjy wrote:
Tue Nov 12, 2019 8:03 pm
mervinj7 wrote:
Tue Nov 12, 2019 4:56 pm
Is it possible to do this from the app? If so, that would be wonderful.
Not that I've found, but you can do it by hitting the site from the browser on your mobile. I'm guessing maybe since this is a newish feature maybe it'll get added to the app in the future.
A few week ago they released an update to the app that allows locking and unlocking of credit cards. I have Fidelity credit cards but I don’t have a Fidelity debit card so I can't try myself unfortunately, but it doesn’t sound like it’s supported for debit.

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Re: Fidelity as a one stop shop

Post by El_Supremo » Sat Nov 16, 2019 4:02 pm

Getting ready to fire CPC and move everything to Fidelity. Been over this thread in detail for the last several days and I think I follow it mostly, but still not 100% sure of how I should set everything up. We have 2 checking accounts and 2 savings accounts at Chase and it’s worked very well for us:
  • Checking 1 for bill pays, other recurring debits/credits, funded by DD paycheck. Overdraft from savings 1. Debit card lives in a drawer and is used only for auto-pays.
  • Checking 2 for cash spending, like gas, groceries, etc. funded monthly from checking 1. Overdraft from savings 1 also. Debit card
  • Savings 1 for short term, funded by DD paycheck. Used for taxes, saving for a new car, etc.
  • Savings 2 for long term, funded from savings 1, just move extra $ from savings 1 to 2 on demand. Emergency fund ideally never touched.
Wondering what a similar setup would be at Fidelity? I don’t mind one savings account but I think we need to keep 2 checking accounts to separate cash and bills. Just works better for us, bills are always paid and when the cash is gone we stop spending until the next month.

So I’m thinking in the Fidelity world I would have:
  • CMA 1 to replace checking 1 above, DD into this and overdraft from brokerage 1. Debit card for auto pays kept in the drawer.
  • CMA 2 to replace checking 2 above, funded monthly from CMA 1 and overdraft from brokerage 1. Debit card in the wallet for daily use.
  • Brokerage 1 to replace both savings above, keep short term $ in money market fund and long term $ invested for a better return.
Would this setup work? Any issues with having 2 CMA’s both sweeping from the same brokerage? Would either of the debit cards for the 2 CMA accounts link to the brokerage in case I need to do an atm withdrawal from savings?

Thanks!

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Re: Fidelity as a one stop shop

Post by abuss368 » Sat Nov 16, 2019 4:41 pm

Could one imagine if Vanguard would become a one stop shop like Fidelity?
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Re: Fidelity as a one stop shop

Post by MotoTrojan » Sat Nov 16, 2019 4:58 pm

El_Supremo wrote:
Sat Nov 16, 2019 4:02 pm
Getting ready to fire CPC and move everything to Fidelity. Been over this thread in detail for the last several days and I think I follow it mostly, but still not 100% sure of how I should set everything up. We have 2 checking accounts and 2 savings accounts at Chase and it’s worked very well for us:
  • Checking 1 for bill pays, other recurring debits/credits, funded by DD paycheck. Overdraft from savings 1. Debit card lives in a drawer and is used only for auto-pays.
  • Checking 2 for cash spending, like gas, groceries, etc. funded monthly from checking 1. Overdraft from savings 1 also. Debit card
  • Savings 1 for short term, funded by DD paycheck. Used for taxes, saving for a new car, etc.
  • Savings 2 for long term, funded from savings 1, just move extra $ from savings 1 to 2 on demand. Emergency fund ideally never touched.
Wondering what a similar setup would be at Fidelity? I don’t mind one savings account but I think we need to keep 2 checking accounts to separate cash and bills. Just works better for us, bills are always paid and when the cash is gone we stop spending until the next month.

So I’m thinking in the Fidelity world I would have:
  • CMA 1 to replace checking 1 above, DD into this and overdraft from brokerage 1. Debit card for auto pays kept in the drawer.
  • CMA 2 to replace checking 2 above, funded monthly from CMA 1 and overdraft from brokerage 1. Debit card in the wallet for daily use.
  • Brokerage 1 to replace both savings above, keep short term $ in money market fund and long term $ invested for a better return.
Would this setup work? Any issues with having 2 CMA’s both sweeping from the same brokerage? Would either of the debit cards for the 2 CMA accounts link to the brokerage in case I need to do an atm withdrawal from savings?

Thanks!
If you like having two of each account then sure. Another option would be to hold a bond fund or auto-roll t-bills (no principal risk) in the brokerage for your longer term savings.

Also be aware that deposits (DD included) into the CMA will get low yield in the FDIC account unless manually moved to SPAXX or SPRXX. This is why my CMA is always at $0 and auto pulls from my brokerage which acts as combined checking and savings. My paycheck and any other transfers go to the brokerage and automatically into my core fund, SPAXX.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Nov 16, 2019 4:59 pm

abuss368 wrote:
Sat Nov 16, 2019 4:41 pm
Could one imagine if Vanguard would become a one stop shop like Fidelity?
It doesn't seem likely. It was more doable when Vanguard offered Vanguard Advantage accounts, which allowed some bank-like functionality, such as ACH transfers into and out of the account initiated from an external account. Vanguard discontinued that functionality recently, so they are moving in the opposite direction of becoming a one-stop shop.

Kevin
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Re: Fidelity as a one stop shop

Post by Lyrrad » Sat Nov 16, 2019 5:49 pm

El_Supremo wrote:
Sat Nov 16, 2019 4:02 pm

Would this setup work? Any issues with having 2 CMA’s both sweeping from the same brokerage? Would either of the debit cards for the 2 CMA accounts link to the brokerage in case I need to do an atm withdrawal from savings?
That won't work. An account can provide self-funded overdraft for a single other account. It won't show up as an option when attempting to set up overdraft protection.

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Re: Fidelity as a one stop shop

Post by arf30 » Sat Nov 16, 2019 6:06 pm

El_Supremo wrote:
Sat Nov 16, 2019 4:02 pm
  • Checking 1 for bill pays, other recurring debits/credits, funded by DD paycheck. Overdraft from savings 1. Debit card lives in a drawer and is used only for auto-pays.
  • Checking 2 for cash spending, like gas, groceries, etc. funded monthly from checking 1. Overdraft from savings 1 also. Debit card
  • Savings 1 for short term, funded by DD paycheck. Used for taxes, saving for a new car, etc.
  • Savings 2 for long term, funded from savings 1, just move extra $ from savings 1 to 2 on demand. Emergency fund ideally never touched.
Replace checking 1 and savings 1 & 2 with a brokerage account. Replace checking 2 with CMA for "risky" stuff like ATM and writing checks (add optional overdraft from brokerage if you want). Replace debit card and cash transactions with Fidelity 2% cash back credit card.

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Re: Fidelity as a one stop shop

Post by El_Supremo » Sun Nov 17, 2019 10:47 am

Thanks for the clarifications.
That won't work. An account can provide self-funded overdraft for a single other account. It won't show up as an option when attempting to set up overdraft protection.
I guess another option is 2 CMA’s and 2 brokerages, with separate OD between the pairs. Honestly, I rarely see any OD so that’s not really a big deal. I suppose I could have the bill account automatically top-up with the cash management feature, and have no OD for the cash account, thus enforcing the crude envelope system we use. In a pinch I can always do a $ transfer for the rare occasions this comes up for the cash account.
Replace checking 1 and savings 1 & 2 with a brokerage account. Replace checking 2 with CMA for "risky" stuff like ATM and writing checks (add optional overdraft from brokerage if you want). Replace debit card and cash transactions with Fidelity 2% cash back credit card.
I noticed in earlier posts several mentions of atm/debit cards for brokerage accounts. If I replace checking 1 with a brokerage I could get a debit card and bill pay for that account? If so then problem solved, I kind of thought those were only available for the CMA. Would prefer not to use a CC for cash spending, tried that in the past with an Amex gold card and we just couldn’t discipline ourselves. When the cash balance approaches $0 it’s easier to stop spending vs watching a CC balance approach a value we know we can exceed. A man’s got to know his limitations, right?

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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Nov 17, 2019 2:01 pm

El_Supremo wrote:
Sun Nov 17, 2019 10:47 am
I noticed in earlier posts several mentions of atm/debit cards for brokerage accounts. If I replace checking 1 with a brokerage I could get a debit card and bill pay for that account?
You can definitely get a debit card for a brokerage account. One issue is that ATM fees are only reimbursed if you are Private Client, which requires a certain amount of assets at Fidelity. I am private client, but have chosen to use a CMA for ATM withdrawals (only--I have no intention of using the card for purchases), with no overdraft set up for the CMA, for security reasons.

I don't use Fidelity bill pay, but I see that I have the option to set it up for my brokerage accounts.

Kevin
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Re: Fidelity as a one stop shop

Post by Leonid99 » Thu Nov 28, 2019 12:18 pm

Can I ask someone with a Fidelity brokerage account and who uses budgeting software (such as Quicken or YNAB) to tell me how sweeping into SPAXX/SPRXX looks like in the said software?

My concern with using Fidelity as a checking account is that
  • it will show a lot of useless transactions (i.e. all the purchases and sales of these money funds) that will make budgeting confusing; and
  • it will hide the actual balance in my "checking" account (i.e. it will show only the portion that is a "real" cash).

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Thu Nov 28, 2019 12:21 pm

Leonid99 wrote:
Thu Nov 28, 2019 12:18 pm
Can I ask someone with a Fidelity brokerage account and who uses budgeting software (such as Quicken or YNAB) to tell me how sweeping into SPAXX/SPRXX looks like in the said software?

My concern with using Fidelity as a checking account is that
  • it will show a lot of useless transactions (i.e. all the purchases and sales of these money funds) that will make budgeting confusing; and
  • it will hide the actual balance in my "checking" account (i.e. it will show only the portion that is a "real" cash).
I have YNAB and a brokerage account. Sometimes weired transactions get imported (dividends day...etc). I just delete them and add my own transaction to capture the new balance as "Interest income"
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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Re: Fidelity as a one stop shop

Post by ej0160 » Fri Nov 29, 2019 6:40 am

Leonid99 wrote:
Thu Nov 28, 2019 12:18 pm
Can I ask someone with a Fidelity brokerage account and who uses budgeting software (such as Quicken or YNAB) to tell me how sweeping into SPAXX/SPRXX looks like in the said software?

My concern with using Fidelity as a checking account is that
  • it will show a lot of useless transactions (i.e. all the purchases and sales of these money funds) that will make budgeting confusing; and
  • it will hide the actual balance in my "checking" account (i.e. it will show only the portion that is a "real" cash).
For Fidelity + Quicken, the easiest way I found to to eliminate "unless transactions" is:
  1. On Fidelity, set desired money market fund as core position. Use this for normal temporary cash flow (checks, ATM, bill pay, transfers, etc). Quicken will treat this as cash rather than mutual fund, so no buy/sell transactions. Note: other money market funds (non Fidelity core position) will generate normal buy/sell transaction.
  2. In Quicken on the investment account, check "Show cash in checking account" when setting up Fidelity account. This will show Fidelity's core position as cash in virtual checking account (single Fidelity account, but Quicken displays investment and "checking" portions separated). I find it easier to manage checks, ATM, cash balance, bill pay, transfers, etc in this split view rather than in default consolidated investment view. Note: recommend doing this on initial setup in Quicken, since changing this Quicken setting after the fact can be messy (did not convert transfers between Quicken accounts properly, creating lots of bogus double credit transactions that had to be manually identified and removed). Quicken does handle dividend to cash (Fidelity core position) versus reinvestment dividend (non-core position money market funds).
Observation: so far, the only "unless transaction" I've encountered with this setup was when I changed my Fidelity core position. Easy to identify and remove in Quicken, especially for such a rare event.

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Re: Using Fidelity Cash Management as my only bank account

Post by tfb » Fri Nov 29, 2019 2:08 pm

oko wrote:
Thu Apr 11, 2019 6:55 pm
* Have to call them for travel notice (if you plan to use ATM abroad).
This can be given on the website now. Go to the CMA in the left panel, click on the Manage Cash tab and then the Manage Debit Card button.
Harry Sit, taking a break from the forums.

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Re: Fidelity as a one stop shop

Post by bck63 » Sat Nov 30, 2019 8:01 am

Leif wrote:
Fri Oct 25, 2019 3:20 pm
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.
Why don't I think this way? Thank you. We are going to England in June. Have to remember this. PS I am extremely happy with the Fidelity VISA and the cash management account.

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Re: Fidelity as a one stop shop

Post by TimeRunner » Sun Dec 01, 2019 9:48 am

I upgraded my Google Pixel phone yesterday. Almost everything transferred over flawlessly, but of course the Symantec VIP app used for 2-factor authentication for FIdo sign-on gets re-certificated (if that's a word) when moved to a new device. (Ditto Google Auth). So I used the old phone to sign into Fido and called their security center 800 number on a Saturday morning. The call was quickly answered, the fellow said I was calling about 2FA, my voice had already authenticated, we went through some additional security check processes, then I read off the certificate number of the new instance of Symantec VIP from the new phone, along with the generated number codes for two cycles, he made the update, and all was good. The entire process took perhaps six minutes, and they couldn't have been nicer or more professional. Job well done, Fido.
One cannot enlighten the unconscious.

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Re: Fidelity as a one stop shop

Post by plmd » Thu Dec 05, 2019 12:06 am

After reading through this thread, I opened a joint Fidelity brokerage account and CMA with my wife about 5 weeks ago, funded the brokerage account with over $100k (transferred from TD Ameritrade and Schwab), and purchased FZDXX. I've added a few thousand dollars here and there over the past month but haven't had a chance to do any actual equity trading yet. I setup the brokerage account as overdraft protection and have been using the CMA to pay bills and write a few checks, and I also provided the routing number and account number to pay a few credit cards. Everything seemed to be going well, so I even asked my wife to change her direct deposit there 2 days ago.

However, I suddenly couldn't log into my accounts last night. I called Fidelity, and I was told that I had to call back in the morning, because the fraud department was closed. Called again this morning and found out that Fidelity doesn't want me as a customer, and they won't tell me why. I was instructed to fax a copy of my driver license and a bank statement or voided check, so they could return the money to me.

I have about 25 years of investing experience and currently have brokerage accounts with most of the major firms, some of which with 6 or even 7 figure balances, but I was hoping to simplify my life and consolidate at Fidelity and take advantage of their higher paying sweep funds. I started with $100k just to get a feel for their platform before I slowly moved in even more. I called one of the regional reps who I had just spoken to just a few days ago, and he couldn't believe Fidelity did this to me. He also looked through my transaction history and agreed with me that I hadn't done anything wrong. So now I don't even have access to the $110k of cash in my account and have to wait for Fidelity to transfer it. I don't know which is worse... that or the fact that they won't disclose why they made this decision. Has anyone else experienced this?

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Re: Fidelity as a one stop shop

Post by jumbopapa » Thu Dec 05, 2019 10:50 am

I'm comparing different funds at Vanguard vs. Fidelity and it seems that the only funds that are cheaper than their counterparts at Vanguard are the zero fee funds. What about things like total bond funds? VBMFX has an ER of .15% and FTBFX has an ER of .45% - these are equivalent funds, right? Additionally, Vanguard MM funds have lower ERs. Is FIDO really a good option compared to Vanguard when you take things like this into consideration? The only advantage being a savings of .04% on total market fund in my case. I've also read that Vanguard returns more profits to the fund than Fidelity, so that can compensate for the ER, but I haven't investigated this any further to see if it's actually the case. If everything prior is true then the only real advantage of Fidelity is using it for checking.

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Re: Fidelity as a one stop shop

Post by JoMoney » Thu Dec 05, 2019 10:58 am

jumbopapa wrote:
Thu Dec 05, 2019 10:50 am
I'm comparing different funds at Vanguard vs. Fidelity and it seems that the only funds that are cheaper than their counterparts at Vanguard are the zero fee funds. What about things like total bond funds? VBMFX has an ER of .15% and FTBFX has an ER of .45% - these are equivalent funds, right? Additionally, Vanguard MM funds have lower ERs. Is FIDO really a good option compared to Vanguard when you take things like this into consideration? The only advantage being a savings of .04% on total market fund in my case. I've also read that Vanguard returns more profits to the fund than Fidelity, so that can compensate for the ER, but I haven't investigated this any further to see if it's actually the case. If everything prior is true then the only real advantage of Fidelity is using it for checking.
Fidelity has some fine very low cost index bond fund options:
Fidelity® U.S. Bond Index Fund -ER: 0.025%
Fidelity® Short-Term Bond Index Fund -ER: 0.03%
Fidelity® International Bond Index Fund -ER: 0.06%
... and more...
Granted Fidelity's money market funds are a little more expensive, but they also offer bank-like features / CMA that you can't get at Vanguard, with full refund of ATM fee's and 2% cash-back reward Visa card.
"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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Re: Fidelity as a one stop shop

Post by BogleMelon » Thu Dec 05, 2019 10:59 am

jumbopapa wrote:
Thu Dec 05, 2019 10:50 am
I'm comparing different funds at Vanguard vs. Fidelity and it seems that the only funds that are cheaper than their counterparts at Vanguard are the zero fee funds. What about things like total bond funds? VBMFX has an ER of .15% and FTBFX has an ER of .45% - these are equivalent funds, right? Additionally, Vanguard MM funds have lower ERs. Is FIDO really a good option compared to Vanguard when you take things like this into consideration? The only advantage being a savings of .04% on total market fund in my case. I've also read that Vanguard returns more profits to the fund than Fidelity, so that can compensate for the ER, but I haven't investigated this any further to see if it's actually the case. If everything prior is true then the only real advantage of Fidelity is using it for checking.
Wrong! You should compare to FXNAX (ER: 0.025%)

You can find a full list of equivalent vanguard funds at Fidelity here: https://www.bogleheads.org/wiki/Fidelity
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

jumbopapa
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Re: Fidelity as a one stop shop

Post by jumbopapa » Thu Dec 05, 2019 11:25 am

BogleMelon wrote:
Thu Dec 05, 2019 10:59 am
jumbopapa wrote:
Thu Dec 05, 2019 10:50 am
I'm comparing different funds at Vanguard vs. Fidelity and it seems that the only funds that are cheaper than their counterparts at Vanguard are the zero fee funds. What about things like total bond funds? VBMFX has an ER of .15% and FTBFX has an ER of .45% - these are equivalent funds, right? Additionally, Vanguard MM funds have lower ERs. Is FIDO really a good option compared to Vanguard when you take things like this into consideration? The only advantage being a savings of .04% on total market fund in my case. I've also read that Vanguard returns more profits to the fund than Fidelity, so that can compensate for the ER, but I haven't investigated this any further to see if it's actually the case. If everything prior is true then the only real advantage of Fidelity is using it for checking.
Wrong! You should compare to FXNAX (ER: 0.025%)

You can find a full list of equivalent vanguard funds at Fidelity here: https://www.bogleheads.org/wiki/Fidelity
Thank you for setting me straight. I should have consulted the wiki first. I'm glad I was wrong.

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Re: Fidelity as a one stop shop

Post by jumbopapa » Thu Dec 05, 2019 11:27 am

JoMoney wrote:
Thu Dec 05, 2019 10:58 am
Fidelity has some fine very low cost index bond fund options:
Fidelity® U.S. Bond Index Fund -ER: 0.025%
Fidelity® Short-Term Bond Index Fund -ER: 0.03%
Fidelity® International Bond Index Fund -ER: 0.06%
... and more...
Granted Fidelity's money market funds are a little more expensive, but they also offer bank-like features / CMA that you can't get at Vanguard, with full refund of ATM fee's and 2% cash-back reward Visa card.
Thank you! I'm glad I was wrong. I can take the more expensive MM in exchange for the other benefits seeing that I have little cash on hand at any given time.

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