Fidelity Money Market Funds for everyday expenses

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ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Fri Nov 30, 2018 7:20 pm

Also questions about best place for emergency fund. In highest or second highest federal tax bracket and in Indiana. Confused over best option, funds are at Fidelity: mm (currently spaxx), treasury fund or actual bills, municipal bonds (don't think there are any for Indiana, tax exempt funds, I bonds, CD ladder, etc. So many options and calculating the after tax return is somewhat complicated. I plan on keeping ~20k in Fidelity money market for everyday expense account and other expenses/vacations/purchases. I probably have 5k/month expenses. Another 30-40k in some other semi liquid vehicle

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sat Dec 01, 2018 9:01 am

I use FTEXX (Fidelity Municipal Money Market Fund), which currently has a tax-equivalent yield of 2.24% for me. But I live in a state without income taxes.
Last edited by Cash on Sat Dec 01, 2018 1:34 pm, edited 1 time in total.

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ruralavalon
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Re: Fidelity Money Market Funds for everyday expenses

Post by ruralavalon » Sat Dec 01, 2018 9:09 am

quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

marcopolo
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Re: Fidelity Money Market Funds for everyday expenses

Post by marcopolo » Sat Dec 01, 2018 10:22 am

ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Once in a while you get shown the light, in the strangest of places if you look at it right.

InertiaMan
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Re: Fidelity Money Market Funds for everyday expenses

Post by InertiaMan » Sat Dec 01, 2018 1:24 pm

ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain. I briefly passed $100k thru while moving some $$ to another account, and subsequently kept a sub-$100k balance. Doesn't fully close the gap to Vanguard 2.30% but its close.

vtMaps
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Re: Fidelity Money Market Funds for everyday expenses

Post by vtMaps » Sat Dec 01, 2018 2:00 pm

InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain.
In an IRA, the minimum to open is $10k. We keep FZDXX in a roth IRA as part of our savings account and emergency fund.

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

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Sun Dec 02, 2018 3:33 pm

It looks like after tax if I am calculating it right, (37% federal and 4.5% state + county) FTEXX (municipal etf) and FZDXX will have very close yields 2.2-2.1%. Is one significantly safer or similar enough safety?

Currently using spaxx, I assume both of these funds would also auto sell for covering expenses.

PatrickA5
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Re: Fidelity Money Market Funds for everyday expenses

Post by PatrickA5 » Sun Dec 02, 2018 4:12 pm

marcopolo wrote:
Sat Dec 01, 2018 10:22 am
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Vanguard has a checking account called the Vanguard Advantage Account. The sweep account is VMFXX (VG Federal Money Market) and is currently yielding 2.19%. You can move money into/from the Prime Money Market if you want, but I don't think VG will automatically liquidate the Prime Money Market to fund the checking account. There's not much yield difference between the 2 accounts, so I leave a good chunk in the Federal Money Market.

goaties
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Re: Fidelity Money Market Funds for everyday expenses

Post by goaties » Sun Dec 02, 2018 5:37 pm

While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...

ThriftyPhD
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Re: Fidelity Money Market Funds for everyday expenses

Post by ThriftyPhD » Sun Dec 02, 2018 6:01 pm

PatrickA5 wrote:
Sun Dec 02, 2018 4:12 pm
marcopolo wrote:
Sat Dec 01, 2018 10:22 am
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
How would one use VMMXX for everyday expenses?
I don't think Vanguard has Cash Management type account, and trading costs in and out of VMMXX at other brokerages would kill any yield advantages.
Vanguard has a checking account called the Vanguard Advantage Account.
Vanguard wrote: This service is offered to clients of Voyager Select Services® and Flagship Services®
So, it's an option, but only if you have > $500k at Vanguard.

arf30
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Re: Fidelity Money Market Funds for everyday expenses

Post by arf30 » Sun Dec 02, 2018 6:04 pm

goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?
The overdraft has two modes - the one described in this thread will move money on demand. There's another mode that will only move a fixed amount once per day when your account drops below a threshold that you specify, it would limit your losses in case of fraud.

Personally I hold a month or two of money market and cash directly in the CMA without any overdraft, and keep a large emergency fund elsewhere.

Cash
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Re: Fidelity Money Market Funds for everyday expenses

Post by Cash » Sun Dec 02, 2018 8:02 pm

goaties wrote:
Sun Dec 02, 2018 5:37 pm
While it is very convenient to have this automatic overdraft ploy available, don't you worry that it makes it so much easier for someone to drain your account? Or is this a far-fetched scenario?

I've been keeping checking at a separate institution (with no overdraft protection) for years and telling myself that I'm safer this way. Perhaps I've just been making problems for myself...
Not far-fetched at all. It happened to me a while ago at a different financial institution. I keep a certain amount in the CMA and put the rest in a separate brokerage account at Fidelity, with no overdraft from the brokerage account. You can also open a second CMA for the same purpose.

justsomeguy2018
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Re: Fidelity Money Market Funds for everyday expenses

Post by justsomeguy2018 » Mon Dec 03, 2018 8:43 pm

InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
ruralavalon wrote:
Sat Dec 01, 2018 9:09 am
quaternion wrote:
Sun Jan 14, 2018 10:03 pm
SPRXX looks like Fidelity's highest-yield, taxable, retail MM fund. Not quite as good as Vanguard's prime money market, though.
Fidelity Money Market Fund (SPRXX), current SEC Yield = 2.09%.

Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.30%..
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain. I briefly passed $100k thru while moving some $$ to another account, and subsequently kept a sub-$100k balance. Doesn't fully close the gap to Vanguard 2.30% but its close.
Question - when they list the ER for these Fidelity MM funds, do you have to subtract that ER from the yield? Or is the yield they cite, after factoring in the ER?

ninjab
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Re: Fidelity Money Market Funds for everyday expenses

Post by ninjab » Mon Dec 03, 2018 10:20 pm

Yield posted is after expenses, you can ignore the ER completely (it does not matter) and just look at the yields.

Arby
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Re: Fidelity Money Market Funds for everyday expenses

Post by Arby » Tue Dec 04, 2018 5:33 am

vtMaps wrote:
Sat Dec 01, 2018 2:00 pm
InertiaMan wrote:
Sat Dec 01, 2018 1:24 pm
FZDXX is at 2.21%. It does have the hurdle of $100k to open. But only $10k to maintain.
In an IRA, the minimum to open is $10k. We keep FZDXX in a roth IRA as part of our savings account and emergency fund.

--vtMaps
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?

vtMaps
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Re: Fidelity Money Market Funds for everyday expenses

Post by vtMaps » Tue Dec 04, 2018 6:00 am

Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
I don't understand all the fine print. from the prospectus in a section called "Minimum Waivers" is this:
There is no minimum balance or purchase minimum for investments through Portfolio Advisory Services, a mutual fund or a qualified tuition program for which Fidelity serves as investment manager, certain Fidelity® retirement accounts funded through salary deduction, or fund positions opened with the proceeds of distributions from such retirement accounts or from a Fidelity® systematic withdrawal service. In addition, each fund may waive or lower purchase minimums in other circumstances.
--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 Money Market Funds for everyday expenses

Post by Kevin M » Tue Dec 04, 2018 12:30 pm

Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
One thing I was told when I called and asked about the fund minimum and low-balance fee is that since I'm "Private Client" status, none of these apply to me. My FZDXX balance has been in the hundreds if not tens of dollars at times, and now is less than $1,000 I think. It's not a high enough rate that I want to keep much cash in it for long.

I was assigned private client status after transferring my Fidelity 401k into a Fidelity IRA at retirement, as I recall. I subsequently transferred most of it out of that IRA, and think I dropped below the amount to qualify for private client status level, even though I had transferred some into a taxable account. But apparently I retained that status.

At any rate, I recommend just calling Fidelity and asking about how these things apply to you, if at all.

Kevin
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Arby
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Re: Fidelity Money Market Funds for everyday expenses

Post by Arby » Thu Dec 06, 2018 5:40 am

Kevin M wrote:
Tue Dec 04, 2018 12:30 pm
Arby wrote:
Tue Dec 04, 2018 5:33 am
In one area of the Fidelity website, it lists 10K as the Required Balance.

But looking through the prospectus, I don't see anything regarding what happens if you don't meet the Required Balance although there is a mention of a small balance fee but that is defined as balance less than 2k.

Can anyone shed some light on the the Required Balance of FZDXX?
One thing I was told when I called and asked about the fund minimum and low-balance fee is that since I'm "Private Client" status, none of these apply to me. My FZDXX balance has been in the hundreds if not tens of dollars at times, and now is less than $1,000 I think. It's not a high enough rate that I want to keep much cash in it for long.

I was assigned private client status after transferring my Fidelity 401k into a Fidelity IRA at retirement, as I recall. I subsequently transferred most of it out of that IRA, and think I dropped below the amount to qualify for private client status level, even though I had transferred some into a taxable account. But apparently I retained that status.

At any rate, I recommend just calling Fidelity and asking about how these things apply to you, if at all.

Kevin
I just called about the minimum balance and the Rep said there is technically a 10K minimum balance but he doesn't think it is being enforced. He actually said at one point that there was no minimum balance. He said the worst that could happen is that I could be sold out of it.

In the prospectus it mentions a fee if the balance is below 2K.

Outside of an IRA the minimum purchase is 100K so think I might set up an autoroll ladder of 4 week tbills maturing every week plus some other cash even more liquid for situations where I need the funds immediately.

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Kevin M
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Re: Fidelity Money Market Funds for everyday expenses

Post by Kevin M » Thu Dec 06, 2018 4:52 pm

Arby wrote:
Thu Dec 06, 2018 5:40 am
In the prospectus it mentions a fee if the balance is below 2K.
Yes, I was told that that also does not apply to me. My balance typically has been below that, and no fees charged. This is in an IRA.

Kevin
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RIMDBogle
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Re: Fidelity Money Market Funds for everyday expenses

Post by RIMDBogle » Sun Dec 09, 2018 9:53 pm

It is an interesting thread.

Are there any threads/wiki page that compare Money Market Funds of various brokerages?

Is there a way to get to Vanguard Prime Money Market Fund (VMMXX) outside vanguard account?

I mean , if a person does not have a vanguard account.

Thanks for sharing.

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