Fell in Love with Fidelity

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Jack FFR1846
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Re: Fell in Love with Fidelity

Post by Jack FFR1846 » Wed Jan 09, 2019 2:56 pm

Dottie57 wrote:
Tue Jan 08, 2019 6:44 pm
Jack FFR1846 wrote:
Tue Jan 08, 2019 5:59 pm
KlangFool wrote:
Tue Jan 08, 2019 5:35 pm
bck63,

1) As a small investor, why would you buy 3 funds? One fund makes a lot more sense.

2) How are you going to rebalance? Do you have to pay anything to exchange one fund to another?

KlangFool
I agree with the idea here. My belief is that until you have $100k invested, go 100% total US Stock. With Fidelity, use the zero fund FZROX. No minimum, zero ER. I own it along with other Fidelity, Vanguard and Schwab funds and ETFs.
Just note that FZROX is based on Fidelity’s own proprietary index and was created in 2017. I prefer FSKAX which follows the long existing Dow Jones Total U.S. market index.
I too like FSKAX.....but also FZROX. I started an experiment on August 6th, splitting my equity position at Fidelity equally between these 2 funds. FZROX very slightly outperforms so far after only a few months.
Bogle: Smart Beta is stupid

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EyeYield
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Re: Fell in Love with Fidelity

Post by EyeYield » Wed Jan 09, 2019 3:39 pm

radiowave wrote:
Tue Jan 08, 2019 10:31 pm
EyeYield wrote:
Tue Jan 08, 2019 9:30 pm
radiowave wrote:
Tue Jan 08, 2019 5:43 pm
southerndoc wrote:
Tue Jan 08, 2019 5:26 pm
Fidelity has been great for me. So much that I'm moving my IRA's to Fidelity (moving Roth, rolling SEP into SE 401(k), moving wife's Roth/trad IRA for non-deductible contributions). Plan on opening an IRA for non-deductible contributions and Roth conversion mid-year.

I've heard some so so things about their checking (cash management) account. I just opened one, but have yet to fund it. It's probably only going to be used for ATM withdrawals as Bank of America loves to charge for every ATM transaction.
Just an FYI on the Fidelity cash management accounts (CMA). The debit card you will use at ATMs, the good news is Fidelity will reimburse the 3.00 charge and it happens within a couple business days. However you cannot turn off or reduce the daily sales limit on the debit side of the card so that potentially exposes your entire CMA account to fraud if you are using it as a debit card for purchases. One work around is to create a second CMA account and just keep a small amount of money you might use for ATM withdrawals. Of course if you don't use the debit side of the card, that minimizes your exposure. My sister had several thousand dollars withdrawn from her bank account last year when her debit card was hacked and its not the same as a credit card hack where you can stop payment. Once the money is withdrawn from our account on the debit card, even if it's fraud, it could take weeks or months to get it back.
Are you sure about what I bolded? I am currently looking into a CMA account and spent a long time on the phone this morning with a CMA rep at Fidelity and I was adamant about being able to set the limit on the debit card to $0.00 and only use it for ATM cash withdrawals with a limit of $300 and was told that it wouldn’t be a problem.

I will call again in the morning to verify.
EyeYield, I had the same conversation with FIdelity CSR about 2 years ago when I set up my CMA and they were certain at that time it was not possible to drop daily sales limit to 0. In two years they may have changed their policy. If you can confirm Fidelity can set up the CMA debit card as ATM only, please let us know.

Thanks
It turns out you are right, there’s no way for an individual to set his or her own limits. The first rep I talked to was wrong; many apologies from Fidelity.
I’m glad I followed up on this, so thanks.

I went deep into this, having been connected to Elan Financial Services, whom Fidelity outsources the debit/ATM card.

The good news, that works for me at least, is that I can place a voluntary restriction on the card so it can’t be used for anything.
Then when I need cash from an ATM, I can call and remove the restriction for a two hour window to get what I need.

Since I only withdraw $300 in cash about ten times a year, this won’t be a tremendous burden. Actually I might be motivated to withdraw more cash each time, so I’ll visit ATM’s less.

I hope this info is helpful to others.
"The stock market is a giant distraction from the business of investing." - Jack Bogle

augustwest73
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Re: Fell in Love with Fidelity

Post by augustwest73 » Wed Jan 09, 2019 4:29 pm

I used to love Fidelity for all the reasons mentioned already. I moved all my old 401Ks to them and it was a breeze...And then, I tried to move a few thousand out of Fidelity and they made it a total hassle including requiring the dreaded bank medallion. When I consolidated my accounts with them, no one required a bank medallion and I was able to do it all electronically. Fidelity refused to make it easy. It all had to be on paper, so I have not put any new money in there for quite awhile.

Dottie57
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Re: Fell in Love with Fidelity

Post by Dottie57 » Wed Jan 09, 2019 4:34 pm

augustwest73 wrote:
Wed Jan 09, 2019 4:29 pm
I used to love Fidelity for all the reasons mentioned already. I moved all my old 401Ks to them and it was a breeze...And then, I tried to move a few thousand out of Fidelity and they made it a total hassle including requiring the dreaded bank medallion. When I consolidated my accounts with them, no one required a bank medallion and I was able to do it all electronically. Fidelity refused to make it easy. It all had to be on paper, so I have not put any new money in there for quite awhile.
I actually like hard. I don’t want it to be easy. And yes I now have to set up the dreaded gold medallion. But it is for my own benefit.

drzzzzz
Posts: 299
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Re: Fell in Love with Fidelity

Post by drzzzzz » Wed Jan 09, 2019 4:40 pm

augustwest73 wrote:
Wed Jan 09, 2019 4:29 pm
I used to love Fidelity for all the reasons mentioned already. I moved all my old 401Ks to them and it was a breeze...And then, I tried to move a few thousand out of Fidelity and they made it a total hassle including requiring the dreaded bank medallion. When I consolidated my accounts with them, no one required a bank medallion and I was able to do it all electronically. Fidelity refused to make it easy. It all had to be on paper, so I have not put any new money in there for quite awhile.
Interesting to hear, I have sent money to my bank and also transferred entire ira accounts at Fidelity to other custodians electronically and so far haven't had to deal with the bank medallion issue or inability to transfer funds easily.

international001
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Re: Fell in Love with Fidelity

Post by international001 » Wed Jan 09, 2019 5:41 pm

KlangFool wrote:
Wed Jan 09, 2019 8:31 am


international001,

<<If you have a whole portfolio Taxable + tax-sheltered.. what difference does it make if you have one fund for stocks or 20. You can just rebalance on the tax-sheltered side>>

1) It is easier to tax loss harvest with fewer stock funds.

2) It is easier to track and manage with fewer stock funds.

<<What did you mean by 25%. I usually rebalance when the difference between what I have and I should have for a particular fund is > 5%>>

I have 10% of my portfolio allocated to small cap value.

A) By 5% rule, I would rebalance when it is 5% or 15%

B) By 25% rule, I would rebalance at 7.5% or 12.5%. Aka off by 25%.

In this case, the 25% rule will trigger first.

KlangFool
Oh.. I see. I guess rule A or B comes to play more often depending on how many funds you have. For rebalancing, for me sometimes it becomes more of an art, since the buying fund may be trigered by the rules but the selling funds may not.

Fewer funds are easier to manage, but I find TLH more convenient with more funds. If you have for LC and LCV, for instance, you can buy and sell each other when they go down.

KlangFool
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Re: Fell in Love with Fidelity

Post by KlangFool » Wed Jan 09, 2019 6:06 pm

international001 wrote:
Wed Jan 09, 2019 5:41 pm
KlangFool wrote:
Wed Jan 09, 2019 8:31 am


international001,

<<If you have a whole portfolio Taxable + tax-sheltered.. what difference does it make if you have one fund for stocks or 20. You can just rebalance on the tax-sheltered side>>

1) It is easier to tax loss harvest with fewer stock funds.

2) It is easier to track and manage with fewer stock funds.

<<What did you mean by 25%. I usually rebalance when the difference between what I have and I should have for a particular fund is > 5%>>

I have 10% of my portfolio allocated to small cap value.

A) By 5% rule, I would rebalance when it is 5% or 15%

B) By 25% rule, I would rebalance at 7.5% or 12.5%. Aka off by 25%.

In this case, the 25% rule will trigger first.

KlangFool
Oh.. I see. I guess rule A or B comes to play more often depending on how many funds you have. For rebalancing, for me sometimes it becomes more of an art, since the buying fund may be trigered by the rules but the selling funds may not.

Fewer funds are easier to manage, but I find TLH more convenient with more funds. If you have for LC and LCV, for instance, you can buy and sell each other when they go down.
international001,

<<. For rebalancing, for me sometimes it becomes more of an art, since the buying fund may be trigered by the rules but the selling funds may not.>>

40% of my portfolio is in the Wellington fund (65/35). It rebalanced itself. For my portfolio, it will take a really bad day to trigger rebalancing. Maybe once every 5 years.

<<Fewer funds are easier to manage, but I find TLH more convenient with more funds. If you have for LC and LCV, for instance, you can buy and sell each other when they go down.>>

I do that too. So, I have 2 funds for each asset class (SCV, US stock, International stock). But, usually, I do not keep both of them at the same time.

KlangFool

radiowave
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Re: Fell in Love with Fidelity

Post by radiowave » Wed Jan 09, 2019 6:57 pm

EyeYield wrote:
Wed Jan 09, 2019 3:39 pm
It turns out you are right, there’s no way for an individual to set his or her own limits. The first rep I talked to was wrong; many apologies from Fidelity.
I’m glad I followed up on this, so thanks.

I went deep into this, having been connected to Elan Financial Services, whom Fidelity outsources the debit/ATM card.

The good news, that works for me at least, is that I can place a voluntary restriction on the card so it can’t be used for anything.
Then when I need cash from an ATM, I can call and remove the restriction for a two hour window to get what I need.

Since I only withdraw $300 in cash about ten times a year, this won’t be a tremendous burden. Actually I might be motivated to withdraw more cash each time, so I’ll visit ATM’s less.

I hope this info is helpful to others.
If you are looking for an ATM only card an alternative is Bank of America, they still issue one.

I was hopeful your original post was correct, oh well . . .


[edited typo]
Last edited by radiowave on Wed Jan 09, 2019 7:19 pm, edited 1 time in total.
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whodidntante
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Re: Fell in Love with Fidelity

Post by whodidntante » Wed Jan 09, 2019 7:00 pm

Fidelity has always been good to me. It's my oldest surviving account.

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EyeYield
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Re: Fell in Love with Fidelity

Post by EyeYield » Wed Jan 09, 2019 8:55 pm

radiowave wrote:
Wed Jan 09, 2019 6:57 pm
EyeYield wrote:
Wed Jan 09, 2019 3:39 pm
It turns out you are right, there’s no way for an individual to set his or her own limits. The first rep I talked to was wrong; many apologies from Fidelity.
I’m glad I followed up on this, so thanks.

I went deep into this, having been connected to Elan Financial Services, whom Fidelity outsources the debit/ATM card.

The good news, that works for me at least, is that I can place a voluntary restriction on the card so it can’t be used for anything.
Then when I need cash from an ATM, I can call and remove the restriction for a two hour window to get what I need.

Since I only withdraw $300 in cash about ten times a year, this won’t be a tremendous burden. Actually I might be motivated to withdraw more cash each time, so I’ll visit ATM’s less.

I hope this info is helpful to others.
If you are looking for an ATM only card an alternative is Bank of America, they still issue one.

I was hopeful your original post was correct, oh well . . .


[edited typo]
Alas, after 25 years of using BofA for my primary checking account, funded by an annual wire transfer from Fidelity, I’ve become disenchanted with their service. They recently refused a check to be deposited, one that I had deposited in years past, due to new BofA rules, and they will only redeem 7 EE Bonds at a time.
They’re the reason I want a Fidelity checking account.

Their ATM/ Debit card did allow a $1.00 limit on Debit though.

I have a small Chase account that will redeem as many EE Bonds as I want and they let me deposit the same check that BofA denied.

Having a Fidelity CMA account will make my life so much simpler.
As I think about it, I kind of like the idea that my ATM/Debit can be “locked” until I need it. And no more wire transfers from my broker to my banker. I’m such a Luddite. :oops:
"The stock market is a giant distraction from the business of investing." - Jack Bogle

patelbhavesh
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Re: Fell in Love with Fidelity

Post by patelbhavesh » Thu Jan 10, 2019 5:48 pm

BoglePaul wrote:
Wed Jan 09, 2019 9:20 am
When I was young the old timers told me to go with Vanguard, however scored by Vanguard's tiered fee levels, I did business with Fidelity. Now that I am older I do business with Vanguard. I wish I had started with Vanguard.
+1

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