Fidelity as a one stop shop

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drzzzzz
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Re: Fidelity as a one stop shop

Post by drzzzzz » Wed Jun 05, 2019 9:52 am

I haven't read the entire thread so I apologize if the answer is in there. Has anyone set up their Fidelity CMA account titled as a revocable trust? thanks

Horsefly
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Re: Fidelity as a one stop shop

Post by Horsefly » Wed Jun 05, 2019 11:01 am

drzzzzz wrote:
Wed Jun 05, 2019 9:52 am
I haven't read the entire thread so I apologize if the answer is in there. Has anyone set up their Fidelity CMA account titled as a revocable trust? thanks
Our CMA is JROS between DW and I, but the brokerage it is linked to is registered under our revocable trust.

Edit to add: I'm sure we could have changed the registration of the CMA to our trust when we set up the trust, but since I don't keep much in the CMA I didn't bother.

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Re: Fidelity Cash Management Account - Anyone Use it?

Post by gpburdell » Wed Jun 05, 2019 11:50 am

HomeStretch wrote:
Tue Jun 04, 2019 1:12 pm
Do you use your bank accounts to “pull” funds via ACH or wire transfer from Fidelity? Or vice versa? Just wondering if there is any difference in the time it takes for funds to be available at bank or Fidelity CMA.
So I use 3 banks:

1) Fidelity CMA is my primary checking, billpay, direct deposit
2) Capital One 360 for Venmo, Zelle, Paypal
3) SunTrust for safety deposit box

I've set it up so that my Fidelity CMA is linked to the other two and can push/pull. The other two have no ability to push/pull at all; so I don't worry if those get compromised. I keep a minimal amount in those two accounts to cover an emergency, payment, etc.

From what I've seen Fidelity is pretty quick when push/pull. On the other hand, when I used to push/pull with SunTrust that would be a day or two slower. Also, I used to have direct deposit split between all 3 banks. Fidelity would show the incoming deposit as a memo txn at least 1 day ahead of the others.

Also if you're pulling into Fidelity, you can immediately use those funds. For example, my roommate sends me rent through Venmo. I have Fidelity pull that from Capital One and then I immediately buy SPRXX.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Wed Jun 05, 2019 1:57 pm

drzzzzz wrote:
Wed Jun 05, 2019 9:52 am
I haven't read the entire thread so I apologize if the answer is in there. Has anyone set up their Fidelity CMA account titled as a revocable trust? thanks
I have a brokerage trust account, but I've set everything else up as TOD (transfer on death). If your trust is simple enough, or if you're OK having TOD beneficiaries that might not be exactly the same as your trust for this particular account, then TOD is preferable, since it's easier to do things with TOD accounts at Fidelity than with trust accounts (and other places too). Some things, like adding new banks, require a paper form with a trust account, but not with a TOD (or individual or joint) account.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Wed Jun 05, 2019 2:01 pm

gobigorgohome wrote:
Sun Jun 02, 2019 5:54 pm
If this has been asked before then disregard. But, can you have your brokerage account with margin set up to be an overdraft coverage for more than one account? or only one account? Thanks.
My CMA is not a margin account, but the linked funding account is. As I understand it, if there isn't enough in the core accounts of either (including all money market funds) to cover a debit in the CMA, the margin in the linked funding account will be used to cover it. However, margin is not used to cover debit card transactions, because the margin team doesn't have time to review these transactions before they are settled--at least that's what the FAQ I just read through this morning says.

That actually makes me feel more comfortable, as I view the debit card as the weakest link in terms of fraud.

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spammagnet
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by spammagnet » Wed Jun 05, 2019 10:02 pm

jbsmith05 wrote:
Tue Jun 04, 2019 12:06 pm
I thought I read elsewhere that it wouldn't let you withdraw from an ATM if the CMA account was $0?
If you have it set up to cover overdrafts by transfer from another account, you can withdraw money from a $0 CMA account. Others reported that and I confirmed it for myself.
Fidelity will sell only same-day settlement funds (e.g., MMFs) to cover overdrafts. If the brokerage account you're using to cover the CMA is 100% invested, it won't work.

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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MikeG62 » Thu Jun 06, 2019 7:52 am

mhalley wrote:
Tue Jun 04, 2019 1:20 pm
As a general rule, money is available faster if it is pushed. If it is pulled, the receiver must verify the funds are legit before making them available.
This is a good point and worth considering when one has the option of either pushing or pulling.
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by heartwood » Thu Jun 06, 2019 8:14 am

MikeG62 wrote:
Thu Jun 06, 2019 7:52 am
mhalley wrote:
Tue Jun 04, 2019 1:20 pm
As a general rule, money is available faster if it is pushed. If it is pulled, the receiver must verify the funds are legit before making them available.
This is a good point and worth considering when one has the option of either pushing or pulling.
Confirm if your bank has a fee. Fidelity has no fee to push or pull. BOA has no fee for funds pulled from my account by Fido, but charges $3 to do a push to Fidelity.

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Re: Fidelity Cash Management Account - Anyone Use it?

Post by MikeG62 » Thu Jun 06, 2019 8:27 am

heartwood wrote:
Thu Jun 06, 2019 8:14 am
MikeG62 wrote:
Thu Jun 06, 2019 7:52 am
mhalley wrote:
Tue Jun 04, 2019 1:20 pm
As a general rule, money is available faster if it is pushed. If it is pulled, the receiver must verify the funds are legit before making them available.
This is a good point and worth considering when one has the option of either pushing or pulling.
Confirm if your bank has a fee. Fidelity has no fee to push or pull. BOA has no fee for funds pulled from my account by Fido, but charges $3 to do a push to Fidelity.
Totally agree. I too have an account at BofA and have never initiated a pull or push from BofA. I do have the option to push or pull when moving funds between the other financial institutions I do business with (Fidelity, Ally, UBS, Barclay's) none of which charge a fee.
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Kevin M
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Re: Fidelity Cash Management Account - Anyone Use it?

Post by Kevin M » Thu Jun 06, 2019 1:54 pm

MikeG62 wrote:
Thu Jun 06, 2019 7:52 am
mhalley wrote:
Tue Jun 04, 2019 1:20 pm
As a general rule, money is available faster if it is pushed. If it is pulled, the receiver must verify the funds are legit before making them available.
This is a good point and worth considering when one has the option of either pushing or pulling.
As a general rule, if possible, I pull into a brokerage, as the money generally is instantly available for trading, which means it can immediately be used to buy a money market fund, and thus starts earning interest the same day, or maybe the next day if settlement is T+1. Either way, pushing into the brokerage usually will add at least one day before you can start earning interest.

In some cases, by pulling into a brokerage MM fund, you can earn interest on the money at both the source and destination for a day or maybe even two.

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Re: Fidelity as a one stop shop

Post by grp2c » Fri Jun 07, 2019 11:25 pm

Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.

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Re: Fidelity as a one stop shop

Post by spammagnet » Sat Jun 08, 2019 9:38 am

grp2c wrote:
Fri Jun 07, 2019 11:25 pm
... Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account. ...
If the balance is insufficient to buy 15K, will it buy whatever the balance supports?

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Re: Fidelity as a one stop shop

Post by Gadget » Sat Jun 08, 2019 10:06 am

grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I've thought about something similar. But in your scenario, what happens if you have an auto-investment of 15k, but due to random bill timing, you only have 10k of SPAXX in the account? Does it still purchase 10k of FZDXX? Does it ignore the 5k missing since these are just money market funds, or do you have to cover 5k from somewhere else?

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Re: Fidelity as a one stop shop

Post by Horsefly » Sat Jun 08, 2019 10:59 am

grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.

Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account.
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.

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Re: Using Fidelity Cash Management as my only bank account

Post by southerndoc » Sat Jun 08, 2019 1:41 pm

I have a Fidelity CMA used as my emergency fund. It's set to automatically transfer a biweekly deposit from my PEO into SPRXX.

Two questions:

1. If I make an emergency purchase with my ATM card (debit or credit transaction with the card), will money be automatically pulled from SPRXX within the CMA to cover the expense? I think the answer is yes, but wanted to verify as we may have to replace an air conditioner and didn't want something to occur with a $4800 purchase.

2. Are there other options to invest in other than SPRXX for money market mutual funds? I've thought of investing in tax-free muni funds since I am in the highest tax bracket and the return of investment would be higher considering my tax rate. Something comparable to VWAHX?

Thanks!

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Re: Fidelity as a one stop shop

Post by grp2c » Sat Jun 08, 2019 2:04 pm

spammagnet wrote:
Sat Jun 08, 2019 9:38 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
... Also, to reduce the manual transactions of buying FZDXX, I've setup an auto-investment of 15k of FZDXX twice a month after payday and I keep a minimum balance of 30k in the account. ...
If the balance is insufficient to buy 15K, will it buy whatever the balance supports?
I think if the balance is less than the auto investment the purchase will not be processed. And if the balance is insufficient for 2 purchases in a row, then the auto investment is cancelled.

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Sat Jun 08, 2019 2:27 pm

I created a buy transaction to see what happens. Being Saturday, I think it won't close until Monday. It shows that I have more than sufficient funds to buy SPRXX. It ignores the fact that some of the available funds it will use to buy SPRXX already are in SPRXX.

I don't know if it will recognize the transaction is a loop or if it will end up buying the net amount that is in SPAXX. If the latter is true, I'll leave a standing order to buy a bit more in SPRXX than I typically have in SPAXX. The result would be effectively the same as designating SPRXX as my core account.

I doubt that will happen but I can always try. I'll report the results here.

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Re: Using Fidelity Cash Management as my only bank account

Post by MotoTrojan » Sat Jun 08, 2019 3:10 pm

southerndoc wrote:
Sat Jun 08, 2019 1:41 pm
I have a Fidelity CMA used as my emergency fund. It's set to automatically transfer a biweekly deposit from my PEO into SPRXX.

Two questions:

1. If I make an emergency purchase with my ATM card (debit or credit transaction with the card), will money be automatically pulled from SPRXX within the CMA to cover the expense? I think the answer is yes, but wanted to verify as we may have to replace an air conditioner and didn't want something to occur with a $4800 purchase.

2. Are there other options to invest in other than SPRXX for money market mutual funds? I've thought of investing in tax-free muni funds since I am in the highest tax bracket and the return of investment would be higher considering my tax rate. Something comparable to VWAHX?

Thanks!
1: You need to setup your Cash Manager to autodraft funds into CMA.

2: That looks like a bond fund, not a money market, so I don’t believe it would transfer.

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Re: Fidelity as a one stop shop

Post by grp2c » Sat Jun 08, 2019 3:15 pm

Yes the purchase transaction will go through. Say you have 10k of SPAXX and 20k of SPRXX and you purchase 15K of SPRXX. Transaction is processed first by debiting SPAXX and then SPRXX and you end up with 30K of SPRXX.

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Re: Using Fidelity Cash Management as my only bank account

Post by southerndoc » Sat Jun 08, 2019 5:21 pm

The funds are still in the CMA, but are invested in SPRXX instead of staying in the core account. I'm not moving them to my investment account to invest in them (at least not intentionally; they are still showing as being in my cash management account).

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Jun 08, 2019 8:21 pm

On a related note, I had something kind of funny happen. I had $X in SPRXX and $0 in my FDIC account in my CMA. I entered an order to buy $X of FDLXX, thinking it would pull $X from SPRXX. Instead, it pulled $X right back out of FDLXX, so I ended up still owning $X of SPRXX.

I realized that to do what I wanted, I had to select "sell and use proceeds to buy another" to exchange SPRXX into FDLXX.

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Re: Fidelity as a one stop shop

Post by obafgkm » Sat Jun 08, 2019 8:22 pm

Wow. I just finished reading this whole thread. Thanks to all who gave substantive responses. I've had a Fidelity Cash Management Account for over a year (opened when I opened a regular brokerage account), but hadn't put a penny into it.

I have banking accounts at several institutions:
  1. out-of-state credit union where I grew up (and have my paycheck deposited);
  2. credit union where I live (and have a safe deposit box);
  3. Barclays (high-yield online account at 2.2% as of this writing); and
  4. NASA Federal CU (opened for a high-interest CD that is closed now; just have $5 in savings)
I am considering closing all of these (except my local CU -- for the safe-deposit box, primarily) and move everything to Fidelity (using the CMA as a savings/checking account) to get rid of the clutter. I'll start with the low-hanging fruit -- close the NASA FCU account on Monday.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Jun 08, 2019 8:31 pm

Horsefly wrote:
Sat Jun 08, 2019 10:59 am
grp2c wrote:
Fri Jun 07, 2019 11:25 pm
Since transitioning to using the ATM/debit card with my fidelity brokerage account, I've noticed that an ATM withdrawal doesn't post to the account for 2-3 business days. Years ago when I used the ATM card with the fidelity CMA account, I thought it posted same day. Curious if others have noticed this.
<snip>
I get a text alert from Fidelity before I can reach for the cash out of the ATM, and as far as I can tell the ATM withdrawal posts almost right away. The reimbursement for the ATM fee takes a few days though.
But you are using a CMA, correct? grp2c is noting the difference in timing of ATM withdrawal postings between a brokerage account and CMA.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Jun 08, 2019 8:40 pm

obafgkm wrote:
Sat Jun 08, 2019 8:22 pm
Wow. I just finished reading this whole thread. Thanks to all who gave substantive responses. I've had a Fidelity Cash Management Account for over a year (opened when I opened a regular brokerage account), but hadn't put a penny into it.

I have banking accounts at several institutions:
  1. out-of-state credit union where I grew up (and have my paycheck deposited);
  2. credit union where I live (and have a safe deposit box);
  3. Barclays (high-yield online account at 2.2% as of this writing); and
  4. NASA Federal CU (opened for a high-interest CD that is closed now; just have $5 in savings)
I am considering closing all of these (except my local CU -- for the safe-deposit box, primarily) and move everything to Fidelity (using the CMA as a savings/checking account) to get rid of the clutter. I'll start with the low-hanging fruit -- close the NASA FCU account on Monday.
Keep in mind that short-term Treasury yields have been falling sharply recently, and money market fund yields will follow suit. Bank rates also may drop some, but for years bank savings accounts offered significantly higher rates than MM funds, which paid 0% for quite a few years.

I'm getting taxable-equivalent compound yield of 2.65% on Vanguard Treasury MM fund, so that's where I keep most cash, but I'm not closing a couple of bank accounts that guarantee 2.50% through at least the end of 2019, as those may end up with higher net yields in a few months (or maybe even a few weeks).

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Re: Fidelity as a one stop shop

Post by mighty72 » Sat Jun 08, 2019 8:50 pm

Merged Caduceus's thread on using CMA as the only bank account here

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Re: Fidelity as a one stop shop

Post by gobigorgohome » Sun Jun 09, 2019 5:58 pm

Good evening everyone, perhaps someone can help me out. I have my brokerage set up to deposit my whole check, the brokerage is the OD account for my CMA which has a zero balance. Does the money in the brokerage have to be in a FIDO fund to liquidate for overdrafts? I was also under the assumption that it will not liquidate stocks, and would pull from the margin account if enabled. Thanks for any assistance in these questions.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Jun 09, 2019 8:06 pm

gobigorgohome wrote:
Sun Jun 09, 2019 5:58 pm
Good evening everyone, perhaps someone can help me out. I have my brokerage set up to deposit my whole check, the brokerage is the OD account for my CMA which has a zero balance. Does the money in the brokerage have to be in a FIDO fund to liquidate for overdrafts? I was also under the assumption that it will not liquidate stocks, and would pull from the margin account if enabled. Thanks for any assistance in these questions.
Not only just FIDO funds, but FIDO money market funds (I'm pretty sure). These questions are all answered in an extensive FAQ you can get to from the cash management screen.

Yes, it will utilize margin if there are insufficient funds in the money market funds to cover the overdraft.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Jun 09, 2019 8:18 pm

Kevin M wrote:
Sun Jun 09, 2019 8:06 pm
gobigorgohome wrote:
Sun Jun 09, 2019 5:58 pm
Good evening everyone, perhaps someone can help me out. I have my brokerage set up to deposit my whole check, the brokerage is the OD account for my CMA which has a zero balance. Does the money in the brokerage have to be in a FIDO fund to liquidate for overdrafts? I was also under the assumption that it will not liquidate stocks, and would pull from the margin account if enabled. Thanks for any assistance in these questions.
Not only just FIDO funds, but FIDO money market funds (I'm pretty sure). These questions are all answered in an extensive FAQ you can get to from the cash management screen.

Yes, it will utilize margin if there are insufficient funds in the money market funds to cover the overdraft.

Kevin
But, margin is not utilized for debit card transactions. From the FAQ:
If I drop below my minimum target balance or use Cash Manager overdraft protection, will any of my stocks, bonds, or mutual funds be sold?

No, Cash Manager overdraft protection is funded by using available funds (available cash, available margin, and non-core Fidelity money market assets) from a hierarchy of Fidelity funding accounts (up to $99,999.99 per day per funding account) that you designate. It will not sell equity or bond positions or non-money market funds, and will not subject you to variations in market conditions.

Note: Available margin or non-core money market funds are used to cover overdrafts only if you select that as an option.

Fidelity funding accounts are tapped in the order you specified in your funding account hierarchy. If there are not enough funds in all of your Fidelity funding accounts to cover a debit request, no money will be transferred, and the debit will be referred to the Fidelity Margin Department for a payment decision. Debit card transactions are always rejected if there are not enough funds, because there is not enough time for the Margin Department to research other possible available funds.
(Underlines mine).

One way to get to the FAQs is from your CMA, select Manage Cash -> Account Services (to right of Cash Manager, bottom right) -> Learn More (below Direct Deposit) -> FAQs (bottom left).

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Re: Fidelity as a one stop shop

Post by spammagnet » Mon Jun 10, 2019 12:55 am

obafgkm wrote:
Sat Jun 08, 2019 8:22 pm
... I am considering closing all of these (except my local CU -- for the safe-deposit box, primarily) ...
Your CU can also serve the occasional need for notary services, including possibly medallion signatures, and it may be a source of rapid cash withdrawal using a Visa debit card drawn on your Fido CMA.

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Fee Reimbursment

Post by jbsmith05 » Mon Jun 10, 2019 6:12 am

On fidelity.com/cma it says that the atm fee is reimbursed the same day - is this actually true?

I used a bank of america atm yesterday (Sunday) and I see in my CMA account that I had a overdraft of $103 ($3 fee)...but I see no transaction listed crediting back that $3.


My CMA is like many others here - where it has $0 in it, but it's linked to a brokerage where it just overdrafts from every time a transaction is made...so I keep my money in SPAXX instead of the FDIC fund in the cma.

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Re: Fee Reimbursment

Post by snowman » Mon Jun 10, 2019 9:11 am

jbsmith05 wrote:
Mon Jun 10, 2019 6:12 am
On fidelity.com/cma it says that the atm fee is reimbursed the same day - is this actually true?
It's reimbursed next business day in my experience. So it should hit your account today, and you should see it posted tomorrow at the latest.

I also encourage you to chat online with Fidelity CS - they are outstanding and will answer any question you might have.

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Re: Fidelity as a one stop shop

Post by spammagnet » Mon Jun 10, 2019 10:02 pm

grp2c wrote:
Sat Jun 08, 2019 3:15 pm
Yes the purchase transaction will go through. Say you have 10k of SPAXX and 20k of SPRXX and you purchase 15K of SPRXX. Transaction is processed first by debiting SPAXX and then SPRXX and you end up with 30K of SPRXX.
I just got a notice from Fido that my order for $7K SPRXX went through, but my positions didn't change. Either my account doesn't reflect the update or they sold SPRXX to buy SPRXX.

I'll look again tomorrow.

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Re: Fee Reimbursment

Post by mptfan » Mon Jun 10, 2019 10:41 pm

snowman wrote:
Mon Jun 10, 2019 9:11 am
jbsmith05 wrote:
Mon Jun 10, 2019 6:12 am
On fidelity.com/cma it says that the atm fee is reimbursed the same day - is this actually true?
It's reimbursed next business day in my experience. So it should hit your account today, and you should see it posted tomorrow at the latest.
This is my experience as well.

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Re: Fee Reimbursment

Post by indexfundfan » Mon Jun 10, 2019 10:41 pm

jbsmith05 wrote:
Mon Jun 10, 2019 6:12 am
On fidelity.com/cma it says that the atm fee is reimbursed the same day - is this actually true?

I used a bank of america atm yesterday (Sunday) and I see in my CMA account that I had a overdraft of $103 ($3 fee)...but I see no transaction listed crediting back that $3.
My experience is that when you use the ATM card, there is an "overdraft" on the same business day, but the sale of the MMF to cover the overdraft happens on the next business day. On that same day, you will also receive a credit for the ATM fee.

In other words, you generally gain one more day of interest compared to if you use the ATM card from a bank.
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Re: Fidelity as a one stop shop

Post by spammagnet » Tue Jun 11, 2019 6:45 am

spammagnet wrote:
Mon Jun 10, 2019 10:02 pm
grp2c wrote:
Sat Jun 08, 2019 3:15 pm
Yes the purchase transaction will go through. Say you have 10k of SPAXX and 20k of SPRXX and you purchase 15K of SPRXX. Transaction is processed first by debiting SPAXX and then SPRXX and you end up with 30K of SPRXX.
I just got a notice from Fido that my order for $7K SPRXX went through, but my positions didn't change. Either my account doesn't reflect the update or they sold SPRXX to buy SPRXX.

I'll look again tomorrow.
Correction. I now have only SPRXX. It must have settled overnight.

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Re: Fidelity as a one stop shop

Post by ERguy101 » Tue Jun 11, 2019 7:21 am

I've been "full Fidelity" for a few months now. I couldn't be happier! Not a single hiccup.

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corn18
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Re: Fidelity as a one stop shop

Post by corn18 » Tue Jun 11, 2019 9:12 am

We made the switch of everything but credit card to FIDO a few months back and I love it. Earning 2.28% on my savings is a lot nicer than the .02% I was earning at USAA. We made the decision yesterday to stop using our USAA 2.5% cash back card and go with the FIDO 2% card. I stopped direct deposit to USAA and it was irritating me trying to find a simple way to get $1000 DD to USAA to get that extra 0.5% cash back. I went for simple.
Don't do something, just stand there!

NativeTxn
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Re: Fidelity as a one stop shop

Post by NativeTxn » Tue Jun 11, 2019 9:17 am

I'm considering trying to make Fido my one-stop shop in general. I'm slowly rolling out some tests to make sure that there would be no issues if I dive in completely.

I've got the following setup so far:

Joint - Brokerage (invest in a three fund portfolio with after-tax money)
Joint - CMA
Joint - MMF/Overdraft Brokerage (linked to the CMA to cover ATM and checks from CMA)
Roth IRA - Me
Roth IRA - Spouse
529 - Child 1
529 - Child 2
Rewards CC

The plan (should I choose to run out of Fido) is to have paycheck direct deposited into the MMF/Overdraft account and be swept into the SPAXX and that is the only holding in that account. Pay bills directly out of that account. Use the debit card attached to the CMA account for ATM withdrawals and use checks from the CMA account for the few times we need checks. And have the MMF/Overdraft account linked (which is already is) to the CMA to sell the MMF and move money automatically as needed.

I've set it up for a small amount from my next paycheck to be deposited to the MMF/Overdraft account to make sure that process works. Assuming it does (I have no reason to doubt it will), I'll then try pulling $20 from an ATM to (a) make sure that money is swept from the MMF/Overdraft account to cover the ATM withdrawal without issue, and (b) to see how quickly the ATM fee is reimbursed.

Then I'll run a couple of bill pays to make sure there are no issues there. I'll write a check from the CMA the next time our housekeeper comes to see if the sale/sweep from MMF/Overdraft to the CMA works when the check is cashed.

Should those things all go well, I'll move some more money into the MMF/Brokerage account to then set up an auto pay to our car, or student loan, or something that will be a pull from the account, rather than a push to see how that goes.

Assuming all goes well, I will likely make Fido the one-stop shop, while keeping my accounts at Legacy Texas that has a branch two minutes from our house for the odd occasion when I need to deposit cash or do something in a branch.

If it doesn't go smoothly, I'll still keep Fido as the main hub of investments outside of my 401k, but use Legacy Texas as the main checking and bill pay account since they offer free checking, reimburse unlimited ATM fees, and have B&M locations as needed.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Jun 11, 2019 10:27 am

NativeTxn wrote:
Tue Jun 11, 2019 9:17 am
I've got the following setup so far:

Joint - Brokerage (invest in a three fund portfolio with after-tax money)
Joint - CMA
Joint - MMF/Overdraft Brokerage (linked to the CMA to cover ATM and checks from CMA)
Roth IRA - Me
Roth IRA - Spouse
529 - Child 1
529 - Child 2
Rewards CC

The plan (should I choose to run out of Fido) is to have paycheck direct deposited into the MMF/Overdraft account and be swept into the SPAXX and that is the only holding in that account. Pay bills directly out of that account. Use the debit card attached to the CMA account for ATM withdrawals and use checks from the CMA account for the few times we need checks. And have the MMF/Overdraft account linked (which is already is) to the CMA to sell the MMF and move money automatically as needed.
Sounds like a great plan. We have all of the above except for the Rewards CC (but we'll likely sign up this year). Instead of SPAXX, we use FZFXX (Fidelity Treasury Money Market) for our CORE position and have a automatic investment into FDLXX (Fidelity Treasury Only Money Market) to save on state income taxes. Not a problem for you in Texas, though. :sharebeer

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Tue Jun 11, 2019 2:59 pm

mervinj7 wrote:
Tue Jun 11, 2019 10:27 am
Instead of SPAXX, we use FZFXX (Fidelity Treasury Money Market) for our CORE position and have a automatic investment into FDLXX (Fidelity Treasury Only Money Market) to save on state income taxes. Not a problem for you in Texas, though. :sharebeer
FDLXX makes sense to/for me at Fidelity, but not FZFXX. Strangely, with a name like Treasury Money Market, only 40.06% of FZFXX income was from US government obligations (USGO) in 2018, so this would qualify for 0% state tax exemption in CA, which requires at least 50% of income to be from US government securities. By contrast, SPAXX had 56.16% of income from USGO, so it works for CA (and CT and NY)--assuming they meet the 50% bar in 2019 as well. So I'm using SPAXX as my core position.

Even if your state allows exemption for income of less than 50%, be sure to calculate your taxable-equivalent yield (TEY), or if you prefer, after-tax yield (ATY), based on the estimated percentage of income from USGO.

Kevin
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mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Jun 11, 2019 3:37 pm

FDLXX makes sense to/for me at Fidelity, but not FZFXX. Strangely, with a name like Treasury Money Market, only 40.06% of FZFXX income was from US government obligations (USGO) in 2018, so this would qualify for 0% state tax exemption in CA, which requires at least 50% of income to be from US government securities. By contrast, SPAXX had 56.16% of income from USGO, so it works for CA (and CT and NY)--assuming they meet the 50% bar in 2019 as well. So I'm using SPAXX as my core position.
Kevin
[/quote]

Kevin, great advice as usual. I'm in CA. We keep our EF in auto-rolling 6 month Treasury bills and FDLXX for the majority of our "cash". However, there will always be some cash in CORE with incoming withdrawals before it is transferred to FDLXX, used to pay bills, or for automatic investments. Based on your analysis above and 2018 tax data, I should keep my CORE position as SPAXX since it meets the 50% bar for CA.

https://www.fidelity.com/bin-public/060 ... 18-gse.pdf

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Tue Jun 11, 2019 4:44 pm

mervinj7 wrote:
Tue Jun 11, 2019 3:37 pm
Kevin, great advice as usual. I'm in CA. We keep our EF in auto-rolling 6 month Treasury bills and FDLXX for the majority of our "cash". However, there will always be some cash in CORE with incoming withdrawals before it is transferred to FDLXX, used to pay bills, or for automatic investments. Based on your analysis above and 2018 tax data, I should keep my CORE position as SPAXX since it meets the 50% bar for CA.

https://www.fidelity.com/bin-public/060 ... 18-gse.pdf
My largest credit card bill is paid on the 10th, and I'll fund the Fidelity "cash management" brokerage account (not CMA) early in the month, so I probably will keep less than $3000 on average in my cash management brokerage account at Fidelity. At my expected marginal tax rates of 27% federal and 8% state, I figure I would make $0.10 more per month after tax if I were able to keep $3K mostly in FDLXX rather than SPAXX. So I figure the simplicity of just keeping it in SPAXX is worth it.

By contrast, if I keep $50K of cash in Vanguard Treasury MM, VUSXX, I figure I'll make $10.21 more per month after tax compared to FDLXX. This is an example of why I wouldn't use Fidelity as a one-stop shop. The expense ratios on Fidelity's MM funds are about 5 times as high as Vanguard's, so until they lower the ERs, they just aren't competitive with Vanguard. It only takes a few minutes to do a monthly transfer from Vanguard to Fidelity (and I'm only doing that because Vanguard is discontinuing its Vanguard Advantage Accounts at the end of July).

Ditto for Vanguard bond fund ERs vs. Fidelity bond fund ERs, although if you want to mess around with ETFs, you can do OK at Fidelity I guess.

Kevin
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engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Wed Jun 12, 2019 10:45 am

hi everyone, been following this thread closely and have recently setup a CMA with a brokerage account with Fidelity.

I have $0 in my CMA with auto OD setup to the brokerage account, parked in SPAXX.

just wanted to know people's experience in ATM fee reimbursements internationally versus domestically, and how your experience went.

I also wanted to know how long it took for direct deposits from your employers to hit your brokerage account (or CMA account, if there is a difference in processing time), is it usually a day quicker than most paychecks hitting banks on Friday when employers pay on that Wednesday?

thanks!

Spirit Rider
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Re: Fidelity as a one stop shop

Post by Spirit Rider » Wed Jun 12, 2019 11:40 am

Fidelity's CMA institutes no ACH delays. My paychecks always arrived one day before the pay date. Transfer requests before 4:00pm ET are always in my credit union the next business day morning.

lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 » Wed Jun 12, 2019 11:53 am

engineerbme wrote:
Wed Jun 12, 2019 10:45 am
I also wanted to know how long it took for direct deposits from your employers to hit your brokerage account (or CMA account, if there is a difference in processing time), is it usually a day quicker than most paychecks hitting banks on Friday when employers pay on that Wednesday?
Somewhat off-topic for this but I completely disagree with your "most paychecks" statement above. Between three different employers between my wife and me, ACH deposits have always shown up on the scheduled payday at both a bank and a credit union. All initiate the transaction in sufficient time for it to occur on the scheduled day. With the credit union, I usually see it as a future transaction the day before and it then deposits and becomes available very early in the morning on the scheduled day. If you're seeing a delay between scheduled payday and ACH deposit, the problem is with your employer, not the financial institution.

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8foot7
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Re: Fidelity as a one stop shop

Post by 8foot7 » Wed Jun 12, 2019 12:01 pm

My biweekly paycheck is memo posted and available for trading and withdrawal in my Fidelity brokerage account on Thursdays at 7:30 am, a day before our “scheduled” payday on Friday.

lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 » Wed Jun 12, 2019 12:15 pm

8foot7 wrote:
Wed Jun 12, 2019 12:01 pm
My biweekly paycheck is memo posted and available for trading and withdrawal in my Fidelity brokerage account on Thursdays at 7:30 am, a day before our “scheduled” payday on Friday.
I'm surprised Fidelity lets you at the funds a day early. As I mentioned above, I see them at my credit union as a future transaction but funds are not available as the credit union honors the scheduled transaction date (by the same token, I will see some ACH withdrawals as future as well but they don't actually get deducted until the scheduled day).

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Wed Jun 12, 2019 12:19 pm

lstone19 wrote:
Wed Jun 12, 2019 11:53 am
engineerbme wrote:
Wed Jun 12, 2019 10:45 am
I also wanted to know how long it took for direct deposits from your employers to hit your brokerage account (or CMA account, if there is a difference in processing time), is it usually a day quicker than most paychecks hitting banks on Friday when employers pay on that Wednesday?
Somewhat off-topic for this but I completely disagree with your "most paychecks" statement above. Between three different employers between my wife and me, ACH deposits have always shown up on the scheduled payday at both a bank and a credit union. All initiate the transaction in sufficient time for it to occur on the scheduled day. With the credit union, I usually see it as a future transaction the day before and it then deposits and becomes available very early in the morning on the scheduled day. If you're seeing a delay between scheduled payday and ACH deposit, the problem is with your employer, not the financial institution.
well the bank you have is not what I deemed as most banks, go with bank of america, chase, capital one, etc. and scheduled pay days are always Fridays, never seen pay show up on Thursdays, and you can ask millions of Americans on a poll when they see they biweekly paycheck show up, and i bet you most will say Fridays...good for your credit union and local bank

lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 » Wed Jun 12, 2019 12:57 pm

engineerbme wrote:
Wed Jun 12, 2019 12:19 pm
well the bank you have is not what I deemed as most banks, go with bank of america, chase, capital one, etc. and scheduled pay days are always Fridays, never seen pay show up on Thursdays, and you can ask millions of Americans on a poll when they see they biweekly paycheck show up, and i bet you most will say Fridays...good for your credit union and local bank
The bank I'm referencing is on your list - Bank of America.

I'm really not sure what your point is - from my experience, most businesses that pay weekly or bi-weekly do so on Friday. So it would be no surprise that most people say they get paid on Friday. Perhaps you are confusing the day a company makes pay stubs available (once my full-time employer went to direct deposit, pay stubs showed up on the internal website 3 to 4 days ahead of the scheduled pay day) or when the end of the pay period is and the scheduled date of payment. All I can say is across multiple banks and multiple periodic payers (three employers and two pension payers), payments have always shown up and been available for withdrawal on the scheduled date.

Anyway, this is drifting seriously off-topic so I'm done with it other than that it seems Fidelity does not honor the transaction date of an ACH and will post pushed deposits early. I wonder, though, if that means they will also post ACH pulled withdrawals early. That would not be good if it causes an overdraft.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Wed Jun 12, 2019 1:06 pm

lstone19 wrote:
Wed Jun 12, 2019 12:57 pm
I wonder, though, if that means they will also post ACH pulled withdrawals early. That would not be good if it causes an overdraft.
I've never seen that happen.

Kevin
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