Fidelity as a one stop shop

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LadyGeek
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Re: Fidelity as a one stop shop

Post by LadyGeek »

FYI - We now have a similar discussion for Schwab. See: Schwab as a one stop shop
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Re: Fidelity as a one stop shop

Post by BUBear29 »

I just decided today to consolidate everything to Fidelity. Will be leaving Vanguard and moving over rira’s, 529’s and taxable accounts. Since I use the CMA and am index investor, it makes sense to have everything in one place. It will be a hassle though, I’m sure.

If anyone has any advice on how to transfer assets smoothly to Fidelity - would be appreciated.
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Re: Fidelity as a one stop shop

Post by aj76er »

BUBear29 wrote: Wed Aug 07, 2019 5:56 pm I just decided today to consolidate everything to Fidelity. Will be leaving Vanguard and moving over rira’s, 529’s and taxable accounts. Since I use the CMA and am index investor, it makes sense to have everything in one place. It will be a hassle though, I’m sure.

If anyone has any advice on how to transfer assets smoothly to Fidelity - would be appreciated.
If you hold Admiral mutual fund shares, you can convert in kind to ETFs at Vanguard prior to the transfer. No tax hit and no fees, except for any fractional shares, which should be minor. To my knowledge Admiral shares cant be held at Fido?
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Re: Fidelity as a one stop shop

Post by stlutz »

aj76er wrote: Wed Aug 07, 2019 6:45 pm
BUBear29 wrote: Wed Aug 07, 2019 5:56 pm I just decided today to consolidate everything to Fidelity. Will be leaving Vanguard and moving over rira’s, 529’s and taxable accounts. Since I use the CMA and am index investor, it makes sense to have everything in one place. It will be a hassle though, I’m sure.

If anyone has any advice on how to transfer assets smoothly to Fidelity - would be appreciated.
If you hold Admiral mutual fund shares, you can convert in kind to ETFs at Vanguard prior to the transfer. No tax hit and no fees, except for any fractional shares, which should be minor. To my knowledge Admiral shares cant be held at Fido?
With the elimination of the investor class of shares you can now transfer Admiral share funds to Fidelity without converting them to ETFs. Obviously you wouldn't pay $75 to buy more of such shares but you can hold and sell at no cost.
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Re: Fidelity as a one stop shop

Post by HMdocinPA »

Fidelity will give you a bunch of free trades if you move your accounts over to them, just do the online chat with a rep. You can then sell the vanguard ETFs without any fees. I’ve moved 3 accounts to fidelity from Vanguard, all online without any paperwork to print or mail, very seamless.
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Re: Fidelity as a one stop shop

Post by indexfundfan »

I thought I would mention here that Fidelity has improved the yield of the FDIC Insured automatic sweep option in their CMA. Its current yield is 1.08% APY. While this is low compared to money market funds, it is six times that at Schwab.

If you use a brokerage account instead of the CMA at Fidelity, you can use their MMFs for the automatic sweep option. The current yields are around 2%.

For comparison, the automatic bank sweep feature (the only option available) in Schwab's brokerage account (Schwab One) is currently 0.18% (for cash amounts up to $1m).
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Re: Fidelity as a one stop shop

Post by daca »

arf30 wrote: Thu Aug 01, 2019 7:13 am Although I use the CMA because I prefer having 1 month of expenses in FDIC, the interest you'll make by using the brokerage instead would probably more than offset any ATM fees redunded by the CMA.
All you have to do is buy SPRXX in your CMA to enjoy both the ATM fee refunds and the higher interest rate. SPRXX gets auto-redeemed just like SPAXX.
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Re: Fidelity as a one stop shop

Post by mhalley »

I recently switched my banking and I want to double check to make sure I have this right. I don’t have to keep any money at all in the Fidelity CMA settlement fund, sprxx will work fine and bill pay and atm withdrawals will continue to function? I have been manually moving funds thus far when the sweep gets low.
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Re: Fidelity as a one stop shop

Post by mervinj7 »

mhalley wrote: Wed Aug 07, 2019 10:11 pm I recently switched my banking and I want to double check to make sure I have this right. I don’t have to keep any money at all in the Fidelity CMA settlement fund, sprxx will work fine and bill pay and atm withdrawals will continue to function? I have been manually moving funds thus far when the sweep gets low.
Yep, your life just got a tad bit simpler.
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Re: Fidelity as a one stop shop

Post by mhalley »

:sharebeer
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Re: Fidelity as a one stop shop

Post by jpsfranks »

I had something new (at least for me) happen today. I transferred some money from an Ally online savings account to my Fidelity CMA account (a push from Ally to Fidelity). In my Fidelity CMA account I have an existing balance in FZDXX (a money market fund), no money in the core position (the core position shows as unfunded), and no other positions. Somehow the transferred money seemed to automatically go into FZDXX. That has never happened before, typically it goes into the core FDIC sweep position rather than the money market fund and I periodically manually purchase FZDXX with newly deposited money.

I initiated some additional small trial transfers from Ally and another outside checking account to see if this repeats today. Has anyone else experienced this?
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Re: Fidelity as a one stop shop

Post by indexfundfan »

jpsfranks wrote: Thu Aug 08, 2019 11:09 am I had something new (at least for me) happen today. I transferred some money from an Ally online savings account to my Fidelity CMA account (a push from Ally to Fidelity). In my Fidelity CMA account I have an existing balance in FZDXX (a money market fund), no money in the core position (the core position shows as unfunded), and no other positions. Somehow the transferred money seemed to automatically go into FZDXX. That has never happened before, typically it goes into the core FDIC sweep position rather than the money market fund and I periodically manually purchase FZDXX with newly deposited money.

I initiated some additional small trial transfers from Ally and another outside checking account to see if this repeats today. Has anyone else experienced this?
That's very interesting. I haven't seen this, but I am using the brokerage side with a zero SPAXX core and the non-zero FZDXX holding. I saw an incoming credit went into SPAXX last week.
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Re: Fidelity as a one stop shop

Post by nura »

jbranx wrote: Sat Dec 15, 2018 10:17 pm Fidelity advantages:

index funds as cheap or cheaper than Vanguard for most asset classes; three "zero" cost index funds;
Fidelity have no where near the number of index funds Vanguard has.
Furthermore, you will not find low cost active funds like Wesley or Wellington with ER <0.25. Heck, Fidelity money market fund has a ER of 0.45.
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Re: Fidelity as a one stop shop

Post by engineerbme »

jpsfranks wrote: Thu Aug 08, 2019 11:09 am I had something new (at least for me) happen today. I transferred some money from an Ally online savings account to my Fidelity CMA account (a push from Ally to Fidelity). In my Fidelity CMA account I have an existing balance in FZDXX (a money market fund), no money in the core position (the core position shows as unfunded), and no other positions. Somehow the transferred money seemed to automatically go into FZDXX. That has never happened before, typically it goes into the core FDIC sweep position rather than the money market fund and I periodically manually purchase FZDXX with newly deposited money.

I initiated some additional small trial transfers from Ally and another outside checking account to see if this repeats today. Has anyone else experienced this?
nope never seen this happen to myself personally in my brokerage account, I wish this would happen! :P
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Re: Fidelity as a one stop shop

Post by BUBear29 »

nura wrote: Thu Aug 08, 2019 2:03 pm
jbranx wrote: Sat Dec 15, 2018 10:17 pm Fidelity advantages:

index funds as cheap or cheaper than Vanguard for most asset classes; three "zero" cost index funds;
Fidelity have no where near the number of index funds Vanguard has.
Furthermore, you will not find low cost active funds like Wesley or Wellington with ER <0.25. Heck, Fidelity money market fund has a ER of 0.45.
I am using the 3 fund approach, and I imagine many here do as well. So the number of index funds is no matter.

Also, the ER is not important but the total yield. You will see it slightly lower at Fidelity still but the amount is immaterial.

I am leaving Vanguard to 1) consolidate all holdings ton1 institution but also 2) to avoid having to deal with incompetent phone system and csr’s. I used to love Vanguard but Fidelity has caught up.
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Re: Fidelity as a one stop shop

Post by Spirit Rider »

nura wrote: Thu Aug 08, 2019 2:03 pm Fidelity have no where near the number of index funds Vanguard has.
Fidelity has over 30 index funds. You would be hard pressed to find an asset class that Fidelity does not provide an index fund.

I suppose you could claim individual state munis, but not only are they of limited value. Active mutual funds of Individual state munis from many fund companies tend to out perform the indexes.
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Re: Fidelity as a one stop shop

Post by mervinj7 »

Spirit Rider wrote: Thu Aug 08, 2019 3:35 pm
nura wrote: Thu Aug 08, 2019 2:03 pm Fidelity have no where near the number of index funds Vanguard has.
Fidelity has over 30 index funds. You would be hard pressed to find an asset class that Fidelity does not provide an index fund.

I suppose you could claim individual state munis, but not only are they of limited value. Active mutual funds of Individual state munis from many fund companies tend to out perform the indexes.
Here's the link to Fidelity Index Funds for those who are interested.
https://www.fidelity.com/mutual-funds/i ... ndex-funds

There are also 329 Commission-free iShares ETFs for most categories not included above. For most 3-fund and slice-dice portfolios, it covers the bases. And if you really need a specific Vanguard ETF, the trading cost is $4.95.
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Re: Fidelity as a one stop shop

Post by BUBear29 »

Curious what funds people hold at fidelity for 3 fund. Since I will have my taxable account there. I am think across all my accounts that I will use:

ITOT for total stock market
FTIHX for total intl
FXNAX for bonds


Thoughts?
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Re: Fidelity as a one stop shop

Post by indexfundfan »

BUBear29 wrote: Thu Aug 08, 2019 5:23 pm Curious what funds people hold at fidelity for 3 fund. Since I will have my taxable account there. I am think across all my accounts that I will use:

ITOT for total stock market
FTIHX for total intl
FXNAX for bonds


Thoughts?
While I am currently only using the banking services on Fidelity, my preference is to use ETFs in the taxable account, for ease of transfer in the future if necessary. But for tax-deferred account, I have no qualms using Fidelity's index mutual funds.

IXUS and AGG are the equivalent ETFs that trade commission free on Fidelity.
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Re: Fidelity as a one stop shop

Post by sarabayo »

BUBear29 wrote: Thu Aug 08, 2019 5:23 pm Curious what funds people hold at fidelity for 3 fund. Since I will have my taxable account there. I am think across all my accounts that I will use:

ITOT for total stock market
FTIHX for total intl
FXNAX for bonds


Thoughts?
In a taxable account you shouldn't use non-Vanguard mutual funds because they can't avoid distributing capital gains like Vanguard's MFs can. Use ETFs instead. I'd use:

ITOT for total US stock market
IXUS for total international stock market
AGG for total US bond market

These are all free to trade at Fidelity. If you can persuade Fidelity to give you some free trades for moving money in, then you could also consider the Vanguard version of the above, which would be VTI, VXUS, and BND respectively.
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Re: Fidelity as a one stop shop

Post by BUBear29 »

sarabayo wrote: Thu Aug 08, 2019 5:57 pm
BUBear29 wrote: Thu Aug 08, 2019 5:23 pm Curious what funds people hold at fidelity for 3 fund. Since I will have my taxable account there. I am think across all my accounts that I will use:

ITOT for total stock market
FTIHX for total intl
FXNAX for bonds


Thoughts?
In a taxable account you shouldn't use non-Vanguard mutual funds because they can't avoid distributing capital gains like Vanguard's MFs can. Use ETFs instead. I'd use:

ITOT for total US stock market
IXUS for total international stock market
AGG for total US bond market

These are all free to trade at Fidelity. If you can persuade Fidelity to give you some free trades for moving money in, then you could also consider the Vanguard version of the above, which would be VTI, VXUS, and BND respectively.
Correct! I have only total stock in my taxable currently hence the ITOT. Fidelity is going to give me 500 free trafes over two years so i may convert my current vangaurd total stock to VTI and continue to buy VTI after i transfer tk Fido
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Re: Fidelity as a one stop shop

Post by Ferdinand2014 »

nura wrote: Thu Aug 08, 2019 2:03 pm
jbranx wrote: Sat Dec 15, 2018 10:17 pm Fidelity advantages:

index funds as cheap or cheaper than Vanguard for most asset classes; three "zero" cost index funds;
Fidelity have no where near the number of index funds Vanguard has.
Furthermore, you will not find low cost active funds like Wesley or Wellington with ER <0.25. Heck, Fidelity money market fund has a ER of 0.45.
Correct. Fidelity has more. Fidelity has 58 index funds. Vanguard has 48.
I keep 4 week T-bills on auto roll instead of money market for $0.
Either way, been with Fidelity for 22 years. Very happy. You can’t go wrong with either.
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Re: Fidelity as a one stop shop

Post by nura »

Ferdinand2014 wrote: Thu Aug 08, 2019 6:42 pm Correct. Fidelity has more. Fidelity has 58 index funds. Vanguard has 48.
I am looking for following equivalent Fidelity index funds which I currently have with Vanguard:
  • VDADX Dividend Appreciation Index
  • VCT Corporate Bond Index
And low E/R (<0.25) active funds:
  • VTMFX Tax Managed Balanced
  • VMVFX Global Minimum Volatility
I have looked at Fidelity and Schwab, have not found anything close.
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Re: Fidelity as a one stop shop

Post by tj »

nura wrote: Thu Aug 08, 2019 10:48 pm
Ferdinand2014 wrote: Thu Aug 08, 2019 6:42 pm Correct. Fidelity has more. Fidelity has 58 index funds. Vanguard has 48.
I am looking for following equivalent Fidelity index funds which I currently have with Vanguard:
  • VDADX Dividend Appreciation Index
  • VCT Corporate Bond Index
And low E/R (<0.25) active funds:
  • VTMFX Tax Managed Balanced
  • VMVFX Global Minimum Volatility
I have looked at Fidelity and Schwab, have not found anything close.
You mean VTC? The total corporate bond index?
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Re: Fidelity as a one stop shop

Post by nura »

Yes, VTC
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Re: Fidelity as a one stop shop

Post by tj »

nura wrote: Fri Aug 09, 2019 1:04 amYes, VTC
That VTC ETF only has $151 million in total assets, so I'd say that's pretty niche.

In comparison, Vanguard Intermediate Term Investment Grade has $30 billion and Vanguard Total Bond Market has $229 billion.

If Vanguard was bringing in a lot of assets for that fund, perhaps you'd see more of the competitors launching a similar fund...

In any event, you can buy VTC (and VIG) at Fidelity with a very low trading fee.
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Re: Fidelity as a one stop shop

Post by BUBear29 »

stlutz wrote: Wed Aug 07, 2019 7:12 pm
aj76er wrote: Wed Aug 07, 2019 6:45 pm
BUBear29 wrote: Wed Aug 07, 2019 5:56 pm I just decided today to consolidate everything to Fidelity. Will be leaving Vanguard and moving over rira’s, 529’s and taxable accounts. Since I use the CMA and am index investor, it makes sense to have everything in one place. It will be a hassle though, I’m sure.

If anyone has any advice on how to transfer assets smoothly to Fidelity - would be appreciated.
If you hold Admiral mutual fund shares, you can convert in kind to ETFs at Vanguard prior to the transfer. No tax hit and no fees, except for any fractional shares, which should be minor. To my knowledge Admiral shares cant be held at Fido?
With the elimination of the investor class of shares you can now transfer Admiral share funds to Fidelity without converting them to ETFs. Obviously you wouldn't pay $75 to buy more of such shares but you can hold and sell at no cost.
Fidelity just confirmed that my Admiral shares can transfer without conversion! Thanks!

Now to decide if I keep them in my roth or exchange for ishares......
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Re: Fidelity as a one stop shop

Post by mervinj7 »

nura wrote: Fri Aug 09, 2019 1:04 amYes, VTC
For a VTC alternative, check out USIG from iShares. It should track very closely but has 10x the daily volume, and is commission-free at Fidelity. I'm not familiar enough with VIG to know what it tracks.
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Re: Fidelity as a one stop shop

Post by tj »

mervinj7 wrote: Fri Aug 09, 2019 12:31 pm
nura wrote: Fri Aug 09, 2019 1:04 amYes, VTC
For a VTC alternative, check out USIG from iShares. It should track very closely but has 10x the daily volume, and is commission-free at Fidelity. I'm not familiar enough with VIG to know what it tracks.
It's the Vanguard Dividend Appreciation Index. DGRO would be iShares version.
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Re: Fidelity as a one stop shop

Post by aj76er »

BUBear29 wrote: Thu Aug 08, 2019 5:23 pm Curious what funds people hold at fidelity for 3 fund. Since I will have my taxable account there. I am think across all my accounts that I will use:

ITOT for total stock market
FTIHX for total intl
FXNAX for bonds


Thoughts?
I use VTI and IXUS in my taxable at Fido. IXUS is way more tax efficient than VXUS. I think ITOT is fine too, but I prefer Vanguard’s products unless there’s a good reason not to use them. In my tax sheltered I use Fido’s S&P500 index fund, which is one of the largest S&P500 index funds by AUM, and a rock bottom 2.5bps. All my bonds are in 401k and Ibonds.
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Re: Fidelity as a one stop shop

Post by addicoe »

So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
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Re: Fidelity as a one stop shop

Post by Gadget »

addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). .... Is that expected? That was one of the main reasons I was going to use Fidelity.
I can't answer why yours isn't working, but I do that all the time and it works as expected.
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Re: Fidelity as a one stop shop

Post by arf30 »

addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
This has happened to me before on a holiday weekend, I now just use the CMA only.
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Re: Fidelity as a one stop shop

Post by engineerbme »

addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
i just did this today at a bank and had no issues pulling overdraft on my CMA to pull funds
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Re: Fidelity as a one stop shop

Post by TheJoelfather »

arf30 wrote: Sat Aug 10, 2019 4:53 pm
addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
This has happened to me before on a holiday weekend, I now just use the CMA only.
Although not discussed as much in this thread, it makes more sense to me to use an Investment account for all electronic auto-debits and auto-credits, and limit the CMA to checks and ATMs. There's no limit to the number of transactions in Investment accounts like there is in traditional savings accounts.

This way, just keep your emergency fund in FZDXX or SPAXX or your favorite MM position in your CMA, and no overdraft is needed and there will be a zero core position balance in your CMA at all times. Best of all worlds.
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Re: Fidelity as a one stop shop

Post by aj76er »

TheJoelfather wrote: Sat Aug 10, 2019 8:43 pm
arf30 wrote: Sat Aug 10, 2019 4:53 pm
addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
This has happened to me before on a holiday weekend, I now just use the CMA only.
Although not discussed as much in this thread, it makes more sense to me to use an Investment account for all electronic auto-debits and auto-credits, and limit the CMA to checks and ATMs. There's no limit to the number of transactions in Investment accounts like there is in traditional savings accounts.

This way, just keep your emergency fund in FZDXX or SPAXX or your favorite MM position in your CMA, and no overdraft is needed and there will be a zero core position balance in your CMA at all times. Best of all worlds.
After reports of issues with overdraft, I now use the min balance feature to auto transfer money to the CMA, just enough to keep it topped off at my monthly cash-only expenses +$500 for atm withdrawals. My cash-only experience are very predictable (rent + utilities), and the ATM has a daily max limit of $500 so I really don’t need to keep more than that in the CMA at any one time. Then I use a Brokeridge to auto deposit all of my paychecks and dividends from which I auto-pay credit cards.

I’ve been using the system above for a few months with no issues and it’s totally automated and hands-off. I have lots of alerts set up, including daily balance emails and I login maybe once a week just to look over everything. So far I’m very pleased with Fido was a one stop shop :-)
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Re: Fidelity as a one stop shop

Post by BUBear29 »

addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
I read issues with this from others. So what i decided to do was maintain $500 (daily atm limit) in my cma and only use it for atm. I setup auto-replenish (minimum amount of $250 i believe) when the balance drops below $500. So the max that will ever be in the cma is $750. I use brokerage account as main account and for checking purposes. this setup has worked very well for me
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Re: Fidelity as a one stop shop

Post by BUBear29 »

aj76er wrote: Sat Aug 10, 2019 9:57 pm
TheJoelfather wrote: Sat Aug 10, 2019 8:43 pm
arf30 wrote: Sat Aug 10, 2019 4:53 pm
addicoe wrote: Sat Aug 10, 2019 4:18 pm So I ran into a snag today (Saturday). I went to a bank of america ATM to withdraw some cash from my CMA (which has overdraft turned on and $0 in it), but the transaction was declined due to insufficient funds. So it did not automatically overdraft any cash into the CMA from the investment account. Is that expected? That was one of the main reasons I was going to use Fidelity.
This has happened to me before on a holiday weekend, I now just use the CMA only.
Although not discussed as much in this thread, it makes more sense to me to use an Investment account for all electronic auto-debits and auto-credits, and limit the CMA to checks and ATMs. There's no limit to the number of transactions in Investment accounts like there is in traditional savings accounts.

This way, just keep your emergency fund in FZDXX or SPAXX or your favorite MM position in your CMA, and no overdraft is needed and there will be a zero core position balance in your CMA at all times. Best of all worlds.
After reports of issues with overdraft, I now use the min balance feature to auto transfer money to the CMA, just enough to keep it topped off at my monthly cash-only expenses +$500 for atm withdrawals. My cash-only experience are very predictable (rent + utilities), and the ATM has a daily max limit of $500 so I really don’t need to keep more than that in the CMA at any one time. Then I use a Brokeridge to auto deposit all of my paychecks and dividends from which I auto-pay credit cards.

I’ve been using the system above for a few months with no issues and it’s totally automated and hands-off. I have lots of alerts set up, including daily balance emails and I login maybe once a week just to look over everything. So far I’m very pleased with Fido was a one stop shop :-)
jinx
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.
rich126
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Re: Fidelity as a one stop shop

Post by rich126 »

I’ve just been exploring Fidelity. Initially due to my new job where my 401K and HSA is at Fidelity. I’m also transferring in money from a recent house sale. Depending on the rates I will either use CDs or t-bills and auto roll them since I plan to use the money in retirement in about 4 years.

Being new to fidelity I’m still trying to get use to the website and the types of accounts. It seems confusing that my individual taxable account is actually two accounts - cash managed account and a brokerage account. Yet the support people told me I could trade from either one. I’m not sure I will be using the bill paying anytime soon.

I will say I’ve found the support people at fidelity to be very helpful and friendly.
lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 »

rich126 wrote: Sun Aug 11, 2019 12:23 am Being new to fidelity I’m still trying to get use to the website and the types of accounts. It seems confusing that my individual taxable account is actually two accounts - cash managed account and a brokerage account. Yet the support people told me I could trade from either one. I’m not sure I will be using the bill paying anytime soon.
I'm not sure what you mean by it being two accounts. Are you seeing two different account numbers? If so, it sounds like you opened two different accounts.
vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps »

rich126 wrote: Sun Aug 11, 2019 12:23 am It seems confusing that my individual taxable account is actually two accounts - cash managed account and a brokerage account. Yet the support people told me I could trade from either one. I’m not sure I will be using the bill paying anytime soon.
The CMA is a special type of brokerage account where the sweep is an FDIC insured checking account. There is no margin on the CMA account. The bill paying service on the CMA is excellent. You can link the two accounts so that if you overdraw the CMA, Fidelity will sell a MM fund in your regular brokerage account to cover the overdraw.

You do not need to link the two accounts for overdraft protection... you can buy any Fidelity MM fund in your CMA, and if you overdraw the FDIC sweep Fidelity will sell some of the MM fund in the CMA account.

--vtMaps
Historical Fact: Justin Smith Morrill represented Vermont in congress, had a dog named 'Trump', and wrote legislation establishing the Land Grant Colleges.
rich126
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Re: Fidelity as a one stop shop

Post by rich126 »

lstone19 wrote: Sun Aug 11, 2019 7:14 am
rich126 wrote: Sun Aug 11, 2019 12:23 am Being new to fidelity I’m still trying to get use to the website and the types of accounts. It seems confusing that my individual taxable account is actually two accounts - cash managed account and a brokerage account. Yet the support people told me I could trade from either one. I’m not sure I will be using the bill paying anytime soon.
I'm not sure what you mean by it being two accounts. Are you seeing two different account numbers? If so, it sounds like you opened two different accounts.
Yup, two different account numbers. I called to see if I should cancel one but the guy said no. As vtMaps mentioned one is a CMA.
lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 »

rich126 wrote: Sun Aug 11, 2019 12:56 pm Yup, two different account numbers. I called to see if I should cancel one but the guy said no. As vtMaps mentioned one is a CMA.
I''ve never had a CMA at Fidelity but our taxable brokerage accounts all have single account numbers. Any cash we hold in an account is in the account's core position, not a separate CMA. It sounds like somehow you opened two different accounts - a regular brokerage account and a CMA.
vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps »

lstone19 wrote: Sun Aug 11, 2019 11:11 pm I''ve never had a CMA at Fidelity but our taxable brokerage accounts all have single account numbers. Any cash we hold in an account is in the account's core position, not a separate CMA. It sounds like somehow you opened two different accounts - a regular brokerage account and a CMA.
The CMA has features that the regular brokerage does not. Also, there are good reasons to have the two accounts unlinked (for overdrafts). Use the unlinked CMA for checks, debits, and transfers to other banks. If there is fraud, the bad guys can only empty the CMA. You can link the CMA to your regular brokerage account, but then fraud on the CMA could empty the cash positions in your regular brokerage.

--vtMaps
Historical Fact: Justin Smith Morrill represented Vermont in congress, had a dog named 'Trump', and wrote legislation establishing the Land Grant Colleges.
lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 »

vtMaps wrote: Mon Aug 12, 2019 8:46 am The CMA has features that the regular brokerage does not.
Can you elaborate on those additional features? The only one I know about is reimbursed ATM fees and I get that on my Fidelity brokerage account due to our total assets with them. So having looked at the Fidelity CMA, I've never seen a compelling reason for it for our situation.
arf30
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Re: Fidelity as a one stop shop

Post by arf30 »

lstone19 wrote: Mon Aug 12, 2019 8:58 am
vtMaps wrote: Mon Aug 12, 2019 8:46 am The CMA has features that the regular brokerage does not.
Can you elaborate on those additional features? The only one I know about is reimbursed ATM fees and I get that on my Fidelity brokerage account due to our total assets with them. So having looked at the Fidelity CMA, I've never seen a compelling reason for it for our situation.
Minor differences - the CMA also has FDIC insurance, the cash manager tool, and it shows up as a checking account in aggregation tools like Mint/Personal Capital instead of a brokerage.
rich126
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Re: Fidelity as a one stop shop

Post by rich126 »

Apparently one account number starts with an "X" (cash account) and the other "Z" (brokerage).

According to the web site (and this backs up what the phone rep was telling me) -
The Fidelity® Cash Management Account is intended to complement, not replace, your existing brokerage account. It lets you separate your spending activity from your investment activity.
And
Yes, the cash balance in the Fidelity® Cash Management Account is swept into an FDIC-insured interest-bearing account at one or more program banks.
While this page (https://www.fidelity.com/cash-managemen ... management) compares the two accounts, it implies some things can only be done in one account or the other which conflicts with what I was told over the phone, hence some of my confusion.

In my case it doesn't matter a whole lot right now since the prime purpose of the account was to hold part of the proceeds from my house sale and invest in CDs and T-bills (with the auto roll option) since I plan to use the money in about 4 years to fund the early part of my retirement and probably defer social security a few years.

I did find out that while it is an easy check mark box to select auto rolling of T-bills, in order to turn it off you have to call in a few weeks before it is due to roll over. The fixed income guy said they are working on an online solution (not sure why the obvious, uncheck the box doesn't work).
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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M »

rich126 wrote: Mon Aug 12, 2019 10:37 am I did find out that while it is an easy check mark box to select auto rolling of T-bills, in order to turn it off you have to call in a few weeks before it is due to roll over. The fixed income guy said they are working on an online solution (not sure why the obvious, uncheck the box doesn't work).
Or you can just cancel the order that's placed to buy the Treasury to be rolled into, which will be placed a few days before your existing Treasury matures. Fidelity sends an email alerting you when the Treasury is close to auto roll time, and you can look at the Treasury auction schedule to see when the auction starts, which is about when the order will be placed at Fidelity.

Kevin
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engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme »

with interest rates dropping and SPRXX now yielding 1.95%, where are people parking their cash funds into for their brokerage accounts and CMA (not asking about the admiral $100k investment mins), TIA!
zrail
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Re: Fidelity as a one stop shop

Post by zrail »

engineerbme wrote: Tue Aug 13, 2019 10:35 am with interest rates dropping and SPRXX now yielding 1.95%, where are people parking their cash funds into for their brokerage accounts and CMA (not asking about the admiral $100k investment mins), TIA!
My plan hasn’t changed based on a 10 bps rate drop. Everything is still in our brokerage core (FZFXX) and that’s likely where it will remain.
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