Fidelity as a one stop shop

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mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Fri Aug 09, 2019 12:31 pm

nura wrote:
Fri Aug 09, 2019 1:04 am
Yes, 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.

tj
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Re: Fidelity as a one stop shop

Post by tj » Fri Aug 09, 2019 3:28 pm

mervinj7 wrote:
Fri Aug 09, 2019 12:31 pm
nura wrote:
Fri Aug 09, 2019 1:04 am
Yes, 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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aj76er
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Re: Fidelity as a one stop shop

Post by aj76er » Sat Aug 10, 2019 9:34 am

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.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

addicoe
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Re: Fidelity as a one stop shop

Post by addicoe » 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.

Gadget
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Re: Fidelity as a one stop shop

Post by Gadget » Sat Aug 10, 2019 4:43 pm

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.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » 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.

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Sat Aug 10, 2019 5:56 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.
i just did this today at a bank and had no issues pulling overdraft on my CMA to pull funds

TheJoelfather
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Re: Fidelity as a one stop shop

Post by TheJoelfather » 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.

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aj76er
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Re: Fidelity as a one stop shop

Post by aj76er » 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 :-)
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Sat Aug 10, 2019 10:16 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.
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
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

BUBear29
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Re: Fidelity as a one stop shop

Post by BUBear29 » Sat Aug 10, 2019 10:17 pm

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 » Sun Aug 11, 2019 12:23 am

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 » 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.

vtMaps
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Re: Fidelity as a one stop shop

Post by vtMaps » Sun Aug 11, 2019 8:28 am

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

rich126
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Re: Fidelity as a one stop shop

Post by rich126 » Sun Aug 11, 2019 12:56 pm

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 » Sun Aug 11, 2019 11:11 pm

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 » Mon Aug 12, 2019 8:46 am

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

lstone19
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Re: Fidelity as a one stop shop

Post by lstone19 » 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.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Mon Aug 12, 2019 9:05 am

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 » Mon Aug 12, 2019 10:37 am

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 » Mon Aug 12, 2019 3:10 pm

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 » 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!

zrail
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Re: Fidelity as a one stop shop

Post by zrail » Tue Aug 13, 2019 10:38 am

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.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 13, 2019 10:44 am

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).
You can also use the online chat if you don't want to call (like me).

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 13, 2019 10:52 am

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!
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.

arf30
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Re: Fidelity as a one stop shop

Post by arf30 » Tue Aug 13, 2019 10:56 am

mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
VUSXX has a weighted maturity of about 75 days - it's got some older bonds in there that are still paying higher rates.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Tue Aug 13, 2019 11:06 am

arf30 wrote:
Tue Aug 13, 2019 10:56 am
mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
VUSXX has a weighted maturity of about 75 days - it's got some older bonds in there that are still paying higher rates.
That's true, I suppose. Fortunately, that also means my 6 month ladder has some older bills with higher yields.

yeahman
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Re: Fidelity as a one stop shop

Post by yeahman » Tue Aug 13, 2019 12:09 pm

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!
SPRXX. I use the CMA for the convenience, not the rates. Other options have always had superior rates. Having said that, I'm not a big believer in holding cash.

TheJoelfather
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Re: Fidelity as a one stop shop

Post by TheJoelfather » Tue Aug 13, 2019 12:20 pm

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!
If you're 'parking' and don't need access to the funds, than I wouldn't even look at money market funds. If you need more access to funds than a ladder that was already mentioned, try an ultra-short fund like FCONX.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Tue Aug 13, 2019 12:28 pm

arf30 wrote:
Tue Aug 13, 2019 10:56 am
mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
<snip>
If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
VUSXX has a weighted maturity of about 75 days - it's got some older bonds in there that are still paying higher rates.
The average maturity is 43 days, which factors in the rate reset dates for the floating rate notes (FRNs) held by the fund. The weighted average life of 74 days uses the FRN maturity dates, which are pretty much irrelevant.

The fund typically holds mostly Tbills in the 1m to 3m maturity range, but as of 7/31, they did hold about 9% of bills (and a couple of notes) with maturities from 3.5 to 5.8 months, and 2.5% in a note with a maturity of 21 months.

As I've discussed in the thread, Why is Vanguard Treasury Money Market yield so high?, I eventually developed a model that takes the 3-month trailing average of the 3m Tbill, 2-month average of the 2m Tbill, and 1-month average of the 1m Tbill, then subtracts the ER of 0.09% to get an estimate of the SEC yield. As of yesterday, the model estimates an SEC yield of 2.08%, with the actual SEC yield at 2.11%, so currently the yield is only 3 basis points higher than the modeled yield.

Here's an updated chart of the actual and modeled SEC yield since 4/1/2019:

Image

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engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Tue Aug 13, 2019 12:31 pm

mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
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!
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
how do ladders work in fidelity, im interested. is it similar to a CD where the $ is parked and can't be touched until the bill is up?

GuySmiley
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Re: Fidelity as a one stop shop

Post by GuySmiley » Tue Aug 13, 2019 12:39 pm

Is it normal that the Fidelity credit card usage email alerts arrive 2 days after the purchase is made? I'm new to this, still figuring out if I have it set up correctly.

engineerbme
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Re: Fidelity as a one stop shop

Post by engineerbme » Tue Aug 13, 2019 1:00 pm

GuySmiley wrote:
Tue Aug 13, 2019 12:39 pm
Is it normal that the Fidelity credit card usage email alerts arrive 2 days after the purchase is made? I'm new to this, still figuring out if I have it set up correctly.
you can set it up for text alerts that should happen immediately after a purchase is made here: https://alertable.fidelity.com/ftgw/ale ... rtsSummary

Once there navigate to the Fidelity product you want to manage alerts for...under the alerts setup tab you can change and add what you want. I don't have a visa or Fidelity CC so I'm not sure if this works for your case

rich126
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Re: Fidelity as a one stop shop

Post by rich126 » Tue Aug 13, 2019 1:05 pm

engineerbme wrote:
Tue Aug 13, 2019 12:31 pm
mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
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!
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
how do ladders work in fidelity, im interested. is it similar to a CD where the $ is parked and can't be touched until the bill is up?
They make it pretty easy. You can select from a variety of ladders, 1 year, 2 year, etc. If I recall correctly the one year ladder would consider of 3 month, 6 month, 9 month and 12 month CDs. Similar things for other ladders. The money you have to invest is related to how many CDs are involved in the ladder. In the 1 year example I gave, you would need to invest a multiple of $4K (i.e., 4 x $1K per CD). If it was a 5 year ladder then a multiple of $5K.

You select the ladder you want, they show you the Banks providing the CDs and if you don't like the issuer you can select something different. They select based on higher rate. You can also select "Auto Roll" so when the CD comes due it will purchase a new one of the same length.

I wasn't familiar with some of the issuers (Bank of China?) so I just picked up a couple of short term CDs (3-6 months) to invest the money.

It seems pretty idiot proof, especially if you don't care what issuers you buy from.

engineerbme
Posts: 45
Joined: Tue Jun 04, 2019 10:12 am

Re: Fidelity as a one stop shop

Post by engineerbme » Tue Aug 13, 2019 1:13 pm

rich126 wrote:
Tue Aug 13, 2019 1:05 pm
engineerbme wrote:
Tue Aug 13, 2019 12:31 pm
mervinj7 wrote:
Tue Aug 13, 2019 10:52 am
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!
For now, in addition to keeping our EF in auto-rolling 6 month Treasury ladders, we put some short term funds for some repair work in 1 month T-bills. Current yield is 2.09% but TEY (for 24% Fed, 9.3% CA) is 2.38%. If I had larger cash allocation, I would place them in VUSXX in our Vanguard account. I'm still not certain why VUSXX is currently paying more than the equivalent average 1,2,3 month Treasury yield.
how do ladders work in fidelity, im interested. is it similar to a CD where the $ is parked and can't be touched until the bill is up?
They make it pretty easy. You can select from a variety of ladders, 1 year, 2 year, etc. If I recall correctly the one year ladder would consider of 3 month, 6 month, 9 month and 12 month CDs. Similar things for other ladders. The money you have to invest is related to how many CDs are involved in the ladder. In the 1 year example I gave, you would need to invest a multiple of $4K (i.e., 4 x $1K per CD). If it was a 5 year ladder then a multiple of $5K.

You select the ladder you want, they show you the Banks providing the CDs and if you don't like the issuer you can select something different. They select based on higher rate. You can also select "Auto Roll" so when the CD comes due it will purchase a new one of the same length.

I wasn't familiar with some of the issuers (Bank of China?) so I just picked up a couple of short term CDs (3-6 months) to invest the money.

It seems pretty idiot proof, especially if you don't care what issuers you buy from.
thanks a lot!

Lyrrad
Posts: 69
Joined: Sun Jul 27, 2008 10:59 am

Re: Fidelity as a one stop shop

Post by Lyrrad » Tue Aug 13, 2019 2:00 pm

engineerbme wrote:
Tue Aug 13, 2019 12:31 pm
how do ladders work in fidelity, im interested. is it similar to a CD where the $ is parked and can't be touched until the bill is up?
For T-bills you should be able to sell them on the open market before maturity.

ej0160
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Re: Fidelity as a one stop shop

Post by ej0160 » Tue Aug 13, 2019 3:49 pm

GuySmiley wrote:
Tue Aug 13, 2019 12:39 pm
Is it normal that the Fidelity credit card usage email alerts arrive 2 days after the purchase is made? I'm new to this, still figuring out if I have it set up correctly.
Under account alerts, I'm assuming you have it setup for "credit posted", which I typically receive that alert couple days after purchase. A related notification is "transaction greater than $" (Example: > $1). That alert is usually near instantanious (at least by text) when the charge initially occurs.

GuySmiley
Posts: 57
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Re: Fidelity as a one stop shop

Post by GuySmiley » Tue Aug 13, 2019 7:43 pm

ej0160 wrote:
Tue Aug 13, 2019 3:49 pm
GuySmiley wrote:
Tue Aug 13, 2019 12:39 pm
Is it normal that the Fidelity credit card usage email alerts arrive 2 days after the purchase is made? I'm new to this, still figuring out if I have it set up correctly.
Under account alerts, I'm assuming you have it setup for "credit posted", which I typically receive that alert couple days after purchase. A related notification is "transaction greater than $" (Example: > $1). That alert is usually near instantanious (at least by text) when the charge initially occurs.
I have it set for debit greater than 1 cent. Will try text message instead of email. Thanks!

addicoe
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Re: Fidelity as a one stop shop

Post by addicoe » Wed Aug 14, 2019 10:24 am

Well it looks like it was my mistake on the CMA not overdrafting. It looks like I enabled overdraft, but forgot to enable the cash manager. I bet it will work for me now. Now I have a few more questions. Is there a way to limit the overdraft to a certain amount? So say no more than $3000? That would give me peace of mind from a security standpoint. Alternatively, can I lower the maximum daily withdrawal limit and/or debit card limit to $3000? I'm mainly concerned in the case that someone steals my debit card or forges a check and it overdrafts a ton of money out of my brokerage. How do I lock down my CMA as much as possible while still keeping the overdraft feature?

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Wed Aug 14, 2019 10:36 am

addicoe wrote:
Wed Aug 14, 2019 10:24 am
Well it looks like it was my mistake on the CMA not overdrafting. It looks like I enabled overdraft, but forgot to enable the cash manager. I bet it will work for me now. Now I have a few more questions. Is there a way to limit the overdraft to a certain amount? So say no more than $3000? That would give me peace of mind from a security standpoint. Alternatively, can I lower the maximum daily withdrawal limit and/or debit card limit to $3000? I'm mainly concerned in the case that someone steals my debit card or forges a check and it overdrafts a ton of money out of my brokerage. How do I lock down my CMA as much as possible while still keeping the overdraft feature?
Use a second brokerage if you really want to for CMA overdraft. You can limit the funds in there. I certainly wouldn't enable overdraft on a brokerage account that contained all my taxable investments.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Wed Aug 14, 2019 1:41 pm

I wanted to report an observation that I have using FIdelity's ACH system.

If you submit an ACH withdrawal from Fidelity to your external bank account before 8am ET, the morning will be in your bank by the afternoon the same day.

I have seen the money in the external account as early as 1pm ET, but I'm not sure of the exact time. It could also vary from bank to bank depending on when they process ACH credits and report them online in your account.
My signature has been deleted.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Aug 16, 2019 6:38 am

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!
I've spread some of my excess cash around high-yield savings accounts at companies I find interesting (Wealthfront, Betterment) that have decent rates (2.32%-2.43%). If you really want to chase yields, you can do 10-15 bps better at some more traditional banks: https://www.doctorofcredit.com/high-int ... gs-to-get/

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Fri Aug 16, 2019 7:12 am

After reading through this thread, I decided to dip my toes into the water at Fidelity and test out using their products. I have been using BoA for checking, Vanguard for investments, and for cash savings I've been chasing yields and bonuses in savings accounts across different companies.

My current approach has been to immediately pay off all bills, and pay off my credit card mid-cycle multiple times. Since BoA pays no interest, there was no reason not to. But I like the idea of using float to earn interest and make my money work for me.

The approach I'm taking is:
  • Brokerage account for direct deposit and bill pay (push only). Account number never given out or exposed anywhere except for DD. Manually purchase SPRXX periodically.
  • CMA (not linked/no overdraft) for ATM and check use, and for any use case where my account number would be exposed to a third party (for example, bill pay where they are sending a paper check). These transactions are few and far between for me (zero most months), so I can keep it manually topped off at ~$500 in SPRXX in this account. So everything stays in a MM.
  • Continue to chase higher yields and bonuses across different companies with my excess cash savings.
  • Keep my BoA account for cash deposits and any misc B&M banking needs, with a $250 DD each paycheck to keep the account free, that I immediately and automatically sweep to Fido. Keep only $100 in this account.
For now I updated my DD to send a chunk of money to my Fido brokerage account per the above plan, and I'm going to start configuring my payees and take it from there. As I get more comfortable, I'll change more of my DD to go to Fido and less to BoA, and add more payees and set up more automatic bill payments.

MisterBill
Posts: 416
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Re: Fidelity as a one stop shop

Post by MisterBill » Sun Aug 18, 2019 11:36 am

boston10 wrote:
Fri Aug 16, 2019 7:12 am
  • Brokerage account for direct deposit and bill pay (push only). Account number never given out or exposed anywhere except for DD. Manually purchase SPRXX periodically.
Presumably you've set your core position as SPAXX so at least you get a decent interest rate before you get to purchase SPRXX.

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Leif
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Re: Fidelity Cash Management Account - Investments

Post by Leif » Sun Aug 18, 2019 12:23 pm

Can the Fidelity CMA be linked to a Vanguard account? If I have a money market, such as Vanguard Prime, then can use that as overdraft protection for Fidelity? Is the transfer fast enough to avoid an overdraft? Could I set a low upper limit so that extra money coming in gets automatically transferred to Vanguard Prime?

zrail
Posts: 64
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Re: Fidelity Cash Management Account - Investments

Post by zrail » Sun Aug 18, 2019 12:30 pm

Leif wrote:
Sun Aug 18, 2019 12:23 pm
Can the Fidelity CMA be linked to a Vanguard account? If I have a money market, such as Vanguard Prime, then can use that as overdraft protection for Fidelity? Is the transfer fast enough to avoid an overdraft? Could I set a low upper limit so that extra money coming in gets automatically transferred to Vanguard Prime?
Not for overdraft. You can use the Vanguard account for the automatic money manager’s nightly sweep mode. That keeps your Fidelity CMA within a certain upper and lower bound. It’s one nightly transfer, though, so it can’t react to overdraft situations.

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Leif
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Re: Fidelity Cash Management Account - Investments

Post by Leif » Sun Aug 18, 2019 12:49 pm

zrail wrote:
Sun Aug 18, 2019 12:30 pm
Not for overdraft. You can use the Vanguard account for the automatic money manager’s nightly sweep mode. That keeps your Fidelity CMA within a certain upper and lower bound. It’s one nightly transfer, though, so it can’t react to overdraft situations.
I was watching this video on the Fidelity site:

Fideity Cash Manager

At one point in the video they mention that overdraft situation occurs money can be come from another Fidelity OR the person checking account.

It sound like the overdraft protection is automatic, but the upper limit is only an alert so you can manually move the money out.
Last edited by Leif on Sun Aug 18, 2019 12:52 pm, edited 1 time in total.

HomeStretch
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Re: Fidelity Cash Management Account - Investments

Post by HomeStretch » Sun Aug 18, 2019 12:51 pm

Leif wrote:
Sun Aug 18, 2019 12:23 pm
Can the Fidelity CMA be linked to a Vanguard account? If I have a money market, such as Vanguard Prime, then can use that as overdraft protection for Fidelity? Is the transfer fast enough to avoid an overdraft? Could I set a low upper limit so that extra money coming in gets automatically transferred to Vanguard Prime?
You can’t go into your Fidelity CMA to link a Vanguard brokerage account in order to “pull” funds from Vanguard. So I don’t see a Vanguard account providing overdraft protection for a Fidelity CMA.

You can go into your Vanguard account to link a Fidelity CMA. Once the linked account is verified (7-10 business days), you can go online to “push” via ACH or wire transfer from Vanguard to a Fidelity CMA.

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Leif
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Re: Fidelity Cash Management Account - Investments

Post by Leif » Sun Aug 18, 2019 12:54 pm

Is that a Vanguard issue? In the video they refer to two accounts. A Fidelity account and "Tom's checking account" both of which after being linked provides money to the CMA to replenish to the lower limit or overdraft on a nightly basis.

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Leif
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Re: Fidelity Cash Management Account - Investments

Post by Leif » Sun Aug 18, 2019 1:03 pm

HomeStretch wrote:
Sun Aug 18, 2019 12:51 pm
You can’t go into your Fidelity CMA to link a Vanguard brokerage account in order to “pull” funds from Vanguard.
Not a Vanguard brokerage account, but how about the routing and account number from your check associated with that account?

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