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 » 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

Kevin
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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
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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
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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
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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
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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
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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?

HomeStretch
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Re: Fidelity Cash Management Account - Investments

Post by HomeStretch » Sun Aug 18, 2019 1:14 pm

Leif wrote:
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?
I was told no by Flagship rep when I asked that question when I requested checks for my Vanguard brokerage account.

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Leif
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Re: Fidelity Cash Management Account - Investments

Post by Leif » Sun Aug 18, 2019 1:53 pm

OK, I just talked with Fidelity. Although their online video seems to contradict this, they said that overdraft protection must come from a Fidelity account. However, satisfying the lower limit is able to come from an external checking account. That makes sense to me. So, it does not work in the way I was hoping. But, it still may work for automatic low balance transfers.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Sun Aug 18, 2019 5:11 pm

MisterBill wrote:
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.
Yup, SPAXX as core. I have also read some interesting comments about SPAXX potentially having a higher after-tax yield than SPRXX, but I'm not sure how that applies in MA, so I'm buying SPRXX periodically for now. The comments I've read are from people in CA or NY, which seem to have esoteric rules around deductibility; I'm unsure if those same rules apply here in MA.

Also - as an addendum to my original post, from what I've read, bills paid through bill pay that send a paper check don't expose my account number, so I've decided to pay those bills directly with my brokerage rather than with my CMA. My understanding is, the bill pay service (FiServ) sends them from their own bank.

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Sun Aug 18, 2019 6:41 pm

boston10 wrote:
Sun Aug 18, 2019 5:11 pm
Yup, SPAXX as core. I have also read some interesting comments about SPAXX potentially having a higher after-tax yield than SPRXX, but I'm not sure how that applies in MA, so I'm buying SPRXX periodically for now. The comments I've read are from people in CA or NY, which seem to have esoteric rules around deductibility; I'm unsure if those same rules apply here in MA.
That's interesting about SPAXX possibly being better tax-wise for NY residents since that is where I live. I found a document that says that 56% of Fidelity Government fund distributions are exempt from NY state taxes. FZDXX (what I use) does not qualify.

https://www.fidelity.com/bin-public/060 ... 18-gse.pdf
boston10 wrote:
Sun Aug 18, 2019 5:11 pm
Also - as an addendum to my original post, from what I've read, bills paid through bill pay that send a paper check don't expose my account number, so I've decided to pay those bills directly with my brokerage rather than with my CMA. My understanding is, the bill pay service (FiServ) sends them from their own bank.
I tried sending myself a small check recently because I was wondering how this worked. The check (sent from my brokerage account) had my account number on it. Not sure if it works differently from your CMA, although I'd tend to doubt it.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Sun Aug 18, 2019 7:09 pm

MisterBill wrote:
Sun Aug 18, 2019 6:41 pm
boston10 wrote:
Sun Aug 18, 2019 5:11 pm
Yup, SPAXX as core. I have also read some interesting comments about SPAXX potentially having a higher after-tax yield than SPRXX, but I'm not sure how that applies in MA, so I'm buying SPRXX periodically for now. The comments I've read are from people in CA or NY, which seem to have esoteric rules around deductibility; I'm unsure if those same rules apply here in MA.
That's interesting about SPAXX possibly being better tax-wise for NY residents since that is where I live. I found a document that says that 56% of Fidelity Government fund distributions are exempt from NY state taxes. FZDXX (what I use) does not qualify.
From what I was reading (in other Bogleheads threads, I think), certain states including NY and CA require a minimum 50% tax exempt content in any individual security in order to take any state tax exemption whatsoever. My understanding from these threads was that SPAXX meets the 50% threshold and SPRXX doesn't.

I researched this a bit and found evidence of NY/CA's 50% threshold (for example: https://www.tax.ny.gov/pdf/memos/income/m92_4i.pdf), but I couldn't find evidence of a similar requirement in MA law, so I didn't research any further to confirm the SPAXX vs SPRXX tax-exempt content.
MisterBill wrote:
Sun Aug 18, 2019 6:41 pm
boston10 wrote:
Sun Aug 18, 2019 5:11 pm
Also - as an addendum to my original post, from what I've read, bills paid through bill pay that send a paper check don't expose my account number, so I've decided to pay those bills directly with my brokerage rather than with my CMA. My understanding is, the bill pay service (FiServ) sends them from their own bank.
I tried sending myself a small check recently because I was wondering how this worked. The check (sent from my brokerage account) had my account number on it. Not sure if it works differently from your CMA, although I'd tend to doubt it.
Interesting - I may be wrong on this. I read this article and took it as gospel, but it's 8 years old, so that may have changed: https://thefinancebuff.com/paper-check- ... rvice.html
I used Fidelity’s online bill payment service to pay him[...]

The bank routing number on the bottom of the check is 071923828. It belongs to Northern Trust in Illinois. That’s the bank used by the online bill payment service.

bck63
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Re: Fidelity Cash Management Account - Investments

Post by bck63 » Sun Aug 18, 2019 7:28 pm

southerndoc wrote:
Thu Jan 10, 2019 10:13 pm
Can someone confirm with the Fidelity Cash Management account that Fidelity will automatically sell investments at the end of the day to cover checks and ATM withdrawals? I've read posts from a search, but many of those were a little older. I wanted to make sure Fidelity hasn't changed anything recently.

Are there limits to which funds Fidelity will automatically sell to cover withdrawals?
They'll only sell money market funds. Not other investments.

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Re: Fidelity as a one stop shop

Post by LadyGeek » Sun Aug 18, 2019 9:08 pm

I merged southerndoc's thread, started Jan 10, 2019, and recently bumped, into the on-going discussion.
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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Sun Aug 18, 2019 10:07 pm

boston10 wrote:
Fri Aug 16, 2019 7:12 am
  • 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.
Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....

HomeStretch
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Re: Fidelity as a one stop shop

Post by HomeStretch » Sun Aug 18, 2019 10:22 pm

ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm

Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
I am keeping my B&M bank (for now)?as it has some things that Fidelity doesn’t, such as :
- safe deposit box
- cashier’s check
- foreign currency
- ATM / cash deposits / coin machine
- Medallion guarantee

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Re: Fidelity as a one stop shop

Post by MisterBill » Sun Aug 18, 2019 11:42 pm

boston10 wrote:
Sun Aug 18, 2019 7:09 pm
From what I was reading (in other Bogleheads threads, I think), certain states including NY and CA require a minimum 50% tax exempt content in any individual security in order to take any state tax exemption whatsoever. My understanding from these threads was that SPAXX meets the 50% threshold and SPRXX doesn't.

I researched this a bit and found evidence of NY/CA's 50% threshold (for example: https://www.tax.ny.gov/pdf/memos/income/m92_4i.pdf), but I couldn't find evidence of a similar requirement in MA law, so I didn't research any further to confirm the SPAXX vs SPRXX tax-exempt content.
OK that makes sense based on what I found in the Fidelity document. I thought the eligibility was based on assets but it's simply based on the 50% minimum (which seems rather arbitrary).
boston10 wrote:
Sun Aug 18, 2019 7:09 pm
MisterBill wrote:
Sun Aug 18, 2019 6:41 pm
boston10 wrote:
Sun Aug 18, 2019 5:11 pm
Also - as an addendum to my original post, from what I've read, bills paid through bill pay that send a paper check don't expose my account number, so I've decided to pay those bills directly with my brokerage rather than with my CMA. My understanding is, the bill pay service (FiServ) sends them from their own bank.
I tried sending myself a small check recently because I was wondering how this worked. The check (sent from my brokerage account) had my account number on it. Not sure if it works differently from your CMA, although I'd tend to doubt it.
Interesting - I may be wrong on this. I read this article and took it as gospel, but it's 8 years old, so that may have changed: https://thefinancebuff.com/paper-check- ... rvice.html
I used Fidelity’s online bill payment service to pay him[...]
The bank routing number on the bottom of the check is 071923828. It belongs to Northern Trust in Illinois. That’s the bank used by the online bill payment service.
The check I sent myself as a bill payment had the ABA as 101205681, which is what I use when I set up direct deposit to my Fidelity accounts. It also had the full account number starting with 7710. I actually did this because I was wondering about timing issues after a check I sent to a catering hall took a week to clear after they had marked it as received in the online contract. Turns out the delay must have been on their end because the check I sent myself showed up a cleared in my account the day after I deposited it.
Last edited by MisterBill on Sun Aug 18, 2019 11:48 pm, edited 3 times in total.

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Re: Fidelity as a one stop shop

Post by MisterBill » Sun Aug 18, 2019 11:43 pm

ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm
Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
Fidelity doesn't accept cash deposits at the branch. They don't even have an ATM that would take them. And this is at a newly constructed branch.

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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Mon Aug 19, 2019 9:43 pm

MisterBill wrote:
Sun Aug 18, 2019 11:43 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm
Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
Fidelity doesn't accept cash deposits at the branch. They don't even have an ATM that would take them. And this is at a newly constructed branch.
That’s a significant limitation. I don’t need to deposit cash often, but I do sometimes. What do they recommend you do in this situation? Deposit it at another bank and transfer?

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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Mon Aug 19, 2019 9:46 pm

HomeStretch wrote:
Sun Aug 18, 2019 10:22 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm

Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
I am keeping my B&M bank (for now)?as it has some things that Fidelity doesn’t, such as :
- safe deposit box
—> I don’t need this.

- cashier’s check
—> I don’t think I need this. Never needed it yet. What are common uses of cashiers checks?

- foreign currency
—> don’t need this. Lots of places to get currency.

- ATM / cash deposits / coin machine
—> this is a significant limitation, see my other comment right before this one.

- Medallion guarantee
—> Fidelity will do these IIRC.

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Re: Fidelity as a one stop shop

Post by JoMoney » Mon Aug 19, 2019 10:05 pm

ARoseByAnyOtherName wrote:
Mon Aug 19, 2019 9:46 pm
HomeStretch wrote:
Sun Aug 18, 2019 10:22 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm

Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
I am keeping my B&M bank (for now)?as it has some things that Fidelity doesn’t, such as :
- safe deposit box
—> I don’t need this.

- cashier’s check
—> I don’t think I need this. Never needed it yet. What are common uses of cashiers checks?

- foreign currency
—> don’t need this. Lots of places to get currency.

- ATM / cash deposits / coin machine
—> this is a significant limitation, see my other comment right before this one.

- Medallion guarantee
—> Fidelity will do these IIRC.
FWIW,
I've used Fidelity ATM card to get foreign currency out of a foreign ATM (Australia). Fidelity refunded the ATM operators fee and the exchange rate was better than a bank would have offered.

I used a cashier's check not to long ago to buy a car. The seller (not a private party) only offered the options of: cashiers check, wire, or using their financing services. I used my bank to have a cashiers check sent, but Fidelity would have been able to do a wire, and I do see Fidelity does have a form that suggests maybe the do offer cashiers checks .. ? maybe ?
http://personal.fidelity.com/misc/ekits ... equest.pdf
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Re: Fidelity as a one stop shop

Post by ClaycordJCA » Mon Aug 19, 2019 10:07 pm

ARoseByAnyOtherName wrote:
Mon Aug 19, 2019 9:46 pm
HomeStretch wrote:
Sun Aug 18, 2019 10:22 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm

Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity

I am keeping my B&M bank (for now)?as it has some things that Fidelity doesn’t, such as :

- cashier’s check
—> I don’t think I need this. Never needed it yet. What are common uses of cashiers checks?



I recently needed a cashier’s check to purchase a vehicle off of a lease. I believe another cashier’s check was required when we made the down payment on our house.

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Re: Fidelity as a one stop shop

Post by MisterBill » Mon Aug 19, 2019 10:11 pm

JoMoney wrote:
Mon Aug 19, 2019 10:05 pm
FWIW,
I've used Fidelity ATM card to get foreign currency out of a foreign ATM (Australia). Fidelity refunded the ATM operators fee and the exchange rate was better than a bank would have offered.

I used a cashier's check not to long ago to buy a car. The seller (not a private party) only offered the options of: cashiers check, wire, or using their financing services. I used my bank to have a cashiers check sent, but Fidelity would have been able to do a wire, and I do see Fidelity does have a form that suggests maybe the do offer cashiers checks .. ? maybe ?
http://personal.fidelity.com/misc/ekits ... equest.pdf
Re: foreign currency, some people like to get it before they leave the country. I also just use the ATM when I get there and let Fidelity pay the fee. Bank of America gives a discount and free express shipping for Preferred Rewards customers. Not sure how competitive the rate is, even with the discount. I had considered it before going to Europe recently but decided against it (but that was before the 2% discount started).

If a wire is possible for car purchases then Fidelity has that covered. I used that feature a few months ago and it worked extremely well, I was able to submit it online and it was completed in a couple of hours. No charge, although that might be because of my status there.

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Re: Fidelity as a one stop shop

Post by MisterBill » Mon Aug 19, 2019 10:12 pm

ClaycordJCA wrote:
Mon Aug 19, 2019 10:07 pm
I recently needed a cashier’s check to purchase a vehicle off of a lease. I believe another cashier’s check was required when we made the down payment on our house.
Odd that they would want a cashier's check for a house down payment. There's plenty of time after they deposit the check to be covered in case if bounces. Obviously with a car it's a different story.

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Re: Fidelity as a one stop shop

Post by ClaycordJCA » Mon Aug 19, 2019 10:35 pm

MisterBill wrote:
Mon Aug 19, 2019 10:12 pm
ClaycordJCA wrote:
Mon Aug 19, 2019 10:07 pm
I recently needed a cashier’s check to purchase a vehicle off of a lease. I believe another cashier’s check was required when we made the down payment on our house.
Odd that they would want a cashier's check for a house down payment. There's plenty of time after they deposit the check to be covered in case if bounces. Obviously with a car it's a different story.
20 + years ago on the house down payment so I could be mistaken, but I don’t think so.

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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Tue Aug 20, 2019 6:25 am

I bought a house recently and I wired the down payment. There was an option to do a bank check but the wire was much more convenient. Fidelity makes them easy to do online.

I bought a car roughly 10 years ago and am almost certain I paid via regular check, not a cashiers check. I only paid ~$20k for the car though. Might have been a different story if I bought a $80k hot rod. (Which I wouldn’t do but regardless.)

Thanks all for the info. It sounds like not being able to deposit cash is the main limitation, for me at least.

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Re: Fidelity as a one stop shop

Post by MikeG62 » Tue Aug 20, 2019 7:45 am

While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day. [If the transfer is initiated mid or later in the day it arrives the next day.]

Did not realize I could do a same day ACH transfer from Fidelity.
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Re: Fidelity as a one stop shop

Post by indexfundfan » Tue Aug 20, 2019 8:08 am

MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day. [If the transfer is initiated mid or later in the day it arrives the next day.]

Did not realize I could do a same day ACH transfer from Fidelity.
Yes, I posted this about one week ago

viewtopic.php?f=2&t=266538&start=850#p4697670

The cut off time for the same-day ACH is 8am ET. The money reaches the external bank around noon, but it could take your bank some time to post.
My signature has been deleted.

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Re: Fidelity as a one stop shop

Post by obafgkm » Tue Aug 20, 2019 8:10 am

MikeG62 wrote:
Tue Aug 20, 2019 7:45 am
While I don't use Fidelity as a one-stop-shop (so not entirely on topic), I would add here that I recently discovered if I initiate an ACH transfer at Fidelity early in the morning the funds arrive at my B&M bank later that same day.
Generally, is that a function solely of Fidelity, or does it also depend on the receiving brick & mortar (B&M) financial institution, too? (In other words, is MikeG62's experience universal, for sufficiently "early in the morning"?)

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Re: Fidelity as a one stop shop

Post by snowman » Tue Aug 20, 2019 8:14 am

ARoseByAnyOtherName wrote:
Mon Aug 19, 2019 9:43 pm
MisterBill wrote:
Sun Aug 18, 2019 11:43 pm
ARoseByAnyOtherName wrote:
Sun Aug 18, 2019 10:07 pm
Are there any B&M banking needs that you can take care of at BoA, but can’t by walking into a Fidelity?

I use both BoA (checking only, not even savings) and Fidelity for everything else. It sure would be nice to simplify down to using Fidelity for everything. I’m not quite ready to do that....
Fidelity doesn't accept cash deposits at the branch. They don't even have an ATM that would take them. And this is at a newly constructed branch.
That’s a significant limitation. I don’t need to deposit cash often, but I do sometimes. What do they recommend you do in this situation? Deposit it at another bank and transfer?
Correct, you deposit cash at a local bank, and do the transfer. I use one bank just for that purpose, it has zero balance 99% of the time.

When you deposit cash (at any bank), that deposit is available for withdrawal immediately. What that means is that instead of waiting for deposit to clear, then initiate push ACH from local bank to Fidelity, then wait until it gets to Fidelity, you just deposit cash, and immediately can go to Fidelity online and initiate pull from the bank. Yes, you will wait longer for the money to show up, but it is immediately available to trade. So you are earning interest in SPAXX or SPRXX (or whichever MMF you buy) while you wait for your cash to arrive.

It's really the best of both worlds - you get high interest checking account that works with any local bank. Fidelity acts as the manager, and utilizes any B&M bank for the convenience of its customers. There is no need for them to build more branches.

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