Fidelity as a one stop shop

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stlutz
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Re: Fidelity as a one stop shop

Post by stlutz » Fri Oct 25, 2019 8:55 pm

Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Fri Oct 25, 2019 9:31 pm

stlutz wrote:
Fri Oct 25, 2019 8:55 pm
Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.
Fidelity has been offering same day ACH for a while. I think this has been discussed upthread.

These are my observations:

○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.

The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).

All times are ET.
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Cash
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Re: Fidelity as a one stop shop

Post by Cash » Fri Oct 25, 2019 9:42 pm

indexfundfan wrote:
Fri Oct 25, 2019 9:31 pm
stlutz wrote:
Fri Oct 25, 2019 8:55 pm
Horsefly wrote:
Fri Oct 25, 2019 3:36 pm
Just thought I would post what happened to me today.

At about 8:30am this morning (MST) I put in a request at Fidelity to transfer $10K to my checking account at Ally. Based on previous experience, I figured I would see the money in my Ally account Monday, or Tuesday morning at the latest. I logged into my Ally account at 2:15pm, and BAM! It's already there, and available. This was just a normal EFT, not any expedited wire transfer.

That's the fastest I think I've seen. Good on both Fidelity and Ally for doing it so quickly!

Interesting side note: According to Fidelity, the transfer is still being processed. :shock:
That's a great data point--thanks for sharing! I assume that because Fido has free wire transfers they've made it in their interest to get ACH done as quickly as possible.
Fidelity has been offering same day ACH for a while. I think this has been discussed upthread.

These are my observations:

○ Submitted before 8am (<=$25k) : credited before 1pm same day.
○ Submitted before 12pm (<=$25k) : credited around 3.50pm same day.
○ If amount is greater than $25k, the transfer is next day.

The time of credit could be delayed by your bank's processing timeline (possibly batch-processed).

All times are ET.
I noted earlier that a transfer I submitted around 10 p.m. EDT (less than $25k) was at my bank by 8 a.m. the following morning.

mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 » Sat Oct 26, 2019 1:03 am

hap_ca wrote:
Fri Oct 25, 2019 8:50 pm
Is SPAXX exempts from California taxes? I thought I’d have to hold FDLXX Fidelity® Treasury Only Money Market Fund for that. I’ve been buying SPRXX in my account for the higher yield not knowing it’s probably about the same or lower than SPAXX tey :oops:
56.16% CA tax exempt. The rest is not.

bawr
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Re: Fidelity as a one stop shop

Post by bawr » Sat Oct 26, 2019 5:45 am

Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 1:05 pm

bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:39 pm

bck63 wrote:
Fri Oct 25, 2019 3:29 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Kevin thanks for this whole post and I am going to read it in depth.
You're welcome! Glad you find it useful.
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.

The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.

SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.

I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.

If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.

I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:50 pm

boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 1:58 pm

mervinj7 wrote:
Sat Oct 26, 2019 1:03 am
hap_ca wrote:
Fri Oct 25, 2019 8:50 pm
Is SPAXX exempts from California taxes? I thought I’d have to hold FDLXX Fidelity® Treasury Only Money Market Fund for that. I’ve been buying SPRXX in my account for the higher yield not knowing it’s probably about the same or lower than SPAXX tey :oops:
56.16% CA tax exempt. The rest is not.
Correct, for 2018. For 2019 I use 56% exempt in estimating TEY, but there is some uncertainty in it. If percent of assets in USGO at the end of any quarter dropped below 50%, none of the income would be tax exempt in CA (my state), CT, and NY.

I also show the derivation for TEY for income that is partially exempt from state income tax in my TEY post.

Kevin
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rama13
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Re: Fidelity as a one stop shop

Post by rama13 » Sat Oct 26, 2019 2:15 pm

Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
It appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.

Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad » Sat Oct 26, 2019 2:30 pm

heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.

boston10
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Re: Fidelity as a one stop shop

Post by boston10 » Sat Oct 26, 2019 3:08 pm

Kevin M wrote:
Sat Oct 26, 2019 1:50 pm
boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
[...]
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

Kevin
I'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.

If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.

There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.



EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.

I still have trouble getting to 1.97 using any federal tax bracket, though. By my calculation you'd need to be in a 28% bracket for that, but there are no federal tax brackets between 24% and 32%.
Last edited by boston10 on Sat Oct 26, 2019 3:24 pm, edited 3 times in total.

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heartwood
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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 3:19 pm

Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.

Major Edit: My limits as reported above are for my BOA debit card, not Fidelity. My apology for my confusion.
Last edited by heartwood on Sat Oct 26, 2019 10:09 pm, edited 1 time in total.

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 4:21 pm

rama13 wrote:
Sat Oct 26, 2019 2:15 pm
Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
It appears FDRXX also has USGO of about 57%, so you should also compare its TEY based on those. For me FDRXX beats out SPAXX and FDLXX, but only by two basis points, so it's hardly worth tracking very often. If I kept more (>$10k) in money markets, then I'd just go with FZDXX.
Hmm, surprised I missed that, but you're right. Now I get these yields, sorted descending by compound TEY:

Code: Select all

 Fund   SEC    Cmpd   TEY   Cmpd TEY
-----  -----  -----  -----  -----
FZDXX  1.79%  1.81%  1.79%  1.81%
FDRXX  1.59%  1.60%  1.70%  1.72%
FDLXX  1.51%  1.52%  1.70%  1.71%
SPRXX  1.67%  1.68%  1.67%  1.68%
SPAXX  1.54%  1.55%  1.65%  1.66%
So, SPAXX actually is the lowest TEY, but it's available as a core fund, whereas none of the others are (only other choice is FZFXX, with SEC yield of only 1.62%, and no state tax exemption for 2018), and I estimate I lose about $0.15 per month after tax compared to top choice FZDXX, so not worth messing with.

Thanks!

Kevin
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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Oct 26, 2019 4:30 pm

boston10 wrote:
Sat Oct 26, 2019 3:08 pm
Kevin M wrote:
Sat Oct 26, 2019 1:50 pm
boston10 wrote:
Fri Oct 25, 2019 6:40 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
At my marginal tax rates of 27% Fed and 8% State, Fed MM at 1.87% compound yield (I use compound yield to compare to bank APY), my compound TEY is 2.05%. For Treasury MM at 1.87% my compound TEY is 2.10%.
[...]
My TEY on 1m Tbill at 1.75% is 1.97%, and on 6m at 1.65% it's 1.85%, so Fed MM is better for me at this point, but of course Treasury MM is even better.
<snip>
These numbers seem wrong. At an 8% marginal state tax rate, TEY on a 1m Tbill at 1.75% is 1.90%. <snip>

Am I missing something, or calculating TEY incorrectly?
Your calculation would be correct if I were itemizing federal deductions and getting a full deduction of state income tax on marginal income. In this case, you calculate TEY by dividing yield by (1 - s) where s is your marginal state income tax rate, which is what you're doing.

For most people this is no longer the case, due to the higher standard deduction and the $10K limit on SALT that are deductible on federal Schedule A. In this case, to calculate TEY you multiply yield by (1 - f) to get after-tax yield, where f is federal marginal tax rate, then divide by (1 - f - s) to get TEY.

I show the derivation of these formulas in this post: Taxable Equivalent Yield (TEY)

Kevin
I'm fairly confident that this and the formulas in your linked post are wrong. The numbers I provided assume no SALT deduction. The calculation for that is straightforward: yield divided by (1-state tax rate), so in the case of a TBill with a 1.75% yield and an 8% state tax rate, it's 1.75%/.92 = 1.902%. This is the relevant number for you.

If you do take the SALT deduction then you just need a simple modification to the formula above that adjusts your state marginal tax rate for the federal tax credit. In your case, if you were at a 25% marginal federal rate and took the SALT deduction, your state marginal tax rate of 8% is reduced by 25% and becomes an effective marginal tax rate of 6%. Then you use the formula above to calculate the TBill TEY, so 1.75%/.94 = 1.86%.

There is no possible scenario where a state marginal tax rate of 8% and a TBill with a 1.75% yield has a TEY higher than 1.902%. To get to 1.97% TEY on a 1.75% TBill, you would need to have a marginal state income tax rate of over 11% and not take the SALT deduction.


EDIT: I was wrong here, because the higher yield of a non-tax exempt instrument is partially sapped away by federal tax, requiring it to be higher to get an equivalent yield to the lower-yielding tax exempt TBill. I found my error by plugging the numbers into the spreadsheet and figuring out what I'd get in after-tax interest on a $1000 investment.
Right. It all comes out in the algebra in my TEY post. In that post I show how terms in the numerator and denominator cancel out if you deduct state income taxes, which leaves you with the simpler formula of just dividing by (1 - s), but there are no factors that cancel out like that if you don't deduct state income tax.

Basically, you calculate after-tax yield, then divide by (1 - total marginal tax rate) to get TEY.
boston10 wrote:
Sat Oct 26, 2019 3:08 pm
I still have trouble getting to 1.97 using any federal tax bracket, though. By my calculation you'd need to be in a 28% bracket for that, but there are no federal tax brackets between 24% and 32%.
You don't use tax brackets, you use marginal tax rates. My fed marginal tax rate is 27%, which is 12% (bracket) plus 15% as each marginal dollar of ordinary income (e.g., interest income) pushes an extra dollar of QD/LTCG from 0% to 15% tax rate. You also need to consider any phase-outs or phase-ins of deductions, credits, etc., as well as things like NIIT.

Kevin
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skyghost
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Re: Fidelity as a one stop shop

Post by skyghost » Sat Oct 26, 2019 8:17 pm

This thread got me thinking if I should open accounts at Fidelity. I currently use Schwab for my checking accounts, bill pay, and T bills that I buy at auction as part of my emergency fund / bond allocation. Only time I use my Schwab debit card is to pull out cash every now and then and to pull out cash when I travel internationally (few times a year). All of my other accounts are with Vanguard.

Reasons I could see for switching.

1. Auto repurchase T bills when they expire.
2. Have another debit card to use at ATMs overseas (Although to be honest, I'd probably end up moving everything to Fidelity if I liked it better).
3. Better money market rate on the cash sitting in my "savings" account. Not more than 3k so this is really splitting hairs.
4. Opportunity to try Fidelity which I haven't used in the past.

I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.

rama13
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Re: Fidelity as a one stop shop

Post by rama13 » Sat Oct 26, 2019 8:21 pm

skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals.
No, that's just for purchases.

I recently switched from Schwab's "High-Yield" Checking to using Fidelity as my primary cash management. So far I'm quite happy with it.

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan » Sat Oct 26, 2019 8:22 pm

skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals. Don't care about the 1% fee for other transactions since I have CC I'd use instead.
No FTF if the Fidelity debit card is used for ATM cash withdrawals. The 1% FTF applies only if you use the card at a POS terminal -- but you are definitely better off using a credit card for that.
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bawr
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Re: Fidelity as a one stop shop

Post by bawr » Sat Oct 26, 2019 8:56 pm

heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
This is interesting. I don't have the ability to edit the debit card's limits. I can only view them. Perhaps this is a new feature that has been made available to only a subset of Fidelity's customers.

MisterBill
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Re: Fidelity as a one stop shop

Post by MisterBill » Sat Oct 26, 2019 9:12 pm

heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am
Lyrrad wrote:
Sun Oct 20, 2019 5:00 pm
- Schwab appears to have a higher ATM limit (~$1000). I can’t seem to raise the Fidelity limit (~$500). Fidelity allows for multiple Cash Management accounts.
For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
How can you change it? Mine is $1,020.

As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.

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Re: Fidelity as a one stop shop

Post by MotoTrojan » Sat Oct 26, 2019 9:43 pm

Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
Kevin M wrote:
Fri Oct 25, 2019 3:12 pm
In my Fidelity brokerage that I'm using to pay bills (I only use CMA for ATM), I am using SPAXX as my core fund, which at an SEC yield of 1.55% is TEY for me of 1.66%. In that account I bought $10K face of 6-month Treasuries on 5/28 at a yield of 2.387% (TEY = 2.68%) to provide some margin for overdraft protection. When the bills mature on 11/29/2019, I'll consider rolling them.

Kevin
Kevin thanks for this whole post and I am going to read it in depth.
You're welcome! Glad you find it useful.
bck63 wrote:
Fri Oct 25, 2019 3:29 pm
But I wanted to mention, consider using FDRXX in your CMA (can't use it as core but can buy it separately). As near as I can tell it is absolutely identical to SPAXX, but the ER is 0.38%, as opposed to 0.42%. For the life of me I don't know why. My only guess is that I read somewhere that FDRXX is the sweep account for Fidelity IRAs. I don't know if that is accurate but maybe that has something to do with it.

The yield difference is only 6 bp (FDRXX is 1.61%) but I use FDRXX on principle because it's cheaper.
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.

SPRXX has a slightly higher compound yield than SPAXX TEY at 1.68%; due to the uncertainty in SPAXX, I might be better of using this, but the difference in estimated yields is small, and the amount I keep in the account is small, so no big deal.

I could earn a bit more on non-core MM fund FDLXX (Treasury only), at compound TEY of 1.71% (based on compound yield of 1.52%), but I estimate that would only earn me about $0.05 more in a month on my estimated average monthly balance of $2,000. Not worth messing around moving the money from the core MM fund.

If I wanted to mess around scraping up $100K to open FZDXX, the yield on that is the highest at 1.81% (compound), but I estimate it would only earn about $0.15 more in a month on my average balance of about $2,000.

I keep most of my cash in a local bank savings account earning 2.50% APY through Jan 2021. I actually have another savings account at an online bank, Northern Bank Direct, also paying 2.50%. Second best is Vanguard Treasury MM at compound TEY of 2.10% (based on compound yield of 1.87%).

Kevin
I hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.

Is this all handled automatically on tax-forms or must someone manually perform these deductions?

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Re: Fidelity as a one stop shop

Post by heartwood » Sat Oct 26, 2019 10:06 pm

MisterBill wrote:
Sat Oct 26, 2019 9:12 pm
heartwood wrote:
Sat Oct 26, 2019 3:19 pm
Lyrrad wrote:
Sat Oct 26, 2019 2:30 pm
heartwood wrote:
Sat Oct 26, 2019 1:05 pm
bawr wrote:
Sat Oct 26, 2019 5:45 am


For a long time, the ATM withdrawal limit for my Fidelity CMA ATM/debit card was $1,000. Recently I noticed that it has been raised to $1,020. I suppose the extra $20 is to account for potential fees, thereby allowing you to withdraw the full $1,000 per day, under most circumstances.
where are you seeing your daily limit?
I see it in the Desktop web interface under Manage Cash -> Manage Debit Card(s). Unfortunately, all my ATM debit card limits are set to $520. Purchase and cash advance limits are higher. Does anyone know how to raise the ATM limit? I tried a chat several months ago without success.
Thanks. I just checked. I'm set to $300 daily ATM limit but can raise it as high as $1504. I have a custom daily purchase limit of $1. I don't remember setting that. I can set it as high as $15000 as a custom limit or "up to available balance". I accessed the change screen following your directions above and clicking "edit" next to the current limits shown.
How can you change it? Mine is $1,020.

As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.
Mrbill and bawr and all others.

DOH! I apologize. Clearly the thread is Fidelity based. I somehow checked my BOA debit card as reported above.

I cannot edit my Fidelity debit card. My ATM/purchases/cash advance are currently $520/$10000/$2500. I am very uncomfortable with those last two limits. I will investigate with Fidelity next week.

Again, my apology for my mistake. I will edit my original post.

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Re: Fidelity as a one stop shop

Post by Lyrrad » Sat Oct 26, 2019 10:45 pm

MisterBill wrote:
Sat Oct 26, 2019 9:12 pm
As for the person whose limit is $520, is it the CMA or brokerage account? And what level customer are you? My is CMA and I am a Private Client. Maybe it's higher for PC than regular customers?

Or were you talking about Schwab? I am talking about Fidelity above.
It’s Fidelity. I have the same limit for CMA and Brokerage, but I don’t have enough assets at Fidelity for Private Client.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Oct 27, 2019 12:24 pm

MotoTrojan wrote:
Sat Oct 26, 2019 9:43 pm
Kevin M wrote:
Sat Oct 26, 2019 1:39 pm
Because of the partial exemption from state income tax, I estimate my compound taxable-equivalent yield (TEY) on SPAXX at 1.66% (based on compound yield of 1.55%), so higher than FDRXX compound yield of 1.60%. Of course there is some uncertainty in the TEY, because I'm basing it on 2018 USGO income percent of about 56%. I care about the yield (net of ER), not the expense ratio.
<snip>
I hadn't realized SPAXX had so much state tax-free income; I'll stop paying too much attention to getting funds swapped to SPRXX.
For me, only two basis points difference, so wouldn't pay any attention to getting funds swapped to SPRXX.
MotoTrojan wrote:
Sat Oct 26, 2019 9:43 pm
Is this all handled automatically on tax-forms or must someone manually perform these deductions?
You need to calculate the percentage of income exempt from state tax using the "YYYY Percentage of Income from U.S. Government Securities" that Fidelity provides. Here is the Fidelity form for 2018.

Tax software typically asks for the percent or amount exempt from state income tax after you enter the dividend income into the tax software 1099-DIV form for the payer, and check a box indicating that some of the income is from US Treasury obligations.

Kevin
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Re: Fidelity as a one stop shop

Post by skyghost » Sun Oct 27, 2019 6:33 pm

rama13 wrote:
Sat Oct 26, 2019 8:21 pm
skyghost wrote:
Sat Oct 26, 2019 8:17 pm
I was also trying to get some clarity if the 1% FTF applied to ATM cash withdrawals.
No, that's just for purchases.

I recently switched from Schwab's "High-Yield" Checking to using Fidelity as my primary cash management. So far I'm quite happy with it.
Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.

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Re: Fidelity as a one stop shop

Post by Workable Goblin » Sun Oct 27, 2019 7:23 pm

skyghost wrote:
Sun Oct 27, 2019 6:33 pm
Thinks for the feedback. Coming from Schwab, I'm guessing you didn't find any similar options with them? I saw there was a "cash management" option at Schwab mentioned in the Fidelity one stop shop wiki article but I'm guessing their brokerage and checking accounts can't be linked for overdraft protection like at Fidelity.
I believe this is actually the default, but the trick is that Schwab doesn't auto-liquidate money market funds to fulfill cash demands like Fidelity does, so you would be limited to their terrible sweep rates if you wanted to use a brokerage account as your cash backup. You'd be better off (though not that much better off) opening a savings account with them and using that to provide overdraft protection--or, in fact, just stashing the money in your checking account to begin with.

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Re: Fidelity as a one stop shop

Post by arf30 » Sun Oct 27, 2019 8:05 pm

Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.

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Re: Fidelity as a one stop shop

Post by Kevin M » Mon Oct 28, 2019 1:19 pm

arf30 wrote:
Sun Oct 27, 2019 8:05 pm
Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.
Thanks for the heads up.

It's obvious, but this page is accessed by clicking "Manage Debit Card(s)" in the "Manage Money & Payments" screen. My CMA ATM daily limit in is $520, and my daily purchase limit is $10K.

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spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Fri Nov 01, 2019 4:55 pm

arf30 wrote:
Sun Oct 27, 2019 8:05 pm
Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.
The correct site name is fidelitydebitcard.com (singular), not fidelitydebitcards.com (plural).

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Leif
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Re: Fidelity as a one stop shop

Post by Leif » Sat Nov 02, 2019 11:22 am

Kevin M wrote:
Mon Oct 28, 2019 1:19 pm
arf30 wrote:
Sun Oct 27, 2019 8:05 pm
Looks like there's a new website for managing debit cards off of the cash manager section of the site (fidelitydebitcards.com), I'm able to view ATM and debit limits but not modify them.
Thanks for the heads up.

It's obvious, but this page is accessed by clicking "Manage Debit Card(s)" in the "Manage Money & Payments" screen. My CMA ATM daily limit in is $520, and my daily purchase limit is $10K.

Kevin
To make it more obvious the full path is Accounts & Trade > Cash Management > Manage Debit card(s) (button). Although it redirects you to the above URL, I feel more comfortable going from the Fidelity website than typing in a foreign (to me) URL.

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Re: Fidelity as a one stop shop

Post by bostondan » Sat Nov 02, 2019 3:03 pm

The limit on my account seems to be $1020 for me and $1020 for my wife's card. I took out cash today and it lowered the remaining amount on my daily limit, but my wife's remains at $1020. So it seems that we could jointly take out $2040 per day if needed.
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Re: Fidelity as a one stop shop

Post by mervinj7 » Sat Nov 02, 2019 4:00 pm

bostondan wrote:
Sat Nov 02, 2019 3:03 pm
The limit on my account seems to be $1020 for me and $1020 for my wife's card. I took out cash today and it lowered the remaining amount on my daily limit, but my wife's remains at $1020. So it seems that we could jointly take out $2040 per day if needed.
For a CMA or a brokerage account? Fidelity premium services?

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Re: Fidelity as a one stop shop

Post by bostondan » Sat Nov 02, 2019 4:18 pm

mervinj7 wrote:
Sat Nov 02, 2019 4:00 pm
bostondan wrote:
Sat Nov 02, 2019 3:03 pm
The limit on my account seems to be $1020 for me and $1020 for my wife's card. I took out cash today and it lowered the remaining amount on my daily limit, but my wife's remains at $1020. So it seems that we could jointly take out $2040 per day if needed.
For a CMA or a brokerage account? Fidelity premium services?
I have both a CMA and a brokerage and they both have a limit of $1020. I am a Private Wealth client (or whatever it's called) because I have sufficient funds at Fidelity.

The CMA has a $0 balance and I only use the brokerage account because I realized I was reimbursed for all ATM fees internationally even in the brokerage account. This way I don't need to maintain multiple accounts in order to get the higher interest rate. I will likely close the CMA account eventually.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel

u2wl
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Re: Fidelity as a one stop shop

Post by u2wl » Sun Nov 03, 2019 9:18 am

They added an option to lock (temporary disable) your debit card in Manage Debit Card(s).
I hope they add it to the app soon.

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Re: Fidelity as a one stop shop

Post by vtMaps » Sun Nov 03, 2019 10:28 am

u2wl wrote:
Sun Nov 03, 2019 9:18 am
They added an option to lock (temporary disable) your debit card in Manage Debit Card(s).
I hope they add it to the app soon.
I think that locking the card will also disable the ATM function. I would like to be able to disable just the debit function.

--vtMaps
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Re: Fidelity as a one stop shop

Post by spammagnet » Wed Nov 06, 2019 10:54 am

Leif wrote:
Sat Nov 02, 2019 11:22 am
To make it more obvious the full path is Accounts & Trade > Cash Management > Manage Debit card(s) (button). Although it redirects you to the above URL, I feel more comfortable going from the Fidelity website than typing in a foreign (to me) URL.
I share your skepticism about links found online but, once you navigate there and can see the URL for yourself, you can be confident that it is, in fact, a Fidelity-hosted web page.

That said, I can't see a need to visit that page very often. It's probably easier to remember how to navigate there from within the Fidelity site, on the rare occasions it's necessary, rather than trying to remember the direct URL.

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Re: Fidelity as a one stop shop

Post by indexfundfan » Thu Nov 07, 2019 3:24 pm

Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
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Re: Fidelity as a one stop shop

Post by bostondan » Thu Nov 07, 2019 3:25 pm

indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel

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Re: Fidelity as a one stop shop

Post by indexfundfan » Thu Nov 07, 2019 3:32 pm

bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
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Re: Fidelity as a one stop shop

Post by bostondan » Thu Nov 07, 2019 3:47 pm

indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
There’s no downside to getting the card. You can always throw it away (after shredding it). Or call Fidelity and ask if you qualify for free ATMs. They were able to tell me that I am just now. Total call time was 4 minutes.
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.” - Elie Wiesel

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Re: Fidelity as a one stop shop

Post by Kevin M » Thu Nov 07, 2019 6:29 pm

indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
I don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.

Kevin
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Re: Fidelity as a one stop shop

Post by radiowave » Thu Nov 07, 2019 6:54 pm

Kevin M wrote:
Thu Nov 07, 2019 6:29 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
I don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.

Kevin
I agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.
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Re: Fidelity as a one stop shop

Post by indexfundfan » Thu Nov 07, 2019 8:49 pm

radiowave wrote:
Thu Nov 07, 2019 6:54 pm
Kevin M wrote:
Thu Nov 07, 2019 6:29 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
bostondan wrote:
Thu Nov 07, 2019 3:25 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:24 pm
Does it show anywhere on the web page whether your ATM fees will be reimbursed? This is for the investment account, not the CMA.
I don’t see that anywhere. You can always just test it out and see what happens. My ATM fees are mostly reimbursed within a few days or a week.
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
I don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.

Kevin
I agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.
I would like to reduce one account if I can. As it is, I'm using the investment account purely for checking. The CMA is delegated for ATM usage only, and this becomes redundant if the ATM fees are reimbursed in the investment account.
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Re: Fidelity as a one stop shop

Post by Kevin M » Thu Nov 07, 2019 9:35 pm

indexfundfan wrote:
Thu Nov 07, 2019 8:49 pm
radiowave wrote:
Thu Nov 07, 2019 6:54 pm
Kevin M wrote:
Thu Nov 07, 2019 6:29 pm
indexfundfan wrote:
Thu Nov 07, 2019 3:32 pm
I don't have the debit card for the investment account (IA). I only have the card for the CMA. Just wondering if it is worthwhile to get the card for the IA. I currently keep the CMA balance zero.
I don't want a card for the brokerage account, even though I qualify for ATM fee rembursements. It's easy to transfer something from brokerage to CMA for ATM purposes. Rather than keep $0 in CMA, I keep enough in to cover unexpected ATM withdrawal needs, like $200-$300 or so.
I agree with Kevin and do the same thing. I've used my CMA debit card in Europe and works fine, I only use it for ATM withdrawal never purchases.
I would like to reduce one account if I can. As it is, I'm using the investment account purely for checking. The CMA is delegated for ATM usage only, and this becomes redundant if the ATM fees are reimbursed in the investment account.
What's the big deal about having two accounts? Takes like a minute to log on and move money from one account to the other.

It's probably excessively paranoid, but my thinking is to reduce fraud exposure by not having an ATM/debit card for the account that has more money in it.

I actually have three taxable accounts: investment brokerage, cash management brokerage, and CMA. I also have traditional and Roth IRAs.

Anyway, I think you need to be private client to not get charged the ATM fees on a brokerage account. You would have had to have a fairly large amount at Fidelity at some point to get this status--I had over $1M at one point. My Fidelity balance dropped a lot after I got private client status (transferred a lot out of my IRA to Vanguard and other placesk), but they never revoked it.

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Re: Fidelity as a one stop shop

Post by indexfundfan » Thu Nov 07, 2019 9:52 pm

Kevin M wrote:
Thu Nov 07, 2019 9:35 pm
What's the big deal about having two accounts? Takes like a minute to log on and move money from one account to the other.

It's probably excessively paranoid, but my thinking is to reduce fraud exposure by not having an ATM/debit card for the account that has more money in it.

I actually have three taxable accounts: investment brokerage, cash management brokerage, and CMA. I also have traditional and Roth IRAs.

Anyway, I think you need to be private client to not get charged the ATM fees on a brokerage account. You would have had to have a fairly large amount at Fidelity at some point to get this status--I had over $1M at one point. My Fidelity balance dropped a lot after I got private client status (transferred a lot out of my IRA to Vanguard and other placesk), but they never revoked it.

Kevin
I have 3 accounts -- 1. CMA, 2. Investment account used as checking, 3. Investment account holding assets in trust.

Account 2 is for my daily usage. Account 1 is just for ATM. It's not a big deal to have the CMA, but if it can be done with just account 2, I don't see any reason to have account 1. Occam's razor.
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Re: Fidelity as a one stop shop

Post by jumbopapa » Fri Nov 08, 2019 1:54 pm

I have just opened the CMA and brokerage with Fidelity. My IRA is still at Vanguard and I'm on the fence about transferring it to Fidelity where it would decrease the the fees by 4 basis points. It would make my life easier, but I like Vanguard as a company and I don't want to sever all ties with them. My 401k is through T. Rowe Price. Have you guys been dropping Vanguard in favor of the Fidelity solution?

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Re: Fidelity as a one stop shop

Post by mptfan » Fri Nov 08, 2019 2:19 pm

jumbopapa wrote:
Fri Nov 08, 2019 1:54 pm
I have just opened the CMA and brokerage with Fidelity. My IRA is still at Vanguard and I'm on the fence about transferring it to Fidelity where it would decrease the the fees by 4 basis points. It would make my life easier, but I like Vanguard as a company and I don't want to sever all ties with them. My 401k is through T. Rowe Price. Have you guys been dropping Vanguard in favor of the Fidelity solution?
I went throught the same thought process about a year ago...I was reluctant to sever all ties with Vanguard because I feel a sense of loyalty for everything John Bogle and Vanguard have done over the years to help the average investor and push the industry to lower costs, I know that if it were not for Vanguard we would not have a variety of options of low cost or zero cost funds at Fidelity and Schwab and other places. The thing that put me over the edge was when Fidelity started offering HSA accounts, then I decided to transfer my IRAs from Vanguard to Fidelity and consolidate them with my HSA at Fidelity. I also have accounts at Schwab, and I have been happy with Fidelity and Schwab so far. I will admit to having a feeling of being disloyal to Vanguard for transferring my accounts from them after everything they've done, but at the end of the day we are in a free market and if other providers are providing the same or better service then I am entitled to choose the best provider for me.

jumbopapa
Posts: 81
Joined: Thu Aug 30, 2018 7:56 am

Re: Fidelity as a one stop shop

Post by jumbopapa » Fri Nov 08, 2019 2:24 pm

mptfan wrote:
Fri Nov 08, 2019 2:19 pm
I went throught the same thought process about a year ago...I was reluctant to sever all ties with Vanguard because I feel a sense of loyalty for everything John Bogle and Vanguard have done over the years to help the average investor and push the industry to lower costs, I know that if it were not for Vanguard we would not have a variety of options of low cost or zero cost funds at Fidelity and Schwab and other places. The thing that put me over the edge was when Fidelity started offering HSA accounts, then I decided to transfer my IRAs from Vanguard to Fidelity and consolidate them with my HSA at Fidelity. I also have accounts at Schwab, and I have been happy with Fidelity and Schwab so far. I will admit to having a feeling of being disloyal to Vanguard for transferring my accounts from them after everything they've done, but at the end of the day we are in a free market and if other providers are providing the same or better service then I am entitled to choose the best provider for me.
Thank you. I think I should just move everything over and be done with it. How did you do go about doing the transfer? I understand I can leave it in VTSAX and transition to a Fidelity fund once the transfer is complete?

mptfan
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Joined: Mon Mar 05, 2007 9:58 am

Re: Fidelity as a one stop shop

Post by mptfan » Fri Nov 08, 2019 2:44 pm

jumbopapa wrote:
Fri Nov 08, 2019 2:24 pm
Thank you. I think I should just move everything over and be done with it. How did you do go about doing the transfer? I understand I can leave it in VTSAX and transition to a Fidelity fund once the transfer is complete?
As I recall, the first step is to open an account at Fidelity, I did it online, it was very easy. I think you are asked if you are transferring an account during the online process and you just answer the questions. You should have an electronic copy of a recent statement for each account that you are transferring because I think they ask you to upload that. Some funds can be transferred "in kind" and some cannot, in which case you have to liquidate to cash before the transfer. I vaguely recall that Admiral class funds cannot be transferred in kind, but don't quote me on that.

808
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Re: Fidelity as a one stop shop

Post by 808 » Fri Nov 08, 2019 6:09 pm

boston10 wrote:
Fri Aug 23, 2019 5:57 am
To provide an updated strategy (new parts bolded, old parts struck through):
  • ...
  • 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, or "pull" ACH transactions). These transactions are few and far between for me (zero most months) generally predictable and only happen a few times a month, so I set up several automatic monthly transfers from my brokerage to my CMA to cover them before they're pulled and keep it manually topped off at ~$500 in SPRXX in this account. So everything stays in a MM.
  • ...
  • ...
Are your automatic monthly transfers to CORE or to the MMA within the CMA?

If it's to the MMA, can you (or anyone else) confirm that you have had a "pull" ACH, initiated from an external-to-Fidelity account, successfully processed with the CORE at $0 but with sufficient funds in the MMA within the CMA?

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