Fidelity as a one stop shop

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Huygens
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Re: Fidelity as a one stop shop

Post by Huygens » Sat Jan 25, 2020 12:03 pm

After reading through this thread, I'm considering moving banking to Fidelity. However I'm surprised to see Fidelity's money market funds yield less than Vanguard's. For example, Fidelity Treasury Money Market Fund (FZFXX) 7-day yield is 1.23%, whereas Vanguard Treasury Money Market Fund (VUSXX) is 1.53%. I'm curious if anyone knows why Fidelity's yields are lower. Is it because Fidelity's expense ratio is much higher (0.42% vs 0.09%)?

mighty72
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Re: Fidelity as a one stop shop

Post by mighty72 » Sat Jan 25, 2020 12:32 pm

BogleMelon wrote:
Thu Jan 23, 2020 9:50 am
So under "Cash Manager" there are 2 options that kind of serving the same purpose but I don't see anyone talking about why one would be better than the other:

1- Self Funded Overdraft Protection
2- Minimum Target Balance

My understanding:
If I want to keep a firewall from my brokerage account funds, yet maintain some automation, It would be safer to use the second option and keep a minimum amount there. Here are 2 hypothetical scenarios to illustrate what I understand and please correct me if I am wrong:
A series of fraudulent transactions with a total of $80,000 are hitting my CMA:
Scenario 1- Using Overdraft Protection:
Now my $100,000 in MM fund in brokerage is in jeopardy and will be used to cover the transactions! Total instant loss: $80,000

Scenario 2- Using Minimum Target balance of $5000:
Only $5000 was instantly gone, the rest of the transactions were instantly declined due to insufficient funds. Over the night, the account was replenished and the balance became $5000. Total instant loss $5000

Based on that, the minimum target balance would be a safer bet to use.

Did I get that right? Is that how it works in both 2 scenarios?
This is my understanding too. This works as long as you never have one expense greater than $5,000. I don't know if it will work if you have multiple expenses on a single day, each less than 5k but in total more than 10 k. This would require multiple transfers from brokerage to CMA.
The way I have set up is that I have 2 brokerage accounts. One is linked to CMA and only has enough money to cover ones months expenses. The rest is in the non-linked account

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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M » Sat Jan 25, 2020 1:54 pm

Huygens wrote:
Sat Jan 25, 2020 12:03 pm
I'm curious if anyone knows why Fidelity's yields are lower. Is it because Fidelity's expense ratio is much higher (0.42% vs 0.09%)?
Yes, that mostly explains it.

Kevin
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney » Sat Jan 25, 2020 2:25 pm

Huygens wrote:
Sat Jan 25, 2020 12:03 pm
After reading through this thread, I'm considering moving banking to Fidelity. However I'm surprised to see Fidelity's money market funds yield less than Vanguard's. For example, Fidelity Treasury Money Market Fund (FZFXX) 7-day yield is 1.23%, whereas Vanguard Treasury Money Market Fund (VUSXX) is 1.53%. I'm curious if anyone knows why Fidelity's yields are lower. Is it because Fidelity's expense ratio is much higher (0.42% vs 0.09%)?
Fidelity® Government Money Market Fund ER: 0.42% Yield: 1.25%
Fidelity® Government Money Market Fund - Premium Class ER: 0.32% Yield: 1.35%

Vanguard Federal Money Market Fund ER:0.11% Yield: 1.57%

Yup... If you include the ER, they're all yielding the same amount.
But, with the Fidelity CMA account I get ATM access with all ATM fees reimbursed, and an eligible account I can deposit the 2% cash-back bonus (from the Fidelity® Rewards Visa Signature® Card) and use it for bill-pay.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

ChrisBenn
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Re: Fidelity as a one stop shop

Post by ChrisBenn » Sat Jan 25, 2020 3:00 pm

I hit an atm on friday (during business hours) with a fee and I was credited for it same day - hadn't had a chance before to see how refunds would be processed (end of month, etc). I was pleasantly surprised.

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Re: Fidelity as a one stop shop

Post by abuss368 » Sat Jan 25, 2020 3:02 pm

I would love to see Vanguard offer banking services as a one stop shop.

I had this many years ago with eTrade. All banking and investing. We literally had one website to go to that provided everything. That was the easiest we ever had!
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

Startled Cat
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Re: Fidelity as a one stop shop

Post by Startled Cat » Sun Jan 26, 2020 11:12 am

I'll be making a relatively large deposit into my Fidelity account soon. I don't have a definite time horizon for using the money. It could be as short as a few months or as long as a few years.

In general I switch between FSPXX and FDLXX money market funds depending which has a better TEY at any given time. They both have relatively high ERs. With a larger amount of cash, I'm wondering if it's worth optimizing.

I could auto-roll T-bills, but this seems like it might be a bit of a hassle compared to a MMF. To get liquidity I'd have to sell the T-bills, which involves a bid/ask spread, and I think capital gains from the sale don't get favorable state tax treatment. These factors might partially or completely negate the benefits over a high-fee MMF. Tax reporting might also be a little more complicated.

I could use an ETF like BIL, but this has many of the same problems as owning T-bills directly, with an added layer of expenses, and slower settlement.

I could accept some term risk, and use a short-term treasury index fund like FUMBX (ER of 0.03% vs. 0.42% for FDLXX).

Any recommendations?

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Re: Fidelity as a one stop shop

Post by tfb » Sun Jan 26, 2020 11:37 am

Startled Cat wrote:
Sun Jan 26, 2020 11:12 am
I could auto-roll T-bills, but this seems like it might be a bit of a hassle compared to a MMF. To get liquidity I'd have to sell the T-bills, which involves a bid/ask spread, and I think capital gains from the sale don't get favorable state tax treatment. These factors might partially or completely negate the benefits over a high-fee MMF. Tax reporting might also be a little more complicated.
When the market is open, pull up a T-Bill and pretend you own it and now you want to sell. You will see the bid/ask spread is very small. If you don't need 100% of your money, only the part you sell will be subject to that one-time bid/ask spread, versus 100% of your money will pay the ER if you leave it in a fund. When the bill you sell only had a few months of life, you are not getting much capital gains anyway, and the state tax treatment makes little difference on negligible capital gains.

A short-term treasury index fund like FUMBX also works.
Harry Sit, taking a break from the forums.

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Re: Fidelity as a one stop shop

Post by Spirit Rider » Sun Jan 26, 2020 11:53 am

Define "relatively large". Fidelity's FZDXX has a $100K minimum investment, but no minimum balance. It tends to track 3-month T-Bills pretty closely. Its 7-day yield is currently 1.57%.

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Re: Fidelity as a one stop shop

Post by Startled Cat » Sun Jan 26, 2020 12:10 pm

Spirit Rider wrote:
Sun Jan 26, 2020 11:53 am
Define "relatively large". Fidelity's FZDXX has a $100K minimum investment, but no minimum balance. It tends to track 3-month T-Bills pretty closely. Its 7-day yield is currently 1.57%.
It doesn't look like FZDXX is exempt from state taxes. While it does look like it would give me a slightly higher TEY than FDLXX, the difference is only a few basis points.

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Re: Fidelity as a one stop shop

Post by Gleevec » Sun Jan 26, 2020 12:35 pm

Startled Cat wrote:
Sun Jan 26, 2020 12:10 pm
Spirit Rider wrote:
Sun Jan 26, 2020 11:53 am
Define "relatively large". Fidelity's FZDXX has a $100K minimum investment, but no minimum balance. It tends to track 3-month T-Bills pretty closely. Its 7-day yield is currently 1.57%.
It doesn't look like FZDXX is exempt from state taxes. While it does look like it would give me a slightly higher TEY than FDLXX, the difference is only a few basis points.
Are any of the CMA compatible, auto-withdrawing MMF state tax exempt? If so, any for CA?

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Re: Fidelity as a one stop shop

Post by Startled Cat » Sun Jan 26, 2020 12:44 pm

Gleevec wrote:
Sun Jan 26, 2020 12:35 pm
Are any of the CMA compatible, auto-withdrawing MMF state tax exempt? If so, any for CA?
I currently use either FSPXX or FDLXX for this purpose, which both try to avoid CA taxes (although I noticed on my 1099 that FSPXX does throw off some income taxable by CA). FSPXX is also exempt from federal taxes.

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Re: Fidelity as a one stop shop

Post by mikael122 » Sun Jan 26, 2020 2:19 pm

arf30 wrote:
Wed Dec 19, 2018 7:10 am
The advantage of the Fidelity account is you can get that 2% savings/checking without the 6 transaction limit that real savings accounts have. Drawback is it's not FDIC.
Old Post. What is not?

jumbopapa
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Re: Fidelity as a one stop shop

Post by jumbopapa » Sun Jan 26, 2020 2:28 pm

Is it possible to setup a spending limit for an authorized user on the Fidelity Rewards Visa? I'd like to add an authorized user, but prefer to not give them access to my entire credit limit.

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Re: Fidelity as a one stop shop

Post by Kevin M » Sun Jan 26, 2020 3:26 pm

Startled Cat wrote:
Sun Jan 26, 2020 11:12 am
I'll be making a relatively large deposit into my Fidelity account soon. I don't have a definite time horizon for using the money. It could be as short as a few months or as long as a few years.

In general I switch between FSPXX and FDLXX money market funds depending which has a better TEY at any given time. They both have relatively high ERs. With a larger amount of cash, I'm wondering if it's worth optimizing.
Your marginal state tax rate must be very high to make FDLXX competitive. Even at marginal rates of 40.8% fed and 12.3% state, TEY of FDLXX is 1.50%, while yield of SPRXX is only 5 bps lower at 1.45%. At marginal rates of 27.8% and 9.3%, SPRXX comes out on top (excluding FZDXX at 1.57%) at 1.45%, compared to TEY of 1.37% for FDLXX.
I could auto-roll T-bills, but this seems like it might be a bit of a hassle compared to a MMF. To get liquidity I'd have to sell the T-bills, which involves a bid/ask spread, and I think capital gains from the sale don't get favorable state tax treatment. These factors might partially or completely negate the benefits over a high-fee MMF. Tax reporting might also be a little more complicated.
If I were committed to Fidelity as a one-stop shop, I probably would use Tbills with high state income tax rate. With the 6-month at 1.55%, TEY is 1.78% at 27.8%/9.3%, and 1.96% at 40.8%/12.3%. I agree with tfb that the downsides you mention are minimal. I believe the accrued discount portion of sales proceeds get the state tax exemption, and only any excess over that is treated as capital gain (I will find out for sure when I do my taxes this year, since I sold a bunch of Treasuries before maturity in 2019).

If not committed to Fido as one-stop, I would look elsewhere for higher yield, although if you are in the highest tax brackets, Treasuries are competitive with say a 2% savings account.

Kevin
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Startled Cat
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Re: Fidelity as a one stop shop

Post by Startled Cat » Sun Jan 26, 2020 11:09 pm

Kevin M wrote:
Sun Jan 26, 2020 3:26 pm
Your marginal state tax rate must be very high to make FDLXX competitive. Even at marginal rates of 40.8% fed and 12.3% state, TEY of FDLXX is 1.50%, while yield of SPRXX is only 5 bps lower at 1.45%. At marginal rates of 27.8% and 9.3%, SPRXX comes out on top (excluding FZDXX at 1.57%) at 1.45%, compared to TEY of 1.37% for FDLXX.
My base case is 39.5% federal / 11.3% CA, however it is possible that for 2020 my federal marginal rate will spike to 44.5%, or, independently, that my marginal state tax rate will decline to 9.3%. In any of the cases where the state tax rate is 11.3%, FDLXX comes out very slightly ahead of SPRXX. In any of the cases where the state tax rate is 9.3%, SPRXX is slightly better.
Kevin M wrote:
Sun Jan 26, 2020 3:26 pm
If I were committed to Fidelity as a one-stop shop, I probably would use Tbills with high state income tax rate. With the 6-month at 1.55%, TEY is 1.78% at 27.8%/9.3%, and 1.96% at 40.8%/12.3%. I agree with tfb that the downsides you mention are minimal. I believe the accrued discount portion of sales proceeds get the state tax exemption, and only any excess over that is treated as capital gain (I will find out for sure when I do my taxes this year, since I sold a bunch of Treasuries before maturity in 2019).
It sounds like T-bills are the way to go. Thanks for the recommendations.

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Re: Fidelity as a one stop shop

Post by boston10 » Mon Jan 27, 2020 7:24 am

Startled Cat wrote:
Sun Jan 26, 2020 11:09 pm
My base case is 39.5% federal / 11.3% CA, however it is possible that for 2020 my federal marginal rate will spike to 44.5%, or, independently, that my marginal state tax rate will decline to 9.3%.
How is this possible? Top federal income tax rate is 37%. If you're that high you're paying the additional Medicare tax but not Social Security, so regular Medicare + Additional Medicare = 2.35%. So 39.35% is the top possible federal rate, no?

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Re: Fidelity as a one stop shop

Post by Startled Cat » Mon Jan 27, 2020 10:33 am

boston10 wrote:
Mon Jan 27, 2020 7:24 am
How is this possible? Top federal income tax rate is 37%. If you're that high you're paying the additional Medicare tax but not Social Security, so regular Medicare + Additional Medicare = 2.35%. So 39.35% is the top possible federal rate, no?
44.5% would be the marginal rate on interest from:
  • 35% tax bracket
  • 3.8% NIIT
  • 0.7% CA itemized deduction phaseout based on federal AGI
  • 5% from each dollar of extra income causing a dollar of long term capital gain to be taxed at 23.8% instead of 18.8%.

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Re: Fidelity as a one stop shop

Post by boston10 » Mon Jan 27, 2020 10:50 am

Startled Cat wrote:
Mon Jan 27, 2020 10:33 am
boston10 wrote:
Mon Jan 27, 2020 7:24 am
How is this possible? Top federal income tax rate is 37%. If you're that high you're paying the additional Medicare tax but not Social Security, so regular Medicare + Additional Medicare = 2.35%. So 39.35% is the top possible federal rate, no?
44.5% would be the marginal rate on interest from:
  • 35% tax bracket
  • 3.8% NIIT
  • 0.7% CA itemized deduction phaseout based on federal AGI
  • 5% from each dollar of extra income causing a dollar of long term capital gain to be taxed at 23.8% instead of 18.8%.
Yuck. So I gather that omits the Medicare taxes, presumably in error? Which means if you are in CA you could easily have a combined state/federal marginal tax rate of well over 50% and close to 60%.

[OT comment removed by admin LadyGeek]

Startled Cat
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Re: Fidelity as a one stop shop

Post by Startled Cat » Mon Jan 27, 2020 11:13 am

boston10 wrote:
Mon Jan 27, 2020 10:50 am
Yuck. So I gather that omits the Medicare taxes, presumably in error?
The additional Medicare tax only applies to earned income. The 3.8% NIIT and 0.9% additional Medicare tax would not apply to the same income.

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Re: Fidelity as a one stop shop

Post by boston10 » Mon Jan 27, 2020 11:27 am

Startled Cat wrote:
Mon Jan 27, 2020 11:13 am
boston10 wrote:
Mon Jan 27, 2020 10:50 am
Yuck. So I gather that omits the Medicare taxes, presumably in error?
The additional Medicare tax only applies to earned income. The 3.8% NIIT and 0.9% additional Medicare tax would not apply to the same income.
Got it. But if you had earned income above $200k with substantial investment income, additional earned income could push you over the $250k MAGI threshold for the NIIT. Granted, that would be more of a "cliff" than a marginal tax rate, and its impacts would be specific to each person's situation.

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Re: Fidelity as a one stop shop

Post by djevel » Sat Feb 08, 2020 10:51 pm

Has anyone figured out how to set up auto-transfers to an external account on a customized schedule at Fidelity? Annual and monthly transfers seem to be supported, but anything like weekly, or bi-weekly seems to be completely missing... :(

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Sat Feb 08, 2020 10:56 pm

djevel wrote:
Sat Feb 08, 2020 10:51 pm
Has anyone figured out how to set up auto-transfers to an external account on a customized schedule at Fidelity? Annual and monthly transfers seem to be supported, but anything like weekly, or bi-weekly seems to be completely missing... :(
Not sure if that would work, but I would call them and see if the CS can do it. Some features may not be available online, but chat agents and phone agents are able to set it up. Example: Rolling over from one Roth IRA to another both under Fidelity.
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Re: Fidelity as a one stop shop

Post by HomeStretch » Sat Feb 08, 2020 11:11 pm

djevel wrote:
Sat Feb 08, 2020 10:51 pm
Has anyone figured out how to set up auto-transfers to an external account on a customized schedule at Fidelity? Annual and monthly transfers seem to be supported, but anything like weekly, or bi-weekly seems to be completely missing... :(
I have an auto weekly transfer set up from my Fidelity taxable brokerage account to a linked bank account. I had to call to have a CSR set it up (5 minute call). Rep confirmed this could not be done online (~9 months ago).

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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney » Sat Feb 08, 2020 11:26 pm

djevel wrote:
Sat Feb 08, 2020 10:51 pm
Has anyone figured out how to set up auto-transfers to an external account on a customized schedule at Fidelity? Annual and monthly transfers seem to be supported, but anything like weekly, or bi-weekly seems to be completely missing... :(
When I go into "Account Features" > "Payments and Transfers" > "Automatic Withdrawals" and step through the process, it allows me to create a customized withdrawal schedule for any month(s) of the year on any day of the month....
.. and I can create more than one automatic withdrawal schedule, so it appears I can do weekly or bi-weekly or whatever, I just have to setup multiple "monthly" schedules that occur on different days/weeks.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

djevel
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Re: Fidelity as a one stop shop

Post by djevel » Sat Feb 08, 2020 11:34 pm

JoMoney wrote:
Sat Feb 08, 2020 11:26 pm
djevel wrote:
Sat Feb 08, 2020 10:51 pm
Has anyone figured out how to set up auto-transfers to an external account on a customized schedule at Fidelity? Annual and monthly transfers seem to be supported, but anything like weekly, or bi-weekly seems to be completely missing... :(
When I go into "Account Features" > "Payments and Transfers" > "Automatic Withdrawals" and step through the process, it allows me to create a customized withdrawal schedule for any month(s) of the year on any day of the month....
.. and I can create more than one automatic withdrawal schedule, so it appears I can do weekly or bi-weekly or whatever, I just have to setup multiple "monthly" schedules that occur on different days/weeks.
Yup, I got that far as well, but that would still be a "monthly" scheme since the transfer would occur on a (or more) specific day(s) of the month as opposed to say "every second Friday" which is what I am looking for. As mentioned in the past few posts it looks like this is only supported through a call to CS, which is better than not at all... It does seem like somewhat of an oversight though since with most banks this can be done with ease through the web interface.

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Re: Fidelity as a one stop shop

Post by corp_sharecropper » Thu Feb 13, 2020 6:52 pm

As I've begun to use Fidelity as a "one stop shop" I have become aware of a downside. Don't get me wrong, I'm very happy most of the time with my setup at Fidelity... But, I'm concerned about not being able to look away from longer term investments, especially if we have a downturn, when I'm on my way to just check something in my checking/savings (CMA/brokerage) or credit card (2% Cash back).

I'm aware of the account list customize settings but it's not enough. You can't hide all account types for some reason, and regardless of what you set, the Fidelity Android app will still show you all accounts and balances. I really value "not looking" as a defense mechanism in bad markets AND prevention of tinkering. Does anyone know of a way to really not see certain accounts at all? I sort of wish I could create a separate user account (different login/password) that truly only had access to my CMA, brokerage (which I use as overdraft), and 2% Cash back Visa. Anyone know if that's possible? Doesn't seem like it would be difficult to implement from Fidelity's perspective considering you can already grant someone else with a Fidelity account various levels of access on an account by account basis. It really would just come down to whether there's a policy regarding "one person, one account". Hope someone has already figured this out.

ARoseByAnyOtherName
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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Thu Feb 13, 2020 8:24 pm

corp_sharecropper wrote:
Thu Feb 13, 2020 6:52 pm
As I've begun to use Fidelity as a "one stop shop" I have become aware of a downside. Don't get me wrong, I'm very happy most of the time with my setup at Fidelity... But, I'm concerned about not being able to look away from longer term investments, especially if we have a downturn, when I'm on my way to just check something in my checking/savings (CMA/brokerage) or credit card (2% Cash back).

I'm aware of the account list customize settings but it's not enough. You can't hide all account types for some reason, and regardless of what you set, the Fidelity Android app will still show you all accounts and balances. I really value "not looking" as a defense mechanism in bad markets AND prevention of tinkering. Does anyone know of a way to really not see certain accounts at all? I sort of wish I could create a separate user account (different login/password) that truly only had access to my CMA, brokerage (which I use as overdraft), and 2% Cash back Visa. Anyone know if that's possible? Doesn't seem like it would be difficult to implement from Fidelity's perspective considering you can already grant someone else with a Fidelity account various levels of access on an account by account basis. It really would just come down to whether there's a policy regarding "one person, one account". Hope someone has already figured this out.
That's a really interesting, and IMHO totally legitimate, issue.

Perhaps try using aggregator like You Need A Budget, or Personal Capital, and only configure it with the CMA and credit card accounts.

The downside it wouldn't be realtime, your balance would be a day or so out of date. But it might work.

Cash
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Re: Fidelity as a one stop shop

Post by Cash » Thu Feb 13, 2020 9:10 pm

The credit card does have a way to log in separately: fidelityrewards.com. Set up alerts and keep enough in your checking so that you don’t have to check that often. We put almost everything on the card and get alerts for checks and electronic funds transfers. Not really a reason for me to log in that often.

aristotle'sfootprint
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Re: Fidelity as a one stop shop

Post by aristotle'sfootprint » Thu Feb 13, 2020 9:13 pm

corp_sharecropper wrote:
Thu Feb 13, 2020 6:52 pm
As I've begun to use Fidelity as a "one stop shop" I have become aware of a downside. Don't get me wrong, I'm very happy most of the time with my setup at Fidelity... But, I'm concerned about not being able to look away from longer term investments, especially if we have a downturn, when I'm on my way to just check something in my checking/savings (CMA/brokerage) or credit card (2% Cash back).

I'm aware of the account list customize settings but it's not enough. You can't hide all account types for some reason, and regardless of what you set, the Fidelity Android app will still show you all accounts and balances. I really value "not looking" as a defense mechanism in bad markets AND prevention of tinkering. Does anyone know of a way to really not see certain accounts at all? I sort of wish I could create a separate user account (different login/password) that truly only had access to my CMA, brokerage (which I use as overdraft), and 2% Cash back Visa. Anyone know if that's possible? Doesn't seem like it would be difficult to implement from Fidelity's perspective considering you can already grant someone else with a Fidelity account various levels of access on an account by account basis. It really would just come down to whether there's a policy regarding "one person, one account". Hope someone has already figured this out.
You can change your start page, so that when you log in you just see the CMA, bill pay, and credit card tabs. It takes another click to check investments. At least you can set this up on the website.

Gemini
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Re: Fidelity as a one stop shop

Post by Gemini » Thu Feb 13, 2020 11:16 pm

Does Fidelity offer Zelle?

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gas_balloon
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Re: Fidelity as a one stop shop

Post by gas_balloon » Thu Feb 13, 2020 11:19 pm

Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Unfortunately, no. They're debit card salso didn't with on Zelle's site. One of 2 things preventing me from making it a one stop shop. The 2nd thing is safe deposit box rentals.

muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 » Thu Feb 13, 2020 11:22 pm

Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Is venmo a reasonable alternative?

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Re: Fidelity as a one stop shop

Post by Gemini » Thu Feb 13, 2020 11:24 pm

muffins14 wrote:
Thu Feb 13, 2020 11:22 pm
Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Is venmo a reasonable alternative?
Maybe. Is it free?

I currently have USAA, where everything is basically free ie checks/atm and it has Zelle, which I use weekly.

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gas_balloon
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Re: Fidelity as a one stop shop

Post by gas_balloon » Thu Feb 13, 2020 11:28 pm

Venmo is free, but for some reason most of my friends don't use it. It's difficult to get people to sign up & download another app for one off things like these. Chase & BofA make it really easy for everyone to sign up for Zelle and convenient to use from the same app... So most of my friends have Zelle.

ARoseByAnyOtherName
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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Thu Feb 13, 2020 11:38 pm

walletless wrote:
Thu Feb 13, 2020 11:19 pm
Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Unfortunately, no. They're debit card salso didn't with on Zelle's site. One of 2 things preventing me from making it a one stop shop. The 2nd thing is safe deposit box rentals.
Safe deposit boxes aren’t safe.
https://www.nytimes.com/2019/07/19/busi ... theft.html

muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 » Thu Feb 13, 2020 11:58 pm

I think I venmo is no more difficult to sign up for than any other website//app that needs credentials for ACH transfers

ras4250
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Re: Fidelity as a one stop shop

Post by ras4250 » Fri Feb 14, 2020 1:50 am

muffins14 wrote:
Thu Feb 13, 2020 11:58 pm
I think I venmo is no more difficult to sign up for than any other website//app that needs credentials for ACH transfers
Zelle doesn’t require a separate app, it is built in to the bank apps. There is no new account to sign up for. Not saying Venmo is difficult but with Zelle it is seamless. No new password to remember etc.

TheJoelfather
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Re: Fidelity as a one stop shop

Post by TheJoelfather » Fri Feb 14, 2020 7:06 am

ras4250 wrote:
Fri Feb 14, 2020 1:50 am
muffins14 wrote:
Thu Feb 13, 2020 11:58 pm
I think I venmo is no more difficult to sign up for than any other website//app that needs credentials for ACH transfers
Zelle doesn’t require a separate app, it is built in to the bank apps. There is no new account to sign up for. Not saying Venmo is difficult but with Zelle it is seamless. No new password to remember etc.
If you are Apple users, another option is to send money with Apple Cash. No additional account or password to remember, built-in to the iPhone. Only need to input your debit card once, then it's free to send and receive money via iMessage.

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gas_balloon
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Re: Fidelity as a one stop shop

Post by gas_balloon » Fri Feb 14, 2020 2:55 pm

ARoseByAnyOtherName wrote:
Thu Feb 13, 2020 11:38 pm
walletless wrote:
Thu Feb 13, 2020 11:19 pm
Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Unfortunately, no. They're debit card salso didn't with on Zelle's site. One of 2 things preventing me from making it a one stop shop. The 2nd thing is safe deposit box rentals.
Safe deposit boxes aren’t safe.
https://www.nytimes.com/2019/07/19/busi ... theft.html
I mean nothing is 100% safe... but I am quite certain its more safe than me keeping things at home. Besides, I don't store jewellery, but documents (passport, living trust copy, yubikey backup, etc).

muffins14
Posts: 206
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Re: Fidelity as a one stop shop

Post by muffins14 » Fri Feb 14, 2020 4:14 pm

TheJoelfather wrote:
Fri Feb 14, 2020 7:06 am
ras4250 wrote:
Fri Feb 14, 2020 1:50 am
muffins14 wrote:
Thu Feb 13, 2020 11:58 pm
I think I venmo is no more difficult to sign up for than any other website//app that needs credentials for ACH transfers
Zelle doesn’t require a separate app, it is built in to the bank apps. There is no new account to sign up for. Not saying Venmo is difficult but with Zelle it is seamless. No new password to remember etc.
If you are Apple users, another option is to send money with Apple Cash. No additional account or password to remember, built-in to the iPhone. Only need to input your debit card once, then it's free to send and receive money via iMessage.
This is the same as venmo, except with venmo you have to click to open an app called Venmo instead of an app called iMessage

gpburdell
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Re: Fidelity as a one stop shop

Post by gpburdell » Fri Feb 14, 2020 4:41 pm

Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
They don't as Fidelity isn't a bank. Zelle was created by a group of the larger US banks to compete with Venmo. You can apparently connect Fidelity directly to Paypal (who owns Venmo) but I haven't done it. Even if Fidelity supported Zelle, I probably wouldn't do it; at least not with my main CMA account.

I still keep my Capital One-ING account specifically for Venmo/Zelle/Paypal. I can only push/pull money from Fido to Cap One and just keep a few hundred there to cover any payments. My group of friends uses Venmo all the time as it's very convienent. Zelle is nice too but I believe most banks still only let you send and not request money.

ARoseByAnyOtherName
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Re: Fidelity as a one stop shop

Post by ARoseByAnyOtherName » Fri Feb 14, 2020 4:57 pm

walletless wrote:
Fri Feb 14, 2020 2:55 pm
ARoseByAnyOtherName wrote:
Thu Feb 13, 2020 11:38 pm
walletless wrote:
Thu Feb 13, 2020 11:19 pm
Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
Unfortunately, no. They're debit card salso didn't with on Zelle's site. One of 2 things preventing me from making it a one stop shop. The 2nd thing is safe deposit box rentals.
Safe deposit boxes aren’t safe.
https://www.nytimes.com/2019/07/19/busi ... theft.html
I mean nothing is 100% safe... but I am quite certain its more safe than me keeping things at home.
Really? What makes you so certain?

Gemini
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Re: Fidelity as a one stop shop

Post by Gemini » Sat Feb 15, 2020 2:27 pm

gpburdell wrote:
Fri Feb 14, 2020 4:41 pm
Gemini wrote:
Thu Feb 13, 2020 11:16 pm
Does Fidelity offer Zelle?
They don't as Fidelity isn't a bank. Zelle was created by a group of the larger US banks to compete with Venmo. You can apparently connect Fidelity directly to Paypal (who owns Venmo) but I haven't done it. Even if Fidelity supported Zelle, I probably wouldn't do it; at least not with my main CMA account.

I still keep my Capital One-ING account specifically for Venmo/Zelle/Paypal. I can only push/pull money from Fido to Cap One and just keep a few hundred there to cover any payments. My group of friends uses Venmo all the time as it's very convienent. Zelle is nice too but I believe most banks still only let you send and not request money.
Hmm okay. An optiont would be to still keep the USAA and just keep a few grand there for debit card and Zelle.

spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet » Mon Feb 17, 2020 10:54 pm

corp_sharecropper wrote:
Thu Feb 13, 2020 6:52 pm
As I've begun to use Fidelity as a "one stop shop" I have become aware of a downside. ...

... I sort of wish I could create a separate user account (different login/password) that truly only had access to my CMA, brokerage (which I use as overdraft), and 2% Cash back Visa. Anyone know if that's possible? Doesn't seem like it would be difficult to implement from Fidelity's perspective considering you can already grant someone else with a Fidelity account various levels of access on an account by account basis. It really would just come down to whether there's a policy regarding "one person, one account". Hope someone has already figured this out.
There is not a policy of "one person, one account" or, at least, someone worked around it for me. I am a trustee on my Mom's accounts at Fidelity. I did not want those accounts commingled with my personal accounts at Fidelity. Someone created a separate login for me and spun my view of the trust off to it.

The trust has a separate tax ID than my accounts. It's associated with my Mom's SSN while mine are on my SSN. Perhaps that made it possible for the rep to spin off my access to those accounts to a separate web account, or perhaps that's irrelevant. All it takes is a phone call or chat session to find out.

muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 » Wed Feb 19, 2020 11:15 am

I had a question about auto-selling a money-market fund like FDLXX when I have incurred margin debt

Currently I use my Fidelity brokerage as my daily account for cash as well as investments. For example direct deposits go to brokerage, debit card withdraws from brokerage (and fees are reimbursed), fidelity visa auto-pays from brokerage.... you get the point.

I typically keep the bare minimum of cash, and recently I was hit with a "returned payment fee" from Fidelity Visa because I manually paid off the monthly balance, but the automatic payment also deducted within a day or two, so I presume it saw that not enough cash was available at some point.

For some reason I though that adding margin to the account would prevent that from happening in the future, so I added margin to the account. Somewhat surprisingly, I see that when I have transactions now, I go on-margin despite having several thousand dollars available in FDLXX that would have previously been automatically liquidated to cover the transaction.

Is it the case that now:
1. Transactions will go on margin if there is no money in the settlement fund, and I have to manually sell FDLXX to cover the debts?
or
2. Although transactions will go on margin, Fidelity will auto-sell some FDLXX to cover the debt (same day, next day?)?

If either of these mean that I incur margin interest, then it seems clearly worse than removing margin from the account and holding a larger cushion in cash.

Gemini
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Re: Fidelity as a one stop shop

Post by Gemini » Wed Feb 19, 2020 10:47 pm

Are most people using the $0 CMA + brokerage overdraft option?

What happens if the CMA debit card is stolen and large purchase made? Would Fido liquidate investments from the brokerage account to cover?

Can you write a check from the CMA if the account has $0 in it? Would Fido auto liquidate from the brokerage account to cover a check?

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon » Wed Feb 19, 2020 10:52 pm

Gemini wrote:
Wed Feb 19, 2020 10:47 pm
Are most people using the $0 CMA + brokerage overdraft option?

What happens if the CMA debit card is stolen and large purchase made? Would Fido liquidate investments from the brokerage account to cover?

Can you write a check from the CMA if the account has $0 in it? Would Fido auto liquidate from the brokerage account to cover a check?
I don't. I use the cash manager feature to keep at least $3500 at the CMA account at any time by withdrawing over night from the brokerage. According to a rep. if I have that feature on, and if someone stole my card, he won't be able to cash more than what is in the CMA (stop loss kind of thing). Since the minimum balance is triggered only once a day at night to refill the CMA from the brokerage.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney » Wed Feb 19, 2020 11:04 pm

Gemini wrote:
Wed Feb 19, 2020 10:47 pm
Are most people using the $0 CMA + brokerage overdraft option?

What happens if the CMA debit card is stolen and large purchase made? Would Fido liquidate investments from the brokerage account to cover?

Can you write a check from the CMA if the account has $0 in it? Would Fido auto liquidate from the brokerage account to cover a check?
Hard to say what "most people" are doing. I'm not sure what you mean by the "brokerage overdraft option".
I just use the CMA account, which is itself a brokerage account, and keep all the cash in a high-yielding money-market fund rather than the bank sweep. Technically that is using "overdraft", but I'm not using a separate brokerage account.

To answer your question, when you keep a $0 balance in the FDIC bank sweep account, any debit purchase or checks would flow to the "overdraft protection", which is funded by using "available cash, available margin, and non-core Fidelity money market assets".
It shouldn't sell your mutual funds, but it will withdraw on margin against them (if you have a margin account)... if you don't have cash/money market or margin available, the debit should be declined.
If your card is stolen and used, you would need to dispute that transaction. Each circumstance would likely involve some unique situation.

I believe there is an additional "feature" you can enable to automatically sell other mutual funds if your cash balance gets to low, but you have to choose to enable that.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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Hopeful
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Re: Fidelity as a one stop shop

Post by Hopeful » Thu Feb 20, 2020 5:03 am

I am old school, and still use Quicken to download and track all of my banking and credit card transactions. Does a Fidelity CMA account work with Quicken to download transactions? How about the credit card? I had a few banks that were a real pain to get to work with Quicken seamlessly.

And yes I know I should just ditch Quicken, just set in my ways after using it for 20+ years. :|

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