Fidelity as a one stop shop

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BogleMelon
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Re: Fidelity as a one stop shop

Post by BogleMelon »

Fidelity supports Venmo (but not Zelle). I use Venmo some times.
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spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet »

BogleMelon wrote: Tue Aug 17, 2021 7:50 am Fidelity supports Venmo (but not Zelle). I use Venmo some times.
Is there a bank that doesn't support Venmo? It's just an ACH transaction, to the bank. You can use pretty much any of third-party payment systems that operate that way. Fidelity has no involvement other than that UMB honors the ACH draft or deposit.

Zelle is different in that you can initiate the transaction from your bank's web site.
khram
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Re: Fidelity as a one stop shop

Post by khram »

tj wrote: Tue Jun 01, 2021 11:24 am
My 18 year old child is headed off to college this fall and is due for a banking overhaul. Would someone in their position be eligible for a Fidelity CMA and if so, would be a good fit for a college student (if not, what might work better)?
I don't understand the questions. If they are a college student with minimal income, any random checking account that has no fees will be sufficient. I certainly wouldn't suggest a CMA instead of a simple checking account for a college student.
Why not? I would argue for it over most B&M banks:

1. In my experience, the paycheck arrives Thursday instead of Friday (assuming you have a stable, even part-time, job), this can make a difference for low-income earners.
2. When I had the free college accounts at Chase etc., they would call me all the time, trying to sell me things and asking me some intrusive questions sometimes. Fidelity never called me.
3. The B&M banks may not warn you about when the free checking period is over and you start getting hit with fees.
4. You can set up a brokerage account and invest with no minima (I think), so if you're a poor college student, you don't need to open a Vanguard account and save up $3000 (or sometimes $1000) for an initial investment. Drop $20 in and you're good. Granted, when you're poor, capital means more than growth, but maybe getting comfortable with investing helps.
5. ATM fees are refunded within a few days, not monthly (as in Ally; B&M likely won't refund at all, so you'd better visit their ATMs specifically).

Ally is also good, and free. No hard selling on Fidelity from me (it's turned out to be convenient as my 401k and HSA have moved to Fidelity, but I have Vanguard accounts as well). Ally will give higher interest for checking/savings. Unfortunately Ally's website goes down a lot.

I am not sure about bill pay features. I pay everything either via credit card (using a pull from the CC, not a push from checking) or cash (as in, those little green pieces of paper).
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

So I opened Fidelity CMA account. I am unable to order a debit card, next to my account number I get this message:
Debit card not offered on this account type.
Anybody else having this issues?
MAJIC9
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Re: Fidelity as a one stop shop

Post by MAJIC9 »

Did you *just* open it? Have you funded it yet? If balance is 0, then make sure there's some money in it before asking for a debit card..
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

MAJIC9 wrote: Sat Aug 28, 2021 6:48 pm Did you *just* open it? Have you funded it yet? If balance is 0, then make sure there's some money in it before asking for a debit card..
Just opened it and pending transfer. I will wait and see but I thought that was odd because the brokerage account has an option for immediate debit card with zero dollars in it.
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

To those that use CMA for ATMs, why would I need a separate brokerage account for investing? From reading this thread I understand that debit transactions came out only out of MMF and that ETFs or mutual funds would never be sold to cover such transactions. Additionally the debit card can be permanently kept locked. Whats the advantage of keeping separate brokerage?
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

Blue456 wrote: Sun Aug 29, 2021 6:08 am To those that use CMA for ATMs, why would I need a separate brokerage account for investing? From reading this thread I understand that debit transactions came out only out of MMF and that ETFs or mutual funds would never be sold to cover such transactions. Additionally the debit card can be permanently kept locked. Whats the advantage of keeping separate brokerage?
You don't need a separate brokerage, there are a few things the CMA can't do though, like...
Back when Money Market Funds paid interest, some people liked to direct deposit into a brokerage account that had a MMF as the core settlement fund that way they didn't have to go through the extra effort of transferring it from the CMA core settlement fund (FDIC bank sweep). You can hold a MMF in the CMA, and the debit card/other payments will automatically draw from it, but you can't set it as the default fund for the account so you would manually have to move the money from the FDIC bank sweep into the MMF. Some people preferred to setup another brokerage account and have the CMA linked to draw from that to avoid the extra step of moving the money after their paycheck was deposited. Now that interest rates are pretty much 0, there's no advantage to a MMF over the FDIC bank account.

Also, I'm not 100% sure of this, but I don't think you can have margin or trade options in the CMA account.
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classicindexer
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Re: Fidelity as a one stop shop

Post by classicindexer »

Blue456 wrote: Sun Aug 29, 2021 6:08 am To those that use CMA for ATMs, why would I need a separate brokerage account for investing? From reading this thread I understand that debit transactions came out only out of MMF and that ETFs or mutual funds would never be sold to cover such transactions. Additionally the debit card can be permanently kept locked. Whats the advantage of keeping separate brokerage?
One reason to also have a brokerage with the CMA is to keep a smaller balance in the CMA if you use it for debit card, ATM withdrawals, or ACH withdrawals or deposits and then a larger balance can be kept in the brokerage. Deposit paycheck into brokerage and then don’t setup any automatic link between the two.
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

classicindexer wrote: Sun Aug 29, 2021 10:02 am
Blue456 wrote: Sun Aug 29, 2021 6:08 am To those that use CMA for ATMs, why would I need a separate brokerage account for investing? From reading this thread I understand that debit transactions came out only out of MMF and that ETFs or mutual funds would never be sold to cover such transactions. Additionally the debit card can be permanently kept locked. Whats the advantage of keeping separate brokerage?
One reason to also have a brokerage with the CMA is to keep a smaller balance in the CMA if you use it for debit card, ATM withdrawals, or ACH withdrawals or deposits and then a larger balance can be kept in the brokerage. Deposit paycheck into brokerage and then don’t setup any automatic link between the two.
I am really using Chase for all debit transactions and bill pay. I wanted to use Fidelity for free ATM access, taxable investing and set up portion of my emergency fund in auto rolling T-bills. Using debit card for everyday purchases would only be via Chase bank which holds limited funds in the first place.
G3VALD1G
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Fidelity wire instructions

Post by G3VALD1G »

I have been struggling for a while to receive wire transfers to my Fidelity cash management account. I can't figure out why it doesn't go through. I have followed the wire instructions on Fidelity 's site. I would like to hear from those that have received wires successfully, how did you get it done? What kind of instructions did you use? Fidelity recommends that you do the transfer through Chase. Can I just get it done by simply giving the routing number and account number on my checks? Did anyone ever try it?

Below is a link to the instructions through Chase I tried

https://www.google.com/url?q=https://ww ... _YGOCo3TzE
spammagnet
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Re: Fidelity wire instructions

Post by spammagnet »

G3VALD1G wrote: Sun Sep 05, 2021 11:15 pm I have been struggling for a while to receive wire transfers to my Fidelity cash management account. I can't figure out why it doesn't go through. I have followed the wire instructions on Fidelity 's site. I would like to hear from those that have received wires successfully, how did you get it done? What kind of instructions did you use? Fidelity recommends that you do the transfer through Chase. Can I just get it done by simply giving the routing number and account number on my checks? Did anyone ever try it?

Below is a link to the instructions through Chase I tried

https://www.google.com/url?q=https://ww ... _YGOCo3TzE
We've successfully wired funds from a domestic source to our CMA multiple times using the Chase approach for inbound wire transfers.

The routing and account numbers on your check will not work.

Edit: the content of the page I linked to is the same as that of the document you linked to. It works.
khram
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Re: Fidelity as a one stop shop

Post by khram »

Blue456 wrote: Sun Aug 29, 2021 6:08 am To those that use CMA for ATMs, why would I need a separate brokerage account for investing? From reading this thread I understand that debit transactions came out only out of MMF and that ETFs or mutual funds would never be sold to cover such transactions. Additionally the debit card can be permanently kept locked. Whats the advantage of keeping separate brokerage?
I don't know that you need anything. I like to have some separation though. Checking account is cash only etc. I also like using their groupings, a group for retirement, and other stuff. Transfers between Fidelity accounts are instant (but selling something for cash can take a few days to clear), so it doesn't really matter if it's all in one account or not.

And I guess, if you like to buy Vanguard ETFs at Fidelity (instead of Fidelity funds), even though you can do fractional shares, it usually won't let you invest all of it, depends on rounding I guess. My last transaction left me $0.08 in cash, so I will invest an extra $0.08 next time (minus however much gets left over sitting in cash). Maybe you feel a need to keep these piles of cash separate, maybe you don't.
spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet »

khram wrote: Mon Sep 06, 2021 1:35 am... And I guess, if you like to buy Vanguard ETFs at Fidelity (instead of Fidelity funds), even though you can do fractional shares, it usually won't let you invest all of it, depends on rounding I guess. My last transaction left me $0.08 in cash, so I will invest an extra $0.08 next time (minus however much gets left over sitting in cash). Maybe you feel a need to keep these piles of cash separate, maybe you don't.
I don't think you can control the residual pennies in dollar based ETF transactions. Even if you specify to the penny, Fidelity converts your order into shares out to 3 decimal places, then rounds down to the next decimal.

https://www.fidelity.com/learning-cente ... nal-shares
hotscot
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Re: Fidelity as a one stop shop

Post by hotscot »

Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo »

hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
hotscot
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Re: Fidelity as a one stop shop

Post by hotscot »

sarabayo wrote: Mon Sep 06, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo »

hotscot wrote: Mon Sep 06, 2021 6:33 pm
sarabayo wrote: Mon Sep 06, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
I just wondered if you had posted in the wrong thread by accident. I have no desire to argue so I'll leave it at that.
hotscot
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Re: Fidelity as a one stop shop

Post by hotscot »

Good.
Don't really know why you were concerned about a casual comment.
khram
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Re: Fidelity as a one stop shop

Post by khram »

spammagnet wrote: Mon Sep 06, 2021 5:29 pm
khram wrote: Mon Sep 06, 2021 1:35 am... And I guess, if you like to buy Vanguard ETFs at Fidelity (instead of Fidelity funds), even though you can do fractional shares, it usually won't let you invest all of it, depends on rounding I guess. My last transaction left me $0.08 in cash, so I will invest an extra $0.08 next time (minus however much gets left over sitting in cash). Maybe you feel a need to keep these piles of cash separate, maybe you don't.
I don't think you can control the residual pennies in dollar based ETF transactions. Even if you specify to the penny, Fidelity converts your order into shares out to 3 decimal places, then rounds down to the next decimal.

https://www.fidelity.com/learning-cente ... nal-shares
minus however much gets left over sitting in cash
The point is, if you invest, say, $500/paycheck, including the leftover $0.08 may get you an additional portion of a share instead of moving it back to cash. If you just let checking build up and invest whatever is "extra," then it makes no difference. Probably none of this matters anyway, but I like to keep accounts separate regardless. My checking account is for checking, even if it's possible to leave and withdraw cash in/from a brokerage account, or if I can invest in a CMA.
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Artsdoctor
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Re: Fidelity wire instructions

Post by Artsdoctor »

G3VALD1G wrote: Sun Sep 05, 2021 11:15 pm I have been struggling for a while to receive wire transfers to my Fidelity cash management account. I can't figure out why it doesn't go through. I have followed the wire instructions on Fidelity 's site. I would like to hear from those that have received wires successfully, how did you get it done? What kind of instructions did you use? Fidelity recommends that you do the transfer through Chase. Can I just get it done by simply giving the routing number and account number on my checks? Did anyone ever try it?

Below is a link to the instructions through Chase I tried

https://www.google.com/url?q=https://ww ... _YGOCo3TzE
Off the bat, there are two categories of wiring: domestic and international.

I've received plenty of wires domestically. It goes directly to the account and you can use the numbers at the bottom of your checks.

International is a different matter. You break that down into two categories: wiring internationally in dollars and wiring internationally in their local currency. I've not done the latter. I have had international wires come in in dollars, and you're going to use the Fidelity master Chase account that you can find on their website. The wire goes to Fidelity's Chase account and then is transferred to your brokerage account. All of the information is here:

https://www.fidelity.com/cash-managemen ... e=https://

There's evidently a way to wire into a mutual fund account from an international source although I've not done that.

There are no fees associated with this.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
Many actually consider Vanguard unsafe from an IT security perspective. Fidelity does better in this regard. I feel this way, I have accounts at both.
mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 »

hotscot wrote: Mon Sep 06, 2021 6:33 pm
sarabayo wrote: Mon Sep 06, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

mervinj7 wrote: Tue Sep 07, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 6:33 pm
sarabayo wrote: Mon Sep 06, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
mervinj7
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Re: Fidelity as a one stop shop

Post by mervinj7 »

anon_investor wrote: Tue Sep 07, 2021 6:21 pm
mervinj7 wrote: Tue Sep 07, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 6:33 pm
sarabayo wrote: Mon Sep 06, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 5:57 pm Some consider Vanguard as the safest and lowest cost brokerage.
It was mentioned in another thread recently.
That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

mervinj7 wrote: Tue Sep 07, 2021 6:43 pm
anon_investor wrote: Tue Sep 07, 2021 6:21 pm
mervinj7 wrote: Tue Sep 07, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 6:33 pm
sarabayo wrote: Mon Sep 06, 2021 6:20 pm

That doesn't seem relevant to this thread, which is about using Fidelity as a one stop shop. Did you post this in the right thread?
What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
Vanguard does offer very good lower expense ratio actively managed bond funds.
BabaWawa
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Re: Fidelity as a one stop shop

Post by BabaWawa »

anon_investor wrote: Tue Sep 07, 2021 7:05 pm
mervinj7 wrote: Tue Sep 07, 2021 6:43 pm
anon_investor wrote: Tue Sep 07, 2021 6:21 pm
mervinj7 wrote: Tue Sep 07, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 6:33 pm

What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
Vanguard does offer very good lower expense ratio actively managed bond funds.
You can buy and sell Vanguard ETFs at almost any brokerage for no commission. No real interest in actively managed anything. And don't get me started on the poor customer service and hour long phone wait times these days at Vanguard.
muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 »

anon_investor wrote: Tue Sep 07, 2021 7:05 pm
mervinj7 wrote: Tue Sep 07, 2021 6:43 pm
anon_investor wrote: Tue Sep 07, 2021 6:21 pm
mervinj7 wrote: Tue Sep 07, 2021 6:20 pm
hotscot wrote: Mon Sep 06, 2021 6:33 pm

What?
It's that pedantic?
No general comments allowed?
Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
Vanguard does offer very good lower expense ratio actively managed bond funds.
I will say I am very disappointed that Fidelity doesn't offer competitively-priced municipal bond funds. Or alternatively I'm disappointed that there isn't an ETF equivalent of Vanguard's Vanguard New York Long-Term Tax-Exempt Fund VNYUX
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SmileyFace
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Re: Fidelity as a one stop shop

Post by SmileyFace »

muffins14 wrote: Tue Sep 07, 2021 9:17 pm
anon_investor wrote: Tue Sep 07, 2021 7:05 pm
mervinj7 wrote: Tue Sep 07, 2021 6:43 pm
anon_investor wrote: Tue Sep 07, 2021 6:21 pm
mervinj7 wrote: Tue Sep 07, 2021 6:20 pm

Any specific fee or cost you are referring to that's lower?
The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
Vanguard does offer very good lower expense ratio actively managed bond funds.
I will say I am very disappointed that Fidelity doesn't offer competitively-priced municipal bond funds. Or alternatively I'm disappointed that there isn't an ETF equivalent of Vanguard's Vanguard New York Long-Term Tax-Exempt Fund VNYUX
But if someone is looking for a one-stop-shop (topic of this thread) they are more likely not to need these products than a credit card or CMA with bill pay. Hard to live these days without a credit card.

I heard in another thread that Toyota and Honda are thought to provide good reliable cars at a good value/price. :D
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

SmileyFace wrote: Wed Sep 08, 2021 10:01 am
muffins14 wrote: Tue Sep 07, 2021 9:17 pm
anon_investor wrote: Tue Sep 07, 2021 7:05 pm
mervinj7 wrote: Tue Sep 07, 2021 6:43 pm
anon_investor wrote: Tue Sep 07, 2021 6:21 pm

The commission to buy Vanguard mutual funds? :P
Haha, I guess so. I was surprised to see that comment in this thread since the current discussion is on fractional ETF trading and free incoming wire transfers to the CMA: two features that Vanguard doesn't current offer.
Vanguard does offer very good lower expense ratio actively managed bond funds.
I will say I am very disappointed that Fidelity doesn't offer competitively-priced municipal bond funds. Or alternatively I'm disappointed that there isn't an ETF equivalent of Vanguard's Vanguard New York Long-Term Tax-Exempt Fund VNYUX
But if someone is looking for a one-stop-shop (topic of this thread) they are more likely not to need these products than a credit card or CMA with bill pay. Hard to live these days without a credit card.

I heard in another thread that Toyota and Honda are thought to provide good reliable cars at a good value/price. :D
But it is relevant, because if someone wants to own that product they can't do a one-stop-shop with Fidelity.
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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor »

There is really no such thing as one investment house which offers everything you want and has the best performance of all of its competitors. Vanguard has superb bond funds; the quality and price of the muni funds (especially state-specific funds) are going to be difficult to find elsewhere. You can buy individual munis at auction through Fidelity but most people don't want or need this. You can forego the state-specific line up at Vanguard and use the national MUB ETF at Fidelity, for example. And you can certainly buy state-specific funds at Fidelity but the ER will be quite a bit higher than Vanguard and the performances are certainly no better.
tj
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Re: Fidelity as a one stop shop

Post by tj »

Artsdoctor wrote: Thu Sep 09, 2021 6:44 pm There is really no such thing as one investment house which offers everything you want and has the best performance of all of its competitors. Vanguard has superb bond funds; the quality and price of the muni funds (especially state-specific funds) are going to be difficult to find elsewhere. You can buy individual munis at auction through Fidelity but most people don't want or need this. You can forego the state-specific line up at Vanguard and use the national MUB ETF at Fidelity, for example. And you can certainly buy state-specific funds at Fidelity but the ER will be quite a bit higher than Vanguard and the performances are certainly no better.
Why would you buy MUB if you can buy VTEB ?
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Artsdoctor
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Re: Fidelity as a one stop shop

Post by Artsdoctor »

I used MUB as an example. VTEB is fine as well. Both are very similar.
ElJefeDelQueso
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Re: Fidelity as a one stop shop

Post by ElJefeDelQueso »

tj wrote: Thu Sep 09, 2021 6:49 pm
Artsdoctor wrote: Thu Sep 09, 2021 6:44 pm There is really no such thing as one investment house which offers everything you want and has the best performance of all of its competitors. Vanguard has superb bond funds; the quality and price of the muni funds (especially state-specific funds) are going to be difficult to find elsewhere. You can buy individual munis at auction through Fidelity but most people don't want or need this. You can forego the state-specific line up at Vanguard and use the national MUB ETF at Fidelity, for example. And you can certainly buy state-specific funds at Fidelity but the ER will be quite a bit higher than Vanguard and the performances are certainly no better.
Why would you buy MUB if you can buy VTEB ?
VTEB seems like the best choice at Fidelity that's not daily accrual. FTABX is daily accrual, near-intermediate, and may not be the best natl muni fund (eg, VWITX/VWIUX) but there are worse choices out there.
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Re: Fidelity as a one stop shop

Post by Marseille07 »

I have a silly q...I have several 401K accounts at Fidelity. I used to have a brokerage account and a CMA as well, but both are closed (but still show up on my list of accounts).

If I withdraw from 401K, which account would hold the proceeds? I can think of a few possibilities:
a) the 401K account itself would hold a cash position
b) the brokerage / CMA would re-open and receive the proceeds
c) nowhere, I have to create a new brokerage / CMA
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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo »

Marseille07 wrote: Tue Sep 14, 2021 12:01 pm I have a silly q...I have several 401K accounts at Fidelity. I used to have a brokerage account and a CMA as well, but both are closed (but still show up on my list of accounts).

If I withdraw from 401K, which account would hold the proceeds? I can think of a few possibilities:
a) the 401K account itself would hold a cash position
b) the brokerage / CMA would re-open and receive the proceeds
c) nowhere, I have to create a new brokerage / CMA
It's not a silly question, but I think the best way to get it answered would be through Fidelity's live chat. Click "customer service" at the top and it'll bring up a chat bot, but if you tell it "representative" it'll connect you to a human being.

Personally I suspect that they will suggest to reopen your brokerage or CMA and the funds will go there. But if you are insistent, they may be able to direct-deposit (ACH) the money to an external bank account of your choice. If that's what you'd prefer, make sure to ask them about that possibility.
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

sarabayo wrote: Tue Sep 14, 2021 12:07 pm It's not a silly question, but I think the best way to get it answered would be through Fidelity's live chat. Click "customer service" at the top and it'll bring up a chat bot, but if you tell it "representative" it'll connect you to a human being.

Personally I suspect that they will suggest to reopen your brokerage or CMA and the funds will go there. But if you are insistent, they may be able to direct-deposit (ACH) the money to an external bank account of your choice. If that's what you'd prefer, make sure to ask them about that possibility.
I'll follow your advice, thank you!
The Big Apple
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Re: Fidelity as a one stop shop

Post by The Big Apple »

Based on my experience, they will liquidate to account cash when you request to do a rollover. They generally will not reopen a brokerage/CMA if it is closed, so you'd likely have to open a new one (but this probably isn't the right account type anyway).

If you're looking to roll the assets as a trustee-to-trustee rollover with no income tax impacts, and simplified bookkeeping, then and pre-tax money (e.g., employer contributions, your traditional contributions) would need to go into a new IRA account and the post-tax money (e.g., Roth contributions) would go to a new Roth IRA account.

Generally, they will send you a check (multiple checks, for each type of funds - e.g., pre-tax and post-tax) that you can then deposit into the IRA/Roth IRA, but they will write the check out to the trustee (e.g., Fidelity). If you name is not on the check and you don't personally deposit the funds then there is no required tax withholding or potential penalties.

Fidelity's 401k Rollover page.
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

The Big Apple wrote: Tue Sep 14, 2021 12:15 pm Based on my experience, they will liquidate to account cash when you request to do a rollover. They generally will not reopen a brokerage/CMA if it is closed, so you'd likely have to open a new one (but this probably isn't the right account type anyway).

If you're looking to roll the assets as a trustee-to-trustee rollover with no income tax impacts, and simplified bookkeeping, then and pre-tax money (e.g., employer contributions, your traditional contributions) would need to go into a new IRA account and the post-tax money (e.g., Roth contributions) would go to a new Roth IRA account.

Generally, they will send you a check (multiple checks, for each type of funds - e.g., pre-tax and post-tax) that you can then deposit into the IRA/Roth IRA, but they will write the check out to the trustee (e.g., Fidelity). If you name is not on the check and you don't personally deposit the funds then there is no required tax withholding or potential penalties.

Fidelity's 401k Rollover page.
Thank you. Indeed, the live chat rep highly recommended IRA rollover so there's no tax impacts. As you say, there are lots of options they can do including sending it to a bank account, sending you a check etc etc :beer
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sarabayo
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Re: Fidelity as a one stop shop

Post by sarabayo »

Marseille07 wrote: Tue Sep 14, 2021 12:26 pm
The Big Apple wrote: Tue Sep 14, 2021 12:15 pm Based on my experience, they will liquidate to account cash when you request to do a rollover. They generally will not reopen a brokerage/CMA if it is closed, so you'd likely have to open a new one (but this probably isn't the right account type anyway).

If you're looking to roll the assets as a trustee-to-trustee rollover with no income tax impacts, and simplified bookkeeping, then and pre-tax money (e.g., employer contributions, your traditional contributions) would need to go into a new IRA account and the post-tax money (e.g., Roth contributions) would go to a new Roth IRA account.

Generally, they will send you a check (multiple checks, for each type of funds - e.g., pre-tax and post-tax) that you can then deposit into the IRA/Roth IRA, but they will write the check out to the trustee (e.g., Fidelity). If you name is not on the check and you don't personally deposit the funds then there is no required tax withholding or potential penalties.

Fidelity's 401k Rollover page.
Thank you. Indeed, the live chat rep highly recommended IRA rollover so there's no tax impacts. As you say, there are lots of options they can do including sending it to a bank account, sending you a check etc etc :beer
Sorry, I didn't realize you were trying to do a rollover - I thought you wanted to withdraw cash (i.e. to spend it). I totally agree that for a rollover you don't want to do any kind of a withdrawal - try to keep it all "trustee-to-trustee" if at all possible, as it makes everything much simpler. If possible, also try to keep it "in-kind" (usually only possible if you roll over to an IRA at the same company as where your 401(k) is, and even then it's not always possible).
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

sarabayo wrote: Tue Sep 14, 2021 12:33 pm Sorry, I didn't realize you were trying to do a rollover - I thought you wanted to withdraw cash (i.e. to spend it). I totally agree that for a rollover you don't want to do any kind of a withdrawal - try to keep it all "trustee-to-trustee" if at all possible, as it makes everything much simpler. If possible, also try to keep it "in-kind" (usually only possible if you roll over to an IRA at the same company as where your 401(k) is, and even then it's not always possible).
I'm exploring options at this point, thank you for your advice of keeping it "in-kind."
The Big Apple
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Re: Fidelity as a one stop shop

Post by The Big Apple »

Marseille07 wrote: Tue Sep 14, 2021 12:38 pm I'm exploring options at this point, thank you for your advice of keeping it "in-kind."
If you do "in kind" you won't be out of the market as it is just a transfer of positions between the 401k and the IRA at Fidelity. However, some investment options might not allow for that (or the plan might not allow for that). If the 401k is with Fidelity, it will definitely be easiest to do a rollover to a Fidelity account as well.

You mentioned you had more than one 401k (maybe multiple previous employers?) - each 401k may have their own rules in terms of in kind withdrawals, checks vs. bank transfers vs. direct 401k to Fidelity transfer. However, as long as all of the money is the same 'type' (e.g., all traditional/employer contributions), they can all go into your new Fidelity (that is, you can rollover multiple 401ks to the same IRA). The Fidelity rep should be able to help you and walk you through it - and most will even help you with the paperwork required.
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

The Big Apple wrote: Tue Sep 14, 2021 1:02 pm
Marseille07 wrote: Tue Sep 14, 2021 12:38 pm I'm exploring options at this point, thank you for your advice of keeping it "in-kind."
If you do "in kind" you won't be out of the market as it is just a transfer of positions between the 401k and the IRA at Fidelity. However, some investment options might not allow for that (or the plan might not allow for that). If the 401k is with Fidelity, it will definitely be easiest to do a rollover to a Fidelity account as well.

You mentioned you had more than one 401k (maybe multiple previous employers?) - each 401k may have their own rules in terms of in kind withdrawals, checks vs. bank transfers vs. direct 401k to Fidelity transfer. However, as long as all of the money is the same 'type' (e.g., all traditional/employer contributions), they can all go into your new Fidelity (that is, you can rollover multiple 401ks to the same IRA). The Fidelity rep should be able to help you and walk you through it - and most will even help you with the paperwork required.
Indeed, I have multiple 401Ks (all with Fidelity) and I'm also exploring if I should combine them all under my current employer's plans. This way, I get to deal with one set of rules rather than multiple :beer
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

Marseille07 wrote: Tue Sep 14, 2021 1:52 pm Indeed, I have multiple 401Ks (all with Fidelity) and I'm also exploring if I should combine them all under my current employer's plans. This way, I get to deal with one set of rules rather than multiple :beer
I did this a few years ago, been happy with the results! Much easier to manage, rebalance, etc. And my current plan had the best options (including BrokerageLink).

The first one wasn't in Fidelity, didn't allow in-kind transfers, and sadly was forced to send a big check in the mail for me to endorse and get to Fidelity. That was nerve wracking...

The second one was already at Fidelity, and went very smoothly - and as I recall quickly. I don't recall asking about in-kind transfers, as my current plan has better options so I was going to reinvest anyway. But I guess it might have avoided being out of the market for a very short duration...
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

SnowBog wrote: Tue Sep 14, 2021 1:57 pm I did this a few years ago, been happy with the results! Much easier to manage, rebalance, etc. And my current plan had the best options (including BrokerageLink).

The first one wasn't in Fidelity, didn't allow in-kind transfers, and sadly was forced to send a big check in the mail for me to endorse and get to Fidelity. That was nerve wracking...

The second one was already at Fidelity, and went very smoothly - and as I recall quickly. I don't recall asking about in-kind transfers, as my current plan has better options so I was going to reinvest anyway. But I guess it might have avoided being out of the market for a very short duration...
Yeah, I'm thinking about doing it. My previous plans were slightly better but my current one is decent. Since all of them are with Fidelity, I don't expect to have to do the check-sending dance.
masrepus
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Re: Fidelity as a one stop shop

Post by masrepus »

Marseille07 wrote: Tue Sep 14, 2021 2:22 pm
SnowBog wrote: Tue Sep 14, 2021 1:57 pm I did this a few years ago, been happy with the results! Much easier to manage, rebalance, etc. And my current plan had the best options (including BrokerageLink).

The first one wasn't in Fidelity, didn't allow in-kind transfers, and sadly was forced to send a big check in the mail for me to endorse and get to Fidelity. That was nerve wracking...

The second one was already at Fidelity, and went very smoothly - and as I recall quickly. I don't recall asking about in-kind transfers, as my current plan has better options so I was going to reinvest anyway. But I guess it might have avoided being out of the market for a very short duration...
Yeah, I'm thinking about doing it. My previous plans were slightly better but my current one is decent. Since all of them are with Fidelity, I don't expect to have to do the check-sending dance.
In my case, I wasn't able to transfer in-kind. My rollover IRA and 401k were both at Fidelity, but the 401k plan did not allow an in kind transfer. The Fidelity bond fund was the same in both, but it wasnt allowed. It had to be a check to roll into the 401k. The 401k side in Fidelity was different from the brokerage side. Can't recall exactly from my conversation with the reps but they said that was on purpose. Each plan has its own rules so maybe you can get lucky. My rollover from 401k to rollover IRA did allow an in-kind transfer. That 401k had stuff like FSKAX and FXNAX so maybe that is why in-kind was allowed. Having the rollover IRA at Fidelity did make it easier in that I didn't have to get a check and sign it over, they did it all.

As others have mentioned, it is so much easier to have a single 401k to manage. The funds were better with lower expenses, so that is a no brainer. Having everything at Fidelity is really nice. Taxable, HSA, Roth, 529s, UTMAs, 401k, wife's Roth, credit card, CMA, RSUs and ESPP. Got lucky the company uses Fidelity.
Marseille07
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Re: Fidelity as a one stop shop

Post by Marseille07 »

masrepus wrote: Tue Sep 14, 2021 8:34 pm In my case, I wasn't able to transfer in-kind. My rollover IRA and 401k were both at Fidelity, but the 401k plan did not allow an in kind transfer. The Fidelity bond fund was the same in both, but it wasnt allowed. It had to be a check to roll into the 401k. The 401k side in Fidelity was different from the brokerage side. Can't recall exactly from my conversation with the reps but they said that was on purpose. Each plan has its own rules so maybe you can get lucky. My rollover from 401k to rollover IRA did allow an in-kind transfer. That 401k had stuff like FSKAX and FXNAX so maybe that is why in-kind was allowed. Having the rollover IRA at Fidelity did make it easier in that I didn't have to get a check and sign it over, they did it all.

As others have mentioned, it is so much easier to have a single 401k to manage. The funds were better with lower expenses, so that is a no brainer. Having everything at Fidelity is really nice. Taxable, HSA, Roth, 529s, UTMAs, 401k, wife's Roth, credit card, CMA, RSUs and ESPP. Got lucky the company uses Fidelity.
Whoa, it's quite surprising you had to roll over via a check. I'm still planning the consolidation, probably going to revisit late September. One hesitation is that my current place is smaller than the previous place, and I believe the fund selection is slightly limited. My current lineup doesn't have S&P500 for example, and I'm being forced to use US TSM instead.
masrepus
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Re: Fidelity as a one stop shop

Post by masrepus »

Marseille07 wrote: Tue Sep 14, 2021 8:46 pm
Whoa, it's quite surprising you had to roll over via a check. I'm still planning the consolidation, probably going to revisit late September. One hesitation is that my current place is smaller than the previous place, and I believe the fund selection is slightly limited. My current lineup doesn't have S&P500 for example, and I'm being forced to use US TSM instead.
Yep, it was a bummer to have to liquidate and roll the check. But I dont how you could do it otherwise. The 401k has specific funds that you might not have outside the 401k. In my 401k they are trust versions of VG sp500, bond and international. When I did the rollover the bond was the fidelity version though, but has since changed to the VG trust version. There is the BrokerageLink option, but I have been fine with the three-fund choices so far.
spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet »

SnowBog wrote: Tue Sep 14, 2021 1:57 pm... The first one wasn't in Fidelity, didn't allow in-kind transfers, and sadly was forced to send a big check in the mail for me to endorse and get to Fidelity. That was nerve wracking...
We did that recently when closing out DW's non-Fidelity 401k. The only option was a paper check sent by USPS. That wasn't confidence-inspiring but to be fair to USPS, it did arrive rather quickly.

From the mailbox to the account was only about 20 minutes, most of which was walking back inside the house and opening a beer. Just use the phone app. The limit is high, the pending deposit appears immediately and is credited the next business morning.
tj
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Re: Fidelity as a one stop shop

Post by tj »

My 401k years ago was at Nationwide....they had to mail a check. I was traveling at the time, my sister mailed the check to Vanguard. I think there were actually two checks, one for Roth and one for traditional. Somehow, it all went down smoothly. :D
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