Fidelity as a one stop shop

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leland
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Re: Fidelity as a one stop shop

Post by leland »

muffins14 wrote: Sat May 07, 2022 9:07 pm
anon_investor wrote: Sat May 07, 2022 2:09 pm
I though if you combine fractional shares to make up a whole share, Fido would treat it like a transaction of a whole number of shares.
I think this is correct, at least I believe I have had multiple fractional shares and also been able to sell whole numbers of shares, some of which I assume were combinations of fractional shares
Turns out this worked just fine. I feel quite dumb for not having tried first, but good news is my problem is decently minimized.
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EngCapt1
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Re: Fidelity as a one stop shop

Post by EngCapt1 »

JoMoney wrote: Tue May 10, 2022 9:59 pm Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30%

Nice to see positive yields again. If it continues in that direction I'll likely be tempted back into using the Fidelity CMA as my primary checking/transaction account.
Looks like the FDIC Sweep/Core in the CMA increased from .01 to 0.25 today.
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Drew31
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Re: Fidelity as a one stop shop

Post by Drew31 »

EngCapt1 wrote: Fri May 13, 2022 9:19 pm
JoMoney wrote: Tue May 10, 2022 9:59 pm Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30%

Nice to see positive yields again. If it continues in that direction I'll likely be tempted back into using the Fidelity CMA as my primary checking/transaction account.
Looks like the FDIC Sweep/Core in the CMA increased from .01 to 0.25 today.
Good catch. I’ve been preoccupied on MM rates hadn’t even thought of checking the sweep. .25% seems actually not bad but I’ll still be putting all my CMA cash into SPRXX I believe.
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

EngCapt1 wrote: Fri May 13, 2022 9:19 pm
JoMoney wrote: Tue May 10, 2022 9:59 pm Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30%

Nice to see positive yields again. If it continues in that direction I'll likely be tempted back into using the Fidelity CMA as my primary checking/transaction account.
Looks like the FDIC Sweep/Core in the CMA increased from .01 to 0.25 today.
Nice! Glad to see these coming back. I won't feel as bad about keeping my checking account here - as they are getting nearer online savings accounts territory again.

Just checked and the 7 day yield on FZEXX - their "premium" (initial $100k purchase) tax-exempt money market is 0.36% now. It's taxable equivalent FZDXX is now 0.59%.

The non-premium versions are muni MM FMOXX @ 0.24% and taxable MM SPRXX at 0.47%.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

Fidelity's "Government" money market funds, that aren't subject to the possible restrictions/control gates are looking nicer as well.
Fidelity® Government Cash Reserves ( FDRXX ) is up to .40%
has no minimum purchase to open a position, can be set as a core settlement fund in the non-CMA brokerage accounts, and in the CMA account money market funds can be purchased and drafted against with check/debit card same as the FDIC bank sweep.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
arf30
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Re: Fidelity as a one stop shop

Post by arf30 »

Whoops, just transferred my emergency fund back to VG to sit in VMFXX because the Fidelity MM funds didn't appear to be increasing yield 🤦‍♂️
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

JoMoney wrote: Fri May 13, 2022 10:03 pm Fidelity's "Government" money market funds, that aren't subject to the possible restrictions/control gates are looking nicer as well.
Fidelity® Government Cash Reserves ( FDRXX ) is up to .40%
has no minimum purchase to open a position, can be set as a core settlement fund in the non-CMA brokerage accounts, and in the CMA account money market funds can be purchased and drafted against with check/debit card same as the FDIC bank sweep.
SPAXX (the default settlement account) is up to 0.32%.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

arf30 wrote: Fri May 13, 2022 10:05 pm Whoops, just transferred my emergency fund back to VG to sit in VMFXX because the Fidelity MM funds didn't appear to be increasing yield 🤦‍♂️
Vanguard's funds are lower cost/better net yield anyway, as of 5/12/2022 the 7-day yield on VMFXX was up to 0.64%
They just don't have bank account like ACH, Debit Card, and Check writing capability that Fidelity offers.
"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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Drew31
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Re: Fidelity as a one stop shop

Post by Drew31 »

JoMoney wrote: Fri May 13, 2022 10:03 pm Fidelity's "Government" money market funds, that aren't subject to the possible restrictions/control gates are looking nicer as well.
Fidelity® Government Cash Reserves ( FDRXX ) is up to .40%
has no minimum purchase to open a position, can be set as a core settlement fund in the non-CMA brokerage accounts, and in the CMA account money market funds can be purchased and drafted against with check/debit card same as the FDIC bank sweep.
Do you have a link or can expand on the MM with restrictions? This is something I always wanted to better understand.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

anon_investor wrote: Fri May 13, 2022 10:09 pm
JoMoney wrote: Fri May 13, 2022 10:03 pm Fidelity's "Government" money market funds, that aren't subject to the possible restrictions/control gates are looking nicer as well.
Fidelity® Government Cash Reserves ( FDRXX ) is up to .40%
has no minimum purchase to open a position, can be set as a core settlement fund in the non-CMA brokerage accounts, and in the CMA account money market funds can be purchased and drafted against with check/debit card same as the FDIC bank sweep.
SPAXX (the default settlement account) is up to 0.32%.
Yup, but it doesn't cost anything to change that default to FDRXX which for all I can tell looks to be essentially the same style portfolio, but at lower ER
viewtopic.php?t=376275
"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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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

Drew31 wrote: Fri May 13, 2022 10:10 pm
JoMoney wrote: Fri May 13, 2022 10:03 pm Fidelity's "Government" money market funds, that aren't subject to the possible restrictions/control gates are looking nicer as well.
Fidelity® Government Cash Reserves ( FDRXX ) is up to .40%
has no minimum purchase to open a position, can be set as a core settlement fund in the non-CMA brokerage accounts, and in the CMA account money market funds can be purchased and drafted against with check/debit card same as the FDIC bank sweep.
Do you have a link or can expand on the MM with restrictions? This is something I always wanted to better understand.
Hopefully it would never come to be, you can search "money market control gates" and probably find more in depth articles about the possibility of it occurring on certain types of money markets.
This is Fidelity's quick explanation:
https://www.fidelity.com/mutual-funds/f ... nds-manage
...
Securities and Exchange Commission (SEC) rules implemented in 2016 mean that prime and municipal money market funds could be subject to redemption restrictions, in the form of a fee or gate, under certain extraordinary stress conditions. Fidelity's government money market funds (including U.S. Treasury funds) are not subject to fees or gates...
Here's a link to a SEC description https://www.sec.gov/spotlight/money-market.shtml

The idea is those money market funds that aren't primarily federal government securities, in a period of extraordinary stress, can (might even be forced to) impose restrictions on their redemption to slow down withdrawals.
"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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EngCapt1
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Re: Fidelity as a one stop shop

Post by EngCapt1 »

Drew31 wrote: Fri May 13, 2022 9:34 pm
EngCapt1 wrote: Fri May 13, 2022 9:19 pm
JoMoney wrote: Tue May 10, 2022 9:59 pm Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30%

Nice to see positive yields again. If it continues in that direction I'll likely be tempted back into using the Fidelity CMA as my primary checking/transaction account.
Looks like the FDIC Sweep/Core in the CMA increased from .01 to 0.25 today.
Good catch. I’ve been preoccupied on MM rates hadn’t even thought of checking the sweep. .25% seems actually not bad but I’ll still be putting all my CMA cash into SPRXX I believe.
Yeah, still much lower than using the MM funds (which is what I believe most use for the CMA), but just thought I'd point out the increase today for anybody concerned about FDIC protection.

:beer
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