Fidelity as a one stop shop

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tj
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Re: Fidelity as a one stop shop

Post by tj »

manlymatt83 wrote: Mon Nov 21, 2022 3:24 pm
tj wrote: Mon Nov 21, 2022 3:22 pm
manlymatt83 wrote: Mon Nov 21, 2022 3:20 pm
tj wrote: Mon Nov 21, 2022 3:17 pm
manlymatt83 wrote: Mon Nov 21, 2022 3:10 pm

Just closed a brokerage account I opened in July. Got the bonus in September I think.

Am I eligible to do this again so soon? Should I do the cash management account just to be sure?
If you don't have an CMA, why not just go for the CMA? I had CMA but no brokerage, so I opened the brokerage.
Per this link:

https://www.fidelity.com/go/special-offer/holiday-faqs

"Individuals who took advantage of the previous $50 for $100 offer aren't eligible."
I'm not sure how that answers my question.
Sorry, I quoted the wrong reply. I was saying I'm not eligible anyway, regardless of what account I open.
I guess we'll see if they credit me or not. I don't mind keeping $50 there for a few weeks to see what happens.
Harmanic
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Re: Fidelity as a one stop shop

Post by Harmanic »

anoop wrote: Sat Dec 15, 2018 9:53 pm My only concern with using a brokerage for checking is there is no way to deposit cash or withdraw a lot of cash. I don't have a lot of need for that, but should the need arise (and it has in the past), I like to not have to think of alternative, like having to hold on to all the cash for several months till it's spent, or having to make several ATM withdrawals over days.

But it looks like the OP is already using a brokerage for checking, so this concern shouldn't apply.
Yes, having a local bank is important for cash deposits and such, but Fidelity should be good for everything else. The OP could also sign up for Fidelity Bloom, which automatically sets up a spend (checking) and save account. Kills two birds with one stone and they automatically send you an ATM card.
MrJedi
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Re: Fidelity as a one stop shop

Post by MrJedi »

tj wrote: Mon Nov 21, 2022 3:10 pm
MrJedi wrote: Mon Nov 21, 2022 3:00 pm New round of Fidelity new account bonus is up. Deposit $50, get $150. I've done this multiple years now, you don't need to be a new customer and it doesn't need to be an account type that you don't already have. I just do the basic Fidelity brokerage account each time while I already hold an account regularly. Wife and I just both signed up.

https://www.fidelity.com/go/special-offer
So do you have like 15 brokerage accounts now or do you close the unnecessary ones after sufficient time has passed?
I just hide them and they eventually auto close after being empty and inactive.
tj
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Re: Fidelity as a one stop shop

Post by tj »

MrJedi wrote: Mon Nov 21, 2022 3:25 pm If you aren't eligible it will give you a warning when you try to submit the app with the promo code. Might as well try. I'm not sure when the cutoff is. Last time I did it was October 2021.
There was nowhere to actually input the promo code, right? It seemed like it was just coded into the URL in the address bar. Mine successfully opened, but no confirmation of promo enrollment or anything.
MrJedi
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Re: Fidelity as a one stop shop

Post by MrJedi »

tj wrote: Mon Nov 21, 2022 3:27 pm
MrJedi wrote: Mon Nov 21, 2022 3:25 pm If you aren't eligible it will give you a warning when you try to submit the app with the promo code. Might as well try. I'm not sure when the cutoff is. Last time I did it was October 2021.
There was nowhere to actually input the promo code, right? It seemed like it was just coded into the URL in the address bar. Mine successfully opened, but no confirmation of promo enrollment or anything.
If you used the link then it was auto attached. It shows up on the screen with all of your personal info before you submit. It's easy to gloss over though since everything is pre populated
MrJedi
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Re: Fidelity as a one stop shop

Post by MrJedi »

People here are reporting the ineligible warning for cases where they got a bonus within the past year. That lines up with my case where I last got this bonus over a year ago (October 2021), and I successfully opened without the ineligible warning.

https://www.doctorofcredit.com/fidelity ... 0-deposit/
tj
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Re: Fidelity as a one stop shop

Post by tj »

MrJedi wrote: Mon Nov 21, 2022 4:17 pm People here are reporting the ineligible warning for cases where they got a bonus within the past year. That lines up with my case where I last got this bonus over a year ago (October 2021), and I successfully opened without the ineligible warning.

https://www.doctorofcredit.com/fidelity ... 0-deposit/
Yeah I didn't get such a warning, I'm assuming when I last did the deal it was more than a year ago.
Loandapper
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Re: Fidelity as a one stop shop

Post by Loandapper »

Hello forum,

I will have a six-figure amount of cash that I need to hold from the end of November thru the beginning of January. This is for the sale of a home and purchase of a new one. I realize we're only talking about 30-40 days, but that amount of interest is meaningful to my budget.

Question for all you wise folks: How can I make the most amount of interest with zero risk of loss at Fidelity? Or should I stick it in a HYSA at Ally?

Thank you in advance.
tj
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Re: Fidelity as a one stop shop

Post by tj »

Loandapper wrote: Tue Nov 22, 2022 12:11 pm Hello forum,

I will have a six-figure amount of cash that I need to hold from the end of November thru the beginning of January. This is for the sale of a home and purchase of a new one. I realize we're only talking about 30-40 days, but that amount of interest is meaningful to my budget.

Question for all you wise folks: How can I make the most amount of interest with zero risk of loss at Fidelity? Or should I stick it in a HYSA at Ally?

Thank you in advance.
If a money market fund at Fidelity pays more than the savings account, do that, if not, don't.
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

Loandapper wrote: Tue Nov 22, 2022 12:11 pm Hello forum,

I will have a six-figure amount of cash that I need to hold from the end of November thru the beginning of January. This is for the sale of a home and purchase of a new one. I realize we're only talking about 30-40 days, but that amount of interest is meaningful to my budget.

Question for all you wise folks: How can I make the most amount of interest with zero risk of loss at Fidelity? Or should I stick it in a HYSA at Ally?

Thank you in advance.
Take a look at Treasuries. 4 week auctions occur every week, interest rates were around 4% last I looked (might be a little less now). You can buy them at Fidelity.
Joe Public
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Re: Fidelity as a one stop shop

Post by Joe Public »

Loandapper wrote: Tue Nov 22, 2022 12:11 pm Hello forum,

I will have a six-figure amount of cash that I need to hold from the end of November thru the beginning of January. This is for the sale of a home and purchase of a new one. I realize we're only talking about 30-40 days, but that amount of interest is meaningful to my budget.

Question for all you wise folks: How can I make the most amount of interest with zero risk of loss at Fidelity? Or should I stick it in a HYSA at Ally?

Thank you in advance.
One option is to purchase the 4-week T-bill announced today for auction tomorrow.

EDIT: It looks like SnowBog beat me to it. :happy
SnowBog
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Re: Fidelity as a one stop shop

Post by SnowBog »

Joe Public wrote: Tue Nov 22, 2022 1:25 pm
Loandapper wrote: Tue Nov 22, 2022 12:11 pm Hello forum,

I will have a six-figure amount of cash that I need to hold from the end of November thru the beginning of January. This is for the sale of a home and purchase of a new one. I realize we're only talking about 30-40 days, but that amount of interest is meaningful to my budget.

Question for all you wise folks: How can I make the most amount of interest with zero risk of loss at Fidelity? Or should I stick it in a HYSA at Ally?

Thank you in advance.
One option is to purchase the 4-week T-bill announced today for auction tomorrow.

EDIT: It looks like SnowBog beat me to it. :happy
:sharebeer

FYI - looks like the next 4-week has an expected yield of 3.662%, maturing on 12/27. https://digital.fidelity.com/ftgw/digit ... ystem=AORD

As a reminder, Treasuries are not taxable at the state level, so if you have state taxes, the yield is actually a bit higher...

If the timing for this auction doesn't work, there will be another one for 4-week bills next week, and/or you can buy on the secondary market.
Last edited by SnowBog on Tue Nov 22, 2022 9:14 pm, edited 1 time in total.
Loandapper
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Re: Fidelity as a one stop shop

Post by Loandapper »

Perfect. Thank you both.
frugalor
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Re: Fidelity as a one stop shop

Post by frugalor »

SPRXX's 7-day yield is 3.69%. Depending on your guess if interest rate is going up or down, and your risk tolerance, you might want to use that instead.
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

My recommendation would be the FZDXX (highest-yielding MMF you can currently get at Fidelity for a 6-figure amount). Yield is currently around 3.8%. A 4-week treasury is in a similar range, but would probably not exactly fit your time schedule.
Loandapper
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Re: Fidelity as a one stop shop

Post by Loandapper »

Apologies in advance for a stupid question.

Regarding both SPRXX and FZDXX, how often is the interest paid? For example, if I bought either of these on Dec. 1 but sold on Dec. 30, would I miss out on that month's dividend and/or interest? Or do I get credit daily for the amount I have invested, similar to how the HYSA at Ally works?
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

Loandapper wrote: Tue Nov 22, 2022 6:14 pm Apologies in advance for a stupid question.

Regarding both SPRXX and FZDXX, how often is the interest paid? For example, if I bought either of these on Dec. 1 but sold on Dec. 30, would I miss out on that month's dividend and/or interest? Or do I get credit daily for the amount I have invested, similar to how the HYSA at Ally works?
Retail money market funds declare dividends daily, but typically only pay out once a month. If you sell shares in the middle of the month, the interest accumulated in the month so far will be paid out either directly (when you sell all shares) or together with the next regular dividend payment (when you sell a part of your shares). So either way you'll receive interest for the the full time you were invested.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

MrJedi wrote: Mon Nov 21, 2022 4:17 pm People here are reporting the ineligible warning for cases where they got a bonus within the past year. That lines up with my case where I last got this bonus over a year ago (October 2021), and I successfully opened without the ineligible warning.

https://www.doctorofcredit.com/fidelity ... 0-deposit/
Thanks for sharing, I checked and I received my last promo over 12 months ago, I am going to see if I can sign up for this!

Update: I was able to sign up, and I did not receive any ineligibility warning.
frugalor
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Re: Fidelity as a one stop shop

Post by frugalor »

I have just purchased SPRXX a few days ago. Now I have 1K in SPRXX, and 4K in FZFXX (my core position fund). And when I check my balances. My available to withdraw cash is 5K.

This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

frugalor wrote: Tue Nov 22, 2022 11:44 pm I have just purchased SPRXX a few days ago. Now I have 1K in SPRXX, and 4K in FZFXX (my core position fund). And when I check my balances. My available to withdraw cash is 5K.

This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
100%, that is exactly what I do for my brokerage account and CMA.
tj
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Re: Fidelity as a one stop shop

Post by tj »

Is there not a Money Market core position option in the Cash Management account?
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

tj wrote: Wed Nov 23, 2022 11:28 am Is there not a Money Market core position option in the Cash Management account?
No. But note that a brokerage account can do most things that the CMA can. The only things you're missing are the cash manager, the FDIC-insured core option, and (depending on your status) reimbursement of ATM fees.

Personally I have opened a separate brokerage account that I now use for billpay and such. While the interest for the FDIC option in the CMA (currently 1.57%) isn't bad for a checking account, the difference from the MMF core options (~3.4%) just got too big. Manually buying an MMF in the CMA is of course also possible, but gets somewhat cumbersome and clutters up the account activity with purchases and redemptions. Opening the additional brokerage account and redirecting my billpays to the new account was very little effort.
boston10
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Re: Fidelity as a one stop shop

Post by boston10 »

frugalor wrote: Tue Nov 22, 2022 11:44 pm I have just purchased SPRXX a few days ago. Now I have 1K in SPRXX, and 4K in FZFXX (my core position fund). And when I check my balances. My available to withdraw cash is 5K.

This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Loandapper
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Re: Fidelity as a one stop shop

Post by Loandapper »

boston10 wrote: Thu Nov 24, 2022 9:14 am Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Is it possible to keep one's entire CMA balance in SPRXX or FZDXX? Will Fidelity automatically sell positions to cover debits?
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drumboy256
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Re: Fidelity as a one stop shop

Post by drumboy256 »

Loandapper wrote: Fri Nov 25, 2022 10:52 am
boston10 wrote: Thu Nov 24, 2022 9:14 am Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Is it possible to keep one's entire CMA balance in SPRXX or FZDXX? Will Fidelity automatically sell positions to cover debits?
Yes to both.
Promise is one thing. Fulfilling that promise is quite another. - Sir Alex Ferguson | // Merri-Bogle WW SCV + Chill
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

Loandapper wrote: Fri Nov 25, 2022 10:52 am
boston10 wrote: Thu Nov 24, 2022 9:14 am Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Is it possible to keep one's entire CMA balance in SPRXX or FZDXX? Will Fidelity automatically sell positions to cover debits?
Yes, this is what I do (I hold SPRXX) and have multiple ACH debits for bills monthly, never an issue.
RetiredTrvl
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Re: Fidelity as a one stop shop

Post by RetiredTrvl »

boston10 wrote: Thu Nov 24, 2022 9:14 am
frugalor wrote: Tue Nov 22, 2022 11:44 pm This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Could you explain why you should use SPRXX if you have under 100K in cash - FZDXX seems to have a slightly higher yield.
volstagg
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Re: Fidelity as a one stop shop

Post by volstagg »

RetiredTrvl wrote: Fri Nov 25, 2022 2:01 pm
boston10 wrote: Thu Nov 24, 2022 9:14 am
frugalor wrote: Tue Nov 22, 2022 11:44 pm This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Could you explain why you should use SPRXX if you have under 100K in cash - FZDXX seems to have a slightly higher yield.
Because the minimum initial investment in FZDXX is $100,000.
RetiredTrvl
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Re: Fidelity as a one stop shop

Post by RetiredTrvl »

volstagg wrote: Fri Nov 25, 2022 2:07 pm
RetiredTrvl wrote: Fri Nov 25, 2022 2:01 pm
boston10 wrote: Thu Nov 24, 2022 9:14 am
frugalor wrote: Tue Nov 22, 2022 11:44 pm This makes me wonder if I can just put my 4K into SPRXX to get the higher interest rate and use SPRXX as cash.

Has anyone tried this?
Yes, basically everyone on this thread does this. SPRXX if you have under $100k cash and FZDXX for over $100k.
Could you explain why you should use SPRXX if you have under 100K in cash - FZDXX seems to have a slightly higher yield.
Because the minimum initial investment in FZDXX is $100,000.
:oops: I was confusing FZDXX with the core FZFXX - too many Fs and Xs....!!!!!
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

I've seen a few replies indicating it's impossible, but nothing for the past 6mo or so -- Has anyone successfully deposited cash into a Fidelity CMA at an ATM?
chassis
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Re: Fidelity as a one stop shop

Post by chassis »

nalor511 wrote: Sat Nov 26, 2022 5:17 pm I've seen a few replies indicating it's impossible, but nothing for the past 6mo or so -- Has anyone successfully deposited cash into a Fidelity CMA at an ATM?
Fidelity says: No.

https://www.fidelity.com/cash-managemen ... debit-card
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

chassis wrote: Sat Nov 26, 2022 9:29 pm
nalor511 wrote: Sat Nov 26, 2022 5:17 pm I've seen a few replies indicating it's impossible, but nothing for the past 6mo or so -- Has anyone successfully deposited cash into a Fidelity CMA at an ATM?
Fidelity says: No.

https://www.fidelity.com/cash-managemen ... debit-card
Sigh. Have to locate my old CU ATM card
texas lawdog
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Re: Fidelity as a one stop shop

Post by texas lawdog »

Thanks for promo link earlier in this thread, as I just started thinking about signing up for a brokerage account to use as a savings account. I'll be using this new brokerage account to purchase mainly MM type funds (SPRXX, SPAXX, FZDXX, etc) and transfer to my CMA account as needed.

I'm curious if anyone sees a benefit of having margin on a brokerage account that is being used as a savings account? The only reason I could think of is perhaps in the future I'd purchase more illiquid type securities and wouldn't want to try to sell those for cash.
Loandapper
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Re: Fidelity as a one stop shop

Post by Loandapper »

Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity. Does Fidelity allow something similar with FZROX? Is it possible to convert FZROX into anything without technically selling it and triggering cap gains?
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity. Does Fidelity allow something similar with FZROX? Is it possible to convert FZROX into anything without technically selling it and triggering cap gains?
Nope. Don't buy FZROX in a taxable account.
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
Does Fidelity allow something similar with FZROX? Is it possible to convert FZROX into anything without technically selling it and triggering cap gains?
No, this is unique to Vanguard.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

FZROX is not transferrable, specifically because Fidelity doesn't want you to be able to transfer it. It's a small thing they can do to make you stickier as a customer. Buy VG ETFs instead and you can take them anywhere, with no fees, should you need to.
Lyrrad
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Re: Fidelity as a one stop shop

Post by Lyrrad »

Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

Lyrrad wrote: Sun Nov 27, 2022 6:00 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
Looks like you're right. Even better when I finally start selling my VTSAX shares in the distant future. :happy
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

Lyrrad wrote: Sun Nov 27, 2022 6:00 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
There would still be taxes. Converting to ETF is the right choice
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

nalor511 wrote: Sun Nov 27, 2022 6:18 pm
Lyrrad wrote: Sun Nov 27, 2022 6:00 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
There would still be taxes. Converting to ETF is the right choice
When you sell you pay cap gain taxes either way. Doesn't really make much of a difference, given that most brokerages including Fido can hold Vanguard mutual funds. I have transferred my old VTSAX lot two times without issues. But yes, today I prefer ETFs for various reasons.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

Eno Deb wrote: Sun Nov 27, 2022 6:23 pm
nalor511 wrote: Sun Nov 27, 2022 6:18 pm
Lyrrad wrote: Sun Nov 27, 2022 6:00 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Recently, I was able to convert VTSAX into VTI so I could transfer it to Fidelity.
You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
There would still be taxes. Converting to ETF is the right choice
When you sell you pay cap gain taxes either way. Doesn't really make much of a difference, given that most brokerages including Fido can hold Vanguard mutual funds. I have transferred my old VTSAX lot two times without issues. But yes, today I prefer ETFs for various reasons.
You do not pay taxes converting vtsax to vti
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

nalor511 wrote: Sun Nov 27, 2022 6:37 pm
Eno Deb wrote: Sun Nov 27, 2022 6:23 pm
nalor511 wrote: Sun Nov 27, 2022 6:18 pm
Lyrrad wrote: Sun Nov 27, 2022 6:00 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm You could have transferred VTSAX to Fido as well (I did). But if you had the option to easily change to the ETF it's probably better since Fidelity takes a fee when redeeming vanguard mutual funds.
https://www.fidelity.com/trading/commis ... rgin-rates

I believe there’s no fee to redeem Vanguard mutual funds at Fidelity, just to purchase.
There would still be taxes. Converting to ETF is the right choice
When you sell you pay cap gain taxes either way. Doesn't really make much of a difference, given that most brokerages including Fido can hold Vanguard mutual funds. I have transferred my old VTSAX lot two times without issues. But yes, today I prefer ETFs for various reasons.
You do not pay taxes converting vtsax to vti
Nobody said you do.
spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet »

Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Does Fidelity allow something similar with FZROX? Is it possible to convert FZROX into anything without technically selling it and triggering cap gains?
No, this is unique to Vanguard.
They actually have a patent on the process but it lapses sometime in 2023. A massive increase in the volume of heartbeat trades may lead to a change in the relevant law/regulation making it possible. (That's purely speculation on my part.)
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

spammagnet wrote: Sun Nov 27, 2022 7:18 pm
Eno Deb wrote: Sun Nov 27, 2022 5:44 pm
Loandapper wrote: Sun Nov 27, 2022 4:00 pm Does Fidelity allow something similar with FZROX? Is it possible to convert FZROX into anything without technically selling it and triggering cap gains?
No, this is unique to Vanguard.
They actually have a patent on the process but it lapses sometime in 2023. A massive increase in the volume of heartbeat trades may lead to a change in the relevant law/regulation making it possible. (That's purely speculation on my part.)
The SEC has already said they will likely never approve other companies to use this dual share class structure, because it is fundamentally unfair to ETF holders picking up some of the MF expenses
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

I currently hold FSNXX, NY York Municipal Money Market and SPAXX government money market in my brokerage account. How do I change the default money market to FSNXX?
muffins14
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Re: Fidelity as a one stop shop

Post by muffins14 »

It might not be an option for a default, but you can just buy it
35% VTI, 25% AVUV, 15% IXUS, 15% AVDV, 10% VWO
spammagnet
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Re: Fidelity as a one stop shop

Post by spammagnet »

Blue456 wrote: Sat Dec 03, 2022 9:18 am I currently hold FSNXX, NY York Municipal Money Market and SPAXX government money market in my brokerage account. How do I change the default money market to FSNXX?
You can't. What I do is schedule a monthly purchase for a bit less than my monthly transfer from my retirement account. You could do the same with payroll direct deposit. After you buy FSNXX, there will be leftover cash but normal churn will use that up before they sell the FSNXX.

Be aware that Fidelity considers FSNXX an investment, as opposed to part of your cash. (It is immediately available as cash.) I use Quicken and download transactions. You can set Fidelity to not send core sweep transactions to Quicken. The FSNXX buy/sell transactions create noise, if it's your primary account. I delete them.
Tarkus
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Re: Fidelity as a one stop shop

Post by Tarkus »

I haven't read this whole thread, because it's huge. So I'm sure this is covered somewhere.

But I just switched to using Fidelity as my "one stop shop" and I love everything about it except for one thing.

I use Moneydance to manage my personal finances. At first, I was thrilled that I could download transactions automatically, because I could not with my previous bank (Ally). However, the Fidelity CMA account shows up as an "investment" account instead of a "bank" account. In practical terms, this means there is no ability to merge transactions. This adds a fair amount of additional manual work for transfer-type transactions (the most common case being credit card payments). I have to manually merge transactions by deleting the extra transaction in the Fidelity ledger, and then merging the transactions in the other account's ledger. It's a pain but not a show stopper.

An even bigger problem, however, is that the transaction descriptions from Fidelity's OFX server are really poor. Here is an example. In my old Ally bank account, the OFX file describes a payment to Venmo like this:

Code: Select all

VENMO PAYMENT
With Fidelity that same transaction appears like this:

Code: Select all

DIRECT               DEBIT VENMO
Apart from being ugly, the practical side-effect is that Moneydance can not automatically recognize *any* transactions from Fidelity and you have to manually code everything.

I should mention that I am downloading the transactions from Fidelity's free OFX server and I am not paying for a subscription to Moneydance Plus, which uses Plaid to connect to financial institutions. I am not sure if that would make any difference at all. There is also no way to manually download an OFX or QFX file from Fidelity -- you can only get a CSV file from their web interface, which is pretty useless.

So I guess, while I like the features of Fidelity's CMA, this is a *big* pain point for me and I am not sure if I will keep doing this for the long run.
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

spammagnet wrote: Sat Dec 03, 2022 10:57 am
Blue456 wrote: Sat Dec 03, 2022 9:18 am
Be aware that Fidelity considers FSNXX an investment, as opposed to part of your cash. (It is immediately available as cash.)
[ quote fixed by admin LadyGeek]

So debit card won’t be able to sell this to cover transactions?
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