mander75 wrote: ↑Sun Sep 17, 2023 12:01 pm
Thank you. If I have multiple credit cards linked in “Bill Pay” - do I need to set them again if I change to using a taxable account instead of CMA for paying bills? Will equity or bonds be auto liquidated if I pay for bills or it will only be MM funds? Lastly - how to get reimbursed for ATM using taxable account’s debt card?
Yes, if you create a new account you have to turn on "Bill Pay" for that account, and will have to create a new list of payees in that account.
No, equity or bonds do not get "auto liquidated" to pay bills or any other cash withdrawals. You have to have cash "available for withdrawal" in the settlement fund (or other money market fund) to withdraw or pay bills from it.
Note that both the CMA account and Fidelity Brokerage account are both "Taxable Accounts", they are both "Brokerage Accounts", you can buy and sell stocks, bonds, etc.. in either account. The big difference is that the CMA uses a FDIC bank sweep as it's core settlement account, and the regular brokerage account uses a government money market fund as the core settlement fund.
As far as ATM reimbursements, if you use an in-network ATM (same network as PNC Bank
) you won't have any ATM charges. Unlike the CMA account, the brokerage account doesn't automatically come with reimbursement of other ATM fees. If you meet certain eligibility requirements / status level with Fidelity, you may get ATM rebates - for myself, I had to call Fidelity PCG customer service and they had to get the card specially coded to allow ATM reimbursements. Someone else above said it was automatic for them.
Also, note that if you're planning on trading stocks or bonds, its best to segregate that to a different account than the one you're using for cash management/bill pay, as trading activity will impact your "available to withdraw" cash and may inadvertently cause you to bounce a bill payment.
If you have $1,000 "available to withdraw" cash , then sell $1,000 of a bond fund, you'll have $1,000 "available to withdraw" + $1,000 "available to trade" (while the bond fund sale is pending settlement)
If you immediately buy another fund for $1,000, it will draw against your "available to withdraw" money FIRST leaving you with $0 available to withdraw until the bond sale settlement completes.
Having an account for bill pay/cash management that's separate from your trading account will avoid the issues commingling money that hasn't settled yet from trading activity.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham