Search found 18 matches

by cwenger
Wed Nov 15, 2023 3:30 pm
Forum: Personal Investments
Topic: Does Fidelity's auto-liquidation of non-core money market funds ever fail?
Replies: 30
Views: 6513

Re: Does Fidelity's auto-liquidation of non-core money market funds ever fail?

LeoB wrote: Wed Nov 15, 2023 3:25 pm
cwenger wrote: Wed Nov 15, 2023 3:12 pm
LeoB wrote: Wed Nov 15, 2023 2:51 pm I just had a check bounce due to Fidelity failing to auto-liquidate Fidelity treasury-only money market fund (FDLXX). Bank said there were insufficient funds.
That's odd, I've been using this feature for months now with FZDXX and never had a problem over 60+ times. Would be interested to hear Fidelity's explanation. Maybe just an issue for paper checks?
On a live chat, the Fidelity rep said that auto-liquidation is only for the core money market funds or the FDIC core position.
Well that's clearly not the case, as lots of people in this thread can attest...
by cwenger
Wed Nov 15, 2023 3:12 pm
Forum: Personal Investments
Topic: Does Fidelity's auto-liquidation of non-core money market funds ever fail?
Replies: 30
Views: 6513

Re: Does Fidelity's auto-liquidation of non-core money market funds ever fail?

LeoB wrote: Wed Nov 15, 2023 2:51 pm I just had a check bounce due to Fidelity failing to auto-liquidate Fidelity treasury-only money market fund (FDLXX). Bank said there were insufficient funds.
That's odd, I've been using this feature for months now with FZDXX and never had a problem over 60+ times. Would be interested to hear Fidelity's explanation. Maybe just an issue for paper checks?
by cwenger
Mon Nov 13, 2023 2:04 pm
Forum: Personal Finance (Not Investing)
Topic: Which health insurers allow you to pay premiums by credit card?
Replies: 15
Views: 1163

Re: Which health insurers allow you to pay premiums by credit card?

I would actually be surprised if any of them *didn’t* allow this. I would pick based on who you expect to get the best care from if you suddenly came down with cancer or something, not the one you could get credit card rewards from. In my local area, that’s Kaiser. It might be something else for you. A previous provider (AmeriHealth) did not allow credit card payments. I would prefer to stick with Kaiser also, but they don't have any HSA-compatible plans on the exchange. This is a big deal for me because I consider it at least ~$1800 off my premiums ($8300 HSA limit x 22% tax bracket). Being relatively young and healthy, I don't expect to use much health care, so something that makes premiums a few percent lower via credit card payments ma...
by cwenger
Mon Nov 13, 2023 10:46 am
Forum: Personal Finance (Not Investing)
Topic: Which health insurers allow you to pay premiums by credit card?
Replies: 15
Views: 1163

Re: Which health insurers allow you to pay premiums by credit card?

Retired@58 wrote: Mon Nov 13, 2023 10:34 am Would you really change insurance carriers for this?

Best

Retired@58
I'm most likely changing carriers either way. This is just to help decide between the options. It's effectively 3% cheaper premiums, which isn't nothing.
by cwenger
Mon Nov 13, 2023 10:33 am
Forum: Personal Finance (Not Investing)
Topic: Which health insurers allow you to pay premiums by credit card?
Replies: 15
Views: 1163

Re: Which health insurers allow you to pay premiums by credit card?

I would actually be surprised if any of them *didn’t* allow this. I would pick based on who you expect to get the best care from if you suddenly came down with cancer or something, not the one you could get credit card rewards from. In my local area, that’s Kaiser. It might be something else for you. A previous provider (AmeriHealth) did not allow credit card payments. I would prefer to stick with Kaiser also, but they don't have any HSA-compatible plans on the exchange. This is a big deal for me because I consider it at least ~$1800 off my premiums ($8300 HSA limit x 22% tax bracket). Being relatively young and healthy, I don't expect to use much health care, so something that makes premiums a few percent lower via credit card payments ma...
by cwenger
Mon Nov 13, 2023 10:01 am
Forum: Personal Finance (Not Investing)
Topic: Which health insurers allow you to pay premiums by credit card?
Replies: 15
Views: 1163

Which health insurers allow you to pay premiums by credit card?

I'm self-employed and it's open enrollment time on the exchanges. Health insurance premiums are skyrocketing next year (+22% for the same plan, even with the deductible and out-of-pocket max going up), so I'm considering other options. A couple plans are pretty evenly matched, so if one allowed me to pay premiums by credit card (2.625% back in rewards, plus an extra 30-60 days to pay, interest-free) and the other didn't, that might tip the balance.

My current insurer (Kaiser Permanente) does allow me to pay premiums by credit card. Can people share their health insurers, and if they can pay premiums by credit card (assuming it's not through payroll deductions)?
by cwenger
Mon Apr 24, 2023 10:07 pm
Forum: Personal Investments
Topic: Transferring a Qualified Variable Annuity to a Vanguard Traditional IRA
Replies: 3
Views: 479

Re: Transferring a Qualified Variable Annuity to a Vanguard Traditional IRA

Thanks for the response. MIL has no idea what she wants and has authorized me to decide. I want to simplify and consolidate everything at Vanguard to minimize fees, so absolutely I want to ditch the variable annuity. Ohio National does have an option to do a lump sum distribution, but I figured it was non-optimal because (1) there is mandatory withholding, and to maintain the full value MIL would have to write Vanguard a new check for the full amount, and (2) there's some chance she doesn't get the rollover done within the 60-day limit and the entire thing becomes taxable, plus it locks her out from doing another one within 1 year if the need arises. At most companies it seems like the process is (1) get the accounts changed from FIL's name...
by cwenger
Mon Apr 24, 2023 8:06 pm
Forum: Personal Investments
Topic: Transferring a Qualified Variable Annuity to a Vanguard Traditional IRA
Replies: 3
Views: 479

Transferring a Qualified Variable Annuity to a Vanguard Traditional IRA

My father-in-law died, and he had a Qualified Variable Annuity at Ohio National that I'm trying to transfer to his surviving spouse (she is the sole beneficiary). Ohio National sent paperwork and said if we want to transfer to a Traditional IRA at another brokerage we should select the "spousal continuation" option with a "transfer to another investment vehicle" sub-option. However, in parentheses that sub-option says "submit transfer documents, acceptance and applicable state replacement". Transfer documents seem pretty straightforward, but I don't know what "acceptance" and "applicable state replacement" is. My mother-in-law opened a Traditional IRA at Vanguard and started the rollover pro...
by cwenger
Fri Feb 03, 2023 9:54 am
Forum: Personal Investments
Topic: Does Fidelity's auto-liquidation of non-core money market funds ever fail?
Replies: 30
Views: 6513

Re: Does Fidelity's auto-liquidation of non-core money market funds ever fail?

ma21n2 wrote: Fri Feb 03, 2023 9:23 am I'm thinking of opening a Fidelity CMA account and keeping all my cash in FDLXX (my interest checking account pays almost nothing). I'll then use it to pay credit card bills and what not. Is there any downside to opening a CMA account instead of Brokerage account? I think CMA comes with ATM fee rebate whereas Brokerage account doesn't unless you meet some asset requirement.
The main difference I've observed (I got a CMA solely for a bonus) is that with a CMA the default sweep option is cash only, while for a brokerage it can be some money market funds. But if you're planning to use FDLXX you'll have to manage that manually anyway. More details on the wiki here.
by cwenger
Mon Jan 23, 2023 7:20 pm
Forum: Personal Investments
Topic: Paying BofA credit card from Fidelity brokerage account via auto-liquidation
Replies: 0
Views: 450

Paying BofA credit card from Fidelity brokerage account via auto-liquidation

Following up on my post here . On Saturday I paid a BofA credit card from my Fidelity brokerage account with nothing in the core position but plenty in FZDXX. At some point I got a PENDING PAYMENT transaction at BofA as usual. This morning (Monday) I see the payment come out of my Fidelity account, also as usual. However, later today I got another transaction at BofA labeled PMNT RECEIVED: PROCESSING which negated the payment. I've never seen this before, even though I've paid BofA credit cards from Fidelity numerous times. Looking online it seems to indicate a payment hold. I'm not too concerned because the payment isn't due until Wednesday, and the balance doesn't usually zero out until Tuesday morning when I pay on Saturday. But this see...
by cwenger
Fri Jan 20, 2023 9:42 am
Forum: Personal Investments
Topic: Does Fidelity's auto-liquidation of non-core money market funds ever fail?
Replies: 30
Views: 6513

Re: Does Fidelity's auto-liquidation of non-core money market funds ever fail?

rv26 wrote: Thu Jan 19, 2023 11:34 pm Is this a regular brokerage account or Cash management account? I know with a Cash Management Account you can take advantage of the Cash Manager (https://www.fidelity.com/cash-managemen ... sh-manager)
This is a brokerage account, not a cash management account. I like the simplicity of a single account so I don't want to use a CMA also.
by cwenger
Thu Jan 19, 2023 10:58 pm
Forum: Personal Investments
Topic: Does Fidelity's auto-liquidation of non-core money market funds ever fail?
Replies: 30
Views: 6513

Does Fidelity's auto-liquidation of non-core money market funds ever fail?

I have a taxable brokerage account at Fidelity where I hold my cash in FZDXX because it earns more than my high-yield savings account. I can't use it as my core position unfortunately but whenever I get some money in I just put in a buy order for more FZDXX. I also use my brokerage account as a checking account to pay credit cards. Based on the advice of a Fidelity rep here ("It is best practice to sell non-core money markets in advance of expected purchases."), I generally sell enough FZDXX first, but I'd like to stop doing this. However, I'm scared of the possibility of an ACH withdrawal being rejected due to insufficient funds in my core account, making the credit card payment fail. Has anybody had any issues with Fidelity's au...
by cwenger
Tue Sep 17, 2019 9:48 am
Forum: Personal Finance (Not Investing)
Topic: New Jersey "qualified investment funds"
Replies: 8
Views: 1217

Re: New Jersey "qualified investment funds"

I swear I copied and pasted that quote from the NJ website, but now I can't find any trace of it. It's almost like it was there right around tax time, but then removed sometime afterwards. With the part about NJ obligations removed, the "qualified investment fund" concept makes perfect sense. Thanks for pointing that out.
by cwenger
Mon Mar 04, 2019 3:46 pm
Forum: Personal Finance (Not Investing)
Topic: New Jersey "qualified investment funds"
Replies: 8
Views: 1217

Re: New Jersey "qualified investment funds"

nolesrule wrote: Mon Mar 04, 2019 10:54 am The Qualified Investment Fund status is for the purposes of determining NJ state tax-exempt capital gains. If it isn't qualified, you cannot exclude any capital gains even if they are partially from tax-exempt sources.


So for example, if you have a fund that is 80% US treasuries and you sell then you can claim 80% of the capital gains as tax exempt. But if you have a fund that is 40% US Treasuries, none of the capital gains is tax exempt.

The quote in the OP is about income from interest, not capital gains. Interest from tax-exempt sources are always tax-exempt. That includes fund dividends that are based on interest. There is no qualifying threshold.
Thank you. I suspected it might be something to do with capital gains.
by cwenger
Mon Mar 04, 2019 8:34 am
Forum: Personal Finance (Not Investing)
Topic: New Jersey "qualified investment funds"
Replies: 8
Views: 1217

New Jersey "qualified investment funds"

At https://www.state.nj.us/treasury/taxati ... e/git5.pdf, it has a section on "Qualified Investment Funds" in New Jersey. Toward the end it says the fund may have up to 20% holdings that are not tax-exempt, but you still have to pay New Jersey income tax on those distributions. Then in the next section it says:
Interest on federal or New Jersey obligations are excludable whether or not such obligations are held by a “qualified investment fund.”
So if you have to pay tax on non-tax-exempt distributions from a qualified investment fund, and you don't have to pay tax on tax-exempt distributions from a non-qualified investment fund, what's the point of holding a qualified investment fund?
by cwenger
Fri Mar 01, 2019 10:37 am
Forum: Personal Investments
Topic: Capital loss in HSA as New Jersey resident
Replies: 10
Views: 641

Re: Capital loss in HSA as New Jersey resident

I live in New Jersey and have an HSA where I hold a total bond market fund. It currently has a ~$400 capital loss. I was thinking of moving it to total U.S. stock market fund because (1) it would reduce the dividend yield, which is taxable by New Jersey, from ~3% to ~2%, and (2) I could realize the $400 capital loss on my New Jersey tax return. I would increase my bond holding in my 401(k) concurrently so my overall asset allocation would be unchanged. I don't plan to use my HSA money for many years, after I have moved out of New Jersey, so I'm not concerned about higher capital gains from a stock fund versus a bond fund. Does this seem like a reasonable plan? And just to confirm, a capital loss realized in my HSA will be reflected on my N...
by cwenger
Fri Mar 01, 2019 9:51 am
Forum: Personal Investments
Topic: Capital loss in HSA as New Jersey resident
Replies: 10
Views: 641

Capital loss in HSA as New Jersey resident

I live in New Jersey and have an HSA where I hold a total bond market fund. It currently has a ~$400 capital loss. I was thinking of moving it to total U.S. stock market fund because (1) it would reduce the dividend yield, which is taxable by New Jersey, from ~3% to ~2%, and (2) I could realize the $400 capital loss on my New Jersey tax return. I would increase my bond holding in my 401(k) concurrently so my overall asset allocation would be unchanged. I don't plan to use my HSA money for many years, after I have moved out of New Jersey, so I'm not concerned about higher capital gains from a stock fund versus a bond fund. Does this seem like a reasonable plan? And just to confirm, a capital loss realized in my HSA will be reflected on my Ne...
by cwenger
Wed May 15, 2013 6:39 pm
Forum: Personal Investments
Topic: Should I sell an actively managed mutual fund?
Replies: 2
Views: 382

Should I sell an actively managed mutual fund?

I have a few thousand dollars worth of an actively managed mutual fund, AMRMX, in a taxable account. The performance is OK and the expense ratio is moderate (0.63%). I bought it several years ago before I paid much attention to investing so I didn't understand the importance of buying low-cost funds. Is it worthwhile to sell this mutual fund, pay the capital gains tax (I reinvested capital gains until recently so I'll have both long- and short-term to worry about), and buy low-cost mutual funds or ETFs instead? I have 30+ years before retirement.