Fidelity as a one stop shop

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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

nalor511 wrote: Tue Aug 09, 2022 2:19 pm
need403bhelp wrote: Tue Aug 09, 2022 2:18 pm
nalor511 wrote: Tue Aug 09, 2022 12:38 pm
need403bhelp wrote: Tue Aug 09, 2022 12:35 pm
sobogled wrote: Tue Aug 09, 2022 11:08 am

For the cash management account, the FDIC sweep is the core position, so yes funds will go there. This is different than the brokerage account where the money market fund selection can be core.

SPAXX is a good option that cannot be suspended although still has a theoretical break the buck risk from the small position in agency notes. FDLXX is a treasury only option.

IMHO the Fidelity route provides a great flexibility (different funds, brokered CDs, etc) and a stability (relatively unchanged offering, unlike SoFi which has been more fickle). The downside is that generally, there's a FDIC insured savings out there somewhere that pays nearly what Fidelity Money Market funds return, so it can feel like a strange risk-reward tradeoff.
Ok, thanks. Re "This is different than the brokerage account where the money market fund selection can be core," someone had mentioned that it is possible to get check writing ability, debit cards, ATM card, etc. for brokerage account and that only difference between CMA and brokerage in this case is reimbursement of ATM fees. Is this correct? If so, would one be able to do the brokerage account with all of these features and use FZFXX as core position, then ACH push directly into that and have money go into FZFXX automatically?
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
Fair enough. Can you do direct deposit into the brokerage account (I assume yes as even Vanguard lets you do that, or at least used to let you)? What about trial deposits?

Also, to be thorough, I tried to look at other brokerages but looks like Schwab only pays 0.25% APY for their checking account sweep (https://www.schwab.com/checking) whereas Fidelity CMA has 1.2%. I wonder if there's a place to compare brokerage yields? Obviously, Vanguard doesn't have one, but I wonder if TD Ameritrade or E-Trade or some other brokerages might have competitive yields on pseudo-checking accounts?
Yes. And Fidelity CMA (or brokerage) pays almost 2% if you buy sprxx
SPRXX has a 2.03% 7 day SEC yield as of 8/8/2022. :D

I just setup a Fidelity CMA to take advantage of this yield to pay mortgage and CC bills.
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Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fidelity

Post by iamblessed »

[Thread merged into here --admin LadyGeek]

brokerage only with no CMA. This look tempting to me as I would love just one tax document at the end of the year.
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by nalor511 »

Plenty of info in the one stop shop thread viewtopic.php?f=2&t=266538&newpost=6816 ... ead#unread . You can do everything in the CMA (except change your core fund). You can do everything in the brokerage (except ATM reimbursement). You can do both (CMA overdraft from brokerage), with no earnings in the CMA (used only for withdrawals) you would only get one tax doc (brokerage).
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by iamblessed »

nalor511 wrote: Tue Aug 09, 2022 7:06 pm Plenty of info in the one stop shop thread viewtopic.php?f=2&t=266538&newpost=6816 ... ead#unread . You can do everything in the CMA (except change your core fund). You can do everything in the brokerage (except ATM reimbursement). You can do both (CMA overdraft from brokerage), with no earnings in the CMA (used only for withdrawals) you would only get one tax doc (brokerage).
There is a button in the CMA to change the core fund.
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by rongos »

SPRXX 7 day SEC yield is 2.04%, SPAXX is 1.72% as of 8/9.
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by anon_investor »

iamblessed wrote: Tue Aug 09, 2022 7:25 pm
nalor511 wrote: Tue Aug 09, 2022 7:06 pm Plenty of info in the one stop shop thread viewtopic.php?f=2&t=266538&newpost=6816 ... ead#unread . You can do everything in the CMA (except change your core fund). You can do everything in the brokerage (except ATM reimbursement). You can do both (CMA overdraft from brokerage), with no earnings in the CMA (used only for withdrawals) you would only get one tax doc (brokerage).
There is a button in the CMA to change the core fund.
Click on it and it will say you cannot change the core fund. You can just buy a money market fund like SPRXX in your CMA and Fidelity will auto liquidate it to satisfy any debits greater than your core fund holdings (assuming the funds in the money market fund are settled and available for withdrawal).
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by iamblessed »

So if you want to be lazy you could set the core to FZFXX in the brokerage and call it a day. Sounds like the brokerage account would be the best for only one account if you don't use the ATM. Is my idea ok?
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Re: Fidelity as a one stop shop

Post by careerdata »

nalor511 wrote: Tue Aug 09, 2022 12:38 pm
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
I just set up the CMA account as the next step in the process to move our checking from BofA to Fidelity. I, like you, have an existing Fidelity brokerage account where we have our money market funds. We are setting up my wife's paychecks to be direct deposited into the brokerage account. I did not set up the Fidelity Cash Manager yet because it said you need to set a minimum and a maximum amount. Did you set both at $0 or do something else for this to work for you as you described, where your money is earning interest at 2% or more for the maximum amount of time? Are your debit and checks requested from the CMA as opposed to the brokerage account?

Thanks!

Joe
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Re: Fidelity as a one stop shop

Post by LadyGeek »

I merged iamblessed's thread into the ongoing discussion.

(Thanks to the member who reported the post and provided a link to this thread.)
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anon_investor
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by anon_investor »

iamblessed wrote: Tue Aug 09, 2022 7:42 pm So if you want to be lazy you could set the core to FZFXX in the brokerage and call it a day. Sounds like the brokerage account would be the best for only one account if you don't use the ATM. Is my idea ok?
Sure, but the 10 seconds it takes to buy SPRXX gets you an extra ~0.30% in yield.
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by iamblessed »

anon_investor wrote: Tue Aug 09, 2022 8:29 pm
iamblessed wrote: Tue Aug 09, 2022 7:42 pm So if you want to be lazy you could set the core to FZFXX in the brokerage and call it a day. Sounds like the brokerage account would be the best for only one account if you don't use the ATM. Is my idea ok?
Sure, but the 10 seconds it takes to buy SPRXX gets you an extra ~0.30% in yield.
Very true. I just wanted a backup if I forgot to bought right away with new money that hit the account. Like dividends or capital gains.
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Re: Anybody doing checking and investing in a CMA only at Fidelity. Or anybody doing investing and checking in a Fideli

Post by anon_investor »

iamblessed wrote: Tue Aug 09, 2022 8:32 pm
anon_investor wrote: Tue Aug 09, 2022 8:29 pm
iamblessed wrote: Tue Aug 09, 2022 7:42 pm So if you want to be lazy you could set the core to FZFXX in the brokerage and call it a day. Sounds like the brokerage account would be the best for only one account if you don't use the ATM. Is my idea ok?
Sure, but the 10 seconds it takes to buy SPRXX gets you an extra ~0.30% in yield.
Very true. I just wanted a backup if I forgot to bought right away with new money that hit the account. Like dividends or capital gains.
I think Fidelity has an option for an alert to notify you of that.
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Re: Fidelity as a one stop shop

Post by NYCaviator »

arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
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Re: Fidelity as a one stop shop

Post by anon_investor »

NYCaviator wrote: Tue Aug 09, 2022 8:42 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
Yes, the FDIC insured sweep is up to 1.20%. SPRXX is up to 2.03%. So for anyone that holds a large cash balance that extra 0.83% will add up.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

careerdata wrote: Tue Aug 09, 2022 7:45 pm
nalor511 wrote: Tue Aug 09, 2022 12:38 pm
If you want to automate that part, just do what was suggested many times already, keep all the $ and deposits into the brokerage, and keep $0 in the CMA with overdraft turned on to use the brokerage for the overdraft, and have withdrawals only on the CMA so you get ATM reimbursement, and if you ever have a fraud issue you can just flip the overdraft off and your brokerage is insulated.
I just set up the CMA account as the next step in the process to move our checking from BofA to Fidelity. I, like you, have an existing Fidelity brokerage account where we have our money market funds. We are setting up my wife's paychecks to be direct deposited into the brokerage account. I did not set up the Fidelity Cash Manager yet because it said you need to set a minimum and a maximum amount. Did you set both at $0 or do something else for this to work for you as you described, where your money is earning interest at 2% or more for the maximum amount of time? Are your debit and checks requested from the CMA as opposed to the brokerage account?

Thanks!

Joe
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
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Re: Fidelity as a one stop shop

Post by Blue456 »

anon_investor wrote: Tue Aug 09, 2022 8:44 pm
NYCaviator wrote: Tue Aug 09, 2022 8:42 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
Yes, the FDIC insured sweep is up to 1.20%. SPRXX is up to 2.03%. So for anyone that holds a large cash balance that extra 0.83% will add up.
Is SPRXX treated like T-bills when it comes to taxation?
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Re: Fidelity as a one stop shop

Post by anon_investor »

Blue456 wrote: Wed Aug 10, 2022 5:27 am
anon_investor wrote: Tue Aug 09, 2022 8:44 pm
NYCaviator wrote: Tue Aug 09, 2022 8:42 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
Yes, the FDIC insured sweep is up to 1.20%. SPRXX is up to 2.03%. So for anyone that holds a large cash balance that extra 0.83% will add up.
Is SPRXX treated like T-bills when it comes to taxation?
No, as none of the interest from US Treasuries.
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Re: Fidelity as a one stop shop

Post by dingusbojangles »

anon_investor wrote: Wed Aug 10, 2022 6:13 am
Blue456 wrote: Wed Aug 10, 2022 5:27 am
anon_investor wrote: Tue Aug 09, 2022 8:44 pm
NYCaviator wrote: Tue Aug 09, 2022 8:42 pm
arf30 wrote: Mon Aug 08, 2022 7:30 pm The CMA is paying 1.20% interest currently (which must be better than most checking accounts?), it's probably not worth the hassle of manually buying SPRXX unless you're keeping a huge balance.
Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
Yes, the FDIC insured sweep is up to 1.20%. SPRXX is up to 2.03%. So for anyone that holds a large cash balance that extra 0.83% will add up.
Is SPRXX treated like T-bills when it comes to taxation?
No, as none of the interest from US Treasuries.
Close to none, but not quite. Last year 3.58% of SPRXX's income came from U.S. government securities: https://www.fidelity.com/bin-public/060 ... letter.pdf
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

dingusbojangles wrote: Wed Aug 10, 2022 9:16 am
anon_investor wrote: Wed Aug 10, 2022 6:13 am
Blue456 wrote: Wed Aug 10, 2022 5:27 am
anon_investor wrote: Tue Aug 09, 2022 8:44 pm
NYCaviator wrote: Tue Aug 09, 2022 8:42 pm

Obviously its probably gone up recently, but is the FDIC insured sweep (i.e. not buying any specific funds) still yielding above 1%? Makes me want to open one just to use for quarterly tax payments.
Yes, the FDIC insured sweep is up to 1.20%. SPRXX is up to 2.03%. So for anyone that holds a large cash balance that extra 0.83% will add up.
Is SPRXX treated like T-bills when it comes to taxation?
No, as none of the interest from US Treasuries.
Close to none, but not quite. Last year 3.58% of SPRXX's income came from U.S. government securities: https://www.fidelity.com/bin-public/060 ... letter.pdf
At least right now SPRXX's current "composition" listed on the Fidelity website, says 0% in US Treasury Debt:
https://fundresearch.fidelity.com/mutua ... /31617H201
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Re: Fidelity as a one stop shop

Post by careerdata »

nalor511 wrote: Wed Aug 10, 2022 12:48 am
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
Thank you! I just linked my Fidelity brokerage account to the CMA and checked the box for overdraft protection but I did not check the boxes for either the minimum or maximum target balance options. When I went to the confirmation page it showed the following:

Minimum Target Balance = No
Minimum Target Balance Amount = None
Minimum Transfer Amount = None
Minimum Target Balance Alert = No

Maximum Target Balance = No
Maximum Target Balance Amount = None
Maximum Transfer Amount = None
Maximum Target Balance Alert = No

Cash Available to Withdraw (CMA) = $0.00
Available Balance (Brokerage Account) = $13,505.55 (This is in SPRXX)

Questions for you:

--Do all of these settings look like what you have set up?
--Does your CMA always say the cash available to withdraw is $0.00 even if you have an available balance in your Fidelity brokerage account?

Regards,

Joe
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Re: Fidelity as a one stop shop

Post by nalor511 »

careerdata wrote: Wed Aug 10, 2022 8:52 pm
nalor511 wrote: Wed Aug 10, 2022 12:48 am
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
Thank you! I just linked my Fidelity brokerage account to the CMA and checked the box for overdraft protection but I did not check the boxes for either the minimum or maximum target balance options. When I went to the confirmation page it showed the following:

Minimum Target Balance = No
Minimum Target Balance Amount = None
Minimum Transfer Amount = None
Minimum Target Balance Alert = No

Maximum Target Balance = No
Maximum Target Balance Amount = None
Maximum Transfer Amount = None
Maximum Target Balance Alert = No

Cash Available to Withdraw (CMA) = $0.00
Available Balance (Brokerage Account) = $13,505.55 (This is in SPRXX)

Questions for you:

--Do all of these settings look like what you have set up?
--Does your CMA always say the cash available to withdraw is $0.00 even if you have an available balance in your Fidelity brokerage account?

Regards,

Joe
Re: overdraft, if you left the settings alone aside from selecting your brokerage account as overdraft, then yes that's what I have
Re: cash, yes, $0. Just do what I did, test a withdrawal for a few cents (I did 8 cents payment to my cc (ach withdrawal) but nothing special about that number). Worked like a charm
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Re: Fidelity as a one stop shop

Post by muffins14 »

There’s no concept of triggered transactions at fidelity is there? For example “if core fund > $5000, buy $5000 of fund X”

I’d be interested in setting something like that up for managing my money markets, though I realize it’s like pennies on the dollar
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Re: Fidelity as a one stop shop

Post by mervinj7 »

muffins14 wrote: Thu Aug 11, 2022 9:00 am There’s no concept of triggered transactions at fidelity is there? For example “if core fund > $5000, buy $5000 of fund X”

I’d be interested in setting something like that up for managing my money markets, though I realize it’s like pennies on the dollar
Or just always buy $5k of your preferred money market fund every month.
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Re: Fidelity as a one stop shop

Post by need403bhelp »

nalor511 wrote: Thu Aug 11, 2022 1:36 am
careerdata wrote: Wed Aug 10, 2022 8:52 pm
nalor511 wrote: Wed Aug 10, 2022 12:48 am
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
Thank you! I just linked my Fidelity brokerage account to the CMA and checked the box for overdraft protection but I did not check the boxes for either the minimum or maximum target balance options. When I went to the confirmation page it showed the following:

Minimum Target Balance = No
Minimum Target Balance Amount = None
Minimum Transfer Amount = None
Minimum Target Balance Alert = No

Maximum Target Balance = No
Maximum Target Balance Amount = None
Maximum Transfer Amount = None
Maximum Target Balance Alert = No

Cash Available to Withdraw (CMA) = $0.00
Available Balance (Brokerage Account) = $13,505.55 (This is in SPRXX)

Questions for you:

--Do all of these settings look like what you have set up?
--Does your CMA always say the cash available to withdraw is $0.00 even if you have an available balance in your Fidelity brokerage account?

Regards,

Joe
Re: overdraft, if you left the settings alone aside from selecting your brokerage account as overdraft, then yes that's what I have
Re: cash, yes, $0. Just do what I did, test a withdrawal for a few cents (I did 8 cents payment to my cc (ach withdrawal) but nothing special about that number). Worked like a charm
Thanks for DP re 8 cent bill pay. Any idea if ACH withdrawal imitated externally from bank account that was linked via trial deposits works the same way to pull from brokerage if CMA is empty? Thanks!
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

need403bhelp wrote: Thu Aug 11, 2022 9:36 am
nalor511 wrote: Thu Aug 11, 2022 1:36 am
careerdata wrote: Wed Aug 10, 2022 8:52 pm
nalor511 wrote: Wed Aug 10, 2022 12:48 am
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
Thank you! I just linked my Fidelity brokerage account to the CMA and checked the box for overdraft protection but I did not check the boxes for either the minimum or maximum target balance options. When I went to the confirmation page it showed the following:

Minimum Target Balance = No
Minimum Target Balance Amount = None
Minimum Transfer Amount = None
Minimum Target Balance Alert = No

Maximum Target Balance = No
Maximum Target Balance Amount = None
Maximum Transfer Amount = None
Maximum Target Balance Alert = No

Cash Available to Withdraw (CMA) = $0.00
Available Balance (Brokerage Account) = $13,505.55 (This is in SPRXX)

Questions for you:

--Do all of these settings look like what you have set up?
--Does your CMA always say the cash available to withdraw is $0.00 even if you have an available balance in your Fidelity brokerage account?

Regards,

Joe
Re: overdraft, if you left the settings alone aside from selecting your brokerage account as overdraft, then yes that's what I have
Re: cash, yes, $0. Just do what I did, test a withdrawal for a few cents (I did 8 cents payment to my cc (ach withdrawal) but nothing special about that number). Worked like a charm
Thanks for DP re 8 cent bill pay. Any idea if ACH withdrawal imitated externally from bank account that was linked via trial deposits works the same way to pull from brokerage if CMA is empty? Thanks!
ACH is ACH, I'm not understanding the difference. I didn't use Fidelity's "bill pay" interface, I used my CC's ACH interface.
need403bhelp
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Re: Fidelity as a one stop shop

Post by need403bhelp »

nalor511 wrote: Thu Aug 11, 2022 11:47 am
need403bhelp wrote: Thu Aug 11, 2022 9:36 am
nalor511 wrote: Thu Aug 11, 2022 1:36 am
careerdata wrote: Wed Aug 10, 2022 8:52 pm
nalor511 wrote: Wed Aug 10, 2022 12:48 am
Yes, both at $0, or whatever the default was, I was only interested in turning on overdraft, so I could keep the CMA balance at $0. My money earns the sprxx rate, about 2%. All withdrawals from the CMA, yes. I even tested an 8 cent withdrawal, it overdrafted fine from my brokerage (for the 8 cents)
Thank you! I just linked my Fidelity brokerage account to the CMA and checked the box for overdraft protection but I did not check the boxes for either the minimum or maximum target balance options. When I went to the confirmation page it showed the following:

Minimum Target Balance = No
Minimum Target Balance Amount = None
Minimum Transfer Amount = None
Minimum Target Balance Alert = No

Maximum Target Balance = No
Maximum Target Balance Amount = None
Maximum Transfer Amount = None
Maximum Target Balance Alert = No

Cash Available to Withdraw (CMA) = $0.00
Available Balance (Brokerage Account) = $13,505.55 (This is in SPRXX)

Questions for you:

--Do all of these settings look like what you have set up?
--Does your CMA always say the cash available to withdraw is $0.00 even if you have an available balance in your Fidelity brokerage account?

Regards,

Joe
Re: overdraft, if you left the settings alone aside from selecting your brokerage account as overdraft, then yes that's what I have
Re: cash, yes, $0. Just do what I did, test a withdrawal for a few cents (I did 8 cents payment to my cc (ach withdrawal) but nothing special about that number). Worked like a charm
Thanks for DP re 8 cent bill pay. Any idea if ACH withdrawal imitated externally from bank account that was linked via trial deposits works the same way to pull from brokerage if CMA is empty? Thanks!
ACH is ACH, I'm not understanding the difference. I didn't use Fidelity's "bill pay" interface, I used my CC's ACH interface.
Ok, thank you. I wasn't sure if there was a difference between the two, but I appreciate you clarifying your steps and that pull was initiated externally.
Blue456
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Re: Fidelity as a one stop shop

Post by Blue456 »

Does anybody know how to turn off T-bills auto roll in Fidelity?
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

Blue456 wrote: Thu Aug 11, 2022 5:56 pm Does anybody know how to turn off T-bills auto roll in Fidelity?
You can call them and ask them to turn it off. But an easier way is to simply cancel the reinvestment order that is created by auto-roll a few days before the old bills mature (you'll get an email notification when that happens).
eyedrop
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Re: Fidelity as a one stop shop

Post by eyedrop »

Just so I’m understanding, direct deposit’s going into the fidelity brokerage will always end up in my SPAXX. And if I want the higher yielding SPRXX, I will need to manually purchase it which will add the fund as an additional position. The goal would be to keep as much cash held in SPRXX as possible… And if I made an ATM withdrawal while 100% of the money was in the SPRXX, with $0 in core (SPAXX), the CMA overdraft features will just pull from my SPRXX position. Is this correct? I just want to make sure before I possibly trigger any overdrafts that cant be covered if the core SPAXX is at $0. Thanks
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Re: Fidelity as a one stop shop

Post by sfly510 »

eyedrop wrote: Thu Aug 11, 2022 10:38 pm Just so I’m understanding, direct deposit’s going into the fidelity brokerage will always end up in my SPAXX. And if I want the higher yielding SPRXX, I will need to manually purchase it which will add the fund as an additional position. The goal would be to keep as much cash held in SPRXX as possible… And if I made an ATM withdrawal while 100% of the money was in the SPRXX, with $0 in core (SPAXX), the CMA overdraft features will just pull from my SPRXX position. Is this correct? I just want to make sure before I possibly trigger any overdrafts that cant be covered if the core SPAXX is at $0. Thanks
Correct
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

eyedrop wrote: Thu Aug 11, 2022 10:38 pm Just so I’m understanding, direct deposit’s going into the fidelity brokerage will always end up in my SPAXX. And if I want the higher yielding SPRXX, I will need to manually purchase it which will add the fund as an additional position. The goal would be to keep as much cash held in SPRXX as possible… And if I made an ATM withdrawal while 100% of the money was in the SPRXX, with $0 in core (SPAXX), the CMA overdraft features will just pull from my SPRXX position. Is this correct? I just want to make sure before I possibly trigger any overdrafts that cant be covered if the core SPAXX is at $0. Thanks
Yes, except for SPAXX is not the only core settlement fund for your brokerage account. There are other government MM or FDIC bank sweep options possible, but it doesn't sound like you're interested in those.
Before you go making withdrawals, verify the amount listed as "Available Balance" in the "Manage Cash / Cash Management" area, or under the account "Balances" area the amount listed as "Available to withdraw" - That should represent the dollar amount in whatever money markets you have in the account available to withdraw cash on.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
iskey
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Re: Fidelity as a one stop shop

Post by iskey »

If using the taxable brokerage account as a checking account, does every transaction sell a small portion of SPAXX and create a taxable event? If so, is this a headache come tax time? Given the popularity of this thread and the large number of people doing this, I'm assuming it's not a big issue but just wondering how that works.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

iskey wrote: Fri Aug 12, 2022 2:03 pm If using the taxable brokerage account as a checking account, does every transaction sell a small portion of SPAXX and create a taxable event? If so, is this a headache come tax time? Given the popularity of this thread and the large number of people doing this, I'm assuming it's not a big issue but just wondering how that works.
Since SPAXX (or other money market) does not go up or down, it's not a taxable event. If you hold it for multiple days you will get taxable interest reported on your 1099, which is true of banks as well
iskey
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Re: Fidelity as a one stop shop

Post by iskey »

nalor511 wrote: Fri Aug 12, 2022 2:10 pm
iskey wrote: Fri Aug 12, 2022 2:03 pm If using the taxable brokerage account as a checking account, does every transaction sell a small portion of SPAXX and create a taxable event? If so, is this a headache come tax time? Given the popularity of this thread and the large number of people doing this, I'm assuming it's not a big issue but just wondering how that works.
Since SPAXX (or other money market) does not go up or down, it's not a taxable event. If you hold it for multiple days you will get taxable interest reported on your 1099, which is true of banks as well
Got it, thanks. I knew it must have been something simple I was missing.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

JoMoney wrote: Thu Aug 11, 2022 11:13 pm
eyedrop wrote: Thu Aug 11, 2022 10:38 pm Just so I’m understanding, direct deposit’s going into the fidelity brokerage will always end up in my SPAXX. And if I want the higher yielding SPRXX, I will need to manually purchase it which will add the fund as an additional position. The goal would be to keep as much cash held in SPRXX as possible… And if I made an ATM withdrawal while 100% of the money was in the SPRXX, with $0 in core (SPAXX), the CMA overdraft features will just pull from my SPRXX position. Is this correct? I just want to make sure before I possibly trigger any overdrafts that cant be covered if the core SPAXX is at $0. Thanks
Yes, except for SPAXX is not the only core settlement fund for your brokerage account. There are other government MM or FDIC bank sweep options possible, but it doesn't sound like you're interested in those.
Before you go making withdrawals, verify the amount listed as "Available Balance" in the "Manage Cash / Cash Management" area, or under the account "Balances" area the amount listed as "Available to withdraw" - That should represent the dollar amount in whatever money markets you have in the account available to withdraw cash on.
This is a good point. Funds I pulled from Ally Bank (transfer initiated online in my Fidelity account) were not available for withdrawal until the 3rd business day (T+3).
Samosa22
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Re: Fidelity as a one stop shop

Post by Samosa22 »

Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
Diversification is protection against ignorance - WB.
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Re: Fidelity as a one stop shop

Post by muffins14 »

Samosa22 wrote: Fri Aug 12, 2022 6:00 pm Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
I’m certain you can do the opposite: set up autopay on chase.com and add your fidelity routing number and account number
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VictorStarr
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Re: Fidelity as a one stop shop

Post by VictorStarr »

Samosa22 wrote: Fri Aug 12, 2022 6:00 pm Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
Do you see eBills for Chase credit cards at any other BillPay service?
To best of my knowledge Chase does not provide eBills for its credit cards.
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

muffins14 wrote: Fri Aug 12, 2022 6:24 pm
Samosa22 wrote: Fri Aug 12, 2022 6:00 pm Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
I’m certain you can do the opposite: set up autopay on chase.com and add your fidelity routing number and account number
This is what works
Samosa22
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Re: Fidelity as a one stop shop

Post by Samosa22 »

muffins14 wrote: Fri Aug 12, 2022 6:24 pm
Samosa22 wrote: Fri Aug 12, 2022 6:00 pm Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
I’m certain you can do the opposite: set up autopay on chase.com and add your fidelity routing number and account number
Of course that would work. Or I can pay the Chase bill from Fidelity bill pay too.
I am trying to receive all ebills at a single site, so I don't have to login to multiple credit card accounts to find my statement balance, minimum payment due (for cards where I have 0%APR promo) etc.
Diversification is protection against ignorance - WB.
Samosa22
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Re: Fidelity as a one stop shop

Post by Samosa22 »

VictorStarr wrote: Fri Aug 12, 2022 6:24 pm
Samosa22 wrote: Fri Aug 12, 2022 6:00 pm Looks like Fidelity billPay doesn't support ebill from Chase credit cards. I just added my Chase credit card to billpay and wasn't given an option to enroll in eBill.
Do you see eBills for Chase credit cards at any other BillPay service?
To best of my knowledge Chase does not provide eBills for its credit cards.
Interesting! I didn't know that. Turns out both Chase and Capital One don't allow eBills for their credit cards.

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iskey
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Re: Fidelity as a one stop shop

Post by iskey »

Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
I would toggle between Fidelity CMA and Ally Bank, whichever has higher rates.
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Charles Joseph
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Re: Fidelity as a one stop shop

Post by Charles Joseph »

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.
This is what I did. FDRXX is up to 1.81%. Not bad for debit card with ATM fee rebates, check writing, etc. Basically a 1.8% checking account.

I missed you, Fidelity CMA. :D
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sobogled
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Re: Fidelity as a one stop shop

Post by sobogled »

iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
0% fed funds rate times are the bad times for the money market as savings approach. That said, the yields from even the highest yield online savings accounts weren't exactly much (e.g. .4%) during those times. If we head back to lower rates, and you have enough to make a difference, you can set up an online savings at a bank with same day transfers (e.g. Marcus) to keep some cash there and continue to use CMA for checking, etc.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
One of my primary drivers for using the Fidelity MM fund is my other investment accounts are already at Fidelity. The fact that CMA reimburses ATM fees is just a nice added perk that cinches the deal. If I used Fidelity's 2% cash back card (I don't anymore) you need a Fidelity account to deposit the rewards in to get the full 2% rebate.
If I was only chasing yields, I would be using Vanguard's Money Market funds, or opening an account at whichever bank was currently leading the way up. In my past experience, while rates were rising, most banks jumped around quite a bit with regard to who the highest yielding was, and I found it was easier to just use Vanguard's MM fund which was consistently high and avoided the hassle of constantly opening new accounts.
I don't have a Vanguard account anymore, Fidelity's MM aren't bad (just not as good as Vanguard's), and they have great features for using it as a transaction account (which Vanguard did away with.)
So if you're chasing the highest rate, I would not recommend Fidelity. If you're looking for a place to consolidate (e.g. "one stop shop" is the title of this thread) I would highly recommend Fidelity.
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Re: Fidelity as a one stop shop

Post by SnowBog »

sobogled wrote: Sat Aug 13, 2022 9:31 am
iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
0% fed funds rate times are the bad times for the money market as savings approach. That said, the yields from even the highest yield online savings accounts weren't exactly much (e.g. .4%) during those times. If we head back to lower rates, and you have enough to make a difference, you can set up an online savings at a bank with same day transfers (e.g. Marcus) to keep some cash there and continue to use CMA for checking, etc.
+1

Since moving to a CMA years ago, I've maintained it as a "checking" account, which holds enough to deal with our cash flow needs. As rates feel, I reduced our "savings" balance at Fidelity to be a minimal amount as a quick backstop against an overdraft. The rest of "savings" was moved to a high yield account, which shuffled a bit, and currently is the bulk is at HMBradley at 3%. If/as rates rise in the CMA, our money will shift back to there.

The hassle of moving our checking account, changing all our automated payments, etc. plus the convenience of having pretty much everything in Fidelity made this work for us, even if we could have gotten a better interest rate elsewhere. Especially since we kept a minimal balance just for cash flow needs, and moved the rest to someplace that paid better interest.
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Re: Fidelity as a one stop shop

Post by Blue456 »

JoMoney wrote: Sat Aug 13, 2022 9:43 am
iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?

I like the idea of doing this but trying to think long term if it would be worth it for me to switch everything over then back again if someone better comes up down the road if yields drop.
One of my primary drivers for using the Fidelity MM fund is my other investment accounts are already at Fidelity. The fact that CMA reimburses ATM fees is just a nice added perk that cinches the deal. If I used Fidelity's 2% cash back card (I don't anymore) you need a Fidelity account to deposit the rewards in to get the full 2% rebate.
If I was only chasing yields, I would be using Vanguard's Money Market funds, or opening an account at whichever bank was currently leading the way up. In my past experience, while rates were rising, most banks jumped around quite a bit with regard to who the highest yielding was, and I found it was easier to just use Vanguard's MM fund which was consistently high and avoided the hassle of constantly opening new accounts.
I don't have a Vanguard account anymore, Fidelity's MM aren't bad (just not as good as Vanguard's), and they have great features for using it as a transaction account (which Vanguard did away with.)
So if you're chasing the highest rate, I would not recommend Fidelity. If you're looking for a place to consolidate (e.g. "one stop shop" is the title of this thread) I would highly recommend Fidelity.
Just curious why did you get rid off Fidelity 2% cash back? And what do you use instead?
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

Blue456 wrote: Sat Aug 13, 2022 12:57 pm ...
Just curious why did you get rid off Fidelity 2% cash back? And what do you use instead?
The biggest factor was it dropped rental car CDW benefit. I wound up moving around through a couple other cards that did have the CDW coverage, and offered various signup bonuses and other reward schemes. I wound up getting gifted a Costco membership, and found getting their rewards card works well for me. My regular credit card spend is dominated by dining and gasoline, with a occasional travel related charges. The Costco Visa offers 3% reward on dining, 4% on gas, and 3% on travel (like rental cars, hotels, flights, etc..), and 1% on most 'everything else'. That's worked out better than a 2% 'on everything' card for me.
"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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Re: Fidelity as a one stop shop

Post by bawr »

iskey wrote: Sat Aug 13, 2022 7:35 am Seeing as MM accounts including SPRXX has yielded .01% the majority of years 2012-2022, with increases in 2017-2019 and 2022, my question is, is this a strategy worth doing during times of low yield? Does anyone plan on moving their everyday expenses out of Fidelity if/when yield drops back down?
...
Real interest rates are lower now than they were in the previous decade. The only way to attempt to maintain your purchasing power under these circumstances is to have exposure to risk assets.

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