Fidelity as a one stop shop

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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan »

Fidelity has three cut-off times: 8am, 12pm and 2pm (ET). 2pm is the latest you can submit to get same-day ACH.
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JohnDoh
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Re: Fidelity as a one stop shop

Post by JohnDoh »

Leif wrote: Sun Jun 12, 2022 4:40 pm
classicindexer wrote: Sat Jun 11, 2022 1:55 pm
iamblessed wrote: Sat Jun 11, 2022 12:30 pm Could you use one CMA account for everything? What would be the dangers of doing that? For me it would serve as a checking, savings, brokerage, debit card, direct deposit, and checks.
Yes I think you could. If you have tens of thousands of dollars in the core or money market funds that liquidate, fraud might be a concern.

I’m of the opinion I don’t want one account with $50K+ with ACH connections, check writing and a debit card to be able to be easily drained. I personally don’t want to deal with fraud to re-coupe a large sum, so I keep only around $1K with a larger amount in a separate brokerage account.
I do the same, with a separate transaction account. Since every check you write has your routing and account number I feel a bit better not keeping more that i need to handle upcoming transactions.
I use 3 accounts:
1) CMA -- all external transactions routed through here. All other accounts have security lockdown on. Only cash in here (no securities). Cash Management tool automatically sweeps cash into here from other accounts plus one external HYSA.
2) brokerage #1 (ODP -- "overdraft protection"), a brokerage account with margin that serves as automatic backup for CMA (using Cash Management tool). This account has 1 asset in it with enough value to provide a reasonable level of transaction overdraft backup but not so much that fraud could take a huge bite out of me in a worst case scenario.
3) brokerage #2 (Corpus -- main brokerage account), everything else that can only be transacted on manually by me. No margin here since Fidelity will only let you have one margin account. But not a big deal. If for some reason I need more margin I can temporarily transfer sufficient securities into the ODP account. Generally this account is where I conduct securities transactions (e.g. TLH) and receive almost all of my dividends.

I get a reasonable balance of convenience and security I feel.
tarheel91
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Re: Fidelity as a one stop shop

Post by tarheel91 »

Just a data point with Fidelity CMA.

Registered a new bank link at 4 pm. Micro deposits showed up next morning at 8 am. Confirmed the link and transferred $10. Transfer showed up at the target bank by 4pm for withdrawal. Impressive.
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

Fidelity1977 wrote: Thu Jun 23, 2022 1:30 pm
Eno Deb wrote: Sun Jun 12, 2022 5:58 pm
jkrm wrote: Sun Jun 12, 2022 10:40 am Can anyone tell me how to find the interest rate being paid by the Fidelity Cash Management Account FDIC-insured checking account? I can't find it on the web site, and I think I got a rookie when I tried a chat with Fidelity, as the fellow didn't even seem to know what that account is.
https://accountopening.fidelity.com/ftg ... ?type=fcma
.69%
Not half bad for what's effectively a checking account ...
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

Eno Deb wrote: Sat Jun 25, 2022 5:43 pm
Fidelity1977 wrote: Thu Jun 23, 2022 1:30 pm
Eno Deb wrote: Sun Jun 12, 2022 5:58 pm
jkrm wrote: Sun Jun 12, 2022 10:40 am Can anyone tell me how to find the interest rate being paid by the Fidelity Cash Management Account FDIC-insured checking account? I can't find it on the web site, and I think I got a rookie when I tried a chat with Fidelity, as the fellow didn't even seem to know what that account is.
https://accountopening.fidelity.com/ftg ... ?type=fcma
.69%
Not half bad for what's effectively a checking account ...
SPAXX says .97% https://www.fidelity.com/mutual-funds/f ... unds-fcash , might be a better option
Eno Deb
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Re: Fidelity as a one stop shop

Post by Eno Deb »

nalor511 wrote: Sat Jun 25, 2022 5:44 pm
Eno Deb wrote: Sat Jun 25, 2022 5:43 pm Not half bad for what's effectively a checking account ...
SPAXX says .97% https://www.fidelity.com/mutual-funds/f ... unds-fcash , might be a better option
Right, but that's not available as core position in the CMA, so you'd have to buy manually.
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Leif
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Re: Fidelity as a one stop shop

Post by Leif »

Eno Deb wrote: Sat Jun 25, 2022 5:55 pm
nalor511 wrote: Sat Jun 25, 2022 5:44 pm
Eno Deb wrote: Sat Jun 25, 2022 5:43 pm Not half bad for what's effectively a checking account ...
SPAXX says .97% https://www.fidelity.com/mutual-funds/f ... unds-fcash , might be a better option
Right, but that's not available as core position in the CMA, so you'd have to buy manually.
If you're going to buy manually you could consider Fidelity Money Market fund, SPRXX, 7 day yield of 1.21%
nalor511
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Re: Fidelity as a one stop shop

Post by nalor511 »

Leif wrote: Sat Jun 25, 2022 6:04 pm
Eno Deb wrote: Sat Jun 25, 2022 5:55 pm
nalor511 wrote: Sat Jun 25, 2022 5:44 pm
Eno Deb wrote: Sat Jun 25, 2022 5:43 pm Not half bad for what's effectively a checking account ...
SPAXX says .97% https://www.fidelity.com/mutual-funds/f ... unds-fcash , might be a better option
Right, but that's not available as core position in the CMA, so you'd have to buy manually.
If you're going to buy manually you could consider Fidelity Money Market fund, SPRXX, 7 day yield of 1.21%
Can you exchange from SPRXX into an ETF same-day? (you generally can't with Fido MMFs)
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Leif
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Re: Fidelity as a one stop shop

Post by Leif »

nalor511 wrote: Sat Jun 25, 2022 6:17 pm
Leif wrote: Sat Jun 25, 2022 6:04 pm
Eno Deb wrote: Sat Jun 25, 2022 5:55 pm
nalor511 wrote: Sat Jun 25, 2022 5:44 pm
Eno Deb wrote: Sat Jun 25, 2022 5:43 pm Not half bad for what's effectively a checking account ...
SPAXX says .97% https://www.fidelity.com/mutual-funds/f ... unds-fcash , might be a better option
Right, but that's not available as core position in the CMA, so you'd have to buy manually.
If you're going to buy manually you could consider Fidelity Money Market fund, SPRXX, 7 day yield of 1.21%
Can you exchange from SPRXX into an ETF same-day? (you generally can't with Fido MMFs)
SPRXX is treated exactly like a core fund. So yes, you can buy an ETF (or T-Bill, CD, Stock fund, bond fund, anything) using SPRXX. No prior sale of SPRXX is necessary. If you have money in your core fund it will pull from there first. Some Fidelity MMFs with higher yields have a minimum. SPRXX does not.
Last edited by Leif on Sat Jun 25, 2022 6:37 pm, edited 1 time in total.
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

SPRXX - Fidelity® Money Market Fund (ER .42%, 7-Day SEC Yield 1.21%)
is a "Prime" money market fund, that in some form of financial crisis/liquidity crunch could be forced to have control gates on withdrawals

FDRXX - Fidelity® Government Cash Reserves (ER .33%, 7-Day SEC Yield 1.04%)
is a "Government" money market fund, that would not be subject to control gates, and may have some portion of its interest state tax free

FZFXX - Fidelity® Treasury Money Market Fund (ER .42%, 7-Day SEC Yield 0.96%)
is a Treasury money market fund, holding a higher portion of it's assets in Treasuries that relative to other government agency bonds may have better liquidity, better state tax treatment, and perhaps some conceptually higher credit quality profile
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Kevin M
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Re: Fidelity as a one stop shop

Post by Kevin M »

FZDXX, Fidelity® Money Market Fund Premium Class, 7-day yield = 1.33%, minimum investment $100K, but I think maybe minimum is $10K in an IRA. Once you get it open with the minimum, you can let it drop below the minimum, and it will stay open.
If I make a calculation error, #Cruncher probably will let me know.
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Re: Fidelity as a one stop shop

Post by BUBear29 »

Ive changed all my SPAXX to FDRXX
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anon_investor
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Re: Fidelity as a one stop shop

Post by anon_investor »

JoMoney wrote: Sat Jun 25, 2022 6:35 pm SPRXX - Fidelity® Money Market Fund (ER .42%, 7-Day SEC Yield 1.21%)
is a "Prime" money market fund, that in some form of financial crisis/liquidity crunch could be forced to have control gates on withdrawals

FDRXX - Fidelity® Government Cash Reserves (ER .33%, 7-Day SEC Yield 1.04%)
is a "Government" money market fund, that would not be subject to control gates, and may have some portion of its interest state tax free

FZFXX - Fidelity® Treasury Money Market Fund (ER .42%, 7-Day SEC Yield 0.96%)
is a Treasury money market fund, holding a higher portion of it's assets in Treasuries that relative to other government agency bonds may have better liquidity, better state tax treatment, and perhaps some conceptually higher credit quality profile
Is SPAXX or FZFXX better? Those are my core position choices at Fidelity (FCASH pays less than both).
martyboyle
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Re: Fidelity as a one stop shop

Post by martyboyle »

anon_investor wrote: Sat Jun 25, 2022 7:24 pm
JoMoney wrote: Sat Jun 25, 2022 6:35 pm SPRXX - Fidelity® Money Market Fund (ER .42%, 7-Day SEC Yield 1.21%)
is a "Prime" money market fund, that in some form of financial crisis/liquidity crunch could be forced to have control gates on withdrawals

FDRXX - Fidelity® Government Cash Reserves (ER .33%, 7-Day SEC Yield 1.04%)
is a "Government" money market fund, that would not be subject to control gates, and may have some portion of its interest state tax free

FZFXX - Fidelity® Treasury Money Market Fund (ER .42%, 7-Day SEC Yield 0.96%)
is a Treasury money market fund, holding a higher portion of it's assets in Treasuries that relative to other government agency bonds may have better liquidity, better state tax treatment, and perhaps some conceptually higher credit quality profile
Is SPAXX or FZFXX better? Those are my core position choices at Fidelity (FCASH pays less than both).
Please correct me if I'm oversimplifying (or just wrong), but wouldn't SPRXX be the way to go? I guess depending on your tax situation (or maybe regardless of it).
Idea being that (1) most of the tax hit will be federal so state tax savings might not be enough to sway a decision. And (2) for simplicity you don't have to track the composition to see how much of your interest is state taxable or not.

Just as a back of the envelope example here, but let's say your Fed tax rate is 25% and State is 10%

SPRXX yields 1.21% but after tax 1.21% - (fed: 1.21*.25) - (state: 1.21*.10) = 0.787% yield

FZFXX yields 0.96% however 37% of composition is in treasuries so state tax on only 63%. so after tax: 0.96% - (fed: 0.96*.25) - (state: .96 * .63 * .1) = 0.660% yield
With this calculation even if FZFXX was 100% Federal, it would be .72% after tax yield.

Again, please correct me if I'm wrong!
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

martyboyle wrote: Sun Jun 26, 2022 12:40 am
anon_investor wrote: Sat Jun 25, 2022 7:24 pm
JoMoney wrote: Sat Jun 25, 2022 6:35 pm SPRXX - Fidelity® Money Market Fund (ER .42%, 7-Day SEC Yield 1.21%)
is a "Prime" money market fund, that in some form of financial crisis/liquidity crunch could be forced to have control gates on withdrawals

FDRXX - Fidelity® Government Cash Reserves (ER .33%, 7-Day SEC Yield 1.04%)
is a "Government" money market fund, that would not be subject to control gates, and may have some portion of its interest state tax free

FZFXX - Fidelity® Treasury Money Market Fund (ER .42%, 7-Day SEC Yield 0.96%)
is a Treasury money market fund, holding a higher portion of it's assets in Treasuries that relative to other government agency bonds may have better liquidity, better state tax treatment, and perhaps some conceptually higher credit quality profile
Is SPAXX or FZFXX better? Those are my core position choices at Fidelity (FCASH pays less than both).
Please correct me if I'm oversimplifying (or just wrong), but wouldn't SPRXX be the way to go? I guess depending on your tax situation (or maybe regardless of it).
Idea being that (1) most of the tax hit will be federal so state tax savings might not be enough to sway a decision. And (2) for simplicity you don't have to track the composition to see how much of your interest is state taxable or not.

Just as a back of the envelope example here, but let's say your Fed tax rate is 25% and State is 10%

SPRXX yields 1.21% but after tax 1.21% - (fed: 1.21*.25) - (state: 1.21*.10) = 0.787% yield

FZFXX yields 0.96% however 37% of composition is in treasuries so state tax on only 63%. so after tax: 0.96% - (fed: 0.96*.25) - (state: .96 * .63 * .1) = 0.660% yield
With this calculation even if FZFXX was 100% Federal, it would be .72% after tax yield.

Again, please correct me if I'm wrong!
People can have a risk preference aside from the yield, and an individuals tax circumstances will vary. Some states don't even have a state income tax.
A "Prime" money market holding non-government bonds could potentially be frozen or have fees imposed.
A general federal government money market fund may include bonds of agencies chartered by congress, but explicitly required to state that the bonds DO NOT carry the "Full Faith and Credit of U.S. Government", and even if there is considered to be strong implicit backing, the priority of those debts would be a lower concern relative to treasury debt explicitly appropriated, and the market may not have the same depth of liquidity for those bonds.
Treasury securities are considered the most liquid and of highest credit quality.
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indexfundfan
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Re: Fidelity as a one stop shop

Post by indexfundfan »

Kevin M wrote: Sat Jun 25, 2022 7:22 pm FZDXX, Fidelity® Money Market Fund Premium Class, 7-day yield = 1.33%, minimum investment $100K, but I think maybe minimum is $10K in an IRA. Once you get it open with the minimum, you can let it drop below the minimum, and it will stay open.
This is my understanding as well. I held FZDXX in the past (<$100k) and had planned to keep a minimal amount in it when rates dropped to zero. But a miscalculation on my part caused it to be fully liquidated. Now I'm putting together $100k to get into it again (but will not be maintaining $100k in it).

FZDXX, and for SPRXX as well, are subject to redemption gates so be aware for those planning to use them.
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Re: Fidelity as a one stop shop

Post by volstagg »

Kevin M wrote: Sat Jun 25, 2022 7:22 pm FZDXX, Fidelity® Money Market Fund Premium Class, 7-day yield = 1.33%, minimum investment $100K, but I think maybe minimum is $10K in an IRA. Once you get it open with the minimum, you can let it drop below the minimum, and it will stay open.
indexfundfan wrote: Sun Jun 26, 2022 7:00 am This is my understanding as well. I held FZDXX in the past (<$100k) and had planned to keep a minimal amount in it when rates dropped to zero. But a miscalculation on my part caused it to be fully liquidated. Now I'm putting together $100k to get into it again (but will not be maintaining $100k in it).
I've been a long time user of FZDXX, back when rates were high. All should be aware, there is a minimum $10,000 balance that can cause Fidelity to liquidate if you go below. From the Fidelity Prospectus for FZDXX:

https://www.actionsxchangerepository.fi ... 2%23-99%23
If your fund balance falls below $10,000 worth of shares for any reason and you do not increase your balance, Fidelity may sell all of your shares and send the proceeds to you after providing you with at least 30 days' notice to reestablish the minimum balance. Your shares will be sold at the NAV, minus any applicable shareholder fees, on the day Fidelity closes your fund position. Certain fund positions are not subject to these balance requirements and will not be closed for failure to maintain a minimum balance.
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Re: Fidelity as a one stop shop

Post by indexfundfan »

The 30-day notice should give anyone sufficient notice if Fidelity plans to liquidate your holding in FZDXX.

I had held $1 in FZDXX for many months when rates dropped to zero without any action. Until a miscalculation on my part caused it to be liquidated.
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Re: Fidelity as a one stop shop

Post by leland »

Is the stated yield net of expense ratios? I've been assuming it's not and while I'm likely missing something, seems like a HYSA/checking with quick transfers will do equivalent / better (e.g. Marcus, T-Mobile, etc.). I live in a no-tax state so that simplifies things a bit, though.
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Re: Fidelity as a one stop shop

Post by Leif »

Fidelity MM Fund Research

I check the link above is see what is happening at Fidelity for MMF. I've filtered to 0 minimum and descending yield. Top of the list is SPRXX, which is what I've been buying.
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Re: Fidelity as a one stop shop

Post by dacalo »

leland wrote: Sun Jun 26, 2022 12:28 pm Is the stated yield net of expense ratios? I've been assuming it's not and while I'm likely missing something, seems like a HYSA/checking with quick transfers will do equivalent / better (e.g. Marcus, T-Mobile, etc.). I live in a no-tax state so that simplifies things a bit, though.
It's always net.
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Re: Fidelity as a one stop shop

Post by SnowBog »

Leif wrote: Sun Jun 26, 2022 12:52 pm Fidelity MM Fund Research

I check the link above is see what is happening at Fidelity for MMF. I've filtered to 0 minimum and descending yield. Top of the list is SPRXX, which is what I've been buying.
I tweaked the filter to include the "premium" options (requires $100k initial purchase, but as others have noted you don't need to maintain $100k in the fund).

The new top of the list is FZDXX, which is the "Premium" version of SPRXX - currently at 1.33% vs. 1.21%.

https://fundresearch.fidelity.com/fund- ... Investment
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Re: Fidelity as a one stop shop

Post by AnnetteLouisan »

BUBear29 wrote: Sat Jun 25, 2022 7:22 pm Ive changed all my SPAXX to FDRXX
I may follow.
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Re: Fidelity as a one stop shop

Post by muffins14 »

Depending on your tax situation, the muni money market FTEXX may be relevant, it has 7 day SEC yield of 0.63, which may be competitive with SPRXX depending on your after-tax outcome. For me, I think FTEXX is 0.563 and SPRXX is 0.611,
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Re: Fidelity as a one stop shop

Post by SnowBog »

AnnetteLouisan wrote: Sun Jun 26, 2022 3:06 pm
BUBear29 wrote: Sat Jun 25, 2022 7:22 pm Ive changed all my SPAXX to FDRXX
I may follow.
Out of curiosity, why?

Assuming you are in the very top tax brackets for NY and NYC, I think your marginal state & city rate is < 13%.

Assuming rates hold, after 13% state & city tax, SPAXX SPRXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX SPRXX seems like the better option...

Actually, FZDXX at 1.33% (which as I recall you have > $100k cash, so can meet the minimum) is likely your best option...

Personally, I'm switching from FZEXX (their premium fed tax-free MM) to FZDXX (after I free up $100k to make the switch). And if rates stay like this, we'll be bringing more of my "cash" back to Fidelity.
Last edited by SnowBog on Mon Jun 27, 2022 10:09 am, edited 1 time in total.
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Re: Fidelity as a one stop shop

Post by AnnetteLouisan »

SnowBog wrote: Sun Jun 26, 2022 3:51 pm
AnnetteLouisan wrote: Sun Jun 26, 2022 3:06 pm
BUBear29 wrote: Sat Jun 25, 2022 7:22 pm Ive changed all my SPAXX to FDRXX
I may follow.
Out of curiosity, why?

Assuming you are in the very top tax brackets for NY and NYC, I think your marginal state & city rate is < 13%.

Assuming rates hold, after 13% state & city tax, SPAXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX seems like the better option...

Actually, FZDXX at 1.33% (which as I recall you have > $100k cash, so can meet the minimum) is likely your best option...

Personally, I'm switching from FZEXX (their premium fed tax-free MM) to FZDXX (after I free up $100k to make the switch). And if rates stay like this, we'll be bringing more of my "cash" back to Fidelity.
SnowBog hits it out of the park as usual! I’m in the second highest bracket in NY and federally. 13.X percent state and local, 35 percent federal. An honor!

A commenter above said SPAXX is less liquid and not backed by the full faith as credit of the US.

Yes I have currently 609 in (adjective omitted) bank savings accounts. I’ve been shoveling it as fast as I can into treasuries, FSKAX, VTI and my 401k and IRA, but it accumulates faster than I can move it. Also I’m going to use some for a downpayment.

I don’t have over 100k in a core fund yet - right now it’s around 35k awaiting investment. But yes I could.

Thanks SnowBog! Did you see I invested $6.5k per month on average outside my 401k since Jan? Thanks for helping me get the ball rolling!
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Re: Fidelity as a one stop shop

Post by Leif »

SnowBog wrote: Sun Jun 26, 2022 3:51 pm Assuming rates hold, after 13% state & city tax, SPAXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX seems like the better option...
SPRXX is 1.21%. SPAXX is 0.97%
Last edited by Leif on Sun Jun 26, 2022 7:33 pm, edited 1 time in total.
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AnnetteLouisan
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Re: Fidelity as a one stop shop

Post by AnnetteLouisan »

Leif wrote: Sun Jun 26, 2022 4:25 pm
SnowBog wrote: Sun Jun 26, 2022 3:51 pm Assuming rates hold, after 13% state & city tax, SPAXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX seems like the better option...
SPRXX us 1.21%. SPAXX is 0.97%
Thanks and according to google, SPRXX is the prime fund and SPAXX is “safer.” Thanks all!
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JoMoney
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Re: Fidelity as a one stop shop

Post by JoMoney »

AnnetteLouisan wrote: Sun Jun 26, 2022 4:29 pm
Leif wrote: Sun Jun 26, 2022 4:25 pm
SnowBog wrote: Sun Jun 26, 2022 3:51 pm Assuming rates hold, after 13% state & city tax, SPAXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX seems like the better option...
SPRXX us 1.21%. SPAXX is 0.97%
Thanks and according to google, SPRXX is the prime fund and SPAXX is “safer.” Thanks all!
Yes, and FDRXX looks to be the equivalent of SPAXX but at a lower ER
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Re: Fidelity as a one stop shop

Post by volstagg »

indexfundfan wrote: Sun Jun 26, 2022 7:49 am I had held $1 in FZDXX for many months when rates dropped to zero without any action. Until a miscalculation on my part caused it to be liquidated.
Thanks, that's good to know. I always kept it above the $10,000 mark when I was buying in my CMA. When rates dropped to 0%, I just liquidated and moved everything to a HYSA (Ally, etc) that had the highest rate. Now that' there back up to beating Ally, et all, I'm moving things back to FZDXX.
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Re: Fidelity as a one stop shop

Post by SnowBog »

Leif wrote: Sun Jun 26, 2022 4:25 pm
SnowBog wrote: Sun Jun 26, 2022 3:51 pm Assuming rates hold, after 13% state & city tax, SPAXX 1.21% would be 1.05%, which is higher than FDRXX's 1.04%. Most likely, FDRXX will not have 100% state and city tax free, and you'll likely be less than the top brackets, so SPAXX seems like the better option...
SPRXX is 1.21%. SPAXX is 0.97%
Thanks for catching that, fixed my post.
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Re: Fidelity as a one stop shop

Post by engineerbme »

quick question for all: CMA with cash manager enabled to a brokerage account for overdraft: can I cut a personal check and will fidelity automatically liquidate cash reserves in my brokerage when it's cashed in by the other party?
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Re: Fidelity as a one stop shop

Post by muffins14 »

AnnetteLouisan wrote: Sun Jun 26, 2022 3:57 pm
SnowBog hits it out of the park as usual! I’m in the second highest bracket in NY and federally. 13.X percent state and local, 35 percent federal. An honor!
Are you certain on the tax bracket? The second highest bracket for NYC is 10.3% and only triggers after $5M in annual income. if you’re making 5M annually, I’m going to have to put more pressure on you to lump sum rather than DCA ;)

The third-highest bracket at 9.65% is only after $1M income for a single filer or $2M for MFJ

I’m not sure if it’s enough to make a muni fund better or not, vs a treasury fund or others
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Re: Fidelity as a one stop shop

Post by AnnetteLouisan »

muffins14 wrote: Mon Jun 27, 2022 5:33 pm
AnnetteLouisan wrote: Sun Jun 26, 2022 3:57 pm
SnowBog hits it out of the park as usual! I’m in the second highest bracket in NY and federally. 13.X percent state and local, 35 percent federal. An honor!
Are you certain on the tax bracket? The second highest bracket for NYC is 10.3% and only triggers after $5M in annual income. if you’re making 5M annually, I’m going to have to put more pressure on you to lump sum rather than DCA ;)

The third-highest bracket at 9.65% is only after $1M in come for a single filer or $2M for MFJ

I’m not sure if it’s enough to make a muni fund better or not, vs a treasury fund or others
No my base is 1/4M, single filer. Bonuses, matching, raises, interest, etc made it 300. Definitely not 5M. The thing about it munis is I may leave NY.

(Did you see I actually invested on average $6.5k per month for the last few months, buying incrementally? I ran the numbers last week. I needed to ease into it but those are some nice big numbers, one month got up to $9k. And that’s in addition to my 401k (maxed, matched and w catch up) and I bonds. But my largest one time purchase so far was 20 shares.)
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Re: Fidelity as a one stop shop

Post by muffins14 »

AnnetteLouisan wrote: Mon Jun 27, 2022 5:47 pm
muffins14 wrote: Mon Jun 27, 2022 5:33 pm
AnnetteLouisan wrote: Sun Jun 26, 2022 3:57 pm
SnowBog hits it out of the park as usual! I’m in the second highest bracket in NY and federally. 13.X percent state and local, 35 percent federal. An honor!
Are you certain on the tax bracket? The second highest bracket for NYC is 10.3% and only triggers after $5M in annual income. if you’re making 5M annually, I’m going to have to put more pressure on you to lump sum rather than DCA ;)

The third-highest bracket at 9.65% is only after $1M in come for a single filer or $2M for MFJ

I’m not sure if it’s enough to make a muni fund better or not, vs a treasury fund or others
No my base is 1/4M, single filer. Bonuses, matching, raises, interest, etc made it 300. Definitely not 5M.

Did you see I actually invested on average $6.5k per month for the last few months, buying incrementally? I ran the numbers last week. I needed to ease into it but those are some nice big numbers, one month got up to $9k. And that’s in addition to my 401k (maxed, matched and w catch up) and I bonds. But my largest one time purchase so far was 20 shares.
Nice work!

running the numbers for myself, it looks like I get after tax yields of:
SPRXX: 0.626%
FZFXX: 0.594%
FTEXX: 0.571% (national muni)
FNYXX: 0.48% (NY muni)

FZFXX is my settlement fund anyway, but I may start shifting to SPRXX for the pennies, unless something changes, or FDLXX looks good again
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Re: Fidelity as a one stop shop

Post by indexfundfan »

Has anyone negotiated margin rates with Fidelity? Are you able to get them to match Interactive Brokers?

https://www.interactivebrokers.com/en/t ... -rates.php

I know there are other loan options out there, but assume for this question that I just to know the negotiable margin rates at Fidelity.

Thank you.
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Re: Fidelity as a one stop shop

Post by Loandapper »

indexfundfan wrote: Fri Jul 01, 2022 2:59 pm Has anyone negotiated margin rates with Fidelity? Are you able to get them to match Interactive Brokers?

https://www.interactivebrokers.com/en/t ... -rates.php

I know there are other loan options out there, but assume for this question that I just to know the negotiable margin rates at Fidelity.

Thank you.
Yes. I'm at 3%. (That is 3% for any balance, large or small, unlike the tiered system at IB.)
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Re: Fidelity as a one stop shop

Post by Loandapper »

I have $18,000 in a Robinhood account that I'd like to move over to Fidelity. Robinhood now charges $100 for outgoing ACAT transfers. Two questions for the group:

1) Will Fidelity reimburse this? If so, what is the best way to ask Fidelity?
2) There is zero cash in the Robinhood account. Do I need to transfer $100 cash into the account before the transfer or will they liquidate some shares?

Thanks in advance!
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Re: Fidelity as a one stop shop

Post by indexfundfan »

Loandapper wrote: Sun Jul 03, 2022 2:47 pm I have $18,000 in a Robinhood account that I'd like to move over to Fidelity. Robinhood now charges $100 for outgoing ACAT transfers. Two questions for the group:

1) Will Fidelity reimburse this? If so, what is the best way to ask Fidelity?
2) There is zero cash in the Robinhood account. Do I need to transfer $100 cash into the account before the transfer or will they liquidate some shares?

Thanks in advance!
Fidelity usually will reimburse the ACAT fee but it's better if you ask first. One way is to open the account, then send a message from your account. You will then have a written record.

Do you have a gain in the RH account? If not, it may be better to liquidate to cash, take the tax loss and transfer the cash and buy replacement assets at Fidelity.
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Re: Fidelity as a one stop shop

Post by Nathan Drake »

Does account lockdown not allow auto overdraft payments to the CMA?
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Re: Fidelity as a one stop shop

Post by muffins14 »

indexfundfan wrote: Fri Jul 01, 2022 2:59 pm Has anyone negotiated margin rates with Fidelity? Are you able to get them to match Interactive Brokers?

https://www.interactivebrokers.com/en/t ... -rates.php

I know there are other loan options out there, but assume for this question that I just to know the negotiable margin rates at Fidelity.

Thank you.
I “attempted” by asking, and they offered about 7%, at which time IBKR was around 1.08%. I said OK and moved a lot of money to IBKR. Maybe if I pushed harder I could have had more success? Not sure
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Re: Fidelity as a one stop shop

Post by JoMoney »

Nathan Drake wrote: Sun Jul 03, 2022 4:16 pm Does account lockdown not allow auto overdraft payments to the CMA?
I don't have the automatic "overdraft" setup, but lockdown should prevent it. Manually I can't transfer money from my brokerage account to CMA while the brokerage account while the brokerage has lockdown turned on, so I would assume it's not going to allow it auto happen either.
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Re: Fidelity as a one stop shop

Post by indexfundfan »

Loandapper wrote: Fri Jul 01, 2022 4:38 pm Yes. I'm at 3%. (That is 3% for any balance, large or small, unlike the tiered system at IB.)
muffins14 wrote: Sun Jul 03, 2022 4:41 pm I “attempted” by asking, and they offered about 7%, at which time IBKR was around 1.08%. I said OK and moved a lot of money to IBKR. Maybe if I pushed harder I could have had more success? Not sure
Thanks. I have sent a message to the local office, and will see what they say.
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A few questions about Fidelity CMA for those who use this service for full banking.

Post by Blue456 »

[Thread merged into here --admin LadyGeek]

A few questions about Fidelity Cash Management Account:

1. Default sweep is in into FDIC insured bank. Can I change default sweep into Fidelity municipal money market?
2. I currently store money in Fidelity municipal money market fund and my FDIC sweep account is zero, what happens when an outside business (credit card, loan, etc) tries to withdraw from my CMA account? Will the payment be rejected because my FDIC default sweep is at $0? Or will the municipal money mark fund be liquidated in the appropriate amount?
3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
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Re: Fidelity as a one stop shop

Post by LadyGeek »

Blue456 wrote: Sun Jul 10, 2022 8:46 am [Thread merged into here --admin LadyGeek]

A few questions about Fidelity Cash Management Account:

1. Default sweep is in into FDIC insured bank. Can I change default sweep into Fidelity municipal money market?
2. I currently store money in Fidelity municipal money market fund and my FDIC sweep account is zero, what happens when an outside business (credit card, loan, etc) tries to withdraw from my CMA account? Will the payment be rejected because my FDIC default sweep is at $0? Or will the municipal money mark fund be liquidated in the appropriate amount?
3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
I merged Blue456's thread into the ongoing discussion.
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Re: A few questions about Fidelity CMA for those who use this service for full banking.

Post by JoMoney »

Blue456 wrote: Sun Jul 10, 2022 8:46 am [Thread merged into here --admin LadyGeek]

A few questions about Fidelity Cash Management Account:

1. Default sweep is in into FDIC insured bank. Can I change default sweep into Fidelity municipal money market?
2. I currently store money in Fidelity municipal money market fund and my FDIC sweep account is zero, what happens when an outside business (credit card, loan, etc) tries to withdraw from my CMA account? Will the payment be rejected because my FDIC default sweep is at $0? Or will the municipal money mark fund be liquidated in the appropriate amount?
3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
No. You can't use anything but the FDIC bank sweep as the core/default sweep on the CMA account.
If you open a regular brokerage account, you can add all the check-writing, debit card, and bill pay features of the CMA to that, and you're able to change the default core/sweep account... but you may not get ATM fees reimbursed (depending on Fidelity account level), which isn't a huge setback if you use ATM's that are already no-fee in the ATM network PNC Bank uses (there are a lot of free in-network ATMs)
I'm not certain if you can make anything but a federal Government money market your core sweep in any account. Prime and Municipal money markets are subject to control gates in a liquidity crisis, making them imprudent for a settlement fund that needs to be absolutely liquid. You would need to ask Fidelity, but I'm pretty sure they don't allow anything but federal government funds as the core settlement account since the money market reform rule took effect.

If your core FDIC sweep is at a 0 balance, and you have other money markets (including Prime and Municipal) with available balances in that account they will automatically be debited against. Be sure to check your CMAs "Available" amount that is prominently displayed under money management screen. That is the total amount that can be debited against, which should include all the money markets in the account.

I've had no issues having my rent payments, and credit card payment, linked to the CMA account number to be debited against.
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Re: A few questions about Fidelity CMA for those who use this service for full banking.

Post by increment »

Blue456 wrote: Sun Jul 10, 2022 8:46 am 3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
If you have checks for the CMA, have you tried the account number printed on the checks? (Mine is 13 digits long, shorter than the 17-digit one shown at the website.)
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Re: A few questions about Fidelity CMA for those who use this service for full banking.

Post by muffins14 »

Blue456 wrote: Sun Jul 10, 2022 8:46 am [Thread merged into here --admin LadyGeek]

A few questions about Fidelity Cash Management Account:

1. Default sweep is in into FDIC insured bank. Can I change default sweep into Fidelity municipal money market?
2. I currently store money in Fidelity municipal money market fund and my FDIC sweep account is zero, what happens when an outside business (credit card, loan, etc) tries to withdraw from my CMA account? Will the payment be rejected because my FDIC default sweep is at $0? Or will the municipal money mark fund be liquidated in the appropriate amount?
3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
Same answers as JoMoney:

1) no
2) it will pull from other money markets as you expect
3) I have my utilities payments set up through autopay on my fidelity brokerage and it works fine. Does your mortgage lender have a character limit on the account entry field that means you can’t type in the whole number?
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Re: A few questions about Fidelity CMA for those who use this service for full banking.

Post by LongRoad »

increment wrote: Sun Jul 10, 2022 9:12 am
Blue456 wrote: Sun Jul 10, 2022 8:46 am 3. Fidelity account number is kind of weird, it's much longer than usual bank account numbers. I would like to try to have my monthly mortgage withdrawn automatically from this account. Did anybody run into issues with this?
If you have checks for the CMA, have you tried the account number printed on the checks? (Mine is 13 digits long, shorter than the 17-digit one shown at the website.)
+1
If you have check writing enabled, you can use the 13 digit account number from the checks.
https://www.fidelity.com/bin-public/060 ... eposit.pdf
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Re: Fidelity as a one stop shop

Post by crg11 »

Quick question, for a CMA trust account, are your individual names listed on the checks or the name of the trust?
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