I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A good number of people discredit the effectiveness of financial advisors in exploring new markets, but over the past 10years I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1.2m in gains… might not be a lot but i'm financially secure.
My CFA Annette Marie Holt , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.,..
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
NICOLE ANASTASIA PLUMLEE' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
I use CMA and keep a local bank for a few reasons. 1) when I need to deposit some cash and i want to go inside the bank to do so (for safety reasons). 2) I use Zelle pay a lot. Fidelity doesn't have it. 3) I use cashier's checks on occasion, 4) Great if you want 1's, 5's, 10's, 20's, 50's, 100s or any combo of cash for any reason. Also getting rid of that jar of change. You can't put coins in an ATM. There is always a low balance in my brick and mortar checking account because most of it is transferred to my CMA where it is parked until invested etc.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I started doing this as soon as Fidelity Cash Management started offering SPAXX. I basically have $1500 in my big bank checking account and the rest of the cash is in here. Makes paying my mortgage so much easier, because of the interest i earned. So now if your mortgage is less that 5% you might as well let the cash sit in here until the interest rates go down, then you can do a lump sum payoff on the mortgage. EDIT: Of course you still have to make your minimum monthly payments.
I started using the Fidelity CMA at the beginning of the year. It is great. They just added the option to have your core position invested in SPAXX. It was originally only FDIC. Very easy to log into your account and switch between SPAXX or FDIC. My understanding is you can do this at any time. Thanks for the video Rob.👍
@@johnsmith1953x From my understanding, and based on their site, Fidelity’s cash management account has no account fees or minimum balance requirements. To the best of my knowledge, banks generally do not charge inactivity fees but may charge fees if your account balance falls below a certain minimum. Assuming you have a Fidelity account or plan to get one, you will likely be investing as well. Therefore, your brokerage account will generate some revenue for them.
Good video. One thing you didn’t mention is that you can buy brokered CDs in the CMA while using SPAXX as the core holding. The CDs pay a bit more, you can ladder them out, plus you can get FDIC insurance that way. I’ve been doing that for the past year and it’s worked great.
Opened my Fidelity CMA about 3 years ago, before I retired. Nice to be able to move $ from HSA, 401k, Roth’s. Bill Pay works great too. Kept my Credit Union account for local access and backup. Thanks for spreading the news on this.
Rob noted the one issue of not being able to deposit cash in any ATM. We solved this by keeping our local credit union checking account open, and deposit cash into that account and then transfer over to Fidelity. Relatively simple to set up and do.
These days, I would never go with just one place, especially a pseudo-bank. CMA is fine, but keep a credit union or bank account open as well. Our credit union has been great, and provided the signature guatantees I needed when inheriting brokerage accounts.
*_Same here! I also have my Charles Schwab account linked for that, and the "Full View" feature is awesome to be able to aggregate (link) your other financial accounts, to get a full financial snapshot._*
I just moved out of our US Bank checking account earlier this year into the Fidelity CMA. Everything gas been great so far, direct deposits, debit card, check writing. I also have it set up to auto-transfer from our CMA to our Roths once a month, and then auto-invest that money into our core Roth holdings. Super easy, barely an inconvenience!
We started the move to a Fidelity CMA about a week ago for many of the reasons you listed. I did get some good information from this video about the pros and cons. Thanks for the video.
Expensive relative to an index fund, but you're getting a lot of utility for that expense, considering you're doing well to find a free checking account paying more than 0.1%. If someone has a similar account for less expense, then obviously that would be great.
We have used FDRXX for our CMA for years instead of SPAXX. It has a little lower Exp. Ratio, and the same or slightly higher yield. About the same composition.
Thanks for a most comprehensive explanation of the fidelity cash management account. I have been using this for years and find it as you said a very convenient and at the same time enjoying today's high interest rate environment without any restrictions of amounts or liquidity. I do use it as a checking account for certain more high-end purchases. The one feature customers need to know is that unlike a checking account at your local bank you will be able to see the amounts that were honored from the checking feature however you cannot see to whom they were made out. So, when using the S PAXX account as a checking account you need to keep a separate record of who the checks were made out to. What I do is make a copy of the check for reference later on.
I am able to see an image of the cancelled checks online in my CMA account. Is that what you are referring to? If you are referring to having the payee show up in the ledger than I don't know of any bank that does that but I don't keep up with the latest features.
Agree with Rob entirely, last year we consolidated all of our various IRA and 401K accounts to Fidelity and switched our primary checking and cash management over also so I can manage it all in Fidelity. It is working out well.
Great video, I've done this a few years back and enjoyed the 4.97 but also been doing it long enough to see zero percent. Love it though and have set up several friends and family with this setup.
I think these accounts should be separate . If a bad actor gets access to any of your accounts they have access to all your accounts. I’m in the bank fraud business and have been seeing very sophisticated account takeovers. Don’t do routine banking where the bulk of your assets are.. Just my opinion.
My Fidelity debit card had 3 fraudulent purchases last week, 2/3 purchases were denied but an $87 purchase went through. Now it's being investigated. I just received a new card.
@@richj011Reason #1 on why I will never use a debit card. There is no or in best cases very limited consumer protection against fraudulent use and most worrisome is that money is transferred out of your account the instant a purchase is transacted. Unlike a credit card where money transfer is regulated/controlled by you, the credit card user. Under current consumer protection laws, the lion share of risk of fraudulent usage is the burden of the credit card issuer and not the consumer.
Thank you for this. You resolved my analysis paralysis in looking for a high yield savings account and actually improved the current way I do things and solved problems I didn't know I had. Created the CMA. Rolled my HSA into Fidelity where I can actually invest it and maxed out the family contribution for 2025. Opening a Roth IRA there will be next. And lots of options left to save, invest, and pay, all in one easy place. Thanks again for the content.
This was a good video. Fidelity's debit card is really good for atm usage when traveling outside the U.S., because of no foreign transaction fees on the withdrawn amount. I have first hand experience with it. Also, the default of getting a high interest rate on sweep money is also really good.
That's not what fidelity discloses para 2.5.3: "For each foreign transaction, there is a foreign transaction fee (currently, 1% of the transaction for non-US dollar transactions), which may be included in the amount charged to your account. This charge may apply whether or not there is a currency conversion. You won't see the 1% seprately, it's included when Visa does the conversion from foreign to USD that is deducted from your Fidelity account.
@@hanwagu9967 Compared to Schwab will the conversion rate work out to be the same? They also use Visa for conversion rates. Somewhat confusing in the fine print?
@GG-tw6xu BTW, I have Scwab's debit card too. This is also a great atm card for non-U.S. ATM's. The weakness may be that your sweep money doesn't get a high interest bearing money market fund.
@hanwagu9967 I did a first hand analysis of what was charged in usd for a withdrawal, compared to the currency received. Whatever it was, I thought it was very fair and reasonable. Not much, if anything, was made on the currency bid-ask spread.
I did this a few months ago. Works great. I still use bank credit cards for as many bills as possible. At the first of the month I transfer all extra cash into the brokerage account write my checks for the due date. I transfer the money back to the checking account the day before.
No need for a cash management, account, you can run mostly everything through their brokerage account. 4.96% on uninvested cash, check writing, direct deposit, etc...only not a debit card and bill pay options. I like to keep banking and investing accounts separate.
You actually can get a debit card for a regular brokerage account. I opened a Fidelity Brokerage account to use as my regular checking account and ordered a debit card to go with it, works perfectly fine. Can order checks too
I think it’s a great idea to keep these accounts separate. If a bad actor gets access to any of your accounts they have access to all your accounts. I’m in the bank fraud business and have been seeing very sophisticated account takeovers. Don’t do routine banking where the bulk of your assets are..
@@DonaldConceicao Agree 100%!!!!!! Too many people don't stop and think of the risk they might be subject to. Keep your banking in a separate account with no automatic tie to your investment account.
Only downside is if you receive cash and need to deposit it. May want to keep a regular bank acct open as a means of depositing the cash. Can be setup to have overdraft protection from your brokerage acct. The level of service from Fidelity staff is super!
Did this years ago. Love what it does for me. My view is that all money should be actively invested or actively paying off bills. Fidelity makes it easy to do this. I do have a relationship with a smaller local bank for some of the limitations you mentioned, otherwise I dont really use a bank.
Your main fee is the expense ratio on the money market fund. Try comparing the expense ratio there to Vanguard for a comparable fund. For example, the expense ratio of VMFXX is just .11% so Fidelity is overcharging (.42%) on its default core position expenses fee to deliver "free" checks, debit cards, no FX fees spending overseas, ATM fee refunds, etc. I have been a Fidelity customer for years but for every 100k in money market you are probably paying 200 to 300 USD per year extra in expense ratio fees for these perks. You can buy actual T-bills for larger sums to minimize these expense fees.
For a money market fund, the expense ratio doesn't matter it's the yield. That's why Fidelity mmf funds have lower yield compared to Vanguard is the higher expenses. If you're fine with the yield then that is what matters. I don't know why anyone would hold 100k in cash anyway. I keep enough cash to cover 2 month of expenses in FDLXX and the rest of my liquid cash/emergency funds are in t-bills.
@@javiert9766 In this case these two money markets are substantially similar so the expense ratio is what mainly drives the difference in yield. Different stat to find the same conclusion. Fidelity SPAXX at 4.96% (ex. .42%) 7 day and Vanguard VMFXX at 5.39% (ex. .11%). Just like if you had 2 total stock market index funds, if they both are equivalent in management, ease to trade, etc the expense ratio will be the driving force between them.
Thanks for covering this. We minimize what we have in our local bank and charge all we can on charge cards to get benefits there. Vanguard money market is holding our funds for retirement needs.
Hey Rob I have been using the Fidelity cash management account for a while now. Love it !! Also the debit card is great to. Any fees usually get reimbursed within 48 hours. Also using the debit card at the atm at the CVS Walgreens or 7 eleven there is not a fee taken out. Good luck
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an adviser, as this allows you make smarter investing decisions.
Rob, having all of our accounts through one platform has been my go-to for years. Fidelity happens to be that platform for me too. My quarterly distributions to bridge SS are deposited into my CMA and the free BillPay handles the monthly mortgage payment. I haven’t given up accounts and local brick and mortar banks, but you did give me something to think about. Cheers!
Rob. I did this years ago. Well worth it. Keep in mind that you can do everything in a brokerage account that you can in a cash management account. In addition you can but whatever investments you want. I converted all my cash management accounts to brokerage account and closed them.
Yes, ATM with debit cards, checks, and you can auto pay your 2% cash back credit card to this brokerage account as well. One-stop-shop and we really like it.
We did the exact same thing last year for the same reasons. We keep a no-fee small balance at our local bank to have a local bank if we ever need their services. Only issue we've had is kicking ourselves for not moving the money sooner. Someone mentioned SPAXX fees are higher than comparable fund at Vanguard. Also, the FTSE 3-Mo Treasury Bill has consistently beat SPAXX. But to me, it was a great alternative to having more money at checking account at the local bank, paying near zero.
Thank you for this video! I've had a Fidelity CMA for years and I didn't know SPAXX was an option! I just switched my core position via the robot that came up to help when I clicked "Customer Service" at the top left of the screen. It took less than a minute. I plan to check back on the SPAXX vs FDIC rates annually, but for now SPAXX is a no-brainer for me.
Not a bad idea. Wife and I have capital one 360 savings. 4.50% and it's directly linked to the checking and credit card. Also capital one uses ATMs at CVS and Walgreens so you can access cash almost everywhere.
@@rob_berger Rob, what prompted you to do this now and not sooner? Did something occur with your other bank or are you simply going for the interest rate now that SPAXX is core position?
I bank with capital one too! Honestly, it's one the only good big brick and mortar banks. Most of the other big banks still only offer you pebbles to the dollar.
Thanks for this. I have a balance in the CMA but as dry powder for investing. Did not realize there were checking and debit card features. Will definitely look into it.
A SPAXX plus not mentioned is a percentage (41% in 2023) of the dividends are exempt from state and local taxes for those in states with income taxes and allows such exemptions (some states the percentage needs to be at least 50% to qualify, or something like that).
Yes! I recently did the very same thing because the monthly return on my small pile in the brokerage account was shockingly good. 20% of current pay goes into the brokerage for the "crash" days, which are pretty frequent these days but the best buying opportunity. I noticed the monthly dividend on my holding and realized my everyday account at the branch place is not working for me anymore.
I've been keeping all of the cushion in my regular checking acct invested in a 4 week treasury bill so that I have the option of taking some of it back out of the treasury bill if I need to. Thats been working great this year.
Rob, thanks for bringing this into focus for me. I'm in the middle now of establishing an account and getting things set up. I compared Vanguard's offering, their Cash Plus account, but it pales in comparison to the Fidelity product. I'm test-driving the Vanguard account as well, but signs don't point to 'yes' so far for that.
Thanks for the content. Tried this account recently. Things were going well until after a month the account was locked. They needed a picture of wife’s social security card to proceed. We don’t have that, and the effort seems not worthwhile as there are many financial institutions that have no such requirement.
I love this account and use it. Particularly like it for withdrawing cash internationally. Fees are reimbursed and exchange rate has always been very close to market rate.
Like others have mentioned, I was also considering moving my emergency funds into a CMA, and the shared info was definitely helpful in calming the concerns 👍🏾👍🏾
The problem with SPAXX is that the expense ration is 0.47%. Something like a short term t-bill fund (e.g., SGOV 1-3 month treasuries) is much cheaper (.09%) and it has a higher yield (5.19% right now). You can’t use that as your core holding, but outside of your “checking account” cash, there are better options.
Yup. 👍. Have already done so. 99% of my financials go through them, and the cash management account. Granted I have a bank check account where one, just one, service provider automatically takes payments. I travel butt tons, and seriously want that service to never be interrupted. Note that I also receive a small discount in allowing them access.
You can automate investments in Other money market Funds. Just set up a recurring investment in the CMA into That money market fund and it will just liquidate whatever money market fund you are using to buy more of that money market fund. So if you have a direct deposit set up with your CMA you can auto invest in whatever “core position“ you want.
I did this last year and don't regret it for a second. I do keep a checking account with my local credit union for the rare times I need to handle cash
Im not sure how I got to your video but thank you, I switched my core holdings from Fidelities FDIC to their SPAXX. I didn't have much as most are in index funds but still I want the most I can get.
We invest with Fidelity, bank with a Credit Union, and have considered moving our banking to a Fidelity CMA. One concern is that if a Fidelity CMA is hacked, could investments be swept away with the unauthorized withdrawals? Also, who would be the point of contact for unauthorized activity, Fidelity or UMB?
I also moved to the CMA at the beginning of the year. I keep a low balance in the account, and have the bulk of our cash in a taxable brokerage account at Fidelity in T-Bills and MMF. I am retired, and prefer to transfer cash in manually when the CMA balance gets too low.The transfer is instant. I do not use the Cash Manager Tool as I think it is asking for trouble. Probably that old '60s paranoia, but the thought of a fraudulent debit or ATM transaction would keep me awake I night, so no auto-transfers. Otherwise, I am very satisfied with the CMA and how it works with my taxable brokerage account.
Great video! I have been with Fidelity for years. I have had a great experience with their customer support. Instead of trying to explain how good Fidelity is, I will just share your video.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Seems like a good recommendation. Did it 20 years ago ! 1% past interest income for those that didn’t know better ? Best move I ever made. Be sure if one transfers that they are reputable and provide the service one needs.
The distress for banks was a farce; what we have experienced in the past 2 years is a result of a system that has worked incredibly well. The Fed just had to tighten credit to cool the economy.
*What about the Fed lending program for banks that was said to ease financial tensions after the domino effect from Signature and Silicon Valley bank?*
*Yeah, that sufficed, but what really helped the economy was rising immigration that helped even out the mismatch between open jobs and people looking for work.*
*I agree. Rising productivity is manna for central banks, allowing faster growth without inflation because each hour of work yields more goods and services at the same cost.*
Furthermore, Fidelity doesn't make distinctions like Chase and Merrill where if you don't have an advisor/fee they may not sweep (Merrill Edge) or sign documents at a branch (Chase). Fidelity is far more customer focused.
All nice until you need to get some cash in non-standard amounts ($5, $10, etc.), need a notary while traveling, use Zelle, etc. I keep enough in Wells Fargo to get no fees. Transfer any extra to Vanguard for better MM rates. WF has banks in almost every city in the west and I have used services many times while traveling to get cash, manage rental properties, and hard money loans.
Concur. Also no cashier's checks, and while Fidelity debit cards have no fees, practically every ATM will charge you a 3% fee, regardless. I keep $500 in bank account just in case I need cash. And I make a ACH direct deposit once each month to avoid bank service fees. Link Fidelity to your bank and you can transfer funds back and forth with only on business day delay.
@@don951 unless the ATM owner codes the transaction fee differently. I've come up with problem with my regular bank that reimburses all atm fees, but there are operators that code the atm fee that does not register as such.
This is the kind of thing I'm looking for! I'm small potatoes compared to most people I see on these types of sites. I'm 57, forced retirement (disability). So, I get a SSDI payment every month. I only have $40,000 in stocks. I just inherited another $36,000 from an aunt that passed (she passed over a year ago, estate just now settled). Looking for liquid cash options for the $36,000 (CDs, bonds, money markets, etc.). So, I really don't have to worry about $250,000 FDIC, I'm nowhere near that. Just discovered and been watching a lot of Rob Berger videos in the last couple of months (have learned a lot about stocks and bonds). May even move some out of the $40,000 stock, into cash accounts, depending how the market goes. But don't really need that much more cash income with SSDI. So, I can handle a little risk!
if you can keep your money in a s&p 500 index ETF its almost guaranteed to beat the cash account yield long term, especially since the fed is cutting rates later this year. and timing the market doesnt always go as planned
1. Does the CMA come with a SWIFT code so I can deposit incoming dollars from a foreign country? 2. Does the CMA allow for unlimited ATM use in a foreign country?
Owned a Fidelity 401K for over 25 years, now IRA. SPAXX is their default automatically set for cash transactions in both. I have transfer accounts setup but have been thinking about checking into debit or checking. Timely video, thanks. BTW- if this election goes in the wrong direction that FDIC insured account might come in handy.
One issue I had was wiring money into fidelity. I'm my case was a brokerage but probably works the same for cash management. To wire funds it must be through an intermediary which Fidelity manages ... The problem is the sending banks get confused when they see this. This bit us when we sold a property in europe and even in a real estate transaction within the US. The other issue is if you want a safety deposit box. Third... Totally agree with others to keep your everyday cash management away from long term savings/investments for security reasons(no debit card, checks, etc)
I did that 10 years ago and have had a good experience. The only problem I've had is getting cashier's checks. Also, the bill pay service doesn't work as well as Chase's service.
I am currently in my 50s and This is no time to taper retirement savings. I want to max out my retirement contributions and I also have another $200k in a savings account that i want to invest in a non-retirement account. Where should I invest it now?
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, and international stocks, they can reduce the impact of a market meltdown. its important to seek the guidance of an expert
A good number of people discredit the effectiveness of financial advisors in exploring new markets, but over the past 10years I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1.2m in gains… might not be a lot but i'm financially secure.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
My CFA Annette Marie Holt , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.,..
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
NICOLE ANASTASIA PLUMLEE' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I did this when I retired 3 years ago. It is great and customer service is always top-notch.
I use CMA and keep a local bank for a few reasons. 1) when I need to deposit some cash and i want to go inside the bank to do so (for safety reasons). 2) I use Zelle pay a lot. Fidelity doesn't have it. 3) I use cashier's checks on occasion, 4) Great if you want 1's, 5's, 10's, 20's, 50's, 100s or any combo of cash for any reason. Also getting rid of that jar of change. You can't put coins in an ATM.
There is always a low balance in my brick and mortar checking account because most of it is transferred to my CMA where it is parked until invested etc.
You can link your Fidelity CMA to Venmo
You can link your Fidelity acct info in the Zelle App.
Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I've tried investing in the stock market several times but always got discouraged by fluctuations of stock value. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.!!
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
I started doing this as soon as Fidelity Cash Management started offering SPAXX. I basically have $1500 in my big bank checking account and the rest of the cash is in here. Makes paying my mortgage so much easier, because of the interest i earned. So now if your mortgage is less that 5% you might as well let the cash sit in here until the interest rates go down, then you can do a lump sum payoff on the mortgage.
EDIT: Of course you still have to make your minimum monthly payments.
Would your lender charge you the late fee and hurt your credit score?
@@lalaC959 I have never had a late fee in my life, so why does that matter?
I started using the Fidelity CMA at the beginning of the year. It is great. They just added the option to have your core position invested in SPAXX. It was originally only FDIC. Very easy to log into your account and switch between SPAXX or FDIC. My understanding is you can do this at any time. Thanks for the video Rob.👍
Not sure when they introduced Fidelity Bloom but their core position with any money sweep in was in SPAXX
DO they have inactivity fees?
If so, how much for how long?
@@johnsmith1953x From my understanding, and based on their site, Fidelity’s cash management account has no account fees or minimum balance requirements. To the best of my knowledge, banks generally do not charge inactivity fees but may charge fees if your account balance falls below a certain minimum. Assuming you have a Fidelity account or plan to get one, you will likely be investing as well. Therefore, your brokerage account will generate some revenue for them.
Good video.
One thing you didn’t mention is that you can buy brokered CDs in the CMA while using SPAXX as the core holding. The CDs pay a bit more, you can ladder them out, plus you can get FDIC insurance that way. I’ve been doing that for the past year and it’s worked great.
Should have bought a T-bill and bond ladder instead.
Opened my Fidelity CMA about 3 years ago, before I retired. Nice to be able to move $ from HSA, 401k, Roth’s. Bill Pay works great too. Kept my Credit Union account for local access and backup. Thanks for spreading the news on this.
Yes... I have had a Fidelity Cash Management Account for years - Love it.
Uncanny! I was just sitting down at my computer to do this and my subscription alarm goes off on my phone and it's Rob doing the same dang thing!
Haha me too. I did a double take since I just did the same yesterday. Glad to see it’s Berger approved
Incredible, same here 😂
Same here
I emailed him about this and got the response about the new video! :)
Same, today.
Rob noted the one issue of not being able to deposit cash in any ATM. We solved this by keeping our local credit union checking account open, and deposit cash into that account and then transfer over to Fidelity. Relatively simple to set up and do.
These days, I would never go with just one place, especially a pseudo-bank. CMA is fine, but keep a credit union or bank account open as well. Our credit union has been great, and provided the signature guatantees I needed when inheriting brokerage accounts.
I agree with keeping both accounts as a backup
This is the way. Also a nice way to get a cashier’s check when you need one.
I do the same as Christin stated. Plus... I just opened an HSA account.
*_Same here! I also have my Charles Schwab account linked for that, and the "Full View" feature is awesome to be able to aggregate (link) your other financial accounts, to get a full financial snapshot._*
I just moved out of our US Bank checking account earlier this year into the Fidelity CMA. Everything gas been great so far, direct deposits, debit card, check writing. I also have it set up to auto-transfer from our CMA to our Roths once a month, and then auto-invest that money into our core Roth holdings. Super easy, barely an inconvenience!
Oh really!😂
I agree with you Rob. So far, we've been VERY pleased with our accounts at Fidelity!
in case anyone's wondering, in this cash management account, on the first market day of every month is when the interest posts and it accrues daily
We started the move to a Fidelity CMA about a week ago for many of the reasons you listed. I did get some good information from this video about the pros and cons. Thanks for the video.
Rob, thank you for the information, but don’t forget to mention the 0.42% fee for keeping your money in this fund.
Expense ratio is already factored into the yield
EDIT: That is worth noting though, pretty expensive fund
Expensive relative to an index fund, but you're getting a lot of utility for that expense, considering you're doing well to find a free checking account paying more than 0.1%. If someone has a similar account for less expense, then obviously that would be great.
@@goldkirby factored in meaning we earn 4.96% less the fee of 0.42%?
@@wilma6235 Yield is 4.96%, would be 5.38% without the fee. Makes sense since Vanguard’s (VMFXX) yield is 5.25%, it only has a 0.11% expense ratio
@@wilma6235 Yes. The 7 day yield is taking into account the expense ratio. I think of this as essentially the price we pay for liquidity in the CMA.
We have used FDRXX for our CMA for years instead of SPAXX. It has a little lower Exp. Ratio, and the same or slightly higher yield. About the same composition.
How did you do that ?
Rob Berger the great financial educator of our time. Picking up the slack that public education misses. 👍
Thanks for a most comprehensive explanation of the fidelity cash management account. I have been using this for years and find it as you said a very convenient and at the same time enjoying today's high interest rate environment without any restrictions of amounts or liquidity. I do use it as a checking account for certain more high-end purchases. The one feature customers need to know is that unlike a checking account at your local bank you will be able to see the amounts that were honored from the checking feature however you cannot see to whom they were made out. So, when using the S PAXX account as a checking account you need to keep a separate record of who the checks were made out to. What I do is make a copy of the check for reference later on.
I am able to see an image of the cancelled checks online in my CMA account. Is that what you are referring to? If you are referring to having the payee show up in the ledger than I don't know of any bank that does that but I don't keep up with the latest features.
My bank has an image of the check in the ledger.
Agree with Rob entirely, last year we consolidated all of our various IRA and 401K accounts to Fidelity and switched our primary checking and cash management over also so I can manage it all in Fidelity. It is working out well.
Ok... I'll agree with Rob entirely.
Great video, I've done this a few years back and enjoyed the 4.97 but also been doing it long enough to see zero percent. Love it though and have set up several friends and family with this setup.
I think these accounts should be separate . If a bad actor gets access to any of your accounts they have access to all your accounts. I’m in the bank fraud business and have been seeing very sophisticated account takeovers. Don’t do routine banking where the bulk of your assets are.. Just my opinion.
My Fidelity debit card had 3 fraudulent purchases last week, 2/3 purchases were denied but an $87 purchase went through. Now it's being investigated. I just received a new card.
@@richj011 Did they side in your favor and gave you your $ back indeterminately?
@@richj011Reason #1 on why I will never use a debit card. There is no or in best cases very limited consumer protection against fraudulent use and most worrisome is that money is transferred out of your account the instant a purchase is transacted. Unlike a credit card where money transfer is regulated/controlled by you, the credit card user. Under current consumer protection laws, the lion share of risk of fraudulent usage is the burden of the credit card issuer and not the consumer.
Thank you for this. You resolved my analysis paralysis in looking for a high yield savings account and actually improved the current way I do things and solved problems I didn't know I had.
Created the CMA. Rolled my HSA into Fidelity where I can actually invest it and maxed out the family contribution for 2025. Opening a Roth IRA there will be next. And lots of options left to save, invest, and pay, all in one easy place.
Thanks again for the content.
This was a good video.
Fidelity's debit card is really good for atm usage when traveling outside the U.S., because of no foreign transaction fees on the withdrawn amount. I have first hand experience with it. Also, the default of getting a high interest rate on sweep money is also really good.
That's not what fidelity discloses para 2.5.3: "For each foreign transaction, there is a foreign transaction fee (currently, 1% of the transaction for non-US dollar transactions), which may be included in the amount charged to your account. This charge may apply whether or not there is a currency conversion. You won't see the 1% seprately, it's included when Visa does the conversion from foreign to USD that is deducted from your Fidelity account.
@@hanwagu9967 Compared to Schwab will the conversion rate work out to be the same? They also use Visa for conversion rates. Somewhat confusing in the fine print?
@GG-tw6xu BTW, I have Scwab's debit card too. This is also a great atm card for non-U.S. ATM's. The weakness may be that your sweep money doesn't get a high interest bearing money market fund.
@hanwagu9967 I did a first hand analysis of what was charged in usd for a withdrawal, compared to the currency received. Whatever it was, I thought it was very fair and reasonable. Not much, if anything, was made on the currency bid-ask spread.
@@sunchips5 Was that analysis comparing equal amounts withdrawn at the same time of day using a Schwab ATM card versus the Fidelity card?
I did this a few months ago. Works great. I still use bank credit cards for as many bills as possible. At the first of the month I transfer all extra cash into the brokerage account write my checks for the due date. I transfer the money back to the checking account the day before.
No need for a cash management, account, you can run mostly everything through their brokerage account. 4.96% on uninvested cash, check writing, direct deposit, etc...only not a debit card and bill pay options. I like to keep banking and investing accounts separate.
Why not use a CMA with the debit card locked unless you need it?
Good point.
You actually can get a debit card for a regular brokerage account. I opened a Fidelity Brokerage account to use as my regular checking account and ordered a debit card to go with it, works perfectly fine. Can order checks too
I think it’s a great idea to keep these accounts separate. If a bad actor gets access to any of your accounts they have access to all your accounts. I’m in the bank fraud business and have been seeing very sophisticated account takeovers. Don’t do routine banking where the bulk of your assets are..
@@DonaldConceicao Agree 100%!!!!!! Too many people don't stop and think of the risk they might be subject to. Keep your banking in a separate account with no automatic tie to your investment account.
I love this account! I've had it for 20 years without issues and lots of perks
Rob. I made the same change a few months ago and haven't looked back. Works very well. Thanks for the video!
Opened one two months ago, I wanted a second checking account to keep from commingling funds. Has worked great.
I'm telling your wife 😂
@@johnbrown1851for all we know that could be the wife lol😂
Only downside is if you receive cash and need to deposit it. May want to keep a regular bank acct open as a means of depositing the cash.
Can be setup to have overdraft protection from your brokerage acct.
The level of service from Fidelity staff is super!
Did this years ago. Love what it does for me. My view is that all money should be actively invested or actively paying off bills. Fidelity makes it easy to do this. I do have a relationship with a smaller local bank for some of the limitations you mentioned, otherwise I dont really use a bank.
Your main fee is the expense ratio on the money market fund. Try comparing the expense ratio there to Vanguard for a comparable fund. For example, the expense ratio of VMFXX is just .11% so Fidelity is overcharging (.42%) on its default core position expenses fee to deliver "free" checks, debit cards, no FX fees spending overseas, ATM fee refunds, etc. I have been a Fidelity customer for years but for every 100k in money market you are probably paying 200 to 300 USD per year extra in expense ratio fees for these perks. You can buy actual T-bills for larger sums to minimize these expense fees.
Keep 2 months of expenses in the Fidelity CMA and other cash at Vanguard
So there is a catch. I thought this all sounded too good to be true.
@@jeffb.2469 He was comparing Fidelity cash management to a traditional checking so it was a 100% fair analysis.
For a money market fund, the expense ratio doesn't matter it's the yield. That's why Fidelity mmf funds have lower yield compared to Vanguard is the higher expenses. If you're fine with the yield then that is what matters. I don't know why anyone would hold 100k in cash anyway. I keep enough cash to cover 2 month of expenses in FDLXX and the rest of my liquid cash/emergency funds are in t-bills.
@@javiert9766 In this case these two money markets are substantially similar so the expense ratio is what mainly drives the difference in yield. Different stat to find the same conclusion. Fidelity SPAXX at 4.96% (ex. .42%) 7 day and Vanguard VMFXX at 5.39% (ex. .11%). Just like if you had 2 total stock market index funds, if they both are equivalent in management, ease to trade, etc the expense ratio will be the driving force between them.
I did this several months ago. I'm very happy with my decision.
Thanks for covering this. We minimize what we have in our local bank and charge all we can on charge cards to get benefits there. Vanguard money market is holding our funds for retirement needs.
I have done this for a few years now. Love it!
Hey Rob I have been using the Fidelity cash management account for a while now. Love it !! Also the debit card is great to.
Any fees usually get reimbursed within 48 hours. Also using the debit card at the atm at the CVS Walgreens or 7 eleven there is not a fee taken out. Good luck
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
Do you plan on retiring before 59?
That is what determines it for me. I switched to cash flowing assets because I wanted to retire early.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an adviser, as this allows you make smarter investing decisions.
Rob, having all of our accounts through one platform has been my go-to for years. Fidelity happens to be that platform for me too. My quarterly distributions to bridge SS are deposited into my CMA and the free BillPay handles the monthly mortgage payment. I haven’t given up accounts and local brick and mortar banks, but you did give me something to think about. Cheers!
Rob. I did this years ago. Well worth it. Keep in mind that you can do everything in a brokerage account that you can in a cash management account. In addition you can but whatever investments you want. I converted all my cash management accounts to brokerage account and closed them.
ATM use?
Yes, ATM with debit cards, checks, and you can auto pay your 2% cash back credit card to this brokerage account as well. One-stop-shop and we really like it.
I have never justified the need for a separate CMA. I can do the same things with my Fidelity brokerage account.
We did the exact same thing last year for the same reasons. We keep a no-fee small balance at our local bank to have a local bank if we ever need their services. Only issue we've had is kicking ourselves for not moving the money sooner. Someone mentioned SPAXX fees are higher than comparable fund at Vanguard. Also, the FTSE 3-Mo Treasury Bill has consistently beat SPAXX. But to me, it was a great alternative to having more money at checking account at the local bank, paying near zero.
Thank you for this video! I've had a Fidelity CMA for years and I didn't know SPAXX was an option! I just switched my core position via the robot that came up to help when I clicked "Customer Service" at the top left of the screen. It took less than a minute.
I plan to check back on the SPAXX vs FDIC rates annually, but for now SPAXX is a no-brainer for me.
Not a bad idea. Wife and I have capital one 360 savings. 4.50% and it's directly linked to the checking and credit card. Also capital one uses ATMs at CVS and Walgreens so you can access cash almost everywhere.
Capital One also has an excellent mobile app.
@@rob_berger Rob, what prompted you to do this now and not sooner? Did something occur with your other bank or are you simply going for the interest rate now that SPAXX is core position?
Capital One is currently at 4.25%
I bank with capital one too! Honestly, it's one the only good big brick and mortar banks.
Most of the other big banks still only offer you pebbles to the dollar.
@@krisskogs2532Everbank savings is at 5.05%...just combine with free credit union checking for best of both worlds 😊
I haven't had a bank account for the past 30 years. I never missed it. You wouldn't either, as long as you are not depositing/paying cash.
Thanks for this. I have a balance in the CMA but as dry powder for investing. Did not realize there were checking and debit card features. Will definitely look into it.
This is the best account I’ve ever opened ! When I moved to Asia I get all my ATM fees rebated and their customer service is Amazing !!
I’ve been using the fidelity CMA for years. Works great though the bill pay could be better.
A SPAXX plus not mentioned is a percentage (41% in 2023) of the dividends are exempt from state and local taxes for those in states with income taxes and allows such exemptions (some states the percentage needs to be at least 50% to qualify, or something like that).
I have been using it for years, never looked back.
Me too
Yes! I recently did the very same thing because the monthly return on my small pile in the brokerage account was shockingly good. 20% of current pay goes into the brokerage for the "crash" days, which are pretty frequent these days but the best buying opportunity. I noticed the monthly dividend on my holding and realized my everyday account at the branch place is not working for me anymore.
I've been keeping all of the cushion in my regular checking acct invested in a 4 week treasury bill so that I have the option of taking some of it back out of the treasury bill if I need to. Thats been working great this year.
Doing the same
Rob, thanks for bringing this into focus for me. I'm in the middle now of establishing an account and getting things set up. I compared Vanguard's offering, their Cash Plus account, but it pales in comparison to the Fidelity product. I'm test-driving the Vanguard account as well, but signs don't point to 'yes' so far for that.
Thanks for the content. Tried this account recently. Things were going well until after a month the account was locked. They needed a picture of wife’s social security card to proceed. We don’t have that, and the effort seems not worthwhile as there are many financial institutions that have no such requirement.
been using this for years. Awesome account.
I love this account and use it. Particularly like it for withdrawing cash internationally. Fees are reimbursed and exchange rate has always been very close to market rate.
Like others have mentioned, I was also considering moving my emergency funds into a CMA, and the shared info was definitely helpful in calming the concerns 👍🏾👍🏾
Welcome to the club. Been doing that for years. Wish I had done that even earlier...
The problem with SPAXX is that the expense ration is 0.47%. Something like a short term t-bill fund (e.g., SGOV 1-3 month treasuries) is much cheaper (.09%) and it has a higher yield (5.19% right now). You can’t use that as your core holding, but outside of your “checking account” cash, there are better options.
The yield is shown after expenses, so that's why you should focus on when comparing funds
Had one for a year. Excellent experience so far!
Yup. 👍. Have already done so. 99% of my financials go through them, and the cash management account. Granted I have a bank check account where one, just one, service provider automatically takes payments. I travel butt tons, and seriously want that service to never be interrupted. Note that I also receive a small discount in allowing them access.
I have the FCM account… mine is the fdic insured core position. I do buy some SPAXX as well since it lets you have both in that account.
You can automate investments in Other money market Funds. Just set up a recurring investment in the CMA into That money market fund and it will just liquidate whatever money market fund you are using to buy more of that money market fund. So if you have a direct deposit set up with your CMA you can auto invest in whatever “core position“ you want.
Yes this should work for Fidelity money market funds.
It does not work for money market funds. Not all products are eligible for automation. It does not work. @@briandadude
It does not work. Try it. Fidelity will tell you that mm is not eligible. @@briandadude
I did this last year and don't regret it for a second. I do keep a checking account with my local credit union for the rare times I need to handle cash
Im not sure how I got to your video but thank you, I switched my core holdings from Fidelities FDIC to their SPAXX. I didn't have much as most are in index funds but still I want the most I can get.
Yeah I didn't even know you offered this option. Did they send out an email?
I did the same thing now that saving rates at banks are dropping. Thanks for the Member Banks tip. That was very helpful.
We invest with Fidelity, bank with a Credit Union, and have considered moving our banking to a Fidelity CMA. One concern is that if a Fidelity CMA is hacked, could investments be swept away with the unauthorized withdrawals? Also, who would be the point of contact for unauthorized activity, Fidelity or UMB?
Fidelity offers free outgoing & incoming wires
Just opened mine! Thanks for your insight and all the good comments below, Rob!
I like Fidelity’s MM , the interest I’ve received has surprised me 😄
I also moved to the CMA at the beginning of the year. I keep a low balance in the account, and have the bulk of our cash in a taxable brokerage account at Fidelity in T-Bills and MMF. I am retired, and prefer to transfer cash in manually when the CMA balance gets too low.The transfer is instant. I do not use the Cash Manager Tool as I think it is asking for trouble. Probably that old '60s paranoia, but the thought of a fraudulent debit or ATM transaction would keep me awake I night, so no auto-transfers. Otherwise, I am very satisfied with the CMA and how it works with my taxable brokerage account.
Great video! I have been with Fidelity for years. I have had a great experience with their customer support. Instead of trying to explain how good Fidelity is, I will just share your video.
Thank you for this easy-to-understand explanation of the Fidelity cash management issue. it was very helpful to me.
Love all of my fidelity accounts
@Rob Berger. Is the interest of 4.96% after the fee of 0.42% they charge?
You did a really nice job here. I have been a Fidelity customer for years and your presentation gives me much food for thought.
Fidelity CMA sounds like a great do-it-all choice.
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
NICOLE ANASTASIA PLUMLEE is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Switched to Fidelity in 2014 after Wells Fargo and Chase were reorganizing my transactions to maximize overdraft fees...never looked back
Seems like a good recommendation.
Did it 20 years ago !
1% past interest income for those that didn’t know better ?
Best move I ever made.
Be sure if one transfers that they are reputable and provide the service one needs.
The distress for banks was a farce; what we have experienced in the past 2 years is a result of a system that has worked incredibly well. The Fed just had to tighten credit to cool the economy.
*What about the Fed lending program for banks that was said to ease financial tensions after the domino effect from Signature and Silicon Valley bank?*
*Yeah, that sufficed, but what really helped the economy was rising immigration that helped even out the mismatch between open jobs and people looking for work.*
*I agree. Rising productivity is manna for central banks, allowing faster growth without inflation because each hour of work yields more goods and services at the same cost.*
Exactly and many of us don't know where to invest our money so we invest it on wrong place and to the wrong people
Furthermore, Fidelity doesn't make distinctions like Chase and Merrill where if you don't have an advisor/fee they may not sweep (Merrill Edge) or sign documents at a branch (Chase). Fidelity is far more customer focused.
I closed our bank account 15 years ago and use only Fidelity. I dont use cash so Fidelity works great.
All nice until you need to get some cash in non-standard amounts ($5, $10, etc.), need a notary while traveling, use Zelle, etc. I keep enough in Wells Fargo to get no fees. Transfer any extra to Vanguard for better MM rates. WF has banks in almost every city in the west and I have used services many times while traveling to get cash, manage rental properties, and hard money loans.
All good points.
Concur. Also no cashier's checks, and while Fidelity debit cards have no fees, practically every ATM will charge you a 3% fee, regardless. I keep $500 in bank account just in case I need cash. And I make a ACH direct deposit once each month to avoid bank service fees. Link Fidelity to your bank and you can transfer funds back and forth with only on business day delay.
@@kkesq11You've misunderstood. Fidelity reimburses ATM fees charged by other banks. I made the switch years ago and have loved it.
@@don951 unless the ATM owner codes the transaction fee differently. I've come up with problem with my regular bank that reimburses all atm fees, but there are operators that code the atm fee that does not register as such.
Everyone needs a brick and mortar (wells, boa, chase) just in case, but majority of your cash should be held in an online money market account.
Thanks for this easy to understand and informative video. You consistently put out the best financial videos in the UA-cam space.
@@joeburns3302 Rob is great. Jennifer Lammer too.
Remember, FDIC only has funds to cover 1% of deposits.
So if S_it hits the fan, FDIC OR NOT, you won’t get your money back
Yep
This is false. Patently false. You really shouldn’t make posts about things about which you have no clue.
@@Pelican5077 People always want to doom and gloom instead of using reality.
Fidelity Cash Management is head and shoulders better and any current bank checking account.
*For the BILLIONTH TIME, never use a debit card for purchases!*
Always use a credit card.
This is the kind of thing I'm looking for! I'm small potatoes compared to most people I see on these types of sites. I'm 57, forced retirement (disability). So, I get a SSDI payment every month. I only have $40,000 in stocks. I just inherited another $36,000 from an aunt that passed (she passed over a year ago, estate just now settled). Looking for liquid cash options for the $36,000 (CDs, bonds, money markets, etc.). So, I really don't have to worry about $250,000 FDIC, I'm nowhere near that. Just discovered and been watching a lot of Rob Berger videos in the last couple of months (have learned a lot about stocks and bonds). May even move some out of the $40,000 stock, into cash accounts, depending how the market goes. But don't really need that much more cash income with SSDI. So, I can handle a little risk!
if you can keep your money in a s&p 500 index ETF its almost guaranteed to beat the cash account yield long term, especially since the fed is cutting rates later this year. and timing the market doesnt always go as planned
I have had a Fidelity Cash Management account for years. It used to be called Smart Cash Account, a name I preferred over the current one.
I remember depositing cash into my checking account once back in the early 2000s I think.
I opened one about 1 1/2 years ago and now I have 3 of them. Great account for many reasons.
I made the move years ago and have never looked back. I have seen zero downside. Bye bye banks!
1. Does the CMA come with a SWIFT code so I can deposit incoming dollars from a foreign country?
2. Does the CMA allow for unlimited ATM use in a foreign country?
Owned a Fidelity 401K for over 25 years, now IRA. SPAXX is their default automatically set for cash transactions in both.
I have transfer accounts setup but have been thinking about checking into debit or checking. Timely video, thanks.
BTW- if this election goes in the wrong direction that FDIC insured account might come in handy.
Seems simple enough to setup and use and perhaps over time get rid of your banking account. Thanks much.
Thanks for this video. I guess having to look for safe places to stash cash is a good problem to have. But it still is a problem.
Fidelity hit a home run with their CMA. Nothing like that in the market. Amazing product.
does pulling money out of SPAXX trigger capitol gains tax?
No, because it’s after tax dollars, you’ve already paid tax on that money. Interest will be taxed as ordinary income.
One issue I had was wiring money into fidelity. I'm my case was a brokerage but probably works the same for cash management. To wire funds it must be through an intermediary which Fidelity manages ... The problem is the sending banks get confused when they see this. This bit us when we sold a property in europe and even in a real estate transaction within the US.
The other issue is if you want a safety deposit box.
Third... Totally agree with others to keep your everyday cash management away from long term savings/investments for security reasons(no debit card, checks, etc)
I did that 10 years ago and have had a good experience. The only problem I've had is getting cashier's checks. Also, the bill pay service doesn't work as well as Chase's service.