Fidelity - same day fund exchange restrictions and my experience I have been complaining about the above for over 10 years to Fidelity reps/supervisors. Several reps told me it's a finra/sec rules but it's not correct. It's Fidelity's own imposed rules.
As a trader, it's just annoying and wasting extra time. When I'm invested, I want to be in all the time and not wait an extra day since I hardly ever use the exchange feature by selling/buying funds from the same family funds. The use of 90% of the proceeds for the buy order is also annoying, especially when I sell bond funds on regular days when they move less than 0.5%
Over the years, I see a deterioration in the knowledgeable reps. Years ago, I hardly ever had any issues calling a rep to enter the buy trade, in the last couple of years, I get replies such as You can't do it and must wait another day or I need to change you a fee. In these cases, I ask to talk to a supervisor to solve the problem. It can take up to 30 minutes.
At Schwab it's a lot easier, I just enter the sell first, and seconds later, I enter the buy order, and I'm responsible to make sure the buy amount is small than the sell. In most cases, I trade bonds OEFS and why I use 99%. The process takes 1-2 minutes, and no reps are involved.
Does Fido charge to reinvest dividends in a non NTF fund? The dividend and cap gain distribution will be reinvest
without transaction fee. You can to decide if the distribution goes to the sweep account (money market) or reinvest. Make sure you make this selection online.
Learned from
@msf years ago, you can buy more later for $
5 transaction fee using their automatic investment feature: schedule the purchase day and the $ amount. A second one is scheduled a monthly later but you can cancel it before the purchase date. As for selling TF funds, there is no transaction fee whereas Schwab charges the full transaction fee as buying.
Does Fido charge to reinvest dividends in a non NTF fund? DODGX and DODWX transferred to Fidelity without issues. However, cost to trade is steep at 75 bucks. Not a problem for me since I just leave them alone. If they charge me for distributions I'll be on the move again soon.
Yes, That’s my thinking. The amount still with D/C is relatively small. Makes sense for me to consolidate everything. Frankly, even if dividends couldn’t be reinvested (free of charge) I’d be comfortable with that and could roll those into a different (NTF) fund.
Does Fido charge to reinvest dividends in a non NTF fund?
If you perform a trade on D&C fund (as testing), it will tell you the $2,500 minimum and $49.95 transaction fee. It seems that D&C funds are still sold through Fidelity but somewhere in the maintenance process it got foul up.
That's interesting. I ran my test on a Dodge fund in my IRA and got the 7
5$ quote.
Does Fido charge to reinvest dividends in a non NTF fund? @hank, I have been talking with Fidelity on this topic. D&C funds disappeared from Fidelity mutual fund listing in the last few weeks. Very strange since it was on their Transaction Fee platform for years. It is also strange that when you enter the D&C ticker symbol, nothing shows up. The representative cannot explain that either.
If you perform a trade on D&C fund (as testing), it will tell you the $2,
500 minimum and $49.9
5 transaction fee. It seems that D&C funds are still sold through Fidelity but somewhere in the maintenance process it got foul up.
This needs to be resolved on Fidelity side before you perform the in-kind transfer. I would call their help desk.
Does Fido charge to reinvest dividends in a non NTF fund? Has this in-kind transfer happened or are you thinking about it?
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
No direct experience.
DODGX and DODWX transferred to Fidelity without issues. However, cost to trade is steep at 7
5 bucks. Not a problem for me since I just leave them alone.
If they charge me for distributions I'll be on the move again soon.
BTW, if you meet with a rep they will review your portfolio to see if they can handle everything in it.
Does Fido charge to reinvest dividends in a non NTF fund? Has this in-kind transfer happened or are you thinking about it?
D&C doesn't seem to be supported at Fidelity platform (NTF or TF). D&C tickers don't even pull up a quote at Fido site. So, such in-kind transfer may not even be allowed.
No direct experience.
D&C funds are available with TF at Fido.
The Fido search seems to be broken. If you search from its fund research page, you can find them:
https://fundresearch.fidelity.com/mutual-funds/summary/256219106
Treasuries Flood is Coming It's not just a flood, it's a tsunami. My headline.
Fortune by way of Yahoo.
Now a $1 trillion tsunami of high-quality government paper is slated to hit markets before September, at a time when Michele warns the Fed is already draining $95 billion in liquidity—the oxygen that fuels asset prices—every month through quantitative tightening.
Students of seismic events, and informed residents of coastal areas, will remember that tsunamis are preceded by water calmly receding from the coast line.
The article is actually about Bob Michele's view that:
“This [regional bank failures] does remind me an awful lot of that March-to-June period in 2008,” Michele told CNBC in an interview on Friday, citing the three-month rally that followed the Bear deal. “The markets viewed it as: there was a crisis, there was a policy response and the crisis is solved.”
Who he? I didn't know either.
Bob Michele, who is responsible for managing $700 billion in assets for the world’s most valuable bank [JP Morgan], believes there are too many current parallels to the 2008 global financial crisis to simply dismiss the idea of a repeat out of hand.
He also sees problems in commercial real estate.
More than $1.4 trillion in U.S. CRE loans are due to mature by 2027, with $270 billion alone coming due this year, according to real estate data provider Trepp. Much of this debt will have to be rolled over at higher rates.
“There are a lot of companies sitting on very low-cost funding,” Michele said. “When they go to refinance, it will double, triple or they won’t be able to [roll it over] and they’ll have to go through some sort of restructuring or default.”
Floating rate funds in rising, flat, and falling rate environments I have invested in BL/FR bonds in last several years and managed to have a modest gain. Now it is time to rotate these bonds into longer duration investments grade bonds - treasury and corporate. If and when the recession arrives, the FED will cut rates and that will benefit the longer bonds as the bond prices appreciate. This may be one of those rare year where double digit total return is possible for some of these bonds.
I still have a high cash allocation in T bills, CDs, money market, and stable value. It is the sticky inflation (4%) that erode the 5% yield of the cash equivalents. As these cash equivalents mature every month, I will reinvest them in bond funds.
Vanguard raises fees, mins on legacy (fund) platform and brokerage platform Since Sept 2022, opting into e-delivery only gets some annual fees waived. To get annual mutual fund fees (legacy platform) waived, one must meet the minimum Vanguard investment requirement. In 2022 that was $1M; it is about to go up to $
5M.
Mutual fund-only customers will need to pay an annual $20 fee per fund starting in September [2022], FA-IQ sister publication Ignites writes, citing Vanguard’s website.
That’s on top of the $20 annual account fee, according to the publication.
While clients can avoid the account fee by going paperless or meeting other standards, the same option doesn’t extend to the per-fund fee, Ignites writes, citing the disclosure.
https://www.financialadvisoriq.com/c/3717064/478154/vanguard_drive_clients_brokerage_platform
Floating rate funds in rising, flat, and falling rate environments Keep wanting to buy FFRHX, but conflicted feelings. The chart above shows Floating rate funds don't excel during times of falling interest rates....which could be on the medium-term horizon. Then you have the YTD runup that Junkster mentioned, along with default risk. Plus the fact that the portfolio is, well, "junk".
But what keeps catching my eye are the close to double-digit yields. Sticking with FFRHX, the 30 day yield is 9.55% (Distribution yield daily is 8.27%) per Fido. High risk, but also decent potential long-term compensation (yield). Is this the definition of "reaching for yield"?
I suppose that if you are a trader, it's a bit late to get on board. But for long-term investors pondering an entry point....do you really wait for the next oscillation down? There might not be one if the Fed pauses and then decides to stop raising rates altogether.
In 2008, Bank Loan Funds lost approx. -30% on average. The waves can be large.
Lastly, I would rather collect close to 5% in Money Markets funds than buy RPHIX. Not a fan, used to own the fund when interest rates were nil.
