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Circumstances change over time. When I was still employed and younger, I was rather aggressive investor, traded often, and used Wellstrade Brokerage, because I was given 100 free trades a year. When I retired, my wife and I moved to a smaller city, to be close to my children and grandchildren. With that move and retirement, I decided to transfer my brokerage assets to Fidelity--that was a good experience for me until Fidelity started eliminating many of the Institutional share class funds, and replacing them with a different share class. I was not pleased with that decision by Fidelity, and decided to switch from Fidelity to Schwab Brokerage, because Schwab was still offering those Institutional share class funds that Fidelity was closing. Schwab also incentivized me to make that brokerage transfer, by offering to reduce the Transaction Fees, for the Institutional share class funds, to only a fraction of the normal Transaction Fee. It was also helpful that only Schwab had a brokerage office in the small city we had moved to. That was especially comforting to my wife, knowing she could go to the Schwab office for assistance, if she outlived me. Of the 3 brokerages I have used, Schwab provided me the best overall menu of funds, best fund research tool, and the most institutional share class funds. When I cashed out of the market in 2022, I had such a large amount of cash that I was able to invest in SNAXX as the Money Market fund that paid the highest rate. SNAXX has been paying close over 5.4% for most of 2023, and some of 2024, but recently dropped to around 5.3%. I am willing to hold larger amounts of cash in SNAXX for liquidity reasons, and wait for the CDs in highly rated Banks. I did decide to transfer a large chunk of money out of Schwab in 2023, to my Capital One Bank account, because they were offering CDs at a 5.25% rate, and if I needed to sell those Bank CDs early, my penalty would be just 3 months of interest. I prefer Bank CDs over Brokerage CDs, for liquidity reasons, but I am at my maximum FDIC insured amount for Capital One.There are institutional share classes and institutional investors. Schwab has designated more funds as accessible only to institutional investors / advisory platform; some of these funds are accessible to retail at Fido but the institutional share class of these funds at Fido is very high ($1m?) compared to at Schwab
Sometimes yes, sometimes no.
AQR institutional class shares, e.g. QDSIX (an MFO Great Owl) are as you described - available only to institutions at Schwab and available for a seven figure min ($5M) at Fidelity.
Allspring (formerly Wells Fargo) institutional class shares, e.g. WFMIX (another MFO Great Owl) are available only to institutions at Schwab but open to retail investors at Fidelity. In an IRA (and only in an IRA), Fidelity sets no min. One could buy $50 worth for $99.95 including TF.
a CD of any bank that has the potential to be forced by regulators/ FDIC to be taken over by another bank, the acquiring bank is allowed to change the interest rate on the CD for the remaining time period prior to maturity - generally speaking.
Yes, but. There is an out. If the rate is changed, the saver is allowed to get out without penalty. The risk is in having one's long term rate lock broken. A saver does not face an unexpected liquidity risk; in a sense just the opposite.
https://www.fdic.gov/consumers/banking/facts/payment.html
(See: How does a bank closing affect interest accruing on my deposits?)
If you've got at least $10K in cash in your IRA, you can open up a position in FZDXX ($10K min for retirement accounts). It's currently paying 5.15%. Fidelity officially requires one to maintain at least $10K in the fund, but generally it is quite forgiving so long as you don't bring the balance down to zero.
This is not a core fund, so any time you have cash in the IRA (e.g. non-reinvested divs), you'll have to move it to FDRXX yourself or the cash will sit in your "Cash, Held in Money Market" fund.
To answer the original question: click on the cash link as described above. You may see a "Change Core Position" button if other options are available.
Thanks for the tip on FZDXX...I've had retirement accounts at Fido for a very long time and never heard of a reduced minimum for such accounts, until now. Just made the switch!
My retirement portfolio is kicking off over 6%, most of which gets reinvested into my taxable account -- including all the MM interest.Guys, my question is only WHERE low_tech is going to move his money when mm drops below 4.5% !
Nothing to do w 4% swd, which has always been low imo.
If you're looking at your account positions and seeing "Cash, Held In Money Market", that's cash held in a money market fund, not a money market bank account. Click on the link. You'll likely see that it is SPAXX. Mine are FDRXX, perhaps because of grandfathering. Just a couple of basis points difference between them. Both are just south of 5%.I’m really getting screwed. I remember when my Fido retirement accounts used SPAXX. Than that changed a year ago to “money market.” I didn’t realize there was a difference. Duh. Please advise what step I need to take in order to change my settings so that SPAXX serves as the sweep account for my retirement accounts.
I wouldn't expect ANY one thing to hold for a 30-year income. But for the time being, I have 20% of my retirement in a MM fund. If/when it drops to 4.5% or less, I will move that money somewhere else.@Low_Tech. Cool idea. What are the odds of that working for a thirty year retirement?
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