Going From Mutual Fund Only to Brokerage a Bit of a Nuisance For Me

[easysurfer]

I recently switched over from Vanguard to Fidelity. No need to go over again because there's plenty of other threads discussion that.

I was in the mutual funds only platform. But I guess a funds only platform is pretty much extinct these days (unless you want to get socked with fees at VG).

So, now I'm at Fidelity with their brokerage account. I don't regret moving over to Fidelity but brokerage account has been a bit of an adjustment. Main adjustment is the "core funds" that are kind of like cash, kind of like regular mutual fund. I've tried to just use like regular Money Market fund but they can't be set up to auto exchange like regular funds.

I ended up opening some regular money market funds in Fidelity with these core funds to get rid of them. But then I look at my position today and dividends were auto deposited in, so the core funds popped up again (whack a mole). Not only that, but when I was fund only I had spreadsheets all created. Now I have to adjust the spreadsheets too. These core funds may have borked one of my spreadsheets as I had that all set up for rebalancing at start of year.

The nudging thinking everyone wants to trade out of brokerage accounts is more complicated than needs to be for folks who just want to keep it simple like the good old days.

Okay, rant over .

 

[pb4uski]

Sounds like you have some funds set to automatically reinvest dividends when that's not what you really want to happen. A simple call to Fidelity shoudl be able to fix that and have all interest and dividends go into your settlement account.

 

[audreyh1]

You can readily turn off auto reinvestment online, but you might need to have someone walk you through it over the phone first time.

 

[easysurfer]

I did make changes online to have dividends and capital gains directed in my individual account to one of the money market funds I have there. Hopefully this will work. I'll believe when I see it .

 

[audreyh1]

I have that set up and it works.

 

[OldShooter]

... I ended up opening some regular money market funds in Fidelity ...

... one of the money market funds I have there. ...

Why do you have more than one money-market fund?

 

[COcheesehead]

Premium money markets are not settlement accounts so any dividends, interest etc, will go to a default core account. You just need to then do a buy into the money market. I do it all the time.

 

[easysurfer]

Premium money markets are not settlement accounts so any dividends, interest etc, will go to a default core account. You just need to then do a buy into the money market. I do it all the time.

Yes, an extra step. More a nuisance than anything too big.

I figure, when rebalance time rolls around (I do start of the year), a day or two before, if any cash in the core positions, I'll buy into money market. Then after they settle, I can exchange among funds like I normally do.

Kind of double clutching, but should work.

 

[easysurfer]

Why do you have more than one money-market fund?

One to hold my regular cash position for rebalancing. The other as emergency fund and monthly deposits from money market to my checking.

 

[COcheesehead]

Yes, an extra step. More a nuisance than anything too big.

I figure, when rebalance time rolls around (I do start of the year), a day or two before, if any cash in the core positions, I'll buy into money market. Then after they settle, I can exchange among funds like I normally do.

Kind of double clutching, but should work.

See I just do my buys and the money pulls from either the core or when it’s depleted, the money market automatically. If I am not buying anything, I just buy into the MM.

 

[easysurfer]

See I just do my buys and the money pulls from either the core or when it’s depleted, the money market automatically. If I am not buying anything, I just buy into the MM.

So you are saying shouldn't need to do a two step double clutch?

 

[Bruno]

Some of your problem might be like i moved VG EJ accounts to Schwab and admiral MF they cant reinvest Div from certain Funds. The main account is SPAXX and its paying 4.97% but if you have enough you can move it to FZDXX and its paying 5.15%. Yes you have to move it and its like MF. Fido has their own forum FIC for customers. Easy to join.

 

[COcheesehead]

So you are saying shouldn't need to do a two step double clutch?

If you do, they’ll put you on double secret probation.