100k minimum MM and other accounts

[SteveTheDog]

I have a little over 100k in cash right now that I'm slowly reinvesting. I have it in a MM account at Vanguard that I'm pretty happy with. I thought it might be a good idea to open a FZDXX MM also and leave a little cash to keep it open since I have over the minimum amount for once.

I doubt I'll have this much cash again for awhile so to me it makes sense to get into some of these funds now and then move most of the cash out.

Anyone see an issue with this? I don't see any mention of fees anywhere for dropping below 100k.

Also are there any other funds I should open while I have this cash that I'm overlooking?

 

[JoeWras]

3 months ago, Fidelity official answered this on their reddit (https://www.reddit.com/r/fidelityinvestments/comments/xuvpa0/minimum_for_fzdxx/)

It says:

There are different types of minimums, including a minimum initial investment required to purchase certain money market funds. The money market you have referenced does require a minimum of $100,000 to open the position in your account. After that minimum initial requirement has been satisfied, your balance is allowed go below that level without penalty.
However, 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.

 

[SteveTheDog]

3 months ago, Fidelity official answered this on their reddit (https://www.reddit.com/r/fidelityinvestments/comments/xuvpa0/minimum_for_fzdxx/)

It says:

Thanks. I see that paragraph in the Prospectus now. It might still be worth it for me. I planned on keep some of my emergency fund in MM's anyway. I know there is some risk to principle with them but it seems minimal.