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We have had many thorough conversations here at MFO. Here's what I searched:@bee Sorry if I'm being dense. My wife has an HSA through her employer. I understand contributions are tax deferred and I also understand it converts to IRA after you retire, or if you lose your job. What I didn't know however is you can invest it right away. First, will find out if the HSA is even invested is some fund at her employer plan. Second, if possible to divert funds into external fund.
However, most important question. Isn't investing it risky? I mean what if fund tanks right about the time you need to pay doctor and you run out of cash? For us, HSA just started last year and we used a bit of it of course already, so not much there at this time.
https://time.com/5828325/coronavirus-covid19-seasonal-asymptomatic-carriers/Chinese scientists say the novel coronavirus will not be eradicated, adding to a growing consensus around the world that the pathogen will likely return in waves like the flu.
It’s unlikely the new virus will disappear the way its close cousin SARS did 17 years ago, as it infects some people without causing obvious symptoms like fever. This group of so-called asymptomatic carriers makes it hard to fully contain transmission as they can spread the virus undetected, a group of Chinese viral and medical researchers told reporters in Beijing at a briefing Monday.
That's similar to what a trader (Darlene-someone, IIRC) years ago called a 'Chicken Bull Put' ... she sold put spreads that went out less than a week, if not day, before expiration. The long put protected the position from multi-sigma moves against it, which I thought is a good thing. Indeed, selling puts or covered calls can goose annual returns if done right over time ..... so good luck!
I made $500 selling OTM puts in SPY last week in my fidelity account. SPY has 3 expiry dates every week. I just sold PUTs the day before each expiry. It was ridiculously easy.
For a few months, I've been promising myself to make a post on being careful about what numbers do and don't represent (i.e. look behind the numbers). Figures like ERs, duration, performance. One of these days.I own PRIDX. ... It fell hard with coronavirus. But it's coming back, down -13% now, ytd. Down to 3 stars, but still with a silver decoration. ... Top 15% among peers, ytd. Not a great showing compared to peers LAST year, but still very good indeed.
The Trinity Study:First, I wanted to see how this was working with recent stock market returns. The original study was only covering years up to 1995. I wanted to have more recent data. I wanted to make sure that the results were holding with more recent stock market behavior. So this simulation will cover returns until the end of 2019!
Secondly, the original study was only covering up to thirty years of retirement. I wanted to be sure that the portfolio can sustain withdrawals for much more extended periods. For people retiring early, I think that 50 years is not unreasonable.
I don't subscribe but for some reason the link worked for me.....The economists Milton Friedman and Anna Jacobson Schwartz demonstrated in “A Monetary History of the United States” that a collapse in the quantity of money was the main cause of the Great Depression. Hoping to avoid a repeat, the Federal Reserve in recent weeks has poured money into the economy at the fastest rate in the past 200 years. Unfortunately, this overreaction could turn out just as poorly; history suggests the U.S. will soon see an inflation boom.
Excluding the years immediately after the Revolutionary War, the past few weeks have seen by far the highest rate of monetary expansion in U.S. history. The Fed might defend itself by saying that its “shock and awe” tactics have given financial markets confidence that the coronavirus won’t cause a long and deep recession. And its massive bond purchases—more than $500 billion between March 11 and April 1—surely won’t continue at the same rate for the rest of the year.
It’s reasonable to assume that by spring 2021 the quantity of money will have increased by 15% and possibly by as much as 20%. That wouldn’t quite match the peak rates of expansion seen during and immediately after the two world wars of the 20th century, but it could surpass peacetime records, outpacing the previous peaks in the inflationary 1970s.
As in wartime, federal expenditures are rising sharply while tax revenues are being hit by the lockdown. Both World War I and World War II—and, indeed, the Vietnam War—were followed by nasty bouts of inflation.
Mr. Congdon CBE is chairman of the Institute of International Monetary Research at the University of Buckingham, England.
Fidelity?
Fidelity for me and others who like to invest in Instit funds and trade sometimes is a better choice. That's how I invest.
What's your metric? Something quantifiable, like time to complete tasks. If it can't be quantified, then the comparison is merely subjective.
- Schwab has a better online platform. It’s easier and more intuitive.
How do others like you add to those Instit funds, like say, PIMIX, without incurring nearly $50 in fees every time, as opposed to $5 at Fidelity?
- Schwab offer more lower min funds. Examples: 1) All Pimco Instit shares have one million min at Fido but just $100K at Schwab. This means that for every $100K you will save $250 at Schwab per year 2) JMSIX,IISIX are NTF and Schwab but not fidelity. Many Fidelity customers buy these funds at other brokers and transfer.
As the saying goes past performance does not guarantee future returns. Fidelity also provided sizeable bonuses in the past. Right now, Schwab isn't offering any promotion that I can find for existing customers.
- Schwab reps will work harder to please you with fees, Fidelity reps are much tighter. In the last several years I got over $3500 cash rewards from Schwab after a transfer money from Fidelity which doesn't pay cash reward, I get free transactions on Istit share (extremely hard at Fidelity). I always ask for stuff and get it most times at
Not quite. Fidelity only reserves the right to assess the charge. Fidelity doesn't usually charge it. I even tested this a couple of years ago, by withdrawing the same amount using Schwab's card and Fidelity's. Each of the respective accounts was debited the same amount. That's when I decided that Schwab bank wasn't providing me any benefit.
- Schwab has a global ATM with a true no fees, Fidelity ATM has a 1% foreign transaction fee for other currencies
This is a thread about sector funds. So let's look at costs of Schwab sector funds. No tech, just a health care fund (SWHFX, 0.80% ER vs. 3 Fidelity sector funds with ERs between 0.71% and 0.76%), and a global real estate fund (SWASX, 1.05% ER vs. FIREX at 1.02%), not even any domestic real estate funds (Fidelity has two).
- Schwab target funds and ETF are cheaper than VG and Fidelity and most have just $1 min.
At worst, that's a one time effort to pick the right fund. At Schwab, every time you want to make a security purchase, you have to remember to explicitly sell shares of your MMF. Fidelity takes care of this for you automatically.
- Schwab doesn’t have a good sweep MM but you can just use SWVXX with competitive yield and trade in/out like any other fund and it doesn’t have a minimum. Fidelity makes it harder with several funds and different minimums.
Honestly, you are 100% misinformed on Fidelity. If you sell a fund in your IRA, you can’t buy another online? That’s just straight up false."I can just buy Fidelity® Select Technology Portfolio (FSPTX) with ER=0.72%. And I don't need to wait 3 years to get ER=50%"
That's true. WIth FSPTX you'll need to wait forever to get an ER of 0.50%.
"Can you find another big discount broker that has one million dollar min to buy Pimco Instit shares(example PIMIX)?"
Yes.
Can you find a big discount broker that has a $25K min (or less) to buy Pimco Instit shares (example PIMIX)?
Since you mentioned FSPTX, can you find a big discount brokerage aside from Schwab that has a $2500 min to buy the fund in a taxable account? Can you suggest brokerages where one can buy this fund without a fee?
Schwab apparently meets your needs. I'm happy for you, really. It's a great brokerage. But your needs are not the same as those of others.
You wrote that you "never tell [others] to use [your] style, never, [you] helped them using their style." That makes the blanket marginalization of Fidelity ("lost its way") tantamount to saying that independent of an investor's style, Fidelity is a poor choice.
When Schwab makes additional purchases of share classes like PIMIX available for less than $10/purchase, I'll consider it. When Schwab starts letting me pay bills out of a cash account with a decent yield (not just 0.05%), I'll consider it. Until then, it doesn't meet my needs.
You got it. Fidelity for me and others who like to invest in Instit funds and trade sometimes is a better choice. That's how I invest. If you just buy and hold then VG maybe your choice.
- Schwab has a better online platform. It’s easier and more intuitive.
- Schwab offer more lower min funds. Examples: 1) All Pimco Instit shares have one million min at Fido but just $100K at Schwab. This means that for every $100K you will save $250 at Schwab per year 2) JMSIX,IISIX are NTF and Schwab but not fidelity. Many Fidelity customers buy these funds at other brokers and transfer.
- Fidelity has strict trading rules not found anywhere else and not mandated by agency, SEC or anybody else. Examples:
1) if you sell a fund in your IRA, you can't buy another online, you must call a rep and spend time
2) Even if you sold a fund and call a rep you can only buy at 90% of the proceed. At Schwab it’s easy, you sell your fund and just enter another fund. For bond fund I buy at 99.5% for stock funds I buy at 98-99% because I look at what markets are doing
3) Suppose you own mutual funds in your IRA and you don't have any cash and want to buy a stock/ETF, you can't do it, you must sell your fund and wait one say for settlement. At Schwab, you just buy your ETF, see how much you own and sell your mutual fund to cover it. This is a huge advantage for me. Over the years I'm invested at 99+% but I trade several times annually. That means thousands of dollar which I can't do at Fidelity because I must have it in cash.
4) Schwab doesn't care if you trade their funds, Fidelity will punish you on a roundtrip less than 30 days.
I basically want all the flexibility I need/want.
- Schwab reps will work harder to please you with fees, Fidelity reps are much tighter. In the last several years I got over $3500 cash rewards from Schwab after a transfer money from Fidelity which doesn't pay cash reward, I get free transactions on Istit share (extremely hard at Fidelity). I always ask for stuff and get it most times at
- Schwab was always/mostly the leader for lowering fees vs Fidelity
- Schwab has a global ATM with a true no fees, Fidelity ATM has a 1% foreign transaction fee for other currencies
- Schwab IT is more advanced and faster. Example: Funds dist are placed in your account on the same day at Schwab. It takes Fidelity most times 2 more days. Fidelity FULL VIEW(where they link all accounts from other institutions) was broken for months and still can be off. Schwab has a similar feature and it works better and faster. If you traded funds you will see it at Schwab the same date with all the settlement while it takes Fidelity longer.
- Schwab target funds and ETF are cheaper than VG and Fidelity and most have just $1 min.
- Schwab doesn’t have a good sweep MM but you can just use SWVXX with competitive yield and trade in/out like any other fund and it doesn’t have a minimum. Fidelity makes it harder with several funds and different minimums.
- In the last 2-3 year, Fidelity reps knowledge deteriorated significantly.
- At tax time I have been waiting at Fidelity 15-20 minutes for a rep to answer while I never waited more than 1-2 minutes at Schwab.
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