You can easily skip using the cash management account as an intermediary as follows
1. Create a sell order for (fund A).
2. Under Action select "Sell and use proceeds to buy another (Dollars)"
3. Enter the dollar amount of (fund B) you want to buy along with its symbol.
4. Preview and submit your order.

I’m wondering if the above approach would work in going between a mutual fund and an ETF? Reason for asking is they have a very short duration ETF (FLDR) with a low .15 ER that would work as “enhanced” cash within my portfolio. To be effective it would need to be able to interact with riskier funds - either accepting proceeded from sales or funding purchases. (Fido’s quite limited in its income based mutual fund offerings.)
-
Also dug this up on Fido’s site …
“ETFs and stocks do not carry sales charges, but you will be charged a commission each time you execute a trade online (unless the ETF is part of a commission-free online trading program).”
Not sure what to make of those “commissions” and how much the cost might be on a given dollar denominated buy or sell.

I considered PIMIX a few years ago but didn't invest in the fund.
For many years, Pimco Income Fund delivered excellent returns with muted volatility.
The fund's managers made shrewd investments in legacy, non-agency residential mortgage-backed securities (RMBS) after the Global Financial Crisis.
Trailing 5 Yr. and 10 Yr. returns for PIMIX were in the top 1% of the Multisector Bond category as of 10/31/17.
The total AUM dedicated to vehicles using the same strategy, $124 B as of March 2017, gave me pause.
It would be difficult for Pimco Income Fund to maintain meaningful exposure to legacy, non-agency RMBS while the supply of these securities was decreasing in the future.
I also did not appreciate that Pimco has never closed a fund (to my knowledge) due to excessive AUM.
This is not a very shareholder-friendly stance in my opinion.
Having said that, Dan Ivascyn and Alfred Murata are renowned and talented managers.
Pimco is widely respected and it is a very well-resourced firm.
I still believe PIMIX is a decent fund but doubt the stellar performance of the past will be replicated.

This is such a tough question to answer given the gracious but limited info provided. There are so many variables to consider. It's interesting that Mrs. acquired a significant amount recently but is afraid to "risk" this even though a more significant amount is already invested in retirement accounts. One would think that if it was a large amount but an amount much less than already invested - one would be less fearful on the risk part. The bigger question IMHO is what is happening in the next 5-10 years. Is there an expectation to draw from the retirement accounts? When you say "parked" - do you mean in a money market or an S&P 500 Index account? If you explained that tax minimization and downside protection was most important to you (curious) - then it makes sense that tax loss harvesting and dca would be entertained.
All that said, your advisor should consider your entire portfolio and make recommendations on this new $ given the whole strategy/plan. They should provide you with an in depth "education" of WHY... so that you may make an informed decision. They should educate you so that you are well informed to decide. They should not tell you what you should do. I have had very positive experiences with Fid advisors over the years. But, like Dentists and Doctors, all have a different manner... you just have to find the right one that is a partner and explains and is patient. If someone sends you web links without a thoughtful conversation/explanation etc. - then you must move on to another advisor. IMHO. Hope this is helpful.

Revisiting 1 of 2 bond funds I own PONAX. It's up 1.19% with an 1.49% ER! vs. JMUTX +2.19% / .86 ER, FADMX +1.50%/ .67% ER, BMSAX +1.48% / .9% ER. On the bright side, PONAX is performing better than my FXNAX Index (apples/oranges - I know) which is -2.35 but I'm still skeptical of PONAX - especially with such a high ER. Am I missing something? I know a few of you have PONAX but I've been a bit sour on the fund for almost 6 months. Those of you still in PONAX - any thoughts? I realize bond funds are like kryptonite these days but I'm thinking you may have more well reasoned thoughts on why to still be in this fund.

You said the magic word: rebalance.
Assuming for simplicity that rebalancing is done at the same frequency as selling shares, it makes absolutely no difference what one sells. That's because you're adjusting the portfolio to target weightings regardless of what was sold.
Simplified example: Two funds, $150K in A, $150K in B. Target allocation 50/50. Need$1K/month in cash.
Say A goes up $2K in a month, and B goes down $1K. If you sell off the winner, you've got $151K in A and $149K in B. Rebalance and you've got $150K in each. If you sell off the loser, you've got $152K in A and $148K in B. Rebalance and you've got $150K in each.
It has to work out that way, because you've got a fixed number of dollars at the end of each month. You take out a fixed number from whereever, and rebalance the rest.
If you rebalance less frequently than you cash out, it can make a difference which fund you sell (you want to sell the fund that is going to go up less the next month), but the effect is minor.
So the real question is not which fund(s) you want to sell for cash, but what your target allocation is. The simplest thing to do is to put everything into a target date fund whose glide path you like (or a fixed allocation fund if you don't want allocations to change over time) and let everything work automatically. Using a robo advisor, as MikeM is suggesting, is similar to using a target date fund.

I set up a separate account (tax deferred) for withdrawals. It has 3-4 years needed income. It contains low risk mutual funds and ETFs including 1 year of income in the Schwab MM. My plan is to keep replenishing it with my main IRA account in good times and waiting up to 3-4 years if the markets go south. I haven't had to use it yet because I still work part time. Just getting prepared. But I haven't given enough thought to your question.
Your question is a good one since I will run into the same dilemma when replenishing the withdrawal bucket. I guess that makes it all the more imperative to keep the number of investments in the main IRA account, funds or ETFs, at minimum. That certainly would help in re-balancing. Looks like you have 10 funds to keep balanced which is a reasonable portfolio #.
One consideration for me, my IRA money is split 50/50 between the Schwab Intelligent Portfolio and what I call my self-managed account. Withdrawals from the IP get re-balanced automatically. That would be the easy option for me.
Hope more people respond with what they do so I can learn along with you.

Agree with @msf. One needs to verify any form of pension related taxation codes for your filing state. I also agree with verifying RMD calculations.
--- Michigan pension taxation recent background:
In 2011, MI Gov. Snyder (R) and company had a grand plan of removing a portion of the MI single business tax; with the theory of more business growth. However, this lost tax revenue had to be recovered from somewhere. A perverted pension taxation plan was hatched for a change of the rules for a segregated portion of the population. So, they went after the "gravy train" of taxable monies; being those born between 1946 and 1952, and their pension monies. Tis indeed, a mathematically precise target and makes absolute sense in terms of tax revenue generation. The full MI legislative vote had to be settled by a tie breaking vote. The legality of this targeted group taxation was challenged and "voted" as legal by the MI Supreme Court, (R) controlled at the time. The original tax policy is being revisited at this time, for possible revisions.
--- Note: Keep in mind, that among all states; the folks born between 1946 and 1952 comprised a very large portion of those who have company pensions in Michigan, as a result of the formation of unions related to the large auto industry presence in Michigan. Pension plans moved to many other sectors in Michigan, in order for companies to compete for employees.
--- Relative to the original questions/statements for MI pension taxation is that there is a formula (MI schedule 1) to establish the amount of pension(s), single or joint filing that is/are exempt from MI taxation.
2019 Michigan Pension taxation

Reading @Catch22’s post above …
I assume the owner of the account (you or I) makes the final decision as to when to take the RMD (in compliance with the governing law). Fido may indeed calculate an amount and send reminders.
Actually, my read of the law is that RMDs do not have to come evenly from various fiduciaries. You are allowed to pick and choose where to take it. I’ve no problem taking distributions from their cash account when / if I decide to do it. Now only 25-30% in Traditional IRAs. Pull more out most years than the calculation calls for. Prefer to pay taxes on distributions now and let the Roth grow as a % of invested assets.
Took my RMD early this year for rather complex reasons related to rebalancing. Essentially, through a “merry-go-round”, the proceeds ended up in PRHYX as part of my portfolio’s bond component. (But it’s complicated.)
One further note: We’ve discussed Michigan’s mandatory withholding here before (the “pension tax” as it’s called). ISTM Catch did once report having filed the Michigan W 4-P with one or more of his custodians years ago. And, likely it remains in effect until he changes it. (Obviously, my recollection might be wrong). I’ve always thought TRP was being overly restrictive on that issue.
I’ve read before (but don’t have time to research it) that the state even withholds tax from Roth distributions w/o the W 4P being on file. Completely illogical. Of course you’d get the money back at tax time.

Hi hank,
Below are the choices (Fidelity) when one has a RMD from a traditional IRA. We'll have to do the RMD's again for 2021.
This process starts with selecting the "transfer" icon that steps you easily through selecting your traditional IRA account, how much money, which bank or c.u. account to move the monies and tax withholding choices.
Note: the RMD money will come from your "core cash account", so if one's RMD is $5,000; you'll have to have this amount in your cash account prior to the transfer. In my case for the 2021 RMD, I currently have $104 in cash; so, at some point before April of 2022, I'll have to sell something, which will automatically go to the cash account to accommodate the required RMD amount. ALSO, Fidelity will provide to you, the RMD calculation for your IRA account with them, based upon the value of your IRA account.

Choose your federal tax withholding
The IRS requires Fidelity to use 10% as the default rate for federal taxes.
Federal tax rate, 10% (default)
You can choose to increase this rate or opt out by selecting '0%'. If you opt out, you may need to pay these taxes when you file your tax returns.
Choose your state tax withholding
Based on MI rules, the default state tax rate is 4.25%.
State tax rate
4.25% (default)
You have the option to change this to a higher percentage or opt out.

@hank, I believe TMSRX is a TF fund at Fidelity. Even so you can do "automatic investment" at specific amount and date for purchase, $5 fee. No fee for selling TF funds. Other TRF funds are on no-transaction fee platform. Each brokerage is different on who is or not on NTF platform.

Earlier this year, I purchased TMSRX at Fido with a TF. But after checking on it recently, I see that it is now offered NTF at Fido. Good news for a change!

@hank, I believe TMSRX is a TF fund at Fidelity. Even so you can do "automatic investment" at specific amount and date for purchase, $5 fee. No fee for selling TF funds. Other TRF funds are on no-transaction fee platform. Each brokerage is different on who is or not on NTF platform.
In kind transfer is always free at Fidelity and everything can be done online.
These days I am using more ETFs just to keep thing simpler.

Thanks a lot Bee for commenting and correcting me.
Initial withdrawal - 4% annually
Will claim SS at the age of 70 (corrected)
PV - overlooked - based on the historical analysis - value of portfolio increased with 4% withdrawal in the last 5 years. So 1st option is simplest and manageable. Thanks for the backstop provided by Central Banks.

+1 I've been using ACSNX PRWBX EALDX and VUSB in this area,with slight allocations to TRBUX and BBBMX as these funds each lost more than 150 basis points in 1Q 2020.

Transfers in kind are always free on the receiving end - at least I've never seen anyone list a charge. Charges on the sending side are another matter.
Fund families don't charge fees to transfer out in kind, again AFAIK. Some brokerages do charge - they may have one fee for a partial transfer (i.e. less than all your holdings), another fee for a full transfer, or both or neither. Fidelity charges no outgoing fees. Schwab charges $25 for partial in kind, $50 for a full transfer.
https://www.fidelity.com/why-fidelity/pricing-fees (includes Schwab pricing comparison)
That still beats WellsTrade by a mile - it charges $95. Here's a page giving in-kind (ACAT) transfer fees from various brokerages:
https://topratedfirms.com/brokers/fees/brokerage-account-transfer-fees.aspx

Appreciate the notes @mef / @MikeM,
“D&C funds are transaction fee funds, but once you have positions in the funds at Fidelity (via transfer in kind), it may be possible to add more shares for a $5 fee and sell with no fees.”
- Just out of curiosity (being pretty much in the dark) when doing a TIK (transfer in kind) I assume there’s no charge? Or … is the charge waived only for NTIF funds?
- Re PRWCX … Since I have it now in a traditional IRA, may I assume (1) I can do a TIK to fidelity and (2) my ability to buy and sell shares will continue (as long as I don’t close the account) ?
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This will be a gradual process.
The recent issue involved their ignoring the Michigan W-4P (withholding opt-out form) which I have faithfully completed and mailed to them every January 1 for about a decade (ever since Michigan began mandatory withholding) along with a typewritten letter and list of funds affected.
For whatever reason, yesterday they withheld Michigan tax from one of the two distributions. My transaction was a pretty routine process. Simply exchanging from 2 IRA funds into a single non-retirement money market fund. There’s a check-off box to decline federal w/h - but not for state. According to their phone rep this morning having a W-4P on file is no longer adequate. The distribution request must also be presented to them in a phone call or by letter for the W-4P to be honored. “Why-Oh-Why just the one fund?” (I asked). Why was the second distribution not hit with the same withholding! Answer: “That was a one-time occurrence” (ie: an accident).
At this point I’m holding my breath hoping they don’t go back and pull tax out of the unafflicted fund.
Ahhh …

Hello All,
I will be retiring shortly and looking to develop a plan for de-accumulation (HARD).
All of my investments are in tax deferred accounts.
I plan to claim Social security @ the age of 72 (will help me burn tax deferred money, reduce RMD).
Tax bracket will not change = 22% as of now, will convert some to Roth and stay below IRMAA limit.
Plan options:
- I sell 1/10 of monthly expenses from 10 funds even or
- I sell 1/5 of monthly expenses from top performing 5 funds (3 yr returns) or
- I sell 1/5 of monthly expenses from bottom performing 5 funds (3 yr returns)?
- I sell 1/5 of monthly expenses from top performing 5 funds (1 yr return) or
- I sell 1/5 of monthly expenses from bottom performing 5 funds (1 yr return)?
Selling will be every quarter.
Funds are mixture of growth, value, multi-asset/balance and bonds.
I want to make it as mechanical as possible.
What do you think about my options?
Do you have any similar strategy?
Any comment/feedback will be highly appreciated.
Thanks.
D

Congratulations.
That's too bad about T. Rowe Price. Over the years I've found them extremely helpful, whether it was in setting up my individual 401(k) or with issues in managing it, or in navigating their closed fund rules, or with steps to distribute assets from an estate.
(OTOH, it took me six months to get a correction distribution out of a rollover IRA that came from a 401(k). There had been an excess contribution in the 401(k) that needed to be undone. No institution is perfect.)
As I recall, you have some D&C funds directly with the family. If you want to consolidate them at Fidelity, you may be able to do that without increasing your costs too much. D&C funds are transaction fee funds, but once you have positions in the funds at Fidelity (via transfer in kind), it may be possible to add more shares for a $5 fee and sell with no fees.
You first have to check whether Fidelity allows automatic investments for these funds. It does for most, but not all. To add to your position, you set up a series of automatic investments, then after the first one executes you cancel the rest. This gives you control and costs you $5/buy. Selling is done as usual, by placing a same-day sell order.
Whether it's worth the nominal fee and small lag time in making purchases (automated investments are not supposed to be set up as same-day purchases) is a matter of personal preference.

May 21st Episode @catch22 ping:

https://www.sec.gov/Archives/edgar/data/1843841/000158064221002475/dgi497s.htm
(DGTIX, DGINX, DGIBX)
497 1 dgi497s.htm 497
SUPPLEMENT DATED MAY 24, 2021
TO THE PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 21, 2021
OF DGI BALANCED FUND (the “Fund”)
(a series of the DGI Investment Trust)
Effective May 24, 2021, the Fund will be closed to new investors and, except as discussed below, will be closed to new sales until further notice. Existing investors who had a pre-existing periodic investment plan through their individual retirement account (“IRA”) or who submitted a rollover request on or before May 17, 2021 may continue to invest in accordance with that plan or rollover request. Also, existing investors who hold their shares in the Fund through an IRA will continue to have their dividends and other distributions reinvested in the Fund. The Fund may restrict, reject or cancel any purchase order and reserves the right to modify this policy at any time.
Please Retain This Supplement For Future Reference.
_________________________________________________________________________________________________________
http://www.dgifund.com/

PRAFX is sporting a 1-star rating at Morningstar at this time. Guess that’s due to its only being up 50% over the past year. Don’t intend to sell based on this dismal assessment. Only hold a “smigin” anyway, choosing to complement it with 3 other funds inside my 7.5% allocation to “real assets”. Just points to how crazy the M* ratings can get.
There is no consistent approach in the commodifies / real assets sector. Anything from gold miners
to John Deere farm equipment - and from oil rigs to mobile home parks is fair game for these type of funds and their managers. So trying to award “stars” on some kind of commonality among them is pretty futile.
In contrast, Lipper gives PRAFX the following scores (scale of 1-5)
Total Return 5
Consistent Return 5
Capital Preservation 1
Low Expense 5
Tax Efficiency ) 5
Admittedly, there’s a world of difference between Morningstar’s rating system and the “ranking” by percentiles that Lipper publishes.
Anybody else sitting on a 1-star fund? This is my first ever - based on recollection. No place to go but up …