Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Reinvested dividends give investors fractionally more shares. As the value of a stock increases, the value of those fractional shares increases as well. This tends to widen the gap between adjusted (div reinvested) share value and unadjusted (ra…
Stockcharts link?
An unadjusted stock price is lower - it drops every time a dividend is paid. Look at Yahoo's historical price table for AAPL. On Feb 9, the closing price went up 53¢ (from $188.32 to $188.85) due to market fluctuation. The a…
That addresses the dividends. However, are not capital gains separate?
Regardless of what distributions are called, the effect is the same. Though for tax purposes distributions may be characterized as ordinary income divs, qualified income divs,…
I don't think the above chart is correct. M* shows for 5 years that PRWCX made 73.4% and WVENX made 58.9
I can't see the referenced chart, though I suspect it is a price chart and not a chart of total returns.
The underlying premise, viz. that div…
Thanks. Sounds like you did a great job of negotiating, bargaining up from a competitor's offer.
Schwab seems especially amenable to negotiating. It's as though AUM is paramount to them, regardless of how little or how much they make on thos…
When I moved to Schwab from Fidelity, Schwab was matching "cash incentives" offers, from competing brokerages. They matched an E-trade offer for me.
Did they match the terms of the offer or just the amount? Merrill requires one to maintain the ba…
Often a brokerage will allow an investor to transfer in shares of a fund that cannot be opened at the brokerage. In the past I've transferred to Merrill Vanguard Admiral shares and institutional shares of a fund in another family. Neither of thes…
A Schwab rep called on Monday. We talked about Schwab acquiring a lot of former Vanguard customers and what Schwab can do for them, like waiving Vanguard fund fees. A very open conversation, where I asked for fee waivers and Schwab was amenable w…
The example I gave of an issue with T+0 had to do not with T+0 intrinsically, but rather with the friction between T+0 and T+1. It came from personal experience and I presented it only as an existence proof that inconsistent MMF settlement dates d…
I like the idea of looking at NRSRO ratings such as Fitch. Financial institutions will usually give their ratings on their website.
For example, here's Morgan Stanley Bank's ratings. Morgan Stanley has its own credit ratings and separate rating…
FYI - The link takes one to the login page.
If you're already logged in (requires a Merrill account) the link takes you to the cited page. If you have a log in but are not logged in, then when you log in on that login page you'll land on the cite…
@msf- If you can temporarily pool enough cash to get into SUTXX, once that fund is open you can reduce the holding to well below the $1m. I was advised on that at our local Schwab branch, and that's our situation at the moment, having just taken cas…
Thanks for the suggestion.
Elsewhere (another thread) I considered SGOV or USFR as partial subs for Vanguard Cash Plus (which can hold MMFs as well as having a bank sweep).
I could use an internet bank for FDIC-covered cash (many still paying 5%+),…
Thanks. As it turns out, I just had a couple of conversations with Schwab today. They let me know about this option; they even referred to it as a loophole.
No way I could come up with that much cash in a taxable account. Whatever taxable cash…
I do not know how much money Schwab makes on their payment for order flows but I can bet Fidelity makes a lot more from me on their MM funds and 12b-1 fees on non-Fidelity funds.
In 2021, 10% of Schwab's total revenue came from PFOF. That was pur…
The card readers that set the crypto codes every 24 hours used a type of IBM paper punch hole card.
Old, old joke:
How was Thomas J Watson buried?
9 edge down.
Etymology of "nine-edge" and "twelve-edge"
I agree that Schwab is better at providing access to institutional class shares. Above, I wrote: What Schwab did right was reduce the mins on lots of funds (including institutional share classes)".
Though more does not necessarily equate to bet…
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 c…
DIfferent strokes for different folks.
Geographic proximity will vary from person to person. There's a Schwab office just a five minute walk away from me. (The walk to Fidelity is about an hour, i.e. 3 miles, but it takes me over a national …
Based on the timing, I'd guess the explanation is that MrRuffles is a Schwab Private Client. This is a new feature added July 10, 2023, and includes a dedicated rep.
Schwab press release
These dedicated reps, even credentialed ones, are more sa…
VMRXX: 5.28% SEC yield + 0.10% ER = 5.38% gross yield
VMFXX: 5.27% SEC yield + 0.11% ER = 5.38% gross yield
Vanguard taxable MMF table
For more safety (backed by full faith and credit of Treasury), VUSXX has a gross yield that's a basis point lo…
Try and spot someone who doesn’t have a cellphone / iphone in their hand.
Ooh, ooh, me, me :-) I don't usually use mobile phones, smart or otherwise.
Though I have to admit that having a mini-computer (no SIM) in my hand for guidance did recen…
I gave Vanguard a chance too, but they said they would ignore all of our existing low cost basis stocks so I though that was a no go.
Years ago I suggested to a friend what became Vanguard Personal Advisor Select. (At the time there was only one t…
The "usual suspects" in insurance do seem to require you to have an auto policy with them before they will sell you an umbrella policy. Try working with an independent agent. They are familiar with a variety of lesser known but still solid compa…
over this weekend, we will consider to transfer the remaining Vanguard mutual funds in our joint account. Since I can buy the ETF equivalents,
Generally at Vanguard if there's an "equivalent" ETF for a fund, the ETF is just another share class of t…
Thanks to all for the information, both here and via PM. Years ago, Fidelity used to offer various tiered bonuses. Here, e.g. is its 2018 promotion:
https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/Cash-Offer.pdf
Since…
Based on 2023 portfolios, in high tax states (~10% marginal rates) SUTXX is competitive with VUSXX on an after-tax basis.
Rougly 20% (19.94%) of VUSXX was subject to state income tax.
That shaves ~20% x 5.28% x ~10% ≈ 0.1% off the after tax return.…
Three weeks to go before new fees kick in. I'm still debating about closing out Vanguard accounts. I opened them almost exclusively to buy Vanguard funds: low cost actively managed Admiral shares, a Treasury MMF (for yield and tax purposes), a r…
Is it the case that within a CMA one can buy a Fidelity mm fund? If so, are there are any important drawbacks to the CMA?
I addressed the second question, which was predicated on the answer to the first being affirmative. Yes, one can buy a Fidel…
so the answer is yes to my question?
I don't know - you didn't define "meaningful". All I can do is keep adding to a list of differences and see if you consider any of them meaningful.
Some people consider added inconveniences to be meaningf…
The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
https://www.fid…
If you can manually buy (from your sweep) one of their 5% money funds, looks like a complete winner
In your Fidelity brokerage account, "When [you] sell something in [your] Fido account the proceeds go automatically into FDRXX."
Regarding Fidelity cash management ... Currently you're limited to a bank sweep paying 2.69% APR (2.72% APY).
A Fidelity CMA account is different from a Fidelity brokerage account.
What you have is a "Fidelity brokerage account, not a CMA account.…
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…
Fidelity calls "Fidelity Account" a "full-featured, low-cost brokerage account"
In a taxable Fidelity Account, one may use SPAXX or FZFXX as a core account, or let Fidelity hold your cash on its books as a general liability (i.e. you're lumped in w…
I also concur with @rforno 's observations, at least the first few. (I don't invest directly with foreign equities or do realtime trading.)
Several years ago when I had accounts at both brokerages I compared bond prices and came to the same conc…
I'm not sure everyone is clear on the meaning of the 4% rule. The objectives are simplicity and very high confidence that one will not run out of money within 30 years.
Conditions will surely change -- but we don't know when or in which direction…
