You are correct this is what I am doing. All deposits go to Chase and sit in VMFXX until needed. Once a quarter I sell 3 months of living expenses and send them to fidelity CMA. Yes it is added complexity, but 4x a year isn’t that big of a deal.Are you using Chase and Fidelity? Why not just choose one?I use Chase as my main checking account. I keep a brokerage account there and hold my cash via vanguard money market fund. It can take the same day to sell and get funds back into my checking account. Sometimes it takes the next business day. I recently switched to Fidelity CMA for holding my spending money. This is where I put 3 months of living expenses where all my credit cards and bills autopay from there. I did it for simplicity so that I don't need to move money around every month at chase. I do not do any check deposits at fidelity. Everything goes into my Chase account and then into a Vanguard money market fund. I replenish my Fidelity account every 3 months. Basically all my finances ar done quarterly coinciding with quarterly taxes.
I could be misunderstanding, but it sounds like you have all of your deposits going into Chase and then you're buying VG money markets at JP Morgan and then once a quarter selling funds and moving it to the CMA. If that's the case, you're already moving money around at Chase pretty frequently (unless you're retired living off investments?)
My reasoning for this additional step is that Vanguard funds pay more interest in their money market accounts than Fidelity. I am also a Chase private client so I keep $150k in vanguard funds at their brokerage to keep up that status. It has come in handy multiple times over the years. Lastly, with CMA locks, I want to make sure I have an alternate location to store my not to distant future spending cash accessible.
Statistics: Posted by EnjoyIt — Mon Dec 16, 2024 9:14 am — Replies 919 — Views 66604