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Business, Economics, and Taxes: Eat Cereal for Dinner

dxmnkd316 said:
Yeah, it's basically as good as treasury bonds for all intents and purposes. (Usually because they're heavily invested in bills and bonds, sometimes exclusively depending on the offering.) Slightly more risky but not by much.

make sure you spread it between accounts if it's more than $250k. Not sure if fidelity does that automatically. I thought I read something about them doing that.
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Yeah I’m just gonna call my accountant to be safe
 
Deutsche Gopher Fan said:
I have fidelity accounts and googling keeps returning that they are not fdic insured

but the internet is always right
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Brokerage accounts are not FDIC insured.

Also, it’s highly doubtful that Fidelity is going under any time soon, so I wouldn’t give it too much worry. They have too many ERISA and pensions plans under trust and management. Big money, no whammy.
 
St. Clown said:
Brokerage accounts are not FDIC insured.

Also, it’s highly doubtful that Fidelity is going under any time soon, so I wouldn’t give it too much worry. They have too many ERISA and pensions plans under trust and management. Big money, no whammy.
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Yeah I more need to understand tax implications. I know a little about mutual funds vs ETF, things like that
 
St. Clown said:
Brokerage accounts are not FDIC insured.

Also, it’s highly doubtful that Fidelity is going under any time soon, so I wouldn’t give it too much worry. They have too many ERISA and pensions plans under trust and management. Big money, no whammy.
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If it's in a brokerage I believe it's covered by SIPC. Which still means it's insured. Just not by the full faith and credit.
 
Deutsche Gopher Fan said:
Yeah I more need to understand tax implications. I know a little about mutual funds vs ETF, things like that
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Stay far, far, far away from things like target funds if you're looking at mutual funds in a brokerage. Google VFORX December 2021 on Bogleheads. Some people lost a small fortune to taxes.
 
dxmnkd316 said:
If it's in a brokerage I believe it's covered by SIPC. Which still means it's insured. Just not by the full faith and credit.
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SIPC had completely slipped my mind. If your brokerage is a member, and fidelity is, then you’re protected up to $500k for investments and $250k cash. I don’t know if CDs would qualify as investments, cash or cash equivalents.

https://www.sipc.org/
 
Kepler said:
https://www.morningstar.com/columns/...get-date-funds

(I have no idea, just saw this. Did they lose a small fortune because of churn? Because of fees?)
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Just had a significant amount of dividends in 1 year, which was unexpected. If you hold this in a taxable (regular) brokerage account, it likely left you with a larger than expected tax bill. If in a tax advantaged account, it would not matter. So the lesson is it is OK to hold a target date fund in a tax advantaged account, but should not hold in taxable account. There are good wiki's on bogleheads regarding asset allocation for specific accounts.
 
Deutsche Gopher Fan said:
Yeah I more need to understand tax implications. I know a little about mutual funds vs ETF, things like that
Click to expand...

I would not have any concern holding a large amount of money in a taxable account at fidelity. Very low risk. Sitting in a money market fund is an excellent choice while you take some time to figure out what to do with the money. Far better than buying/investing in something you regret or do not understand the tax implications.
 
WisconsinWildcard said:
Just had a significant amount of dividends in 1 year, which was unexpected. If you hold this in a taxable (regular) brokerage account, it likely left you with a larger than expected tax bill. If in a tax advantaged account, it would not matter. So the lesson is it is OK to hold a target date fund in a tax advantaged account, but should not hold in taxable account. There are good wiki's on bogleheads regarding asset allocation for specific accounts.
Click to expand...

Boglehead is what I’ve used- I have target date fund in my 401 and then do etf in taxable.
 
WisconsinWildcard said:
Just had a significant amount of dividends in 1 year, which was unexpected. If you hold this in a taxable (regular) brokerage account, it likely left you with a larger than expected tax bill. If in a tax advantaged account, it would not matter. So the lesson is it is OK to hold a target date fund in a tax advantaged account, but should not hold in taxable account. There are good wiki's on bogleheads regarding asset allocation for specific accounts.
Click to expand...

IIRC, it was because of forced distributions. Bonds went up a shit ton in yield and prices cratered. So they had to buy a bunch of stuff and liquidate others. Those proceeds had to be returned to maintain certain fund NAVs.

or something like that.

I didn't even notice it until about six months ago. It's in a Roth IRA so I don't look at the transactions very often. But I couldn't get the massive basis blip in Quicken to go away. The value stayed the same but the basis jumped massively.

I learned a very important lesson for zero cost to me.

edit: wait no that wasn't it at all. It was a rebalancing due to shifting ratios on the glide path.
 
WisconsinWildcard said:
I would not have any concern holding a large amount of money in a taxable account at fidelity. Very low risk. Sitting in a money market fund is an excellent choice while you take some time to figure out what to do with the money. Far better than buying/investing in something you regret or do not understand the tax implications.
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Money market funds are known for their stability and liquidity, making them an excellent temporary holding option while you decide on a long-term investment strategy. They provide a safe place to park your cash with relatively low risk while you explore other investment opportunities. I've been using PissedConsumer features to get clear, unbiased reviews and feedback on various financial products and services. This helps me understand potential pitfalls and advantages, ensuring that I make well-informed decisions
 
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Jobs report strong, but one number hit home- number of people unemployed 27 weeks or more is up 20%.

im also hearing that remote jobs are becoming fewer and fewer. That tracks because I feel like traffic here is worse than pre covid
 
IIRC, I saw a piece sometime around Fall 2022 that indicated the percentage of the workforce still working from home full-time was less than 15%, so fully remote roles were already drying up leading into the 2023 layoffs. I do think quite a few folks, particularly in tech, have at least been able to work out hybrid arrangements where they only go into the office 2-3 days a week.
 
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