Fidelity Funds - Any safe havens?

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effenheimer_IHB

effenheimer_IHB

New member
<p>Hi all, I just realized the Fidelity Cash Reserves (FDRXX) is holding a bunch of repurchase agreements collateralized by mortgage loan obligations. Any thoughts on a safe haven for my IRA funds? FFXSX has a bunch of MBS pass-thru, FSBAX is all treasury but it has a 100k minimum investment. FUSFX is a damn loser with CDO, MBS, and CMBS alphabet soup.</p>

<p>I think if I leave the Fidelity family of funds, I'll have to pay commissions. Does anyone else have an IRA with Fidelity?</p>
 
<i>"Any thoughts on a safe haven for my IRA funds"</i><p>


Short term treasuries, short term CDs at Farmers and Merchants, gold and silver.<p>


<i>"I think if I leave the Fidelity family or funds, I'll have to pay commissions"</i><p>


If your IRA is limited by fees for out of family investments, change fund holders.
 
I have the canada fund w/ fidelity. Lost all my 2k gain in 2 weeks. Thanks to the freaking subprime issue that is going on.
 
<p>Reason, after looking over the <a href="http://content.members.fidelity.com/epropdfframe/0,,SEMI%7C316067107%7CFRAMESET%7CRETAIL%7C%7C%7C,00.html">semi-annual </a>for FDRXX, I don't really trust it.</p>

<p>MBS and MBS-related wizardry is popping-up in "safe" money market funds and the results are sometimes not pretty.</p>
 
<p>ocfliptrack,</p>

<p>I have read a certain fund call sentinel or something like that. Whereby, the fund kept investors from redeeming or cashing out b/c it might collapse.</p>

<p>Thanks for bringing up your situation b/c I have been sitting all week thinking what I should do. After hearing news like the aforementioned. I am going to chicken out. </p>
 
>>>ocfliptrack,

<p>I have read a certain fund call sentinel or something like that. Whereby, the fund kept investors from redeeming or cashing out b/c it might collapse.<<<</p>

<p>It's in times like these that one really needs to read the fine print. The Sentinel Money Market Fund was not really an ordinary money market fund rather it was an "enhanced" money market fund which is not FDIC insured.</p>

<p>It is the reach for that extra yield, only that few additional percentage points, by taking on seemingly low risk debt that is causing the collapse of all these funds.</p>
 
<p>Same thing here, all my fidelity funds are down. All of them.... So I've invested what I have left in short term CD's, Bonds and T-Bills, while all of them pay very low percentages, they are still safe bets. Once you get into the few 100k's then the small performance gain doesn't look so bad afterall.</p>

<p>-bix</p>
 
I'm a little trapped since this is an IRA acct. I think I can directly purchase t-bills with no fees, but I need to look into how to do this.
 
I agree that in times like these one needs to read the fine print. That it's only a few funds. But just the same, 2 weeks ago, the Market and the Fed have stated that the subprime issue is contained. That it only make up 3% of all outstanding loans. Granted this to be factual. But rumor and innuendos can cause havocs to the financial market. And I for one am not going to stick around and ride this wave. More power to those that can muster the stress.
 
<p><em>the Market and the Fed have stated that the subprime issue is contained. That it only make up 3% of all outstanding loans</em></p>

<p>They were saying that about the Nasdaq in 2000. Only 6% of the overall market cap was pure internet companies, and even if .com crashes, it won't impact the broad market.</p>

<p>Heh-heh. Not.</p>
 
>>><em>the Market and the Fed have stated that the subprime issue is contained. That it only make up 3% of all outstanding loans</em>



<p>They were saying that about the Nasdaq in 2000. Only 6% of the overall market cap was pure internet companies, and even if .com crashes, it won't impact the broad market.</p>

<p>Heh-heh. Not.<<<</p>

<p>That is always the case that these agencies will first state that the problem "appears" to be contained. How would they look and what havoc would they wreak if out of the blue they issued an economic nuclear warning? One must look at the raw data and determine how important it is to oneself.</p>
 
oc_fliptrack,





Exit commissions are based off the type of investment, if you purchased, A shares of funds, stocks then the answer is likely no. If you purchased A, you paid a higher up front penalty (the 'load). If you purchased B or C (usually 'no-load') shares of the fund or stock, then the answer is maybe or yes. Each fund has a lock-in time to discourage you from giving the fund managers heartburn. B shares often have a decreasing time-out commission. One phone call to Fidelity will determine if you have any penalty.





Remember IRA is just a tax label, pretty much anyone can manage the funds and report to the IRS if you cash out. Changing from one fund family to another as awgee suggests has some paperwork involved but is relatively painless. There is usually little to no fee for the family fund management transfer. It may be (very) anxiety inducing as it is often unknown and very important - it is your retirement after all. In truth, the next fund family does most of the dirty work for you as they want your money.





If your employer chose Fidelty to manage your IRA, that's all fine and dandy. It just means that Human Resources will pay first to them. I imagine if you pressed HR would be willing to send the money to the family of your choice, but then again they may not. You could have two funds managed by two different managers if you really wanted. Your battles to chose.
 
<p>I had chosen Fidelity because an old employer used them for 401k purposes. It was easier to just roll everything over instead of switching providers.</p>

<p>FDRXX is my core account, as it is for most every retirement account at Fidelity. What's pathetic is this fund having a return in-line with T-bills but with plenty of additional risk. </p>
 
oc_flip - If it is an ex-employer, your bank can manage it, your broker, or you can get an IRA account at Ameritrade or Etrade or ...
 
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