You could do that with the MMFs or you could setup a recurring transfer from the banking brokerage to your investing brokerage and just leave the money into the core position until needed.I have opened an additional Fidelity brokerage account and will begin using it as a cash management account, have my paycheck direct deposited and begin using billpay with it. I would like to set aside a monthly amount to cover my bi-annual real estate taxes - should I fund an additional MMF inside this brokerage account and use a reoccurring purchase of the right amount to cover these tax payments?
What if I have a need for another specific set aside into a third bucket - do I open another MMF within this same account? I know I can create and fund these different MMFs but am wondering if that makes sense and if having 3 (or more) different MMFs might get confusing down the road (like remembering which is for which purpose).
I have a brokerage for banking (like you are setting up) and a brokerage for investing. I have an automatic transfer setup so each month some money gets put aside from the banking brokerage to the investing brokerage. I just see it as a automatic transfer from checking to savings.
Statistics: Posted by 3000 — Thu Jan 04, 2024 3:20 am — Replies 5660 — Views 812849