Fidelity Baskets Review

[@allenanthony2651]

This looks similar to M1 Finance, but I don't think M1 has the Smart Buys feature. Good to know this is at Fidelity now,. Thanks!

[@BeardedDad91]

M1 calls it dynamic rebalancing.

[@TheDailyBTCShort]

M1 is far ahead of this. Nice to see Fidelity to branch into this... This is the future!

[@ieronimo18]

This is meant to be a competitive product to M1 Finance, which is free. I've been with M1 for about 4 years and I love it. It takes some practice until you get 100% comfortable navigating it, but once you are, it is amazing.

[@brennt1]

Starting May 15, M1 will no longer be free for those with M1 assets less than $10,000.

[@steveray6310]

Sounds like a great strategy. I'm at a decision point between m1 finance and Fidelity investing. I enjoyed your video and the discussion of pros and cons with Fidelity. I'm leaning towards Fidelity as I have a large money market fund there but no other investments. Your video is helping me with my decision. Thanks a lot! I definitely will look at some of your other videos that will help in my investment learning (never heard of wheel strategy for example) as I just happened to stumble across this one.

[@ferr0gan]

I love Fidelity, but having to pay for a service that M1 offers for free its not really appealing, also not been able to sell covered calls against your basket (reason why i moved from M1) is a big turnoff. I might use this service if they tune it to be more appealing that just investing in M1

[@Euriska]

Its not so much your paying for the service but the disparity in features between M1 and Fidelity. Fidelity's basket feature is the equivalent of the caveman starting the first fire.

[@Euriska]

I could provide a list of your basket features shortcomings.

[@shragienierenberg8180]

Hey can you give some examples? I'm trying to decide which one to use. Does M1 have something like the smart buy feature? @@Euriska

[@MrElectricwave]

​@@EuriskaExactly!

[@zonk1477]

Where did you move to that allows covered calls against your basket of stocks?

[@JohnsFishTales]

Been doing these for a couple of months. They are great.

[@MrDionappling]

Thanks, bout 60 dollars a year don’t seem bad. As long as this price does not change when you’re in 6 or 7 figure status. Expense ratios none or limited. Learning as I go, just got me thinking,

[@sed6]

I wish there was a way to preview a basket. Create it see all of those stats and stuff without actually funding it first.

[@yieldcollector]

You can create a "Draft Basket" where you can adjust the allocations before actually buying the stocks.

[@kingtaj]

Do you have concerns that the smart buys might reinforce poorly performing stocks or funds? I know you can deal with this by changing ratios, but I could see a particular sector or stock losing monthly and drawing more capital since it becomes a negative drift.

[@yieldcollector]

Yeah I could definitely see that happening if the stock is underperforming the others by a lot. The Smart Buys feature works best when the stock drifts are relatively close to each other. Once a stock falls too far behind then the feature is less useful.

[@kingtaj]

@@yieldcollectorthank you

[@bob_daniel]

I wish they allowed mutual funds and international stocks

[@garyschmelzer]

What basket of ETfs did you choose and also are the dividends automatically reinvested. And is it better to put these ETFs and hold them in an IRA?

[@yieldcollector]

In the video I had XLK, XLV, DIVO, FTEC, FDVV. I closed all of my Basket positions since this video. Now I just have QQQ for my largest position. I don't really use the Basket any more because I wanted to sell Covered Calls (which you can't do on Basket stocks/ETFs). If you don't care about Covered Calls then the Baskets are great. And you could have the divs automatically reinvested if you want to. I just collected the divs and then used the "Smart Buy" feature to distribute them evenly whenever they came in.

[@garyschmelzer]

@@yieldcollector well thank you for your reply, sir. You answered my question. I went on Fidelity today and spoke to an advisor and I opened a Roth IRA. I also have a regular brokerage account. So I did see the option on the website on the ETFs so you basically can choose how many and which ETS you would like to put in your basket I am more towards maybe 3 to 5 ETFs which pay Nice dividend and plan to hold for the next 8 to 10 years

[@StephenSmith-kp8kh]

Isnt rebalancing essentially requiring a day trade on all securities?

[@yieldcollector]

The goal with that feature is to bring it in balance with your desired allocation. So it sells some higher weighted things to buy more lower weighted things. As long as you're not rebalancing daily you should be fine.

[@mrbigcat9]

Trades in a basket are market buy and sell orders or limit orders?

[@yieldcollector]

Market orders.

[@harsharao3555]

They should make smart buy smarter buy allocating money to most undervalued ticker getting filled first!!! Make it valuable.

[@harsharao3555]

@FidelityInvestment-hp4uf Why are you acting to be official Fidelity investment company when I know you are a scammer? You think people who watch these videos are dumb enough to fall for such cheap scams?

[@connorrampage7110]

It's called fractional trading, M1 is free with at least $10k in investments, less then that there is a $3 charge per month. The one thing that I am having problems with M1 is there support, I want to speak to a real person when I need support and the people that are answering the phone are not to knowledgeable and tell you that they will pass your question or concern off to an IT tech. So make sure before you sign on you make sure they have an understandable support contact.

[@Wha2les]

Can i move my existing investment into the basket?

[@yieldcollector]

Unfortunately not. According to their FAQ: "A security that you already own cannot be added to your basket at this time. However, you can own the same security both inside and outside of your basket, if you choose."

[@kisenshi08]

​@@yieldcollectorThey're supposed to be rolling this feature out this month!

[@Dr_Snow]

Smart buy seems like a way to commit fresh money to your underperformers. Is that a good thing?

[@yieldcollector]

Depends on your investing style I guess. You could always do regular buys if you prefer where it will distribute the buy evenly.

[@GriffithCapitalGroup]

Buying shares on sale is always a good thing. That’s the whole idea.

[@jegm1118]

is it $5 a month PER basket ? or $5 to assemble as many baskets as you need ?

[@yieldcollector]

$5 / month for as many Baskets as you want.

[@BeardedDad91]

I like it. But I'm curious what the mobile app looks like vs the website.

[@yieldcollector]

It's very nice on the mobile app. The Baskets look pretty much the same as the website and it has all of the same functionality (as far as I can tell).

[@MohanKD-u3i]

@@yieldcollector That's absolutely correct. Actually, seems to be very useful for less active investors

[@nicholashoffman491]

Can a basket contain other baskets (aka M1 pies/slices can contain other pies/slices). I use this as follows: primary m1 pies for different sectors, then a master pie that holds my sector pies with target weights. I can then have each account (individual, IRA, etc) contain 100% of the master pie

[@yieldcollector]

That's a cool feature. I don't think the Fidelity Baskets can do that.

[@Stovila]

Does it allow you to make recurring withrawals by smart selling the basket monthly for example?

[@yieldcollector]

I don't think so, although I'm not sure. That would be a cool feature, though.

[@lewinmg]

I’m curious what would happen if you signed up for the 30 day free trial and then you decided not to continue, what happens to the stocks or ETFs in your basket?

[@yieldcollector]

According to their FAQ: "When canceling enrollment, at the end of your monthly billing period you will no longer have access to any of the features of Fidelity Basket Portfolios including editing, monitoring, and managing your models or baskets. Positions in existing baskets will appear individually in your account and may be traded as you do any other securities. Should you change your mind, you can reenroll at any time."

[@GriffithCapitalGroup]

They become just regular positions in your portfolio. You have to invest in them individually, or set up a reoccurring investment. The idea of investing in all the stocks in one transaction is amazing. With smart buys and allocation adjustments during each trade. $4.99 month isn’t much , but I agree for this feature it’s kind of a slap in the face from fidelity. Just make it free and it would be a no brainer.

[@adamhatcher6620]

I want this feature very badly, but I can't believe they want to charge for this.... it should be a perk of using fidelity. In fact I'm gonna look around now to see if someone else does offer it. I know acorns does but they charge a good bit unless you have cricket wireless and it's 1$ a month

[@beerbuff]

Schwab has a similar program called Slices but has no monthly charge.

[@GriffithCapitalGroup]

They also have theme investing for free that’s pretty cool. Their fractional shares are limited to SP500 stocks. Fidelity lets you buy fractional shares on everything.

[@garyschmelzer]

So I have Fidelity and I just opened up a Roth and I was wondering when I picked my basket which I’m just gonna do one basket can I put that into the Roth? Does it give you the option and it’s better that way tax wise I understand waiting for you reply and thank you, sir. And since they don’t reinvest the dividends, is there a way I can reinvest the dividends myself

[@yieldcollector]

Yeah you can do it in your Roth. Here is a helpful Baskets faq www.fidelity.com/direct-indexing/customized-investing/faqs .

[@garyschmelzer]

@@yieldcollector thanks for your help. I appreciate it.

[@jmr2594]

So basically it is M1 Finance but instead of free they charge $4.99

[@yieldcollector]

Pretty much. But this tool is great for those of us who are already Fidelity users and want to add some baskets for buy and hold.

[@peterholmes2089]

That monthly charge is a rip off. Why would you pay for that when you can use M1 for free?

[@yieldcollector]

Because many of us are already Fidelity users and have all of our money there. I agree that there shouldn't be a monthly charge for this feature. Hopefully they make it free eventually.

[@GriffithCapitalGroup]

It’s a mentality of trusting a traditional broker/custodian. M1 is a 3rd party app.

[@brennt1]

M1 will charge $3 monthly fee for clients with less than $10,000 in M1 assets starting May 15.

[@travismartinson1813]

Do the percentages have to be whole numbers or can you set it to something like 20.5%. That is the biggest problem with M1 you can only set your pies in whole numbers so you are limited to 100 different stocks unless you put pies inside of pies. I want to replicate an etf so when I buy I can buy what is down instead of the whole fund at once.

[@yieldcollector]

You can set the target weights to decimal values. They do not need to be whole numbers.

[@travismartinson1813]

@@yieldcollector thanks. I think I may move over to Fidelity.

[@steveray6310]

Does the fee get payed off in the long run by using the smart buy feature. i.e. M1 is free but doesn't have Smart Buy from what I understand - does the ability to balance the drifts with new money invested help recoup fee money over time?

[@yieldcollector]

Hard to quantify that. I would imagine that the better fills from Fidelity would cover that $5 no problem, but it depends on your account size I suppose. For me personally, I don't even notice the fee. I have the Baskets set up in my IRA. I also have a Fidelity brokerage account and a Fidelity Credit Card. Every month I have about $100 automatically deposited into my brokerage account from the credit card cash back rewards. Then Fidelity takes the $5/mo Baskets fee right from my brokerage account (so then it is like I am earning $95 cash back instead of $100 every month). So I honestly forget about the Baskets fee 😁.

[@ebortoni]

M1 auto invest is set to be exactly like Smart Buys. All new buys are used to realign your portfolio to your percentages.

[@rigo.garcia]

M1 is $3 a month and 38 annually I just looked it up so Fidelity is cheaper.

[@Euriska]

It's no M1 it full list of shortcomings it's only good for making a purchase of bulk stocks but does poorly with management.

[@yieldcollector]

Yeah the M1 pies features look very good to me, but I just never wanted to open an account there because they don't have options trading.

[@Euriska]

I'm not sure I can agree with the logic in your statement. M1 has never advertised any interest in options. As a pure stock play buy and hold portfolio management option they are the best that I have found. So it's unfair to imply a negative context because they don't have options trading. It would be more precise to say you prefer options trading over long term buy and hold strategies.

[@yieldcollector]

I was just telling you the reason I personally don't use M1. @@Euriska

[@jeddesselle2611]

Correct, M1 is a buy and hold brokerage.

[@Euriska]

I would prefer a direct line to your dev team and become a part of making your website more robust and improve your features. My requests to customer service seem to end up in a black hole and nothing moves forward on your site.

[@adventuresinbytes]

So they did this instead of allowing auto invest (outside of the Fidelity branded mutual funds). And you can’t sell options against these. Seems kind of lame 🤷‍♂️

[@yieldcollector]

Yeah auto investing in the regular portfolios would be nice.

[@adventuresinbytes]

I haven’t searched too widely but it seems Interactive Brokers is the only brokerage right now that lets you auto invest into stocks or ETFs. All the other ones only allow it on mutual funds. IBKR also has some rebalancing tools, albeit it would be a more manual process. But if one is interested in options trading their portfolio it seems like the better option. I bet the Fidelity baskets net liquid value doesn’t even count towards option buying power. They probably have it completely quarantined.

[@pinoygauta]

Doesn't M1 do this for free?

[@yieldcollector]

Yeah M1 has this already for free. If you're already an M1 user then there is no reason to switch to Fidelity for this product. This video was pretty much for showing a new feature for existing Fidelity users.

[@pinoygauta]

@@yieldcollector ah thank you. Too bad fidelity doesn’t let you do this with existing shares, eh?

[@yieldcollector]

@@pinoygauta That would be nice.

[@jegm1118]

awesome

[@aubsen9704]

Do you have content for options trading?

[@yieldcollector]

I have some videos on the Wheel Strategy and Poor Man's Covered Calls www.youtube.com/@yieldcollector/videos . Those are the strategies I trade most.

[@aubsen9704]

@yieldcollector Thanks! What are your thoughts on OptionsPlay? I am doing the 30 day trial via Fidelity. It seems somewhat limited because the only opportunities that you see for each strategy are ones from your watchlists. However, I do like the scoring methodology that they use. I just don't know if it will be worth the monthly fee.

[@yieldcollector]

@@aubsen9704 Yeah it looks very interesting. Let me know the results if you try it out.

[@MOBMJ]

I wish Schwab would have this. I also wish they have recurring investments like a robin hood, Fidelity has it but not Schwab. Also the fractional shares is a great start Schwab has it., I don't like the fact that that they don't let you do it on any stock, its just on S&P 500 stocks. so no ETFs which is a bummer

[@yieldcollector]

Yeah I hope Schwab implements something like this as well.

[@adamhatcher6620]

Can i make my roth ira have this?

[@yieldcollector]

I have this in my Traditional IRA, so I assume it works for a Roth as well.

[@adamhatcher6620]

@yieldcollector it really aggravates me that fidelity is charging 5$ a month for this! It should be a perk for going with fidelity and I'm Gonna look around now to see if I can find a brokerage that offers it for free

[@DBrianAshby]

Yes, I have mine under my Roth IRA

[@EARN-750-DAILY_JOB_FOR_U]

"Successful entrepreneurs are givers and not takers of positive energy." -Motivation