how liquid are the funds in a Fidelity/T. Rowe Mutual Fund account?
Question by kokopelli9090: how liquid are the funds in a Fidelity/T. Rowe Mutual Fund account?
I have a Roth IRA through my bank that has several mutual funds but those are all for retirement and I don’t withdraw from them.
I have some extra money I don’t need unless I would be making a large purchase or theres an emergency. Instead of letting it sit in my checking account, I of course want to get in mutual funds (and eventually e-trade, but that’s for the future).
My question is how easy is it to withdraw money from a Fidelity or T. Rowe Price account? Can I just transfer money from the account to my checking account? Would I be allowed to take out money to the point where the active balance is less than the minimum investment? Are the transfers the next business day? I just want to know how liquid the assets are in case I need the money.
On a side note, any recommendations for a growth fund (Fidelity or T. Rowe prefered) that would not fluctuate too much but still be somewhat aggressive? I was looking at world funds like PAGSX.
wow thanks for the info everyone! Any advice on which money market fund I should try?
Best answer:
Answer by Common Sense
It’s great that you’re looking to expand your investment portfolio. An investment in a stock mutual should be an obligation from you for 5-10 years. THIS IS NOT THE REQUIREMENT OF THE MUTUAL FUND COMPANY!
PAGSX will fluctuate a lot! I just looked at the portfolio. It’s moderately aggressive. This fund has a short history…. you can not say this fund does not fluctuate (it hasn’t been around long enough to know that)….. I would feel pretty confident to guarantee that it will have large fluctuations.
I don’t have the time to explain why most of your questions/assumptions are wrong. Worse, you’re asking strangers, whose qualifications and motives can never be known…… you want investing leads from these people????
Pick up “Mutual Fund Investing For Dummies”… it’ll be a good start to your learning about investing.
Good luck!
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My money market fund (MM) has a check writing capability and I can do phone transfers. I started it before all the online banking became popular. There is probably an online ability to do transfers too. I haven’t activated it yet. But it has to be set up in advance. Your checking is “linked”. That is a nothing deal, though.
Originally the checks were limited to 3 a month. But now may be unlimited. And phone transfers most anytime.
Some brokerages allow checking writing against MM accounts too and if you have stocks and a margin account some allow you to use it as a line of credit (stocks as collateral).
So these days it is rather easy. You can put money in Mutual Funds and then transfer to your MM to withdraw it but that takes a day or more.
But you need to talk to them about their particular rules and methods.
Dropping below a minimum balance on a mutual fund is a problem.
Aggressive means volitile almost by definition. They can’t be exclusive.
Good Luck
Mutual funds are designed for long-term investing, not short-term “parking” of money. Even some no-load funds have redemption fees for short-term withdrawals. Keep your short-term needs in a money-market fund.