FZDXX
Fidelity Money Market Fund
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Need some advice on safe places to park some cash
Who's the target demographic for HYSAs -- if I already have a brokerage account and access to decent Money Market funds, would I still want to open a bank HYSA?
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You can do better. Look at SP**R**XX, or, if you're planning on liquidating enough to meet the minimum, FZDXX. Also remember that Money Market funds in general -always- have a higher expense ratio that index funds, because they are NOT index funds themselves, and have to do their own research (ever heard that one before) and make their own investing decisions -- there's no one else to do so for them.
You could keep cash at Fidelity in FZDXX @ 5.14% today which would be higher than Cap One savings.
I agree, but if she's putting 200k in, I would buy FZDXX instead of just holding Spaxx. It requires a 100k buy in but it gets you to 5.15%, which ends up being an extra $33 a month. Not game changing, but not nothing either.
> I put a lot of my savings in spaxx Also consider SP**R**XX -- or FZDXX if you have $100K -- 4.95%, 5.02%, and 5.14% respectively.
Fidelity offers the spaxx alternative FZDXX at a higher apy but it takes 100k min
If you have a 100k you might as well do FZDXX instead and get an extra .2%
I don't know what's realistic to expect but I'm also heavy into FXAIX with a side of FSELX too. And have a fair amount of cash in FZDXX.
Yeah, sounds like a good deal. Can you post the link here? FZDXX is very high quality with a slightly higher yield, but I prefer FDLXX because it holds only treasuries whereas FDLXX has a little bit of credit risk. Also FDLXX is state tax free, so for me it is higher effective yield. It depends on where you live and what your tax bracket is. Remember these funds are not FDIC insured, but CapitalOne would be. Another alternative after you grab the CapitolOne bonus is SGOV ETF. I have some money in there too. It holds 0-3 month Treasury Bills, so as good as insured, and is yielding 5.27% yield.
Offer is still up I can do it right now. Should I then, if it is? There is also FZDXX which is where most of my money is now.
Pro tip, you can use something like FZDXX (Premium MM) or SPRXX to hold your cash and get more interest while still writing CSP against that cash. As long as it is a Fidelity MM fund, you can still use it like cash.
FZDXX is a little higher rate of return. It has a minimum of $100k
SWVXX or FZDXX - basically mutual fund for high yield without any time commitments.
If you have the 100k minimum, why not go with FZDXX, which has a current yield of 5.16%?
You can get an extra **12** basis points by using FZDXX over SPRXX at Fidelity -- with a $100K buy-in.
I abandoned SPAXX some years ago, in favor of SP**R**XX. And a year ago, when a lump of cash suddenly appeared in that account, I switched to FZDXX. As of Saturday, 7-day yields are: SPAXX < SPRXX < FZDXX 4.96% < 5.04% < 5.16% SPRXX is apparently one of Fidelity's "best-kept secrets", because **nobody** seems to think for some reason.
Fid has FZDXX which pays higher than SPAXX.
Honestly, I feel like the existing strategy was pretty bad. Everything was invested in common stock, with a vast majority in one company in particular (which had lost a ton of money). My husband had his accounts at Edward Jones in his home town where my father in law keeps his… I tried for two months to get the advisor there to diversify and he just let putting it off and putting it off. And when I said I wanted index funds he recommended American Funds? So I just didn’t feel comfortable working with him anymore and moved everything to Fidelity. The managed accounts have been diversified now although in those high fee funds. I haven’t done anything with the ones that aren’t managed yet except to put the cash into FZDXX. I feel like I should sell what’s in there and put it into index funds - since they are IRAs and Roth IRAs my understanding is that as long as I keep the funds in there it would not create a taxable event. It sounds like I have 10 years to decide what to do with the inherited accounts so I’m light of my job uncertainty right now I may just leave them where they are but get the investments allocated a bit better. A custodial account was also set up for my special needs son and I’m now finding out that it will impact his eligibility for benefits, so trying to sort that out. It’s been overwhelming, but I very much appreciate the support and advice here.
Honestly, I feel like the existing strategy was pretty bad. Everything was invested in common stock, with a vast majority in one company in particular (which had lost a ton of money). My husband had his accounts at Edward Jones in his home town where my father in law keeps his… I tried for two months to get the advisor there to diversify and he just let putting it off and putting it off. And when I said I wanted index funds he recommended American Funds? So I just didn’t feel comfortable working with him anymore and moved everything to Fidelity. The managed accounts have been diversified now although in those high fee funds. I haven’t done anything with the ones that aren’t managed yet except to put the cash into FZDXX. I feel like I should sell what’s in there and put it into index funds - since they are IRAs and Roth IRAs my understanding is that as long as I keep the funds in there it would not create a taxable event. It sounds like I have 10 years to decide what to do with the inherited accounts so I’m light of my job uncertainty right now I may just leave them where they are but get the investments allocated a bit better. A custodial account was also set up for my special needs son and I’m now finding out that it will impact his eligibility for benefits, so trying to sort that out. It’s been overwhelming, but I very much appreciate the support and advice here.
What do I do? I put $150k into a 2 year CD (4.3%) in October 2022. Since then ~$6k in interest has been put into the core account from this CD. CD is sitting currently at an unrealized loss of ~$1,900…so definitely less than $150k. I also put in $170k into FZDXX money market mutual fund earlier this year. It’s generating over $700 a month currently. I checked today and it’s hovering over 5% interest. I’m not well versed in investing and the advisor has told me to make the call on how I feel… So, would I be better off selling the CD at market value ~$148k and putting that in the FZDXX? Or is that stupid? Right now my core account has $11k that was generated by both the FZDXX and the CD over 2022 and 2023. Should I put that in the FZDXX too? I feel like keeping the CD until maturity is the safe call, but am I missing out by not shoveling all of the ~$330k into the money market fund account?
Nearly everything depends on your definition of "safe". If -your- definition means *absolutely, positively, guaranteed No Loss of Principal* ... stay in cash. It doesn't really matter whose cash, although SWVXX (Schwab) and FZDXX (Fidelity) are offering 5+% Money Mkt rates at the present.
> so why would I pay a fee for more or less the same return I could get in a HYSA? Returns are after expenses, so FZDXX's 7-day yield of 5.17% seems pretty attractive, and I don't rank "what it cost them to produce it" higher than "actual return". Of course Money Market funds have a higher MER than stock funds -- the recipe takes some more effort to follow. > Plus if I'm already contributing to a 401k and an IRA, why would I want another investment account when I can just have a HYSA? Isn't a bank HYSA **also** just "another investment account" -- and one which won't show up when I log in to my existing Schwab or Fidelity accounts? I'm afraid I don't understand why a MM FUND in an existing brokerage account is less attractive than a new account in a different institution.
> Which do you keep yours in ? FZDXX > SPRXX > SPAXX. 5.17% - 5.05% - 4.98% current 7-day yields. (Note FZD has a $100K Min.)
See also, if you're already at Fidelity: FZDXX > SPRXX > SPAXX. 5.17% - 5.05% - 4.98% current 7-day yields. (Note FZD has a $100K Min.)
Also consider SPRXX ... and if you have the minimum, FZDXX.
FZDXX > SPRXX > SPAXX (at Fidelity), since you have the minimum for FZDXX. 5.16%, 5.04%, 4.97% current 7-day yield.
For my MMF I alternate between FZDXX and FZEXX depending on what the tax free money market yield is doing. Not significantly higher but a bit.
until you decide what to do with it, and even potentially long term, put it in a fidelity money market account (if you have a normal trading account with them it already goes into the base money market SPAXX which is nearly 5%). if you have 100k+ you can put it in FZDXX. it’s literal free money if you have cash you don’t know what to do with and aren’t going to trade don’t waste it sitting in a bank account with their shit interest rates they pay
ELI5…I have a fidelity account already. If I search for money market on their app, I see several options. Are you saying just buy something like FZDXX?
Every brokerage has an S&P500 index fund, and every brokerage has a Total Market fund ... and every brokerage has a series of Money Market funds with varying objectives, on the spectrum from "risk-free" government-stuff only to state-specific funds to GodKnowsWhat. Mutual funds of that type have a trading symbol ending in **XX** rather than just one X. Schwab's has SWVXX, Fidelity has SPAXX/SPRXX/FZDXX, among many others. Use your bkg's Research tools to look for "Money Market". For example, I just shifted some loose cash into FZDXX, because I can meet the minimum investment and that share class gets me like 12 or 15 basis points more than SPRXX. It'll be fine until rates start coming down again, so I've got ~6-9 months to think about what to do next with very little risk of Loss of Capital.
Money market funds don't have profits; they distribute yield which is taxed as ordinary income along with your wages. So it's your own federal marginal tax rate and state tax situation that determines how much you'll owe. As such, everyone's situation is different with regard to finding a MMF that delivers higher net (post-tax) income despite having a lower gross yield percentage than some other funds. MMF invested in municipal bonds would potentially be totally tax-exempt. MMF invested in 100% treasury bills/bonds would be state tax-exempt. The specific MMF available to you are usually determined by your broker. At Fidelity for example, there are numerous - SPAXX, SPRXX, FDLXX, FDRXX, FZDXX, etc. Do some research on your broker's site and find out your choices.
Money market fund. FZDXX at fidelity is 5.2% right now without risking you principle until you decide what to do with it. That’s about $433 a month in income before taxes.
> increased their bond position this year? No, but I increased my positions in FZDXX and SWVXX at Fid and Sch respectively. Switching to bonds will come later, when we're convinced that interest rates have in fact maxxed out. (Me, and every other investor in the world...)
It's safe. Also, if you're set on holding it in cash anyway, buy FZDXX.
We keep a similar amount in FZDXX. It's at a little over 4%. Pays about $900 a month and it's listed as a dividend payment so that might be a bit tax advantaged. Either way, it's $900 a month in a low risk account.
At fidelity you can buy SPRXX (4.35%) or FZDXX (4.47%) if you have 100k, both are better than SPAXX. Also, the expense ratio is irrelevant because the 7 day yield is calculated post-expenses. Typically the Vanguard money markets are a bit better than everyone else though.
Yes, I am in FZDXX too - and doing short-term treasuries.
FZDXX is paying for 4.57% now. I've been buying short-term 8 and 13 week Treasuries weekly, not setting up a ladder. I'm not doing anything longer term because at this point every week that I buy the rates are higher than they were last week. Would rather just keep climbing this up than to lock in what sounds like a good rate now but might not be three months from now. I'll keep an eye on the theories on inflation and interest rates going down, can't picture anything happening until at least the middle of the summer though, at the earliest. When I get a hint that the rates may be declining then I will look at stuff with a little longer term to it.
The expenses are essentially irrelevant in money market funds - since the 7 day yield is calculated net of all expenses it is all that matters. With that said SPAXX isn't the best choice at Fidelity for OP - they could buy FZDXX instead which has a 100k minimum and pays about 0.3% higher. The vanguard prime money market is usually the best/simplest option overall though for someone with a taxable Vanguard account.