SNAXX
The Charles Schwab Family of Funds - Schwab Value Advantage Money Fund
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Schwab Value Advantage Money Fund SWVXX & SNAXX for cash substitute in IRA
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Not sure it really counts as really "cash" if it's in SNAXX and SWVXX but about 50%. Coincidently happened to be moving from one account to another when Buffett bailed into cash in early February so I figured "huh, maybe wait until the Oracle does something with his". The other 50% still in mostly indexes doing "okay"
good breakdown. A lot of folks skip straight to investing without asking the basics. Parking it in SNAXX or SWVXX while you think it through is underrated
woah. calm down there buddy. step one: when do you need this money, are you going to buy another one soon? if so- you won’t be investing this money. you’ll be putting it in a HYSA or a money market fund such as Schwab’s SNAXX (higher yield for investments of $1 million or more. otherwise, look for SWVXX). step two: what are your goals? debts? how old are you? how far from retirement? what are your expenses? these are questions you should be asking yourself before you even think about doing anything with this money. until then, put it in SNAXX (or similar). step three: now that you’ve calmed down and asked yourself all the important questions and left the money in SNAXX for a month and gotten your $3200 interest payout- you’re now ready to figure out what you’re going to do with your money
Im 70% SNAXX 25% bonds. I have cash loser.
I’m 50% SNAXX and will mostly stay on the sidelines. Nibbled on some long dated calls but that’s about it.
I'm from a no income tax state and live in Europe so I haven't done a lot of research on tax mitigation. I don't believe either have federal tax exceptions. If so, please let me know! I was in SGOV in a 1:4 ratio with SNAXX for a while but completely got out of SGOV because SNAXX had a better yield and there were rumors about the administration trying to reduce rates which (I think) would affect SGOV more.
Why $SNAXX over $SCHO ?
SWVXX or SNAXX if you’ve got over a mil in cash to park. Right now it’s floating around 4.2%.
At $1 million or more, it's SNAXX. Slightly higher return.
Is a SNAXX (Schwab value advantage fund) effected if the stock market dips significantly? I know it's FDIC insured but what if that collapses?
1 - If there's a schwabb portfolio you like, no reason not do it if it has the right asset mix. No cost on the portfiolio itself, and you'll just want to make sure none of the etf fees are too high. Beyond that, choosing funds for a 3 fund is fairly easy, and I wouldn't overthink it too much. 2 - is this money separate from retirement funds, is there a short term goal for the money? If not, you can get longer duration bonds and lock in slightly higher rates for a longer period of time now instead of just trying to get better rates for 5 years. Also, remember that bonds/fixed income isn't really where you're trying to generate large returns or asset growth at this stage. > Any recommendations on what I should consider buying? If you have a specific timeframe for the money, buy a bond fund, or duration bond fund (like Ishares bond funds that expire in a given year), that match the duration. IF not, buy a generic bond fund like BND or AGG or a longer term treasury fund. > I'm ready to move half of the $1M in SNAXX to bonds in preparation for interest rates coming down Make your decision on this, since you're behind "big money" in this thought process. You can see prices on longer duration treasury ETFs are already up from the expected rate drop in September.
Na I’m earning 5.3% on my money fund SNAXX I at Schwab. It has a large minimum but they offer numerous similar money finds. Many TD clients aren’t happy about the transition so that may have colored your short term experience.
Rather than putting all in one fund I will certainly put into a different but similar fund. How does SGOV strike you? No state interest tax. Price steps up with interest paying date about $100 per share. I think SNAXX is ok also. If you can take little risk SPYI pays well.
So what do you do with $1MM sitting in SNAXX? Im glad I’ve been out of VTI over the last month or so. Not sure if I’ll switch back in until the election
>money market fund How does one actually buy VMFXX? (Seems like it's a deposit, right? Sorry for the dumb question). The problem is that I am using my Charles Schwabb account, so that means I should deposit in their MMF? They have SWVXX and SNAXX. Obviously, what I plan to do is have the money accruing interest while I periodically draw from the MMF to buy VOO. (Does that make sense?)
Um, I didn't. I timed the market. I got out and went to 100% SNAXX which is yielding a healthy 5.41%
Is buying money market funds on Schwab like SNAXX and SVAXX risk free guaranteed money?
Looks like SNAXX or SWVXX is what Schwab offers. If youre having trouble getting into it, give their service a call or chat
No choice. Sell it and buy SNAXX, SWVXX
Where else would the ER come from? For a MMF, since they distribute any increase in value to maintain $1 per share that is the pot of money they would have to extract their fee from. Just look at the difference between, for example, SWVXX and SNAXX; the Investor class and Ultra class shares of the Schwab Value Advantage MMF. SWVXX has an net ER of 0.34% and SNAXX has a net ER of 0.19%, 0.15% different. SWVXX has a 7-day yield of 4.96% and SNAXX has a 7-day yield of 5.11%, 0.15% different. [https://www.schwab.com/money-market-funds](https://www.schwab.com/money-market-funds)
With that type of cash, I have it parked in SNAXX yielding 5.08% right now, which will go up if rates do
Honest question and no sarcasm: why don’t WS bettors just park their money in treasuries and stable ETFs and wait until equities become a better bet? I have $275K in 1-yr treasuries (yielding 5.1% but no coupons) and $1.2M in Schwab SNAXX, bond fund yielding 4.8% with monthly dividends (which gives about a 20 bps/year compounding bump). I’ll shift more to equities when interest rates start coming back down. Nothing sexy but safe and solid. I get that’s not the point of this sub, but if you’re gonna bet, why not make the sure bet until conditions change?
What about the Schwab SNAXX? My dad has a Schwab account and I considered this.
Schwab let’s you hold SWVXX or SNAXX and sell CSP against, do this all the time
SEC yield is about what you would get if you invest right now. The dividend yield quoted is generally for the trailing twelve months (TTM). Since interest rates started going up starting early last year the TTM yield is not very relevant for making a decision about depositing in a MMF right now. Before the Fed started raising interest rates early last year MMF yield was close to zero. Are you aware that SNAXX has a minimum initial investment of $1,000,000? Schwab has other MMFs with lower initial minimum, e.g. SNOXX with no minimum. BND and MMFs are significantly different creatures for different purposes. MMFs are managed to hold the share price at exactly $1 all the time. There will be no capital gains or losses. MMFs yield changes rapidly with the prevailing short term yields. BND has an average effective maturity of 8.9 years. That means the they are still holding a lot of old low yield bonds. As such, BND share price is moderately influenced by current yields. In a rising interest rate environment, such as we are in now and expect to be in though 2023, share price declines. In the past year BND share price lost 12%. BND is no substitute for a MMF for short term investing. You can lose a lot more money in capital loss than it pays in dividends. BND can be a good bond allocation investment for a longer term without expecting to withdraw, like about 10 years. SGOV and BIL short term bond ETFs are closer to overall MMF performance. Their share price is not very volatile with changes in prevailing interest rate changes.
Don’t you have to take into account the expense ratio for the SNAXX MMF? So the yield is not really 4.62% for SNAXX but 4.62% - 0.19% = 4.43% yield?
Hold SNAXX until rates are close to peaking, then buy BND if you think rates are near the top. I sold my SNAXX back in December. Been buying BND since. Will put my bond cash into BND by next month. If rates peak or start dropping, BND will appreciate.
SNAXX Minimum Initial Investment $1,000,000.00 - you should not be asking questions on reddit
The yield is a moving target, so calculating the monthly payout would be an estimate at best. Using the SEC yield is my preferred method. Using SNAXX as an example. Assuming you have the minimum required amount of $1,000,000 and a yield of 4.62%, the monthly yield is $3,850. BND has a 4.24% yîeld, so the monthly yield on $1 mil is $3,530.
If I put money into SNAXX vs BND I’m having real trouble understanding what my monthly payout would be for each of them. Div yield and SEC yield are throwing me. SEC yield of BND is like 4.4% but div yield is like 2.38%. Which one is it that I will get paid?
For the cash hoarders — what high yields are people finding right now in fairly liquid accounts? Eg Schwab SNAXX 4.5% ($1 million minimum) and Mercedes Benz first class demand notes 5% (must be accredited investie).
Schwab Value Advantage Money Fund SWVXX & SNAXX for cash substitute in IRA I have in my inherited IRA about 60% cash just chillin, should I use a money market fund to get some yield? its at about 3% and pays every week, what are the pros and cons of using this as a substitute for cash, has anyone used these or currently using something like this?