SPAXX

AmerenHoldings

How often does SPAXX pay?

G4M35

SPAXX or - if tax is an issue - SGOV

SetOk6462

Assuming you mean SPAXX. SGOV is still better, SPAXX is about 50% state tax free. Both options are still taxed at your marginal federal rate.

Inflation_2022

RH gold sounds like a ripoff. Fidelity gives you a money market fund for free. Current yield on the SPAXX is 3.9% to 4.1%.

Fiveby21

SGOV is basically the 4 week T-Bill minus 0.1%; SPAXX is the 4 week T-Bill minus 0.4%. SPAXX is a core position, SGOV is not (it has a $0.01 bid/ask spread per $100). SGOV is better for an emergency fund or savings; SPAXX is perhaps more suitable for cash that you're regularly trading with.

paragonx29

Check out BINC over SGOV. I do keep transitory cash in SPAXX.

GaylrdFocker

I use both as different buckets for savings. 1 for Emergency fund, 1 for Future IRA contributions/escrow, and I have a 3rd for spending fund for vacations/car purchase/etc. They are both similar return but holdings are different, but I'd use SPRXX instead of SPAXX.

Based_Commgnunism

SPAXX works like cash. You can withdraw or spend from the account and it will automatically liquidate SPAXX and give you the money. Fidelity will even send you a debit card for your brokerage account. SGOV you need to sell the shares and wait for the money to clear before you can use it. You pay a slightly higher fee for the convenience of SPAXX and therefore your yield is slightly lower. If you don't think you'll ever need to access the cash on less than a couple days notice go with SGOV. Personally I keep 10k in SPAXX and carry the debit card so if I run into an emergency I can spend it immediately. And everything else I keep in SGOV (or just buy t bills directly).

SirGlass

Most of SPAXX is in repo agreements. Now these are safe but I am not sure they are safer then the full faith and credit of the USA.

Over-Computer-6464

You now have enough liquid assets that you should look at the overall picture rather than locking large amounts up in a low yield savings account as an emergency fund. Even simple core money market like SPAXX that Fidelity uses for uninvested cash does better than your HYSA (current 7 day yield 4%, 1 year return of 4.85%). In addition, if you put $300k into VTI in a margin account, then you have instant access to a loan of $150k. So $50k into VTI cash-like holdings is more than sufficient for your emergency savings. That $50k can be the combination of some money in a checking account at a bank, plus cash-like in your brokerage account. With a mortgage interest rate of just 3% it is likely that your *average* return from the stock market (VTI) will be higher. I recommend just laying off your mortgage per the normal amortization table. Your last issue is the mechanics of moving your cash into the market. You state that you are "afraid of investing". So rather than putting it all into the market at once I recommend that you just start a program of putting another $25k into VTI each month for the next year. Or if you can convince yourself to do it, $50K per month for the next 6 months. Pick a day of the month and then do it, ignoring whether the price is high or low.

er824

How do you figure SPAXX is safer then something that is 100% US Treasuries?

CarlaCyclamen67vo

SGOV has higher yield, but SPAXX is safer.

G4M35

"Better" in this case is subjective and depends a lot on your tax bracket. Last week, after some research, I switched from SPAXX to SGOV. Unfortunately you can't select SGOV as your cash position at Fidelity, so you need to do buys/sells. Keep in mind that SGOV is tax-free at the State and local level (I live in NYC).

DeeDee_Z

> I have 20k sitting in SPAXX and I’m wondering if SGOV is a better place for it? Expand your horizons a bit: Also consider SP**R**XX and, if you have the minimum for it, FZDXX. As of yesterday: • SPAXX 3.95% • SPRXX 4.01% • FZDXX 4.13%

therealjerseytom

Yes, there are returns over various time frames. Anything based on very short-term bonds, their return rate changes nearly instantly with interest rates. There was a time, within the past year, when short-term rates were around 5%. They've come down since. The distribution yield over the past 12 months might be 4.61%, but their 30-day SEC yield is 4.17%. Around 2020, when interest rates were nearly zero, SGOV and SPAXX were both like 0.05% or maybe even less. SGOV versus SPAXX is splitting hairs to some degree. If you're at that level and wanting to squeeze out whatever extra bit of yield you can, you could create your own series of auto-rolled treasury bills. Like a stack of 4-week treasuries, bought once per week for 4 weeks and continuously rolling. No fees or expense ratio with that, so maybe you eek out a little more. But it's all going to be very close, and change very quickly with interest rates.

therealjerseytom

> Based on my understanding of the numbers, SGOV is about 1% higher yield? 3.98% in fidelity SPAXX, vs 4.98%? Show us where you're seeing SGOV having a 4.98% yield.

er824

I don’t think the spread is quite as high as you stated but SGOV does seem to have a bit higher yield then SPAXX. It’s also going to be state tax free.

creamonyourcrop

I have a few individual stocks, mostly chip manufacturing. ASML and Micron. But for my retirement and company defined benefits I went all in on preservation, mostly money market funds like SPAXX. Republicans start recessions. Every R admin has had at least one and they were all way smarter or at least less volatile than this one. His extent of his idiocy was likely masked by Covid in the first admin, but this one will be epic.

reParaoh

What's similar to SPAXX? I want to keep my emergency fund separate from my default position in my fidelity account. So I'm looking for similar fund to transfer it into.

bobbydbadass

I use fidelity mostly. Any money in my SPAXX account (which is where your money goes when deposited into fidelity) automatically buys whatever I want pretty much. I set the amount and how often. Every Monday it buys my strategy, I just make sure I have the funds in SPAXX to cover it.

left-for-dead-9980

Look at margin rates before starting. I paid 13.5% for accidentally buying too much SPAXX. Horrible lesson to learn. I canceled my margin account right after. Fidelity repaid the interest that I paid but that refund was a taxable event. All that to loan myself a few bucks.

I_aint_no_Spooby

capone 360 savings acct or fidelity acct held in SPAXX

WeUsedToBeNumber10

Yes. I’m out of work and wanted it all in cash/SPAXX as a precaution. 

ForeseablePast

I didn’t sell but I did hold off on putting money in on a regular cadence. I still kind of am to be honest. I have a decently large sum of cash in SPAXX that I have waiting to go into the market when we see a downturn. I was able to capitalize on the last downturn where I got nvidia at less than $90/share for example. I’m surprised we haven’t seen another downturn since then, especially with what’s going on in Iran and many other things that cause uncertainty. Im fine parking my cash in a high yield money market fund (SPAXX) guaranteeing me about 4% right now as opposed to be stressed about potential volatility under trump. I also am saving for a down payment on a house anyway so no harm no foul. I like having cash to play with if we see a big drop sometime soon.

camelsoda

I mostly exited prior to tariffs being announced. Got back in near bottom at a small percentage and proceeded to buy/sell frequently as the market came back. Only in very small portions. Never really committed to getting back in. I’m up about 3% YTD. Doesn’t feel worth the hassle and stress. Obviously wish I had put it all back in while it was down. Now I’m just waiting to see if there is a big correction coming or if I end up missing out on a lot more. Still do not feel very confident with this administration in charge. It’s also more challenging when SPAXX paying 4%. If it was paying a lot less I don’t think I’d be tempted to sell anything.

curtis50cent

Currently 54% cash/SPAXX excluding checking/savings and actual stashed away cash.

backwoodAK47

Only cash I’m “holding” is in my SPAXX. Emergency fund that’s just steadily growing. Otherwise all in on market. I invested heavy during the market dip in April so while I’m appreciating the all time highs, I’m still okay with volatility and managing my risk level.

UVIndigo

Those of you who are putting money away in a Roth IRA - what are you investing in during this time? Feels silly to just hold it in SPAXX but I’m still feeling a little gunshy that all it will take will be another dumb tweet on TruthSocial to tank the market again, so debating holding for a bigger drop day. I held it on Thursday - Tuesday because my positions were mostly green and while today is a slight red day, I feel like I should hold out for a bigger drop to keep my DCA into my usual index funds even lower.

JahMusicMan

Not including my retirement accounts and HSA account. I'm 34% t-bills/SPAXX. Saving up for a condo.

Onelife11

I was hoping for some investment advice and account review. Current portfolio includes joint brokerage which most investments are picked due to googling and ratings. Roth and Traditional IRA i max out for both my spouse and I. Just picked some random funds that I read did okay. I am not commited to any specific stocks/etf/mutual funds and would be willing to take any advice on consolidating my portfolio and just go in on certain investments. Im 32 so dont plan to withdrawl anything until 20+ years. Any advice would be appreciated. Apologize if the formatting is shit. I tried to add a chart but wasn’t letting me. Individual brokerage Symbol Current Value Percent Of Account SPAXX** $5,169.30 4.53% AAPL $4,850.58 4.25% AEM $345.48 0.30% AZN $1,775.13 1.56% DIS $2,626.28 2.30% GILD $2,944.73 2.58% GLD $3,718.78 3.26% IBM $4,096.45 3.59% MJ $205.32 0.18% MSFT $3,042.94 2.67% NOBL $1,665.77 1.46% PFLT $1,726.86 1.51% PLTR $2,372.01 2.08% QQQ $10,456.52 9.17% QQQ $539.77 0.47% ROKT $1,628.42 1.43% SCHD $10,147.04 8.89% SIXG $57.09 0.05% SLG $709.72 0.62% SPHD $1,222.83 1.07% T $9,207.94 8.07% VTI $20,257.48 17.76% VUG $12,727.99 11.16% VYM $4,324.02 3.79% WBD $218.10 0.19% WM $2,218.14 1.94% XOM $5,832.56 5.11% $114,087.25 Roth IRA SPAXX** $545.93 1.24% FBSOX $6,677.56 15.20% FDSVX $7,861.03 17.89% FSCSX $7,419.42 16.88% FSPTX $8,502.69 19.35% HYG $8,634.29 19.65% ILCV $4,304.00 9.79% $43,944.92 Traditional IRA SPAXX** $1,908.51 14.70% FLPSX $2,978.21 22.94% FSMEX $2,097.61 16.16% FSRNX $1,696.39 13.07% FZILX $1,752.07 13.49% FZROX $1,997.25 15.38% JETS $554.18 4.27% $12,984.22 Spouse Roth IRA SPAXX** $1,956.24 4.92% FNILX $6,678.80 16.80% FOCPX $6,734.06 16.94% FRESX $5,731.63 14.42% FXAIX $6,805.60 17.12% SDY $5,909.13 14.86% VYM $5,943.45 14.95% $39,758.91

bobdevnul

A regular taxable Fidelity account will do most or all of what you appear to want with no fees. You can have direct deposit sent there and it will go to the settlement MMF. You can set up scheduled auto buys of ETFs and stocks. The money for purchases will draw from the settlement MMF. The settlement MMF (SPAXX) currently yields \~3.9%. The auto investments can also be set up to draw from a linked bank account. The account also has optional access to paper checks, online bill pay, and a debit card. Those all draw from the settlement MMF. If you get their credit card that can be paid from the settlement MMF. There are no fees for the optional features. You will have to find out from Fidelity how long they will hold direct deposits before the money can be withdrawn. IIRC, if you ACH transfer from your bank to Fidelity the hold is 7 days. If you initiate the ACH transfer at Fidelity to pull from your bank account the hold can be much longer. Don't do that.

rock9y

Money Market is an option. SPAXX +3.93% 7 day yield right now.

rubyred-2016

SPAXX. Kinda high internal fees, but easy as a default for cash at Fidelity.

flat6purrrr

Could rip to a new ATH, or possibly a double top. To me the risk isn’t worth the reward right now. Yall have fun. I’m gonna SPAXX and SGOV n chill.

MrFish701

in a Fidelity money market account you can have SPAXX/FDLXX positions linked to an auto liquidating debit card which is really nice for instant liquidity!

therealjerseytom

I have the majority of my emergency in a short-ish term account with my brokerage, which happens to be at Fidelity. It just sits in the base SPAXX position for uninvested $$. It's my parking spot for cash in general, both emergency and discretionary or "haven't figured out what I want to do with this yet" money. The benefit IMO is that it's immediately available for investment opportunities should they arise. So using your number for example, let's say I had $32k emergency cash parked there, and over time accumulated up to $35k. That extra $3k is earning interest, maybe I'm thinking of putting it towards some new kitchen appliances, or a vacation or something. If a tweet then sends the market on a nosedive, I have the option to say, "Well the new fridge and freezer can wait; this is too good of a buying opportunity to pass up." Shoveled a bunch in on April 8th that way and those positions are up like 20% now.

CommandOk50

ASPN 11% DECK 10% EL 8% EVVTY 11% ENPH 11% OSCR 13% RDDT 8% SG 13% XYZ 11% SPAXX 4% I want to delete all my finance apps and check back in 5 years.

StrategicPotato

If you're unsure, inexperienced, and risk averse but seeking consistent growth - nothing beats the classic 90/10 split into a 3 stock portfolio (or, to simplify it even further, just VT or AVGE instead of VIT and VXUS or something equivalent). I'd throw in a small amount of Bitcoin as well just for exposure, but I wouldn't do more than 5-10% personally. Sometimes the most "exciting" play is the one that's basically just the most guaranteed to make you money. Lump sum 100k now and DCA the rest at a rate of your choosing until the remaining 200k is exhausted (keep it in SPAXX or something in the meantime). That's what I'd do simply because agonizing over the lump sum vs DCA optimization will drive you mad, especially when putting down a large amount like that at once. Beyond that is when you start getting more speculative obviously. Honestly, there's so many conflicting events and factors currently affecting the market that I find it difficult to believe anyone who thinks they know what's going to go up. Personally, I'm about half VT and half split between SPMO/BRK/SMH. I think NVDA/AMD/SMH are still good buys for the foreseeable future despite what people think (hell, NVDA has mathematically been able to justify it's value year-over-year and isn't slowing down and AMD is pretty much the only company in the world poised to compete with them despite the current lag). I'm not really well versed enough in other sectors to sniff out potential bets in them though.

websterhall

SPAXX is a fidelity money market account 4.95%. At least it’s safe.

obnoxygen

Fidelity SPAXX earns 3.94%. There are other funds that earn a bit more, but you do want 3 - 6 months worth of expenses in cash on hand for emergencies, car repairs etc. If you have more than 3 - 6 months worth of expenses on hand and lots of time before retirement VOO or VTI would be good. Don't panic sell if you investments go down. These funds are prefessionally managed and they do a better job than you or I. Make regular (monthly) investments no matter what. If your tax rate is high contribute to an IRA. If your tax rate is low contribute to a Roth IRA. If your employer has a 401K and offers a matching amount of money, contribute to that as well to the maximum your employer pays in. Don't turn down free money.

purplecatfishbettie

look, if it's a hobby account, and only down $7k in 5 years... there are worse things that could happen... but if he'd have just slammed that 7k into something like SPAXX, it would be better today... of course, SPAXX going forward? who knows?

Own_Grapefruit8839

The default Vanguard settlement fund is VMFXX, a federal money market mutual fund. Fidelity also uses a MMMF for settlement, SPAXX. Schwab does not use a MMMF as the settlement fund, so you would need to purchase a MMMF manually, like SNSXX.

HoldMyToc

SPAXX. Just leave it in there. You can also sell cash secured puts and still collect the interest of it being in SPAXX

pbemea

SPAXX or other money market fund.

stumblios

DCA would mitigate some risk that occurs during a rapid collapse, assuming you keep it in something stable like T-bills or a savings account. Several savings/money market accounts around 4.5% today, giving you a 1.5% edge on the loan rate, giving you ~$750/year in risk free profit. Taxes change this number slightly. If you DCA in to the stock market over time, your risk increases for every dollar in stocks. One potential option could be theta gang. Keep your money in a Fidelity account that holds uninvested cash in SPAXX (Government Money market Fund). This currently offers ~4%, so you lose half a percent over the best savings accounts, BUT you can now sell cash secured puts. Historical back test of selling low-risk (~80-85% chance for options to expire OTM) puts on SPY generates ~6-9% returns, plus the 4% you're earning from holding cash in SPAXX (note, if you are assigned, you will no longer generate that 4% as you now are holding shares). Max drawdown is dramatically reduced in the event of a 2008 style crash, but black swan events like the COVID crash will still fuck you pretty hard. Considering you're asking this question, I'd be careful before you go all-in on anything other than a savings account for a risk free profit. Literally anything touching stocks will have risk.

SailAwayToTheMoon

Another option is to DCA over a time horizon you’re more comfortable with, say, six months or one year? This is what I’m doing with a recent six-figure inheritance. I’m using Fidelity which auto-invests your cash positions into SPAXX for a decent 3.94% yield. There are higher yield HYSA’s available, but they lack the convenience of also being ready-cash in your brokerage account for a big market dip like the recent tariffs during week 1 of April. You can splurge buy on those days. I’ve read that you’re missing gains over the long term with DCA versus lump sum method, however, the difference is quite small and it’s important to do what makes you most comfortable. After all, the money should create liberation not stress.

haleakala420

word i wasn’t tryna be mean or anything. just wanted to emphasize how shitty robinhood is. if/when u wanna start trading, get a schwab account and use thinkorswim, formerly by td, schwab bought them… the transition was obnoxious but overall things have mostly remained the same. you’re young so putting some money into more aggressive investments like SPY/VOO, QQQ, QQQE etc. would be a smart move. wait for the next dip. don’t panic when it goes down - remember ur plan is to hold these for like 5-6 decades. get it all set up now and familiarize urself with everything and get comfortable with it. next big crash like 87, 01, 08, and 20 be prepared to buy tons of SPY and to a lesser extent some SPY LEAPS (about 2 years out with a strike price at or just below the level it was at pre crash) once its down 35-40% or so. dont buy all at once tho. stay away from wsb and 0dte bullshit, that’s literal gambling. overall ur plan u laid out is perfect. open a roth ira with fidelity and it’ll have ur money in SPAXX or something similar, u can buy SPY/VOO the next dip. put another $1k into a HYSA. last $1k keep in ur checking/savings. try to put a certain percent of each paycheck into both the HYSA and IRA. once you learn the market, u can start picking stocks… holding good blue chip companies for 40-60 years will pay off huge. just dont use money ur not willing to part with for those investments. never use money that wasn’t originally intended to be invested to trade anything. keeping those walls up will make sure ur always liquid and in the black.

BusyBee7729

If this is safety net cash, keeping it low risk is smart. A HYSA or a Fidelity money market fund (like SPAXX or FDLXX) is are good options, both are yielding close to 5% right now. You might also look at short-term Treasury ETFs (like BIL or SGOV) for slightly better tax efficiency. Just make sure whatever you pick is liquid and low-volatility if you might need it soon.

bobdevnul

There is nothing low risk that is paying 5%+. Similar risk to HYSA would be things like short term bond and brokerage money market funds. SGOV and VBIL are good short term bond funds, currently yielding \~4.18%. Vanguard's MMFs VMFXX and VUSXX are currently \~4.23%. Other broker MMFs are lower because of their higher expense ratio. Fidelity's SPAXX is \~3.97%. The 0.58% difference between 4.18% and a HYSA at 3.6% on $45K would earn an additional $261 a year.

therealjerseytom

If you want as low risk as possible, HYSA is your answer. Or maybe a money market fund (e.g. SPAXX... which will have similar-ish interest). Can't have it both ways; if you want more return you'll have to take on some risk.

kevco13

Cash account like SPAXX in your fidelity brokerage account. Near 4% safe money market

Muted-Woodpecker-469

4% of $180,000 doing nothing in say a fidelity mmf SPAXX would have gained $7200 in one year. add another $300 for the half year. 10 grand lost essentially with an inflation earning account ( that still doesn’t surpass inflation). My god. What a bad move 

Pete_The_Pilot

I love me some Q’s but id get some s and p 500 in there. I also dont know that bonds provide the margin of safety they once did, as shown during the recent bout of volatility. Im 100% equities but i own some defensive dividend growth type stuff to provide income and margin of safety. Think KO, XOM, SCHD for an etf. And id just use brokerage cash (i use fidelity’s SPAXX for my cash but mostly because i sell puts with it) or SGOV instead of CDs .

Marketguy628

SPAXX. I use it to write puts occasionally while slowly scaling into positions.

curt_schilli

SPAXX is 3.93% right now

haleakala420

fuck EJ also almost all financial advisors are morons. transfer to something like HYSA or fidelity SPAXX and wait for a market pullback (like we had in march april) and start buying things like SPY, VOO and QQQ in tranches and plan to hold for decades

FlyThruTrees

I'd want it out of WF myself. You could put it in a fidelity cash/sweep account (like SPAXX) until you figure out what to do with it. Or HYSA to get FDIC till you figure it out (you'd need a few institutions to fully get FDIC coverage).

charleswj

That's stupid, frankly. If you have a $35k HYSA EF but don't have any additional funds to contribute to your Roth IRA (assume 4% growth rate): My way: Withdraw $7k/yr from your EF and contribute it to your Roth IRA and invest in SPAXX, etc. In 5 years, you'll have $37.9k in your Roth IRA that will grow tax free forever, $35k free and clear (aka EF) and $2.9k growth you won't touch until retirement. You'll separately have $4.7k in your HYSA (which was taxed as it grew). Your way: Do nothing. In 5 years, you'll have $0 (zip zilch nada) in your Roth IRA and $42.6k in your HYSA (including $7.6k that was taxed as it grew). How is your way better again?

kcrab91

Yup. 100% emergency fund in a HYSA or SPAXX. Great start to their adulthood. “Investing” doesn’t have to be stocks.

Fiveby21

Do you live in a state with income tax? FDLXX Do you live in a state with income tax + you're in a high tax bracket + the state does not tax its own muni bonds? Muni bond MMFs. Otherwise? SPAXX

Ambitious-Egg-8748

I do most of my taxable trading in Schwab and have my Roth IRA there. I used to have my emergency fund in SGOV with them, but it became a bit annoying when I had spare cash that wasnʻt enough for a full share. I opened a Fidelity account specifically for my emergency fund and transferred my SGOV shares over. Now any of my spare cash that flows there is in SPAXX and available immediately for purchasing SGOV shares whenever I have enough. I am still not planning to move all of my taxable trading over to Fidelity as I am fairly active with my trading and appreciate the Schwab customer service - they have been fantastic for me for 15 years. But this is my trial run to see how the Fidelity experience is and I would consider doing more trading with them in certain instances simply due to the auto sweep. For now, itʻs a nice mental separation for my cash.

travysh

My checking is 3.3% up to $15k balance with all the benefits of it being a checking account. I have automatic withdrawal set up to move money monthly to Fidelity with a default position of SPAXX and basically get best of both worlds. 

buttershdude

I let it sit in my Fidelity cash Management account with a default position of SPAXX which makes a little under 4% currently.

IndependentGiraffe8

Traditionally 100 minus your age should be in stocks, probably the next all time high, I would sell another 10 percent of your stock and put in SPAXX, short length Cds and treasuries, your choice, but cash like, repeat this every few years. I would be half cash by retirement time, with the stocks well diversified. Maybe a bit in a gold mining fund or bitcoin as an inflation hedge.

Sunny1-5

It’s been a fantastic offset to holding equities for me for 3 months now. I’m different with my small allocation to crypto; it’s buy and hold only for me. I leave it there. Should have added to it, but stayed in SPAXX instead.

StinklePink

I have been looking at SPAXX and FDLXX for a while now. Learning a lot from this thread. One question about both; why such a high expense ratio? 0.42% seems really high for 4.25% return. **What am I missing?** Sorry if that is a stupid question.

andybmcc

I keep my cash in the core settlement position, SPAXX.  It's paying 4% now, distributes monthly.  Make a normal taxable brokerage and cash goes into it automatically when you transfer it.  The account gives you routing and account numbers, you can bill pay and the like as if it was a checking account.

NativeTxn7

Correct. SPAXX does produce a 1099-DIV, but it lists the total ordinary dividends and $0.00 qualified dividends, so you're getting taxed at your regular marginal rate and not at the lower dividend rates. Just like you would if you received a 1099-INT from a HYSA.

occams-laser

I've been with Fidelity for years. FDLXX has slightly better yield than SPAXX with minimal difference in risk. The real advantage of Fidelity over HYSA is convenience easy transfers, better interface, and you can move money quickly to investments when opportunities arise. Rates are comparable to good HYSAs right now. I'd make the switch.

F54280

Maybe he has 7mill in SPAXX and those are his *other* 7mill?

forbearance

Do keep in mind that money market funds such as SPAXX (or FZFXX) are more tax efficient than savings account. 1099-DIV vs. 1099-INT.

ApprehensiveEase3013

You’re correct that as of mid-May 2025, the 7-day yield for Fidelity’s Government Money Market Fund (SPAXX) is approximately 3.94% . This yield is competitive with many high-yield savings accounts (HYSAs), making SPAXX a viable option for short-term cash holdings. However, when considering long-term investments, it’s important to recognize that money market funds like SPAXX are designed primarily for capital preservation and liquidity, not for significant growth. Over extended periods, their returns may not keep pace with inflation, potentially eroding purchasing power. For long-term financial goals, diversifying into assets with higher growth potential, such as equities or diversified mutual funds, may be more appropriate.

enormous-jeans

The 7-day yield for Fidelity's Government Money Market Fund (SPAXX) is 3.94% as of May 16, 2025

ApprehensiveEase3013

Your current HYSA at 3.6% is solid, but Fidelity’s money market funds like FDLXX (Fidelity Treasury Only Money Market Fund) and SPAXX (Fidelity Government Money Market Fund) are currently yielding closer to 4.9%–5.0% (as of mid-2025). That’s a meaningful difference, especially as balances grow.

moiax

In CT, anything that holds over 50% treasuries will allow you to exempt that percentage of treasuries held from state tax. SPAXX was about 55% this past year, though it's dipped blow 50% in the past. FDLXX was 95%. I personally have my savings split between FDLXX (NY has similar restrictions) and SGOV. The benefit to a money market is that it can be immediately liquidated, while ETFs do take T+1. Not a big issue, but I don't see any reason to completely back yourself into a corner should an emergency happen.

muay_throwaway

Government ETFs, like GOVT. Or you could just us something like SPAXX.

TapeLegacy

https://preview.redd.it/qwjtwtoxvt1f1.jpeg?width=1284&format=pjpg&auto=webp&s=206f153b1e7fcdb0f3b723971ac68ada883f871c Bro I zoom out and see blood shed, and then I see you have 7mill. Divide that into 2 and put that in a SPAXX account and now you have $140,000 a year, $11,666 per month….and then while you live comfortably you can invest somewhat into your favorite companies…but no. I guess the stock market is a casino for some people with fat ass pockets, im no where near close to your wealth but that’s what I do with my money. I hope you win big bro, this wasn’t FA.

Codywalkerjr

If I had that in my portfolio, I'd pay off my mortgage immediately, pay off your cars, invest in a cash intensive , resession proof business and put the rest in SPAXX until things normalize. But I'm not smart

Yolteotl

FDLXX is better than SPAXX if your state has an income tax.

Dawnchaffinch

I’ll probably have SPAXX forever 😝

Slow_Investment_2211

I just use SPRXX and SPAXX in my Fidelity account

DeeDee_Z

(7-day yields from a couple weeks ago: • SPAXX 3.97% • SPRXX 4.02% • FZDXX 4.14%)

CelinaKolev76ru

I would probably invest in VUSXX or SPAXX after selling.

No-Acanthisitta7930

My Fidelity brokerage account uses SPAXX as sweep. I have a Fidelity debit card that accesses it directly. There is no delay, its real-time, instant availability emergency money.

nauticalmile

I meant redemption/settling specifically with regards to the swept funds - obviously, deposits into the account are subject to settlement like anywhere else, including a true money market account. But once swept into SPAXX, you could swipe the debit card and the funds would drawn from the SPAXX sweep immediately.

taplar

[https://www.fidelity.com/trading/faqs-about-account](https://www.fidelity.com/trading/faqs-about-account) * Trades are settled, and checks are cleared automatically, using the money in your core position or available margin. Trade settlements vary according to the security being traded. I'd assume if you are using the SPAXX option Fidelity may be making the liquidity to you immediately, but I bet behind the scenes there's still a settlement period.

nauticalmile

One example would be Fidelity’s cash management account, where you can opt to use SPAXX (government money market fund) as your cash sweep. No explicit redemption/settling since it’s a sweep, funds are available immediately.

Brawmethius

Nope thats it. Half of its revenue is literlaly just collecting money market interest. It is actually pretty wild. About the same as added SPAXX to the S&P.

Brawmethius

LMAO. Adding COIN to the S&P is like adding SPAXX to the S&P. Their core business is collecting interest. 66% of their USD resources are sitting in money markets. This is supposed to be a growth company. How investors or users tolerate this is beyond me. "Sure Brian you can go collect interst off my cash while providing me no return" Next time just venmo him directly and leave the market out of it.

ECHuSTLe

My strategy over the last 3 years has been to buy stocks when the market drops 5-20% every year. I no longer DCA every month I just hoard cash in SPAXX until we get a quality correction. I’m up over 20% on everything purchased in early April and over 50% on everything I added in 2022. I don’t think this strategy is outpacing the market or even keeping up but it helps my peace of mind. I don’t touch my 401k ever that’s just in a S&P 500 fund and I contribute 5% every 2 weeks with employer match.

One-Comfort-5534

New to investing and a little late to the game. Does my plan make sense? I currently have 20k sitting in SPAXX(Fidelity) Using those funds I have monthly contributions set up for the 1st of each month. 400 toward FXIAX (SP500) 100 toward FTIHX (International fund) So I was doing 80 domestic 20 international to have a little extra exposure outside of the U.S. market. This is post maxing my ROTH and 401k. Thoughts?

menghis_khan08

Question about cash: is it safe in SPAXX? If the banks default how do we feel about spaxx or even fdic insured cash?

Substantial-Crazy-72

The answer is kinda both. You can balance payoff with investment levels. It feels good to pay down but if you are looking for the math... I am in a similar situation and here is what I'm doing and why. Mortgage at 132k with a fantastic 4%. What I found through amortization schedule is that the actual % of payment when calculated was like 27% to interest. Meaning the $1k payment only put $730 towards principle. On investment side. Because the market was down 10% at the time and I generally got a return at 12% a year, I went with 22% as the balance point. (This point would be different slightly for everyone). Using those numbers I placed my money (which was $75k) into an account at Fidelity. Payed my mortgage down to the 22% level and left most of the rest sit in the account which is SPAXX (just under 4% right now). My 22% level was about 120k on the mortgage and was paid down after doing lots of math. I am now paying extra to the mortgage each month while holding money in this account as an emergency fund. I also used this account to funnel money through and pay bills because I have maxed my 401k and HSA. This gives an additional 22% tax break because of the income tax level and paycheck taxes difference. Mine was an inheritance and isn't taxed. I'm doing it this way because like you, I couldn't decide. So I did both. For me the break even point is 22%. Yours may be different but the math for me was roughly 1 year investment vs. actual % interest on the amortized mortgage payment. You may need to decide on a longer time frame due to the mortgage being higher. 1. Choose your timeframe. 2. Know you're average investment return. 3. Look at mortgage amortization and know the true interest. 4. Create a spreadsheet with both investment and payoff calculations to play with the predicted outcome. 5. Choose your balance % and drive to that goal. This is just how I'm doing it, but I don't have a financial degree, nor am I a fiduciary. Sorry about the shit grammar and punctuation.

coriolis7

Age makes a difference, as does how much you already have. “I can get an interception in the 4th quarter, should I just knock the pass down and not try to catch at all, catch and take a knee, or try to return it?” As Georgia found out against Auburn a long time ago, sometimes it’s best to do the safe thing - like don’t try to intercept a 4th down pass when you’re up and can just let the clock run out. If you have a nice retirement neat egg and are 60, I’d lean towards either paying off the house or putting in T Bills / HYSA / SPAXX until they drop below 2.5% after taxes. If you are 60 and don’t have anything saved for retirement, I’d invest every penny after paying off car loans and credit cards. If you are less than 50, then saving for retirement is almost always the better option after paying off consumer debt (cards, car loan, student loans, personal loans, etc)

erbush1988

If I move my funds to Fidelity, the 80k will, at current rates, generated around $250 (ish) per month with their cash sweep (SPAXX) - this will negate any fees I'm paying at my current trading volume, plus net me $90-120 a month extra. And Fidelity seems like a more solid trading platform vs RH

Bronso

For \*starters\*, open an account with Fidelity or Schwab. Fidelity's SPAXX money market account is paying about 4% which is decent return for no-risk and has to be better than any bank it's currently in. And when people ask you for money you can say "Sorry, it's all tied up at my broker." Then open a Roth IRA and max it out every year; you'll thank me 40 years from now. After that you can research things like VOO or something like FNILX which is a large cap fund with zero expenses. Good luck.

No-Acanthisitta7930

Yeah I've decided to not even worry about a HYSA and simply use my existing brokerage account with Fidelity. The core position is SPAXX which has about a 4% 7 day yield i believe. Fidelity sent me a card which can be used as debit. It liquidates from the SPAXX sweep account so its extremely liquid. HYSA be damned I say!

No-Acanthisitta7930

Sadly not in a high tax bracket, but in a low one either. Solidly middle class here, but yes state taxes are an issue for me so FDLXX it is. Unfortunately SPAXX is a core position with Fidelity but FDLXX is not, so I will have to manually buy FDLXX whenever it hits the core position, which is super easy and quick via the Fidelity App. I appreciate your feedback. I already kind of knew I was being weird for yield chasing with the HYSAs, but you very much confirmed it for me and for that I thank you. I appreciate the time you took to help me sort myself out.

greytoc

Fwiw - When you look at SPAXX vs FDLXX - just bear in mind that you ought to factor in your state taxes. One of the advantages of using a treasury money market vs a HYSA is that treasuries are state tax exempt. SPAXX is about 55% state tax exempt but FDLXX is a lot higher. And if you are in a high-tax bracket - you can also look at muni money market funds from Fidelity which could be both state and federal tax exempt. Most people don't need access to 100% of their emergency fund all at once - or they may also have access to short-term credit. So you can always put some portion of your emergency fund into longer duration products or products where liquidity access may be an extra day.

No-Acanthisitta7930

Yup that is exactly what im going to do. I just closed my account with Forbright and I'm throwing it into my Fidelity Brokerage account in either SPAXX or FDLXX. I have a Fidelity debit card so if I ever need those emergency funds boom...I whip out the card and have instant access. I agree with your thoughts on chasing HYSA yields 100%.