SPAXX

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%.

No-Acanthisitta7930

Well...on the back of my question is initiated a transfer out of Forbright into my bank account via the Forbright app. Wouldn't you know it, a message flashed that the transaction is under review and that an account specialist may reach out to me for security purposes. Glad I did it. As an emergency account you need fast access. I appreciate that they are trying to secure your account, but if this takes longer than a day then I may just go back to using SPAXX money market in my Fidelity account as my de facto savings. At least with that I have a Fidelity card that taps directly into it.

CBus-Eagle

I’m putting money into my investment accounts (401k, IRA, Brokerage, and 529 accounts), but keeping its going in SPAXX at the moment. I’m not saying this is the right move for everyone, but it feels right for me.

Successful-Tea-5733

Nothing wrong with that strategy necessarily, assuming you're just doing for a short period of time. Sitting out for too long, several months, you could easily miss double digits on the rebound as it is hard to time the entry point for your SPAXX funds.

fledgling66

Money sitting in there that hasn’t been invested yet. SPAXX or whatever.

Professional-Dog1562

I simply stopped putting post-tax money into the market and have it sitting in SPAXX waiting for things to cool off. I bought on one of the larger dip days, my 401k and HSA are still maxing out. 🤷 If we dip, okay. If not, okay. 

charleswj

You really don't need to pay for any advice. Max retirement accounts. Get an appropriate emergency fund going if you don't already. Always max Roth IRA...if it means moving the emergency fund into it, just invest in SPAXX, which is essentially an HYSA. Invest anything else in a brokerage account. Anything that's not in SPAXX for EF put in the S&P500

JahMusicMan

Leftover money from my paycheck is going into short term tbills (Am I the only one still buying tbills?) and SPAXX for my emergency fund and my wedding fund lol. In my brokerage account I'm not adding to it and selling some tax lots that are losers and rebalancing it to international funds like VGK or VXUS or moving it to tbills. I'm really considering selling most of my brokerage account and sitting on the gains since the ultimate goal was to buy a condo. As for my 401k and Roth, I haven't changed the contributions but I am putting more towards international stocks and maybe more alternatives. SPECULATION: Shit is going get so violable with this clown in office that I think that many people will be foreclosed or short sell or sell off their house and many buyers who were in the market, might hesitate bring housing prices down. I also think there will be less competition from foreign buyers looking to buy property in the US. Cause you know, we don't like foreigners apparently and probably same with foreign investors. So might be so crazy and depressing that it might be a good time if you are a buyer.

Red_Bullion

They are essentially the same thing. SPAXX probably pays slightly higher interest than a HYSA once promotional offers expire. A HYSA is FDIC insured. However SPAXX buys US government debt. So it can only fail if the US government defaults, in which case they're not in a great position to pay out FDIC insurance anyway. You can instead get FDLXX which is state tax free. This is better if you live in California or New York, but otherwise SPAXX is fine.

alexio215

Hello, thank you for taking the time to look at this. I am a 22 year old soon turning 23 and am slowly putting cash aside for a House. Staying with parents for at least another year, not looking to buy for another 2-3 hopefully. Attempting to put away 35-40k a year, with about 40k already put away (still living at home). Aside from a 401k and a newly created ROTH, all my "savings" are in a checking account. Ik, this is bad and looking to move away ASAP. What I wanted to ask is if there is an advantage to Money Market as compared to a HYSA at the moment? Rates seem to be trending down overall, but from what I am aware of, the US dollar is being challenged globally, and the treasury is facing a large maturity wall upcoming on a large piece of debt in 2026, and the R word being thrown around... With Global headlines questioning the dollar more than before, is a Money Market or HYSA account effected by this? I saw a brief mention that it is possible to lose value/money in a Money Market account. Is this true? Am I jumping too many conclusions? My current brokerage is Fidelity, and to keep things centralized, I'm looking to open a CMA (Cash Management Account) with SPAXX as my core/default investment. They seem reliable enough, with a few exceptions regarding holds on funds during spikes in fraudulent activity. Can anyone advise if there is a difference between the two that would make you choose one over the other? Are either good options in what seems to be an uncertain market? Thank you kindly for taking the time, I greatly appreciate it, and am grateful to learn.

bobdevnul

It's all about the expense ratios the funds charge. VMFXX is 0.11%, SPAXX is 0.42%. Fidelity's ER really eats into the their MMFs yield.

Sunny1-5

Sorry, that’s what I meant. Been drawing about 4% since September, but it had been 5% in my cash account from late 2022-2023. I’ve enjoyed that. Somewhere around $400 bucks a month, mostly taxable, as I stayed equities-invested in the IRA during that time. But the cash account stayed in SPAXX. Still there, but the yield is lower now.

StrategicPotato

No, and therein lies the issue because it seems like *nowhere* is safe, including the traditional safe haven of US bonds. Ironically, this may actually be a saving grace for the market because no one really has anything to flee too. Personally, I diversified a large part of my savings into foreign currency ETFs (and was already holding a small percentage of BTC and GLD anyway). Diversity is always good, but who knows how that will play out or if it's optimal. I pulled a bit out of VOO but not VXUS to leave in SPAXX for now, but obviously I didn't panic sell everything. Honestly, the best course of action is probably just DCA small amounts and keep it business as usual. It sucks and I don't like the blind contributions but what else can we really do? Again, I think the only *safe* bet is a high diversity of assets overall - meaning the things I had mentioned in addition to things like bonds, your mortgage/real estate, physical possessions/assets, etc. It's not sexy, it won't make you rich, and you won't have a ton of liquidity laying around to risk it on opportunities - but it's peace of mind that'll likely help you weather the worst of it.

dark_lord_neil

I’ll be able to buy a Wendy’s $5 biggie bag with my SPAXX dividends tomorrow :)

itemluminouswadison

SPAXX

strongbase703

Comparing recent SEC yields: * VUSXX 4.23% default Vanguard Money Market Fund * SPAXX 3.96% default Fidelity Money Market Fund * SGOV 4.17% iShares 0-3 Month Treasury Bond ETF * PULS 4.59% PGIM Ultra Short Bond ETF ETF providers list the latest yields. Fidelity only updates them monthly but does provide daily NAV charts--note differences in early April for impacts of market uncertainty. https://digital.fidelity.com/prgw/digital/research/quote/dashboard/summary?symbol=SGOV https://digital.fidelity.com/prgw/digital/research/quote/dashboard/summary?symbol=PULS

noncommonGoodsense

Likely yes I still have a small amount in a SPAXX though. Regular growth shit isn’t an issue.

SgtAlvinCYork

If you can't tolerate seeing a $200 loss and you plan to check in every week, then you should leave it in SPAXX until your willing to leave it alone and let it ride for a few years. It's volatile now so you can gain or lose money fast. But yeah, VT would be sensible.

rpv123

Other than cash, what’s the safest thing to put $2500 into right now? Doesn’t need to moon, I just want to hold whatever it is until retirement. Had to rollover an old 401k and got kicked out of my positions (which was, honestly, an underperforming target fund) based on some fuckery throughout the process. Would it be dumb to put it all into VT? I’m human so of course I don’t want to put $2500 in only to realize I’ve lost $200 at the end of the week. Berk B? Leave it in Fidelity’s SPAXX for a bit?

1kpointsoflight

Chase can’t buy shares of SPAXX? Where do they put your dividends? CIT is a good HYSA but I have lately just been using my Fidelity government money market account SPAXX to keep cash I don’t want in the market but want 4% interest

AICHEngineer

Correct. If you go to the performance tab on these ETFs, theyll show you "growth of 10k" historically and these ETFs just look like a flat diagonal line. Their yield is tied to whatever the current SOFR rate is (federal funds short term lending). It will be that minus the expense ratio. CLIPs expense ratio is 7 bps. SGOVs is 9 bps. It is important to turn on DRIP with these, otherwise the dividends will sit as cash. That wouldnt be terrible, often your core cash position in a brokerage is set to some money market sweep fund, so youd still get yield. For example, SPAXX is the default fidelity cash sweep MM fund, its 30-day SEC yield is 3.98% cagr currently. But, if you were in CLIP, your 30-day SEC yield is 4.18% and the yield is state tax exempt unlike SPAXX. If you had a state income tax of 5% like illinois has, your net of state tax yield on SPAXX drops to 3.78%.

SlfImpr

Fidelity is great for brokerage account. With Fidelity brokerage account, you can even keep your uninvested cash and earn high interest by selecting one of these core positions with the **current** yields shown below: * [Fidelity Treasury Fund (FZFXX)](https://fundresearch.fidelity.com/mutual-funds/summary/316341304): 3.96% * [Fidelity Government Money Market Fund (SPAXX)](https://fundresearch.fidelity.com/mutual-funds/summary/31617H102): 3.96% * Taxable Interest Bearing Cash Option (FCASH): 2.19% I keep my cash in FZFXX. It is like getting Certificate of Deposit (CD) rates but you can get your money out any time or trade with your cash any time. I use Fidelity website much more than their mobile app. If you use Fidelity, I'd suggest that you also enable their ["Money transfer lockdown"](https://www.fidelity.com/security/overview) setting for additional protection. You can disable and reenable it any time you need to make an outgoing transfer.

Sisu_pdx

Exactly! I have a call protected CD ladder and several of them are paying over 5.0%. My SPAXX money market fund pays only 3.96%.

Beta_Nerdy

SPAXX is paying 3.98%. The popular Vanguard Funds are paying about 4.23% [Money market funds for short-term investing goals | Vanguard](https://investor.vanguard.com/investment-products/money-markets)

zNatural

Day trade my entire account everyday and still get SPAXX full payout EOM 

Drop_Disculpa

Seriously Pepe, I gonna kick back in SPAXX, UDN and rip six packs and burritos with my monopoly money on my burner phone.

bigmean3434

Yeah, SPAXX is crushing the market the last 360 days homie

ChairmanMeow1986

Love how, 'SPAXX as my so-called “core position.” is not evaluated. Cash position is probably most important one when evaluating risk management.

spekt50

SPAXX is a money market account, you can basically treat it as a savings account with better rates. Any funds deposited into your fidelity investment account goes directly into SPAXX.

ECHuSTLe

Bruh stop watching main stream media and get a career. Do yourself a favor and buy the dip every couple years. 2018, 2020, 2022, 2025 all had 20%+ crashes. My strategy literally consists of stacking cash in SPAXX and buying the crash when it happens every couple years. I’m up well over 200% since Covid.