SPAXX

Over-Computer-6464

Margin calculations and their terms used can be confusing. Your broker will use all available cash before using a margin loan to make your buy. I am guessing that you might be selecting "cash" on your buy order, thinking that if you leave it at the default of "margin" that your broker will use a margin loan to make the trade. Just leave the trade ticket set to margin. Your broker will use available cash to buy, and your purchased shares will go to the margin side of your account and will add to your margin equity. Depending upon your broker, you will probably find that they will also automatically liquidate any money market funds in order to pay for a trade before using margin debt. For example, my Fidelity core account is money market SPAXX, but they will also pull from my FDZXX money market before using margin for a buy.

notbadftw

Calls on SPAXX

Cedarapids

When SPAXX is your highest performing investment in your portfolio 💀

bank_truth

SPAXX is good for cash you might need soon. A MMA or HYSA will not tank like stocks can when the market changes. Rates can always rise or fall depending on the Fed, so if you want to do some tracking, we track updated rates on our website and you’ll notice that a lot of them vary. Sometimes an online bank pays better, other times brokerage MMAs do. The ones that have physical locations have lower rates since they also pay for the overhead costs. My advice is do not try to time the market with money you're planning to invest next year. Park it somewhere safe that pays, then start DCAing when you're ready. Waiting for the perfect moment usually just means missing gains.

Lucky_Platypus341

Vanguard's VMFXX is a little higher (same as SPAXX) or SGOV eft (ultrashort treasuries), 30-day yield is currently 3.97% (3.93% avg yield to maturity). All fo these have the advantage of being able to withdraw/sell without penalty or risk at any time, and treasuries are not taxable by states (but you do pay federal tax). If you don't mind locking the funds up, then you MAY be able to goose the rate up a little and be guaranteed with a bank CD. Shop around. Max is just slightly higher than treasuries (around 4%) and interest is taxable by state, so unless you find a good deal it's probably not worth it.

ZimZimZay

I’m not sure about best ROI but for such a large amount, I think investing into SPAXX if you have fidelity would be a great option. Right now the 7 day yield is 3.73% with SPAXX and that should be more than any HYSA account.

therealjerseytom

Howdy from Charlotte! Having it parked in your sweep account position (e.g. SPAXX) would probably be most immediately accessible. With that said, personally I keep my emergency fund in an investment position. SGOV is an option. I do auto-rolling treasury bills just because it's easy and buying the securities directly as good as one can get with return. *It's then very clear what I am keeping "tied up" as do-not-touch money*, whereas my SPAXX position is then truly uninvested discretionary cash to do whatever with. I figure even in a bad situation I'm not going to need all that emergency $$ in cash available *instantly;* fine if it takes a day or two to settle from a sale and transfer out.

therealjerseytom

With tax efficiency you could consider an ultra-short muni ETF like JMST. But you have to do the math to see if you'd have more or less after-tax return with that compared to SPAXX or SGOV. Personally if I have cash to park I like SPAXX because it's instantly deployable. Granted I think pulling out of the market to sit on the sidelines is foolish, but that's a separate topic.

Lucky_Platypus341

As others have said, holding treasuries in brokerages (SPAXX, SGOV) or in banks (HYSA, CD) are as safe as you can get. Things that hold treasuries (SPAXX, SGOV) have the benefit of being STATE tax-free. Consider CDs (I just got a 15mo at 4.2% APR) for funds you don't need for however long as PART of your holdings (do pay ordinary income tax on dividends, tho) since it locks in the rate for the term (if you think they'll keep cutting rates for a while). SPAXX is great for instant access, but SGOV (and similar) will give you a little better return (just under 4% atm). If you want to dip your toe into investing outside equities, consider close-end bond funds (like iShares iBonds) that if you hold to maturity (from 1-10 years depending on the fund) you should get the YTM rate. You can get a little better rate going corporate bonds, but there is a risk of default (small on high quietly corp) and you'll pay tax on the dividends (paid out monthly). Or you could consider setting up a bond ladder/tent for short term treasury bonds. The idea is to have the funds from the bonds maturing match when you lan to invest (or need the money). If your timeframe is 30+ years, DCA over 2 years starting now would be fine. If your timeline is shorter or you just do not want to risk it in the short term (hey, Warren Buffet has almost half his cash on the sidelines, too, so not that crazy), that's fine -- you do you. Honestly, it's better to underestimate your risk tolerance than overestimate it and panic sell when things drop.

AverageAngling

Other guy covered it, but basically a HYSA or SPAXX/a similar vessel won’t ever lose the principal amount or decrease in value like stocks can. That’s the trade off, safer investment for lower return

Creative_School_1550

High Yield Savings Account is not a bond, is an obligation of the bank. Won't lose principal unless the bank fails & then presumably it'll be backstopped by the FDIC. Look at the recent bank failures, depositors were made whole even if they were over the, what, $250k insured limit. SPAXX is this> "The Fidelity Government Money Market Fund primarily invests in cash, U.S. government securities, and repurchase agreements. It can be used as a core position in both retirement and non-retirement accounts." Presumably also safe & won't lose principal unless the entire system goes belly-up. Either of these should not lose principal

Financial-Respond-37

What do you mean - "HYSA and SPAXX will not."?

AverageAngling

Who knows. If shit hits the fan anything in stocks and funds is gonna go down. HYSA and SPAXX will not. No one knows what’s going to happen so don’t try to time it, just put it in a HYSA or SPAXX or whatever if you need it within a few years, and in the market if you don’t. My general rule is need it within 5 years - it shouldn’t be in the market. If I’m putting anything away for a decade from now, or retirement, it goes into stocks and ETFs not a savings vessel

TheRealJim57

HYSAs, SGOV, SPAXX (or other MM fund), CDs/MM certs, or TBills...

billythabeast

Lock up earnings and realize those gains. Better to be up a little than to be potential down a lot if those ER dont play out. Yeah you'll feel FOMO if those ER play out positively, but you'll feel a larger FOMO if your plays come crashing down. All you'll think to yourself is damn, I was up and should have cashed out. Why take a potential loss when you have a guaranteed gain? Realize those gains, reorganize, and research another play according to your risk tolerance. Take some of your cost basis and leave it separately in SPAXX or purchase some VOO for the long haul.

Savage_Batmanuel

Withdraw 10% and have it sit in a money market like SPAXX. You get a 5% yield and can buy the dip when a market crash happens.

throwaway510150999

Should I continue to sell my company stocks to purchase index funds? I have been selling my company RSUs and ESPP when vested to immediately buy VTI over the years but now that VTI is at an ATH, should I continue doing this? I just sold 20k a couple weeks ago and it's sitting in a SPAXX in Fidelity.

therealjerseytom

SGOV and SPAXX are close enough to call the same. But sure, that's not unreasonable. Alternatively you could consider a lower-volatility equity position.

Phuffu

Money market funds settle same day. I know they are structured as mutual funds but they will settle same day. I’m fairly confident that’s a universal rule but of course I’m sure there is some broker out there that has different rules I know for a fact that FDLXX, SPRXX, SPAXX etc. settle the same day you trade them.

ralphy112

Don't forget/overlook state taxes, even if you're paying 0% LTCG tax rates on a bunch of sales. In NY, all LTCG are still taxes as ordinary income, LT or ST, 0% or not. It's a smaller portion, but still there no matter what. I'm not able to now due to kids, but I'm finally old enough with enough assets that it definitely makes me want to set up residence in a 0% income tax state! Also, the 0% rate applies somewhat similarly with "qualified dividends", which have a certain holding period (read the rules, they are different). And if you use a broker like fidelity, even cash based "interest" can be counted as dividend through their money market SPAXX type items, and I'm still learning how those get taxed, and if they can count as qualified. Maybe not, but there is also SGOV, a treasury bond based cash equivalent holder, that usually will beat the SPAX interest rate if you are intent on holding large amounts of cash. I think SGOV dividends are partially exempt from state income tax too. It's a small optimization, but if you're holding excess amounts of cash it adds up. Until you can move to that 0% income tax state as a shelter.

Over-Computer-6464

Where are you buying treasuries now? If treasury direct you should stop doing that as you cannot sell via treasury direct. Use a brokerage account instead. Most brokers have zero commission for buying new T bills, and if you suddenly need the cash the bid/ask spread loss on selling is small. I prefer Fidelity over Schwab because Fidelity offers core accounts such as SPAXX money market for uninvested cash, while Schwab's standard core accounts are near zero interest FDIC accounts.

AffectionateLeek5854

Transfer and INVEST. People forget the investment part , and money 6 string in SPAXX.

Brilliant_Guidance65

SPAXX

PhiladelphiaCollins8

I think in the US people(some) are just generally uncertain about the way things are being run with this current administration. The wishy washy tariff this tariff that oh just kidding cycle that we have been on since January is unsettling. Not to mention the current pissing contest happening with the government shutdown. There is no telling from one day to the next what headline you will see from the impulsive decisions being made with no thought of the consequences or no thought at all really. Even ignoring the tariffs and shutdown the housing market is not looking good. Interest rates are still sky high with inflation still being a concern. Consumers have less money, more debt, and are really starting to feel things tighten up. Corporations have been non stop hiking prices for 5 years while posting massive profit. It is corporate greed under the guise of inflation. Insurance and healthcare costs are insane and there is no avoiding those. Depending on where you live property taxes are starting to drive people out of their homes and neighborhoods. I don't really see things getting better anytime soon but then again these are just my personal opinions and feelings. No one knows how this will play out and no one can predict the future. I certainly am not messing with any of my retirement accounts as I am still young(ish) at 37. But my recurring deposits that I normally would dollar cost average in my brokerage account have instead been going to SPAXX money market and stay in cash.

Heyhayheigh

Banks dont affect your historical performance to compare to benchmark. SGOV is better practice. Fidelity default SPAXX is normally better than HYSA... No real reason to use HYSA IMHO

Key-Boat-7519

GLD/SLV hedge inflation but aren’t safe havens if you need principal stability. Safer: ladder 3-12 month Treasuries, I Bonds, or a good money market. I use TreasuryDirect for T-bills, Fidelity SPAXX for cash, and a fixed annuity via gainbridge.io. For safety, prefer Treasuries.

DrHarrisonLawrence

Can you do this with SPAXX too? Like is there a SPAXX-equivalent method as well? Or do I have to convert my SPAXX to SWVXX first and sell CSPs against it?

Syniakai

From the category of extremely safe bond funds (USFR, SPAXX, SGOV, AND ICSH), ICSH has the highest total yearly returns. With the grand total sum being 21.71%, and the average being 1.97%, and it's the only one who has never been at a loss. I wouldn't fully rely on the 30 day yields shown by these funds. Many of these bond funds are showing an irregular pattern of higher returns from 2023-2024 and it's starting to slow down this year. It seems temporary.

Skurttish

Yes. Okay, a follow up question: Are you regularly risking more than four figures USD on speculative plays? Or is your limit on what you risk for speculation about $5,000 or so? I’m asking because a loss of this amount doesn’t seem very large, so it leaves me with the impression that this is most of your money, which seems……quite dangerous. There are a number of funds which can be used to store funds away, like an emergency fund. I use SPAXX because I’m a client of Fidelity, but there is also SGOV for those of other brokerages……I don’t know if this is helpful, but these are ways to save money so that there is only a very low-risk chance that it is lost (like, collapse-of-the-system chance).

Altruistic_Summer469

He isn't right, both are liquid... SPAXX you make 4% no risk. FXAIX you can make 10-12% at least per year but can also go down in a major correction, so yes with upside for sure but you are assuming a higher risk cause you are now buying stocks essentially. RIsk vs reward.

Diligent_Plum_7079

What’s the benefit of SPAXX over a HYSA? If their interest is the same?

SirLearning

Why do people want to choose SPAXX with expense ratio of 0.42 over vanguard VMFXX with expense ratio of 0.11?

ILoveKombucha

This is probably because SPAXX is often/generally where your money deposits to when you transfer to your accounts. It probably happens a lot that newbie investors deposit money in their fidelity account and think they are done, not realizing that they need to actually buy the investments they desire, moving money out of SPAXX into, for instance, FXAIX. But some people do intentionally want to hold SPAXX just to keep their money liquid while earning a little interest. In my case, I like to buy SGOV to differentiate my emergency fund money from money I've just deposited that I intend to invest (SPAXX). Do you have other money actually invested, and you are purposely keeping this 6k set aside as emergency savings? I could see the Fidelity rep thinking "this guy hasn't invested his money at all!" and kinda giving you a heads up about that. Make sure you are thinking of your money as being in separate buckets: cash (liquidity for emergencies... stable against market down turn) and investments (long term growth at the cost of short term volatility and downside risk; FXAIX, stocks, etc). These two things are kind of opposite sides of a spectrum. If you go all cash, you can weather a downturn no problem, but you won't grow your wealth. If you go all stocks (even in something like FXAIX), you may get screwed if you need money during a market down turn. Sometimes markets sink and don't recover for 10 years - you could lose 20-50% and not gain it back for a long time. But, on average, over long time periods, your stock fund (FXAIX) will likely grow WAY more than cash (SPAXX). Understanding this, you can allocate appropriately.

IAmIntractable

I agree that a money market fund at an investment company can be riskier. In fact, that was my primary concern when I recently put a large sum of money into SPAXX. But after talking to Fidelity, I’ve come to learn that this money market is highly insured and the odds of it defaulting our pretty much 0%

ProbsNotManBearPig

SGOV is not quite as liquid as SPAXX since it takes longer to settle withdraws and the return is about the same after tax differences. It’s a wash.

ProbsNotManBearPig

SPAXX is 4.14% over the last 1 year and 4.5% over the last 3 years. The last 7 days have been lower than average. SPAXX is higher than any HYSA on average and risk is close to zero.

ProbsNotManBearPig

SoFi requires direct deposit to get 3.8% and SPAXX is 4.14% over the last 1 year. It’s 4.5% over the last 3 years. It’s a decent amount higher than any HYSA and doesn’t require direct deposit with fidelity.

Moby1029

I thought with SPAXX and Fidelity, you had to transact with it a minimum number of times per month since it's supposed to be used like cash. Or did I misunderstand the terms?

Embarrassed_Age_3078

Lmao, don’t know what you are getting at. I mentioned the same, that letting it be in SPAXX should be fine. That is almost as liquid as anywhere else. Also, hope you never actually have to need ransom money!

ethnicnebraskan

I've been using BIL, which has been averaging something like 4.4% over the past 12 months. The real upside of SPAXX is that you can still earn that base 3.79% interest even if you're using it as collateral for CSPs, but then I suppose that's no longer *truly* a reserve then.

immanewb

SPAXX is fine for emergency savings. If you live in any state that taxes dividends, I'd consider FDLXX. This money market fund aims to hold ~97% of its composition in US Treasurys, which makes "[a portion of the dividends you earned may be exempt from your state’s income or investment tax](https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/taxes/TY24GSESupplementalLetter.pdf)." SPAXX uses a lot of repos, which doesn't qualify for this tax benefit. Downfall is that the yield on FDLXX is a smidge lower than SPAXX, so if you live in a state that doesn't tax dividends, then you're just better off with SPAXX. Disclaimer: not a tax advisor and this is not tax advice; also not investment advice, either.

Unlucky_Data4569

SPAXX is also a fidelity fund tho

ubik1000

I have an insane amount in SPAXX because I want to have cash when the crash comes. They will always tell you to put it into the market but the good times won’t last forever

Gliese_667_Cc

SPAXX is fine for emergency savings. And you’re making ~3.75% on it, not nothing. That petson is an idiot.

babecafe

There's at least two components to liquidity: (1) access time to cash: SPAXX is basically a cash fund, and AFAIK, you can wire funds out and have it in a local bank account or even cash in your hands within a day, while FXAIX is a stock mutual fund and doesn't sell until the end of the trading day, is limited to $100k transaction per day, and AFAIK, takes the usual three days for the transaction to complete to cash in your hands. If you need more than $100k in liquidity, you have to add one more day per $100k. (2) uncertain growth. FXAIX is invested in the basket of SP500 stocks, dominated by large-cap US technology stocks. These stocks can get hit in a matter of days by changes in the expectation of economic conditions, moving rapidly downward by about 30%. That includes the downdraft we experienced earlier this year when Trump totally fucked international trade with tariffs, rapidly changing the expectations of the profits of those very large-cap US corporations that rely on inter national trade. The market recovered from that over a few months, starting in April, and grew beyond the levels of January, but Trump is threatening tariffs of 100% all over again. If you need to pull out your emergency funds when the market has panicked like this, you lose the 30% of your funds permanently, because you can't afford to wait for a recovery. --------- Now, if you've got additional funds invested in stocks beyond your emergency funds, you can open a credit line based on the margin of your investments. Basically, you're pledging your investments as collateral for a credit line based on their value. You can access that credit line about as quickly as SPAXX, and even if your investments take a 30% hit, you are simply burdening your investments against your credit to a greater degree, you're not permanently losing that 30%. This April, when I got my taxes calculated at the last moment, I needed cash immediately to pay taxes due, and selling stocks wouldn't settle before April 15th. A margin loan raised the necessary cash, and the interest on that margin loan was much less than the amount my equities recovered up to now. Closing that margin loan now would put me far ahead of where I'd be if I had sold FXAIX or other equities on April 14th. (I *should* definitely close that out, though waiting until after Dec 31st would delay the capital gains taxes by a year.) *Really* wealthy people can live their whole life on borrowed funds and never pay off the loans until it becomes part of their estate upon their death. To them income tax is for dumb lovers who actually have to stoop to taking income.

crazybutthole

And by the way - I am in this spot right now - I am a govt employee and we are experiencing a govt shutdown. I am not sweating at all. I have 2+ months expenses and when they pay me back for my 2-3 missed paychecks - I will refill my SPAXX - life is good. If it goes till January or February - I will have to consider selling a kidney.....or selling my sp500 shares? I will give it a lot of thought. Based on the amount of beer I drink I doubt I would get much for a kidney.....hope the sp500 has a good QTR

crazybutthole

The guy didn't say he was going to put the money in an individual stocks that can drop 80% ($100k to $20k) in one day or even 80% in a week He said the sp500. Name the last time the sp500 dropped 80% in a week. It never fucking happened. And it's not going to happen next month or next year. Look at the other side - what if you have an emergency fund (mine is $20k) I have $8k in SPAXX/ $7k in BOXX and $5k in sp500. Instead of averaging 3.7% with SPAXX only - my emergency fund is averaging (3.7 * 8 + 4.3 * 7 + 10% * 5) (more like 5.5%) - if an emergency comes up where I need $8k I am good I got it in SPAXX. - if an emergency comes up where I need $15k I got that in SPAXX and sell $7k BOXX - and God for id I need to cash out sp500 - I am willing to take that level of risk that hopefully the sp500 won't drop 80% the same day my emergency randomly comes up.

timnuoa

Yeah SPAXX in Fidelity is exactly what you’re looking for. 

Timely_Sand_6162

As I understand, in fidelity, any money uninvested gets invested automatically into SPAXX. This service rep might be thinking that it is unintentional that you have left it there uninvested.

HiMyNamesEvan

Warren Buffet keeps cash in SPAXX

sirzoop

SPAXX is a money market fund not equities

gosumage

SPAXX is exactly where your emergency fund needs to be.

Hawk_Letov

My entire emergency fund plus short term sinking fund is in SPAXX in the Fidelity core position. The goal of an emergency fund is to be accessible and to preserve capital, not to have capital appreciation. Earning a very safe ~4% is nice too.

news_fakeacct

SPAXX is yielding about the same as other high-yield savings accounts, there’s nothing wrong with parking cash there

FujitsuPolycom

I have my emergency in SPAXX.

No_South_9912

Ladder your EF, first $5k or so SPAXX, then progressively riskier with each "bucket" of your EF. Small emergencies cover with SPAXX, if a large emergency happens dig into riskier buckets.

Minute-Plantain

It used to be 5% last year. It's down to 3.78 so, while not bad, not great either. It's not beating inflation. Very likely it sits below it. If it's your liquid emergency fund, keep it liquid. At some point, if you like, take half of it, and start laddering it into bonds that give you a higher return. Choose shorter term maturity with well-established companies that won't go boom. I have two right now set to mature by January of this year, and taken together with my SPAXX the return will be around 6% blended. Twice of just keeping it as cash. The downside of course is you lock up your money. Sure you can withdraw it at any time, but you might lose a bit.

Cyberhwk

SPAXX is the correct choice for your Emergency Fund.

Embarrassed_Age_3078

SPAXX doesn’t actually do 4%. The way it’s tied to treasuries and the markets, it actually will track the reduction in interest rates. For example, it returned 3.8% in the last 7 days. It might still be a bit higher than a HYSA but then also is a bit riskier. But i wouldn’t be worried about it that much.

100k_Sprinter

I chose to do SPAXX because it grows about 4%, and I could have everything in one spot rather than a seperate acc for my HYSA.

Embarrassed_Age_3078

It’s an emergency fund, the whole idea of it is liquid funds that you can cash out in need. It makes perfect sense to keep it uninvested and just gain on it using SPAXX. If you aren’t willing to put it into an actual HYSA, i would just let it be in SPAXX.

CardiologistEqual336

Time in the market > timing the market Unless you need that cash sitting in SPAXX in the next 5 years, it’s wiser to invest it

therealjerseytom

What brokerage are you using...? With Fidelity, your cash position is a money market, e.g. SPAXX with a 30-day yield of 3.8%, and it's your instantly-available buying power.

modninerfan

Yep… my bank is nothing more than a checking account. All cash is parked in SPAXX. The rest invested.

alwayslookingout

You could just hold your money in Fidelity as SPAXX like a HYSA.

DegenGonnaDegen

at least your SPAXX sill gain 4%

LostNtranslation_

The main issue is that if you leave out the SPAXX or equivalent you will, at some point, be in a bind. The other temptation is to buy more of the best performing stock. But the flow is if QQQ beats VOO 20 years straight then you are selling VOO 20 times and buying VOO to maintain the percentage. Everyone says once a year on the same date. However, I like to do it in December but that is likely not important.

LostNtranslation_

The secret is to invest (in your case) about $250 to 500 on a bi-weekly basis. That is it. It is time in market that makes the difference. Make sure the bi-weekly contribution is from cash and not debt. You need a budget to know that or use some technique to make sure you are not living off your credit cards. Personally I do mostly VOO with a little QQQ and some cash in SPAXX. I re-balance once a year and that is it. That simple. I like to get my employer match on the 401K as it is free money. The cash gives you a little buffer for emergencies. This last weekend was a great lesson on why not to buy stock on credit.

robotexan7

Money market funds like SPAXX, yields over 4% abs it’s basically cash

ponziacs

SPAXX in my fidelity and SGOV elsewhere

ponziacs

Got a ton of SPAXX and SGOV so looking forward to the dips and/or crashes.

therealjerseytom

I mean, the Euro sees inflation and devaluation over time as well. By trying to find "SPAXX in Euro" you're exposing yourself to foreign currency exchange risk. What is it you're trying to do with this money in the first place? Money market positions exist for maximum liquidity and short-term stability. Cash equivalents aren't there for growth; they generally have a real return of roughly zero.

Gliese_667_Cc

SPAXX at Fidelity is 3.75%. You can transfer money out and have it in your account in a couple days.

ohyeahwell

Mine is sitting in SPAXX

gu_doc

I keep mine in SPAXX but I’m going to look at SGOV

Aggressive_Finish798

HYSA or some bond like fund like BND SGOV, even SPAXX as a core position isn't bad. Having it in a regular bank account is losing money. At least 3 percent a year, which will add up. If left alone in 10 years that money will have lost 30% of its value. Just not getting your money out of an HYSA can take like 5 to 7 days. So I also keep a smaller amount in my checking account to cover monthly bills.

ponziacs

I got a lot of SPAXX and SGOV so looking forward to buying the dips and/or crashes.

DaemonTargaryen2024

>What are my best options in parking cash?  Money market fund (such as SPAXX) or HYSA. Or a CD if you don't need liquidity. >I sold all my stock holdings very recently due to my (and many others) uncertainty regarding the economy Timing the market is a losing strategy [https://www.schwab.com/learn/story/does-market-timing-work](https://www.schwab.com/learn/story/does-market-timing-work) >and to lock in \~40% gains since the beginning of the year. More likely, you'll be locking yourself out of gains. [Meet Bob](https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/) If the market rises, how long will you remain in cash before you reenter the market? That's not a hypothetical, you need to know the answer to that question. >I'd like to make 5% or more Doesn't exist in the current interest rate environment. > so I can buy quickly when I spot favorable conditions, dip, or a string buy stock. This a losing strategy.

TortugaTurtle47

I can't think of anything that will give you 5% and liquidity. Fidelity parks my extra money in SPAXX so what is Schwab's? Maybe SWVXX or SNSXX.

ArchonOSX

All of your money that is not invested in a security (stocks, bonds, or ETFs) is automatically deposited to your core position. You only get a couple choices and the Fidelity SPAXX is what I chose for my account as I also trade the wheel and options and Cash Secured Puts pays interest while being frozen until the CSP expires. It currently pays about 4%. Read the "About" here: [https://stockanalysis.com/quote/mutf/SPAXX/](https://stockanalysis.com/quote/mutf/SPAXX/) Google "fidelity core position" for the AI version. Happy Day!

Nick700

SPAXX

Common_Sense1234

I’m in the SPAXX camp. Currently holding there for the foreseeable future.

urnutspal

HYSA for cash I truly put away as savings. Otherwise, Fidelity offers SPAXX, which is the money market where all my investable cash and non-DRIP'd dividend payouts are held. Looks like current annual rate is at 3.79%

LawyerPhotographer

Fidelity All Day. Why: Great Funds you can't get off platform like zero fees FZROX. Perhaps the best actively managed growth fund in Fidelity Contrafund. It will grow with you: Want an annuity with for 30 basis points and no surrender fees: Fidelity has that. Cash management, yes. Kids accout: Yes. Access to Pre-IPO venture Capital investments: Yes or you are an accredited investor. Sweep Account SPAXX pays 3.8% on cash.. what does Schwab pay. Local branches. Great customer service. Robust, well organized website.

thethrifter

The APY of 3.80% on SPAXX includes the expense ratio. This means AFTER the 0.42% expense ratio is deducted, you still earn 3.8% yield on SPAXX. I know this because I actually did check before investing my money into it. That said, the taxible yield on FEDLXX (3.73%) could be marginally better depending on your state as it isn't subject to the same state income taxes as SPAXX.

giraloco

The money market has a fee, you don't know unless you check. SPAXX expense ratio is 0.42%. Something to compare when choosing a fund.

HartbrakeFL21

All I know is my account seems to gain every day, regardless, and I'm in nothing particularly special. ETF's: bond, 20%. US Stock Market, 50%, Bitcoin ETF, 15%. Even the cash in SPAXX (15%) makes money. hashtag irrational exuberance.

Delicious-Proposal95

60/40 account with equity allocation value focused rebalanced yearly averaged 5.13% per year. 500k would have grown to 840k. Even if you used a growth mutual fund you still turned 500k into 650k or 2.7% The issue with SPAXX is if the recession does come yields are going to 0% lol and it won’t be paying shit then this guy won’t get in because you never know it’s the bottom till the market recovers. Then when it recovers he will be saying the same thing again.

the_bagel_warmonger

Correct me if I'm wrong, but wouldn't rate cuts make SGOV more favorable in comparison with SPAXX? Rate cuts will cut into the dividends of both, but it will happen faster with SPAXX, and SGOV will at least see its price go up as the rates (and dividends) fall.

HumidMind

Learn about specific investments and stack dip cash in SPAXX or Gold (GLDM is my fav for ez cheap in and out). Stuff that Roth with 8k every January of fresh stocks you learned about and believe in. Gold. Real estate is a whole nuther world, REITs or physical. Avoid options. Crypto has a huge learning curve, 2 cycles at least and ETH or BTC only. Metal trading will eat you too. ETFs are ez to be an average investor, but who wants average? You make wealth with concentration in great investments. You diversify to hold the profits.

ForeseablePast

Our situations are almost identical. I have 6months cash in SPAXX accumulating high yield saving like interest rates. I also have some cash in there to go towards down payment on a home in the next likely 2 years. Question though, what’s an MMA? I hold everything in SPAXX because it gains interest like an HYSA, it’s accessible, has unlimited transfers/withdraws and I can use it on a moments notice to buy dips for ETFs/blue chip stocks when they dip. But again not sure what an MMA is and nah d I’m missing out

Enough_Fact1857

I use fidelity for both after-tax brokerage and retirement accounts. The advantage of fidelity: 1) you can use fidelity as your main "bank" for many purposes, because fidelity brokerage account also have routing and account numbers, and you can get a debit card from it (but usually you should not use it except withdrawing cash). 2) fidelity has good portfolio tool called Full View. 3) fidelity also has 0 commission. 4) You can elect fidelity's core position to SPAXX, currently has \~4% yield, so all your "cash" is automatically "invested" to SPAXX, and when you use it, it auto liquidate to cash.

FortyYearOldVirgin

I got what you meant :-) Yeah, SPAXX is good, but I chose SGOV for the low ... ER ;-)

Enough_Fact1857

My ER is in SPAXX. It is even more liquid that SGOV.

Enough_Fact1857

can you pay CC with fidelity account (core position is SPAXX)?

DoinIt4DaShorteez

Don;t buy individual bonds. The yield diff between SPAXX and SGOV is currently about $240/year on $100k. $20/month. If he wants 100% safety, he's going to have to accept lower (and probably declining) yields.

vortexmak

Thanks.  The first item says US Treasury. How does one buy US treasury bonds?  Also, it doesn't seem like it's worth moving out of SPAXX

Admirable_Nothing

SPAXX is short term government bonds. VUSXX has a very slightly higher yield if that little difference matters. The other choices are CDs but that aren't much better. Here are your choices today. [https://imgur.com/a/pGAiQDa](https://imgur.com/a/pGAiQDa)

biomassive

With Fidelity you can set a recurring schedule to purchase investments with a set interval (every 2 weeks, once a month, every monday, etc). If doing a lump sum purchase makes you nervous you could transition out of SPAXX over a period of some number of months. If you're worried about stagflation I would reconsider the money market funds, companies will be able to adjust their prices to account for inflation. https://www.fidelity.com/trading/recurring-investments

citykid2640

Even if you were the worst investor in history and always lump summed the day before a downtown, you’d still be so much further ahead. With inflation, you have to think of your SPAXX as losing whether there is a downturn or not. You do you of course, but since you asked for advice. There is even a happy medium here. There are conservative dividend funds and closed end funds like JAAA or CLOZ that can earn you 6-9% with little volatility