SPAXX

MattieShoes

Open a brokerage account. It's just a specialized bank account that allows you to invest the money in it. Then if you don't have an emergency fund (six months expenses), then shove that much into a money fund. Which money fund depends on which brokerage you use. Like SPAXX (Fidelity), SWVXX (Schwab), VMFXX (Vanguard), whatever. The key here is that it's low risk, something like a savings account. Beyond that, you can invest in whatever you want. But if you don't know anything and you're looking to get your feet wet, a broad ETF is probably what you're looking for. Something like VOO (S&P 500), VTI (total US index), VT (total world index). Be aware that you are taking risks with that money -- if the market drops 50% tomorrow, half your money disappears. But long term, markets tend to go up. You should also consider opening a Roth IRA. It's a brokerage account specifically for retirement funds, so you get some tax benefits for putting money in there but there are restrictions to when you can take money out. Also there are income limits, but ways around those income limits, so it's a whole thing.

gosumage

I'd never recommend keeping cash in the bank. Add the 5k to a Fidelity account and take advantage of their SPAXX account interest (currently 3.3%). Invest the rest.

Mac2663

I have about 3k (which is about 15% of my liquid worth) in SPAXX drawing a notable percentage. I didn’t realize saying I use metals as a savings account would be so demonized here lol (I am aware that I am poor, but also rich compared to many Americans depending on how you use the word). I legit don’t understand why using metals as a savings account is so demonized. I didn’t even consider it a gamble with what’s happened the last year with inflation. In my mind, I essentially traveled back in time to when we were on a gold standard and cashed my dollars in to hold onto my bars. I mean don’t get me wrong, I know this sub isn’t for people trying to make a buck with short term holdings, nor am I that type of person, as all of my retirement accounts are run of the mill broad index. I’ve been known to gamble a bit here and there with a stock I buy in my taxable brokerage for fun, and it kinda forces me to pay attention to the world. But yeah all of my tax advantaged accounts basically broad index/etf. Fun fact, the only reason I’m well ahead of the S&P this year is I got into Webull (BULL) in February based on some research I stumbled on, and it’s up 61.56% as of this comment. (Again I do not regularly, no advocate, trying to use stocks as a form of income).

Historical_Low4458

If your 401k custodian is Fidelity, then your plan might include SPAXX. I would also consider a stable value fund if your plan offers it.

Fabulous-Transition7

After learning about the high fees that comes with SPAXX, I moved my money to USFR. USFR is more tax efficient as well.

bluehat9

Buy SPAXX - that’s fidelity is money market fund yielding 3.31%

BobtheChemist

Not sure about most accounts, but both of my IRA accounts have a setting that automatically puts any cash into a short term gov bond fund, and they both pay about 4% or so, so maintaining some cash does not lose much to inflation. In fact, my cash earns more than many of the bond funds that are pushed often, but has a near perfect principle retention, due to being a short term bond fund. I think SPAXX is the Fidelity fund.

North-South1990

Should I keep the Fidelity SPAXX CMA account newly opened if I will be losing 0.42% of yield due to the expense ratio? Have not yet decided whether to use their bill paying options…..?

RobertPooWiener

I'll probably just sell it all and put it in a HYSA or money market. It looks like all the indexes are down too. I would have made more money up to this point if I had just left my money in SPAXX in Fidelity CMA

gatorb888

Well you should have the cash sitting in a money market account like SPAXX earning >3%. Though that’s barely keeping up with inflation at this point.

Megaloman-_-

Maybe also put 30 to 40% of your money into some Money Market Fund. I use SPAXX

DoinIt4DaShorteez

I don't see any problem with that mix as far as safety. The GPIX position won't cause much volatility and JEPI isn't very volatile. But I'm not sure why you're asking, you must have done the calculations already. SPAXX, JEPI and GPIX get you almost halfway there. I don't know what you can get in a CD and/or a treasury ladder with the other $100k, but you must.

ZookeepergamePlane68

With the extra $, start with 50% for savings, like a Money Market (Fidelity, SPAXX is at 3.31%) its like a HYSA but better, IMO. Then open a Roth IRA (its free and will be tax free after your 59.5 age) put 25% into VOO, 15% into QQQM, 5% QTUM ETF, and 5% into whatever stock your need to scratch that gambling itch. Once you get your savings to 3-6 months expenses, whatever your comfortable with, increase VOO, this should be your core. At your age I would do VOO at 50%, QQQM to 30%, QTUM ETF 10%, and the last 10% at whatever stock or ETF, I like NASA ETF. Also, use AI, Claude is your best friend when it comes to this stuff, remember you get out what you put in, better info you feed it the better it gives!

Homeless0DTESPX

Don't tell the people on the Fidelity sub that Fidelity scalping an extra 0.5% ER on SPAXX is shitty, they'll jump down your throat

jimmyredfoot

I contribute to a 401k through my job. The account is managed through Fidelity NetBenefits. There are 24 investment options offered: Nineteen (19) of the funds offered are Vanguard, three (3) are DFA, and there is only one Fidelity fund offered (FXAIX). Two if you count SPAXX. Why is this? I manage the rest of my old retirements accounts and an IRA through Fidelity and it seems silly I can't allocate into FIPFX or ome of the many Fidelity index funds, given that the account is held through Fidelity.

Parking_Reputation17

Literally all of my emergency fund is in FDLXX, and my cash sits in SPAXX in my Fidelity CMA.

HairyBushies

I’d argue SGOV or an equivalent is pretty much as liquid as a HYSA. If you can’t wait for a 1-day settlement on market days, you may need to look at the bigger structure of your financial life. That’s a non-issue for me. I’m at Schwab and Fidelity. With the latter, my core position with SPAXX is just like cash for all intents and purposes. All my bills are paid from Fidelity. I use SGOV in my Schwab account and it’s not an issue to sell, transfer to my Schwab checking and do whatever is needed as my first backup. And then I have $1,000 cash in a credit union account just in case though I’ve never had to touch that in over 10 years.

Kammler1944

SPAXX is closer to 3 than 4%.

Glum-Chemistry3120

I appreciate it man! Thank you so much. Will do my research on SPAXX etc.

Big_Crank

Well, when I have cash, I keep it in a brokerage account with Fidelity. In there, it will automatically be invested in a fund called SPAXX. This is basically a treasury bond account. Your money will make roughly 4% annually, and I will pay you at the top of every month It's nice to make an extra few bucks If you plan on needing the money within a year, I would say do that. If this money can sit around for two or more years, I would say put it in any account that you can invest in some index funds.

ohstoopid1

Inflation depreciates straight cash over time. I know it's only 5 years but assuming 3% inflation over 5 years for this kind of money adds up. I'd go with a HYSA, SPAXX, or SGOV to at least offset inflation.

pigeon_shit

SPAXX would like a word

JahMusicMan

I have it summarize all my accounts (IRAs, Roth, Brokerages) plus give general inheritance advice and have it give me an overall analysis however I prompt it to tell me the hard facts and not sugar coat anything. I did one big change to my Fidelity account, I was keeping money on hand in SPAXX instead of FDLXX which is exempt from CA state income taxes so I'm saving like $400 in state taxes. I also reduced my REIT exposure since I unfortunately inherited a house (unfortunately because a parent passed) and increased my small cap value percentage and bond percentage because of an incoming inheritance. I'm using Claude with a project specifically prompted with my complex situation with inheritance. Should I get a fee based advisor and an estate CPA? Probably. lol

BlueJeansXoXo

Hi, I’m 32 years old from Puerto Rico and started taking investing serious this year. Current situation: 401(k): \~$100,000 contributing 10% to my 401(k) Fidelity taxable brokerage: \~$33,000. Contributing $400 every two weeks to the brokerage Emergency fund is already fully funded Mortgage is my only debt. My brokerage is currently invested primarily in: FXAIX (S&P 500 Index Fund) FTIHX (Total International Index Fund) Remaining cash is in SPAXX awaiting investment. Any recommendations?

airbud9

The Vanguard Cash Plus account would be good for this, I think what might be a little better for you is the Fidelity Cash Management Account (CMA). They are both at about 3.2-3.35% interest rate right now which is the going market rate. Fidelity's CMA works like a checking account but will take the balance of the account and hold it in their money market fund (SPAXX). So you get a good interest rate and you can use that account to write checks out of it, you can get a debit card for it, and I believe you can do bill pay on it, makes it easier if you need to draw on this money. The Vanguard account is basically just a high yield savings.

Inevitable_Ad6868

A govt MM fund like SPAXX will match CD yields and give you daily liquidity.

MedicalBiostats

Think Fidelity SPAXX for liquidity advantages

Shoganai_Hito

Been in $150k cash last 6 weeks and kinda happy with my SPAXX 3.3% return

Sharp-Direction-6894

My best performer this year has been SPAXX

Shoganai_Hito

I’ve been in cash last 45 days making 3.3% in Fidelity SPAXX. Boring af but sleeping better. Time to get back in the game me thinks

ComfortablyNumb8357

Three of the safest choices that come to mind. Step one for any is opening a brokerage account. I use FIdelity myself. 1. Safest - Drop in into a Fidelity account and leave it in SPAXX (money market) @ 3.3%. 2. ETF ticker AOK with is 70% bonds/30% stocks and automatically rebalances. 3. Use a target date fund like Freedom Fund 2025. That will split the money across asset classes. The biggest recommendation is once you choose a path, don't touch it until he needs it. If you start buying/selling or trying to time the market you WILL lose his money.

BorfGrambo

I’m also new to investing and most of what people are saying here is good from the bit of research I’ve done. I opened a fidelity account and keep my emergency funds in SPAXX which is pretty safe and right now has about 3.2 APR. If he wants to be riskier he could do a diverse ETF. If using fidelity, FZROX covers total US stocks and has zero expense ratio.

PotadoLoveGun

No I don't use margin. Ill build up some cash and wait for an opportunity I like to sell some puts in stocks I wouldnt mind owning. Usually they expire worthless which builds the cash pile for the next one. Cash is "invested" in SPAXX while its being held as collateral so still make 3.3% or so

Cheesyphish

Your SPAXX holding isn’t a loss at least

Interesting_Week_917

My best position is SPAXX

RadiantRecord1413

SPAXX is about 3.25% APY right now, and on Fidelity that’s one of multiple options you can set as your “core account”. Any cash in the account is automatically earning in this DAILY without any work to do on the investors part.

plawwell

Cash in money markets such as SPAXX get dividends. Recently it was 5%.

TheSleepyTruth

This is how robinhood makes money, but not true for fidelity. They explicitly do not accept PFOF on standard securities and will always execute at the best possible market price. Interestingly most of fidelity brokerage profit comes from simply collecting interest on your uninvested cash in SPAXX. Additionally they make money on margin loan interest, lending out shares for short sellers, options execution fees etc.

MCShayne1

Got into investing around christmas and recently started talking to a financial advisor. When I worked at Sherwin-Williams, I had a 401k through Fidelity that I rolled over into a Roth IRA after I quit. In the roth, I currently have money in the Freedom 2045, J&J, and FDRXX (which I later found out is just a holding account like SPAXX). I also have about 2k in FXAIX (not part of the IRA) that i've been using as a longer term savings account. He's suggested that I transfer everything to Franklin Dynatech due to higher growth over the long term and tracks well against other companies. There would be a fee to transfer everything (I think like 500) but he said he'd help manage it and grow it for me. I've done a bit of research but would still like to get some opinions. Part of me is considering sticking to Fidelity but another part of me is wondering if I'm missing out on money by not transferring to Dynatech? I was told that it's not recommended to invest in both (have a roth with both Fidelity and Dynatech).

RetiredInvestor1

I use both a HYS account and Fidelity SPAXX Money Market account. Both easy access.

SQUlRMING_COlL

Fidelity Money Market, SPAXX

ducatidrz

SPAXX….

Siddyboyhya

Rate of return from SPAXX could still be lower than a savings account or a CD but once again that something you have to assess like if you want liquidity to be able to invest those funds right away.

samurai_with_sword

Keep all your extra cash in one of your Fidelity accounts. Make sure the core position is moneymarket (SPAXX), so you earn 3.28% dividend. Then sell covered put options with expiration date a couple of months away with ridiculously low target price that has very low chances of hitting. This way you'll generate extra cash on top of your money market dividend while your money is sitting waiting for a market crash. If the market does actually crash and your put options are excercised by the other party, then no harm, you just end up buying shares at a ridiculously low price and will be invested and ready for a market recovery. Make sure you understand what selling put options means by talking with AI and never sell naked put options.

samurai_with_sword

Yup, the 6 transaction limit on Savings account is gone since the pandemic, so you can use your Savings account as a checking account. You can also get a debit card I think. However, you don't get check writing. If you need check writing, use Fidelity Cash management account and select your core position as Money Market (SPAXX), you'll get the same divided that you are getting in Marcus, plus visa debit card with ATM fee refund and a checkbook.

phd2k1

I would put most of it in VOO, and not touch it for years. The remainder could go to a high yield savings account or SPAXX which is almost the same thing.

ih8tejunkmail

Put it in a Fidelity Cash Management Account. 3.28% interested and it’s invested into SPAXX through that account.

ThouMayest69

Feels like you could put it in a money market like SPAXX etc if you are comfortable with comparatively slower annual growth. It's still like 3.5% though. It would essentially be an HYSA and you could pull money quicker than from an EFT if that really matters. 

One_Opportunity9167

1. My portfolio: Rather than 60-40, I go: \-60% in Stocks (SP500 Index, RSP equal weight index, SCHD, +small cap value) \-20% in bonds (regular bonds, high yield bonds, iBonds) \-10% in REITS \-5% in commodities / natural resources \-5% in cash (extremely short term bonds, like SPAXX) As a retiree living off investments, lower volatility will help the portfolio last better than higher return 2. Roth Conversions Since I haven't started Social Security yet, I'm doing Roth conversions to pay taxes now and avoid taxes later. \-Tax rates are more likely to go up than down \-Once on SS, how much of SS is taxed is driven by Gross Income, which includes taxable income (plus other stuff) \-Do not let Roth conversion cause AGI to exceed the IRMAA limit, or for the next couple years, the limit the starts reducing the extra $6000 standard deduction for >65 3. Personal Growth: \-In my 30s, I got a master's degree while working. It took 5.5 years. Even though the company paid the books and tuition, I'd have been better off monetarily to have taken a second job at minimum wage with the hours I spent in class and on homework and projects. \-The master's degree did not help with any raises or promotions, but may have helped avoid layoffs when the company cut 80% of the salaried workforce during the GFC \-It was extremely interesting and satisfying to take the graduate-level classes that taught the heavy-duty science behind some of the things that undergrads had to use "rules of thumb" or make certain assumptions to apply \-There's a saying: "You have to move out to move up." Because I stayed at my company, the master's degree didn't have a financial payoff. I also wasn't pushy about getting a raise or promotion. But we all have things after decades of work that we can see why it might have been better to do differently. 4. Mentor \-Something I wish I would have tried: Getting a mentor. I would never expect to get a leg up due to someone being "on my side," but it would have been great to have had someone to say "Don't work on that project because it's a dead end" or "make sure your presentation promotes yourself a little in addition to making the case for the topic at hand." 5. Spouse \-I picked once, and did it right. Avoided the mental and financial cost of picking wrong. 6. Kids \-We have a larger family than most. My "hobbies" were going to games, meets, matches, concerts, etc. It dawned on me that my "calling" was to "be the dad." So, I did coaching, Sunday School teaching, etc. The psychic rewards for this were huge. 7. Volunteering \-I fell in with a group that fixes up houses for people who are handicapped or elderly or too poor to take care of those things themselves. Sometimes while driving around town, I see a wheelchair ramp I built or a house with a solid roof instead of a gaping hole for rain and racoons, and get a smile. I hope this addresses the question you had and not just me spouting off on a related topic (like Quora). Two roads diverged in a wood, and I— I took the one less traveled by, And that has made all the difference.

No_Paleontologist506

First off, sorry for your loss. Good on you for educating yourself, but that is what you need, education. Money is about when you will spend and always having a savings/investment plan. Only three numbers matter. Monthly income vs monthly expenses vs monthly auto investment. Open a Fidelity account. Deposit cash there. SPAXX is fine while you learn. Then auto buy VOO on a weekly basis. Start with what is comfortable, then work to increase that auto weekly. Only sell assets in order to pay for urgent expenses. You will learn a ton more. But as long as you get that first part down, you will always be fine. You will do great!!

neun11carrera

Open something like a Fidelity account and put 300k in something like VOO and keep 100k in SPAXX as your cash reserve ready to scoop up a dip when it comes. This is a good conservative plan. Impossible to time markets.

Original_Ad7078

4k - RKLB 4k - VOO 2k - SPAXX

beerandgardening

The market is at its peak and the underlying economy is really shaky. If I had $400k, I would start by putting all of it into SGOV and/or SPAXX (if you trade through fidelity). Both give \~3.5% returns but SPAXX is immediate cash on hand while SGOV is an ETF that may have significant tax advantages. From there I’d wait and see how the market behaves over the next 2-3 quarters and invest $10-20k once a week across what I felt comfortable with. Investing is a marathon and not a 100m dash. Be patient.

SlySelea

I've gone over it multiple times in my head considering if I made an error somewhere. I signed up on the IPO page the day that option was available, I think it was Monday. At that time it had me select how many shares requested and which account to take it from. In fact, I walked my brother in law how to sign up himself the next day. I'm signed up for alerts and messaging. I interpreted that I would receive an alert when shares were available. I made sure I had enough cash in SPAXX. I've basically been on line with Fidelity since the pricing came out last night checking activity and messages page. Maybe I did miss something but I'm not so sure. I thought Fidelity stated you might not receive any shares. I'd like to figure out where I went wrong if I'm mistaken about that, because I'm pretty sick about not getting in.

Tigers2349

Nothing. I just wnat a crash so I can lump sum my $64K in SPAXX in the market in high quality stocks. Not a perfect bototm but 30-50% drwdown and lump sunm and if it gets worse after lump sum ride it out like the smart ones who bought late 2008 or ealry 2009 who could emotionally stomach the more drawdown which I could in evnet of a crash liek ones who did well before ealry March 2009 bottoms. But I could not stomach buying at these levels if the bears awaken form hibernation which they wvery well might but they also very wlel might not as markets can remain irrational longer thna you can remain solvent.

Tigers2349

Its not about getting it perfectly right but when lump summing a big amount its pretty reckless at these irrational all time highs. I hate lump summing at all time highs to begin with let alone irrational all time highs. I biught my house for cash no mortgage in 2013 as my forever home. I had to push my time frame up because prices started to rebound and invetory shortages happened much sooner than expected relative to 2011 and even ealry 2012. Even mid 2012 in terms of price set by miud 2012 the actual threat of prices rising a lot as invnetory shortages started ot show even if prices did not rise or start to rise fast yet it ws on verge,. So I was following it and angered had ot get in as I refused to have a mortgage and owning my home outright was of utmost important to me form day 1 at age 29 when I moved out of my parents after saving my money and inheriting my grandm'a hosue split with my brother at her wish upon her passing that it wnet to both of us the sale of it. That helped me pay csh. Sine I hd to push up my home buying tmeframe to ealry 2013, I only had $5K cushion left in the bank. I intended throughout 2010 and 2011 and elry 2012 and even mid 2012 if things would have played out the way most experts expected to have a $30K cushion after buying my home. I would not have been adverse to investing in 2013 all time highs with a $30K cushion lump summing $20K. 2013 all time highs were more ratuonal and broke out to them in a ZIRP environment and after a long decade of recmaling all time highs and then some so they were safer. But I only had $5K and I needed to rebuild it back up. My intention was when rebuilding t back up to $50K or more just wnated one market crash then to lump sum $50k. But no markjet crash ever came. Unless you count covid but tht was not a functional crash., I was close to pulling trigger but feared for my job loss and while I could get by with no debt workig minimum wage job at fast food brely, I was terrified of getting covid given the news of it hopsitalizing 20%+ even healthy people. And that crash was so shoirt and it recovered like within a month and i hated it and then some it ws mind boggling. So lost opportunity where any other non panemdic related crsh would have lump summed. Then marke rockets to new highs. Eventually fed pulls back peddle puts money printer in reverse raises rates in 2022 yet market still never crashed even close to pre panemic highs despite much tighter FED policy that still exists to this day. And yet no tonly that since late 2022 market has ran so far way way way too fast. Feel stupid for sitting mostly in SPAXX cash but I would hate to lump sum at these highs and the pain if the bears come out of hibernation would be unbearable compared to infvetsing after a crash even if the down turn is worse. You see its not about exactr timing. I mean poeple during 2008-2009 rash who bought in late 2008 or ealry 2009 were great if they had emotional stomach to see further drawdown all the way to ealry March 2009 lows. I am ok with that and do have emotional stomach for that. But not lump summing at these irrational all time highs if bears awaken the anger and pain would not be worth it for me. There may never benanother crash but not gonn take that risk. If onky the stupid housing market played out liek thought in 2010-2011 I would hve had my $30K cushion like intended and lump summed $20K then DCA rest of way. But instead jjst one crahs please then lump sum even withut exact bototm timing then DCA rest of way. But has never happened and oh F\*\*\* eays monetrary policy and FED ocming to rescue., Let economy have natural cycles and bear amrkets. The FED is supposed to prevnet great depressions or panics/depressions of 1800s, nit micro manage economy and never allow recessions. There post 2008 thinking is disgusting and wrong. Insted gonna look at high yield bond funds since yields more attraticve at no longer ZIRP neutral rate. And even wordse stock mrket making irrational all time highs SP500 over 7500 despite all that screams insanity to me.

Environmental_Leg_55

I say you put everything in spaxx and wait for the fall because it’s happening in 2026, that is for certain. worst case you miss out on 7-10% return… things are not normal right now, use your gut. Dollar cost averaging into an index has most often been the right idea but its all about to drop, we see the signs, just get 4% from SPAXX and wait until the markets fall by 30% and then go heavy on VOO or SPY.

ToastSpangler

wym, broad moneymarket is 100% safe, i was talking ETFs/stocks but MM is just a better HYSA really I think only one MM fund has ever gone below $1 per share, and that was a real estate backed one in 2008. if something like SPAXX collapses the entire economy is fucked anyway and the government has to print huge amounts of money to bail everything out, so your dollar will be worthless anyway and you won't have a job

4Rascal

Fidelity’s SPAXX on the other hand 👀

No_Paleontologist506

Start really small. Get them to open a Fidelity account and just use SPAXX. Then have them setup an automatic purchase of VOO for a very small comfortable amount. Then have them watch videos. The most important thing is getting started. They have pensions. They will have income forever. They might have many years of DCA ahead of them. Something is better than nothing.

Hogweenies

Greetings, I'm a 23 yo truck driver based out of California (Over the Road so I won't be paying rent) saving for a house in a LCOL state such as Nebraska or North Dakota and want some advice on what would be the better route for my timetable. I currently bank with Fidelity and have SPAXX as my core position. Have been debating whether to keep it there or let things like VOO work their magic? Or maybe put it in a HYSA? What would be the smarter move for my timetable? Basically anything I make will be going towards either this or any necessary bills/ food. Thanks for any and all replies.

Wolvshammy

Holy shit you guys. SPAXX is my cash. Space X is in another account.

benjamin_noah

Wait… is this guy confusing SPAXX with SPCX?

TragicIcicle

I'm selling cash secured puts to double dip SPAXX and capitalize on the run with minimal commitment..so far so good thanks regards

Ahamadrayasbaboon

*SPAXX

Informal-Lime6396

What I mean is you have a risk free option called SPAXX which is the default cash position in Fidelity. It seems like you're sure that the bull market will continue through December, in which case the S&P 500 will be a great option. Fingers crossed.

Level-Possibility-69

SPAXX counts toward SpaceX???

heretogetpwned

It's good practice increasing your contributions to retirement and debts once per year. With more car loans going beyond 5 years you can really shave down the payments by year 3. I'm paid off but I bought slightly used Dec 2020 at 3% and I don't expect to see a deal like that for a long time. I will eventually need a new vehicle and SPAXX Money Market is at 3.24% so I'm sending my "car payment" there and shaving off a monthly percentage into a low drag etf in my brokerage. Goal is to buy another slightly used vehicle without a loan.

Reynhart

??? Fidelity does too (with SPAXX core position) I tend to see more price improvements over orders in Fidelity vs Robinhood as well. The only reason to use Robinhood imo is for the 3% matching in IRA contributions since those help overcome the hard contribution limits.

ATPsynthase12

You don’t need a financial advisor at all. They are just middle men who harvest 1-3% of your portfolio per year and often either lose you money (via outright losses or sub par performance) or go full big brain moves to beat the S&P 500 and again end up losing your money. Or, they intentionally do stupid things to make more money off of you such as putting money on a corporate bond fund. Pull your money out and transfer it to a fidelity brokerage SPAXX account. Once the cash has settled invest it in the following; 50% VTI (vanguard total stock market index), 30% VXUS (vanguard total non US stock market), and 20% in BND. If you are not retiring soon or want more growth, do 70% VTI, 30% VXUS. Although, at your age, there is a strong argument to include bonds or TIPS to ensure you have less volatility and cash on hand if needed. That’s it. Contribute monthly, reinvest the dividends and let the compound interest grow. DO NOT TOUCH IT until you hit the amount you can draw 4% per year without depleting your accounts. Once you hit that point you can retire and are fully financially independent. Check out the wiki on r/bogleheads if you want more info.

tk421tech

I sold some VXUS and BND on Friday that is you see in SPAXX, to possibly put in VOO. Hence this post.

vapingpigeon94

Already knees deep on NVDA CC. I keep rolling it till either NVDA comes down or eventually I’ll need the money and I let them get called away. Currently most of money sits on SPAXX Fidelity money market and am making around 3% year. I also try to sell CSPs to kind of double dip on SPAXX with CSPs premiums. The downside is I could end up owing the stock but I’m picking stocks I like. If I could get that 5% yearly without doing all this extra work it’d be great.

tk421tech

It was VOO 40%, VXUS & BND 30%. Retiring in 10 yrs. (Seems it might only grow to about 100k with contributions). Prior to today I thought perhaps 60/25/15 might be a better goal. Current % 33.50/17.42/15.87 and 33.21 in SPAXX to rebalance.

sellputsthencalls

Since you're using this r/options community, I presume you want to get 6%/yr using an option strategy. By the way, if you simply buy SPY (the S&P 500 ETF) or FXAIX (Fidelity's S&P 500 fund), which has averaged 15%/yr over the last 10 yrs, your chances of 6%/yr are quite good. But because the S&P 500 lost 18% in '22 & 4% in '18, you may be uncomfortable with that risk. Here's an option idea: Use SPY, @ $742 today (5/21/26). Place $75K in a brokerage account's MMF. In a year, $75K @ 6% will provide you with $4,500, your target. That's a $375/mon target. I use Fidelity. Its SPAXX MMF has a 7-day yield of 3.23%; times $75K = $2,422 a year or $202/mon. Fidelity (& some other brokerages) pays MMF interest on the reserve that's held for CSPs (cash secured puts). Sell 1 SPY CSP, expiring on 6/18/26 (28 days), with a $685 strike price. For the one month commitment, you'll receive a $1.74 premium = $174. That $174 CSP premium + the $202 MMF interest (3.23% on the $68,500 CSP reserve & the remaining $6,500 in the SPAXX MMF) totals $376 for the month, satisfying your 1st month towards the 1 year target of $4,500 or 6%. Fidelity's probability calculator says that this CSP has a 2% assignment chance/98% expire worthless chance. If it expires worthless, sell a similar CSP for the next month. If you get assigned to buy 100 SPY @ $685, your $68,500 CSP reserve will cover it & your remaining $6,500 in MMF will continue paying some interest. You can then sell a CC (covered call) versus SPY, always aiming to generate $375/mon in premium + MMF interest.

Successful-Power2026

You’re already ahead of most people your age just by thinking this far ahead. If your goal is starting a plumbing business in like 6 years, I’d personally keep doing mostly SPAXX/cash-like holdings and gradually add to something broad like VOO rather than chasing individual stocks. Protecting the money matters more than trying to maximize returns right now.

u_spawnTrapd

Honestly your plan already sounds way more thought out than most people at 17. The fact you’re thinking about risk, timelines, and keeping expenses low is a really good sign. For a 5–6 year goal like starting a business, I’d personally be careful about going too heavy into individual stocks. VOO already gives you market exposure without one bad pick wrecking your plans. SPAXX also makes sense if you want stability for money you know you’ll need soon. A lot of people underestimate how valuable having cash ready at the right time is. Also, plumbing + living at home + consistently saving is kind of a killer combo financially if you stick with it. You’re setting yourself up well already.

buttershiro

you’re actually in a strong spot for 17, especially already thinking about balancing safety vs growth for a future business. your concern about a market drop hitting right when you need the money is valid, and that’s exactly why your SPAXX + VOO setup makes sense for a 5–6 year goal. individual stocks can sound tempting, but they add a lot of risk without much advantage unless you’re willing to study and stomach big swings. for your timeline, consistency and capital protection matter more than chasing higher returns. if you ever want a simple way to keep your savings + investing plan organized as it grows, Fina Money can help you track it without overcomplicating things.

brother7

SPAXX is for savers, stocks are for investors. Having said that, I discourage owning individual stocks. The safer way to own stocks is through ETFs, and one of the safer ETFs is the Vanguard Total Stock Market ETF (VTI). But since you already own VOO, that's just as good. If you have earned income, I suggest you have a parent help you open a Roth IRA for Youth at Fidelity. It's the most tax-efficient way to invest for your future retirement.

InvestingNerd2020

I like SGOV, but the state tax rate in Georgia is so low it is hardly felt. I think 5% if I am not mistaken (too lazy to look it up). SPAXX is fine for now. Worst case scenario the OP can always switch to SGOV or VBIL later.

InvestingNerd2020

Noo! Don't fall for the trap of buying multiple individual stocks. Even experts who devote 50 hours per week still cannot beat the S&P 500 90% of the time. Stick with VOO or FXAIX in a Fidelity Roth IRA. Both follow the S&P 500 index, but FXAIX is less expensive (expense ratio of 0.015% vs 0.03%). Good idea of using SPAXX for a savings account in their taxable brokerage account. Also, make sure you have a good business checking account. Capital One is nice, but only 1 location to deposit cash (Atlanta). Chase might bet the best option if you need more locations to deposit cash.

Various_Couple_764

Money market account like SPAXX the share pice is fixed at $1. So if the market crashes you won't loose any money you withdraw the fund. With with dividend and growth ETF the shares price is very close to the Net Assessed Value of the stock and cash the fund holds. So if the market crashes the share price of ETF drop. So Growth or ETF are generally bad choices for short term savings due to market But for longer term savings ETF can have better returns.

D_Pablo67

You have a good life plan. I would do half SPAXX and half VOO. In six years, you will likely spend a lot of your resources on starting a plumbing company, so a high cash allocation is fine.

kirlandwater

> while putting less money into SPAXX but still most of it, but I’m wondering if the risk is worth it as if let’s say the market crashes right before I’m planning to start my business I wouldn’t have time to let the market recover You’ve got the most pressing issue understood, which is great. Personally I think your 75/25 split is good, maybe expand to VTI over VOO for a touch of broader diversification, without sacrificing much if any growth. Though you’ll want to taper down every year from 25% stocks to 0% and keep it all in SPAXX or something similar for the above reason. For something this “short” term, I would park all of it in SPAXX, but I also don’t want to ever think about the account possibly losing value when I’ll need it just around the corner. However, only 25% you’ve still got a solid amount of growth and taken a lot of the risk off the table. The most important thing you can do is contribute every month as much as you can and you’ll be fine no matter what you choose

pigeon_shit

CSP kinda day. SPAXX double dipping ftw.

trampled93

I’m not sure why the downvote. It is a low risk money market with fluctuating dividends. Now it is 3.26%, last year in May it was 3.92%. I don’t claim to be an expert at investing. I just read lots of recommendations for Fidelity and SPAXX money market account. Tell me why in your opinion it is a bad decision to park uninvested cash temporarily.

trampled93

With a Fidelity brokerage account, your uninvested cash just sitting in your account automatically is invested in SPAXX money market fund and currently earns 3.28% 7 day yield. https://www.fidelity.com/go/manage-cash-rising-costs

pjstarke

I recently implemented a 3-tier cash strategy: -Tier 1 - Fidelity CMA in SPAXX at about 3.3% (functions like a checking account). - Tier 2 - HYSA at OpenBank earning 4.0%. Funds (up to $5,000 daily EFT limit) available in 24 hours. - Tier 3 - Fidelity CMA invested in cash-like high-dividend positions - 10% each of SGOV, CSHI, SCHD, GPIQ, and GPIX. Currently returning about 6.04%. Dividends on all these positions are somehow tax-advantaged. No state tax on SGOV or CSHI, qualified dividends on SCHD, and mostly tax-deferred ROC on GPIQ and GPIX. If interest rates drop I may shift more cash further up the tiers to earn more interest unless I need the cash soon for a specific reason. I’m 5-10 years out from retirement, so trying to build my cash pile/buffer to protect portfolio in down years.

Opening_Aide3713

SPAXX pays a good monthly dividend

SPY-Talk

Mutual funds SPAXX Bond ladder

FiremanHandles

Like the other poster, check out /r/thetagang or do a little googling on The Wheel strategy. I don't follow one specific dogma, but I can tell you, having been selling contracts for a few years now, I have a love / hate relationship with them. Personally, I love CSP's and I hate CC's. CSP's let me double dip on FIDO, earning you the premium + the interest earned on SPAXX. Its actually what drew me to them initially. "I can be a dogshit trader and still earn ~5%" -- that 5% has since dipped (currently 3.26%) I only sell CSP's on things that I'd like to own, that I'm either neutral or bullish on. So turning around and selling a CC on it feels wrong. To counter that I'll typically wait and HODL until there's a spike in price or IV to try and aggressively capture gains during higher volatility. And last... if I get exercised -- a CSP feels like I'm getting to buy at a discount (vs buying when I started the contract) while a CC feels like I'm missing out.

HighPriestofShiloh

Yes it doesn’t always make perfect sense to keep your emergency fund in cash. But that is way smarter than putting it in the market. Park is in a HYSA or money market. But don’t put it in the stock market, that’s insane. Imagine losing your job when the market collapses because of a recession. The moment you finally need your funds they are cut in half before you can access them. Just put it in SPAXX if you want some return.

touron69420

SPAXX

beyondplutola

Why HYSA over letting it sit in a sweep account? Are there any HYSAs paying meaningful amounts over SPAXX?

anon401k95

I’m trying to determine if I should continue investing in primarily FSKAX and if I should continue utilizing a standard 401K, Roth IRA, AND Traditional IRA to diversify my tax-advantage accounts or if I should just consolidate. - 40 years old, living in LCOL area - Sales engineer making between $150k-300k (100% commission) - Only debt is the house which is financed at 2.125% with 80k left on the mortgage, so I don’t necessarily need to move, but it’s the starter home I’ve been in for 12 years and wouldn’t be against moving if the right house came to market. 401k $629k in T.Rowe Retirement 2050 Fidelity Brokerage $561k Total - $326k in FSKAX - $69k in FTEC - $69k in FTIHX - $12k in NIO - $85K in SPAXX/SPRXX Roth IRA $31k Total - $18k in FSKAX - $9k in ARKK - $4k in NIO Traditional IRA $19k Total - All in FSKAX

msaleem

How do you name the account?  We have a SPAXX e-fund at Fidelity too but can’t figure out how to change the name from CASH MANAGEMENT (JOINT WROS). 

UnlikelyPriority812

Just toss savings in your brokerage and keep it as cash. SPAXX is the default when it sits as “cash”. No need to open a new account.

Apex-Editor

SPAXX and SGOV. Plus a small allocation in FXE because I'm a dual citizen in an uncommon situation. I wouldnt recommend that last one to most people.

angel_announcer

SPAXX

No-Assistance476

SPAXX

MementoMoriPendejo

I auto-push my 2% Fido credit card rewards into my SPAXX account too, just for w little extra kick on the deuce.