SPAXX

ThomasJFlack

I just keep enough SPAXX and FDRIX for 3 months expenses in my brokerage account. Is that not as good as a HYSA? There's also some cash there, maybe 1 months worth.

bobdevnul

SPAXX is currently yielding 3.32%, SGOV 3.56%. The difference of 0.24% is $18 a year on a $7,500 investment. That's basically trivial, but use SGOV if you want that additional $18 of free money. If you have state income tax the effective yield of SGOV is higher because the dividends are all or nearly all exempt from state income tax. SGOV trades like a stock and settles with the money from selling it available in one business day. There is no compelling reason to sell it extra early in December to do your IRA/HSA contribution exactly on January first.

Heyhayheigh

You’re doing great! Yup open a Roth. Do the same thing there. Switch it to 25/week instead then work to increase that weekly. Easy place to “edit” the recurring purchase. The bigger the weekly, the better it is for you. You will learn a ton along the way. But you’re already on the right path! Also Fidelity SPAXX is way better than a Bank of America savings account. If you want a little extra, put emergency savings in SGOV. Best of luck!!

Just-Here2-Learn

Of 85% stock portfolio 67% VTI 33% VSUX Rest 5% BRK B 4% BNDS 1% BNDX 5% SPAXX

Heyhayheigh

If you’ve never worked in a call center for brokerage, you won’t understand. I worked there before and after commissions. The calls are night and day. Gets rid of tons of silly calls of people wanting refunds on trades. Being upset about the trade went. Etc. Selling order flow, and overnight lending on idle cash is the EASIEST of money. Almost zero cost. No phone calls, no service, super light compliance. You have no idea. In brokerage charging for something to clients comes with huge strings. Documentation. Auditing. I remember reading what the revenues for Schwab lost for trades then the comparison to overnight lending and added order flow from all the new customers: it was a no brainer. Plus the tons of less calls with people whining about fees. Totally worth. Money on idle cash is so important that you will never see an auto money market sweep like SPAXX in Fidelity at a place like Chase or BofA, idle cash is THE MOST profitable thing at a bank…

MONGSTRADAMUS

That definitely would catch them up the other big brokers in US. I don't know if its only me , but I wonder really why they don't have settlement account automatically defaulting to money market fund. If I am not mistaken vanguard has VMFXX and Fidelity has SPAXX/FZFXX. At a min you would be getting 3.33 % yield. If I am not mistaken both schwab checking and brokerage account don't get anywhere close to that unless you buy their money market funds separately or buy something liike vbil or sgov., also don't think they are as liquid as if you had a default settlement account as far as I know. . I will admit it may user error with a lot of stuff so far as its been less than a month since I opened the account.

Puzzleheaded-Score58

I would divide the $10k by 3. 1/3 goes to my core positions , 1/3 stays in SPAXX, 1/3 goes to investing more in my satellite positions.

Important_Mud_6700

Same, but SGOV & SPAXX plus a lot of 6-month CDs at about 4%

ABCifyoulikeRoblox

Huh? That dividend is from SPAXX, isn't it?

MechanicalDan1

SPAXX

Mongaloiddummy

On Sofi DIVIDEND RECEIVED FIDELITY GOVERNMENT MONEY MARKET (SPAXX) (Cash) +$614.89 Jan-30-2026 Fidelity pays dividends on the Cash Secured Puts.

UncivilVegetable

It is calculated every day. So the days you were "holding a decent amount of SPAXX" each count towards 1/31 for each day held there.

Historical_Low4458

Schwab offers money market funds just like Fidelity. You jist have to be more active and transfer the money into it. It really isn't any different if you want3d to transfer your money from SPAXX to a higher paying money market fund at Fidelity.

Ackerack

I'm curious why/how received a SPAXX dividend on 1/30? I only had $0.30 worth of SPAXX in my account at the time, and I also noticed the activity statement shows the payout is dated on 1/30/26 but the ex-dividend date on the SPAXX page is listed as 1/31/26. How is it possible for A) my payout to be that high and B) get paid out BEFORE the ex date even happens? I was previously holding a decent amount of SPAXX up until 1/8, but I bought ETFs with it (using it as my core position) and ever since then it has been sitting at a value of $0.30. Is this payment related to that somehow? I thought it was just worked like: You have X shares on the ex-date, you get (payout\*X) dollars, but maybe I'm wrong. Fidelity gives me this info but not much more: Description: DIVIDEND RECEIVED FIDELITY GOVERNMENT MONEY MARKET (SPAXX) (Cash) Amount: +$11.58 Cash Balance: $11.88 Thanks!

Valkanaa

I enabled margin on my account, problem solved. SGOV pays slightly better than SPAXX. Does this put some people off Schwab? Probably. Am I annoyed they wiped out my Ameritrade history despite literally buying the company? Definitely. Am I moving funds to Fidelity? No. I'm actually transferring my brokerage to Robinhood. A 4% transfer offer is hard to say no to.

Over-Computer-6464

Since I have dividend reinvestment turned off, the lack of automatic sweep into a decent interest bearing account bothered me after my USAA account was taken over by Schwab. I asked to have my core account changed to a decent interest bearing account. For a while it was on a standard money market market fund. A couple of years ago it was changed to a fund called Schwab1, which is now about 3.4%. Similar to the Fidelity SPAXX.

Over-Computer-6464

>Does Schwab make accommodations for high net worth clients to do this Fidelity's way? Yes. My core account at Schwab is the Schwab1 fund. It is around 3.4% now, similar to the Fidelity SPAXX money market fund.

induality

Fidelity tells you right on their website that they take 0.42% ER from SPAXX. So I don’t know why you phrased it like some hidden thing you have to figure out.

Heyhayheigh

You having uninvested cash is a big revenue source for Schwab. Just like a bank. Fidelity accepts less revenue (they do make some money on SPAXX, don’t kid yourself). The whole reason they went commission free was to make money from uninvested cash. Everyone would make a bit more with SGOV. But fidelity’s automatic offering is pretty strong. I like it. High net worth people don’t stress the cash sweep money dude. They have advisors for that. They rarely manage themselves.

charlie-todd

Think they only let you borrow 70% if it’s in SPAXX? Lot of places are changing on how you gain on your money, I would call and ask them, can I park my money, and still use it, and what will be the Interest, lots of variables, how many contract’s you trade..etc . If you are use to fidelity’s interface what is the motivation to change ? They are both top tier, so your fills would be the same ,I would think ?

Cedarapids

You would have made 4% just keeping it in SPAXX account….

Megaloman-_-

Fidelity gives you ~3.5 % on the cash that they automatically convert into SPAXX

itzjoeylol

I use fidelity as I was already using it prior to options, and the interest on my cash (SPAXX) is a nice little bonus

ItsHowItisNow2

I have been selling most of my single stock and going SPAXX hoping we finally tank to hell. Will keep TQQQ and a few other low cost basis. You can’t believe anything that phuker and his ghoul Miller say…

4Rascal

What’s the pros and cons of that over SPAXX and keeping a few gs in the bank account for credit card/avoiding maintenance fees? I’d be surprised if the MM interest is higher

4Rascal

Feels more real to me in fidelity app and also keeping your money in the SPAXX pays better interest anyway

DeeDee_Z

> protects the principle For that, I'd pick a "Prime Money Market" fund. If you're at Fidelity, for example, look not just at SPAXX, but also SPRXX (and also FZDXX if you have the minimum). Use your brokerage's Research tab, see what they have to offer. For some, "Prime" is a keyword that differentiates one from another.

taplar

SPAXX should be fine for a money market fund option. I'd personally use one of those over a HYSA. You should get a comparable, or better, rate. If you are a high net earner, you should look to take advantage of as much pre-tax investing that you can get. Especially if you expect to be in a lower income bracket in retirement.

Various_Yoghurt_2722

Need advice (Fidelity Specific) Still have alot to learn about investing. I'm a new anesthesiologist with about 250K saved (150K in 401K from residency and 100K in personal stocks), no debt, high annual salary, no major expenses except rent. My personal stocks are all a mix of FNILX, FTIHX, FXAIX, FXROX, SPY, VOO. Also have about 15K in SPAXX instead of a high yield savings account. Currently set automatic 2.5K every 2 weeks to buy those stocks above. 1. Any advice on what funds I should in regularly? I want to be very aggressive 2. Is parking my money in SPAXX fine or should I get a high yield savings account? I like seeing everything in one place 3. Any other advice? I can afford to put more than 2.5K biweekly if I want to be even more aggressive

smblt

Well at least SPAXX isn't an ETF tied to this kind of news, probably fine for a while.

moiax

I have a CMA. I set my default core position to Fidelity's SPAXX, which is a money market fund. Treated like cash. Every Thursday, I buy a set amount of FDLXX, a treasury only Money Market. It is 97% treasuries and thus mostly state tax free. It will automatically liquidate when I pay bills or transfer. Interest is a smidge lower than something like VBIL or SGOV, but the function is better. I do keep a portion of my savings in SGOV, which I can liquidate in a day or two if needed. I can buy it right in my CMA account.

graciesoldman

I keep mine in SPAXX. It's just so convenient for me

Veeg-Tard

I have a Fidelity Brokerage Account that I treat as my savings account. I can't access by ATM (as far as I know), but I can transfer funds from Fidelity to my Wells Fargo checking account and access the next day. My cash in the brokerage account automatically goes into SPAXX, but I chose to hold it in the VBIL short term treasury fund, which currently pays 3.67%. Mainly I like the convenience of having my cash immediately available to invest in the market. I used to jump around between various HYSAs, yield chasing for that extra .1%, but now I rest easy knowing that my Fidelity yield is competitive with HYSA market rates.

Far_Lifeguard_5027

I have my semi-emergency fund in SGOV. It's a treasury ETF that is yielding about 4%. Treasury funds are the safest place to put your money, and the interest rate should beat inflation. Also treasuries are mostly exempt form state taxes. If you're worrying about your savings account loosing money to inflation, you basically have two options: a money market fund at a brokerage (like the SPAXX/FDLXX money market fund offered through Fidelity), or an online high yield savings account, which will not be tax exempt. I think the money market fund is a safer choice than a HYSA. A bank can lower their interest rates at any time, but treasuries are tied to the federal interest rate.

Rez_X_RS

Open a brokerage and deposit your money in SGOV or a high yield money market like SPAXX for Fidelity. A savings account is meant to house your money so it's 100% there when you need it, its low yield because it's baducally zero risk. If you want yield then you have to take on some risk.

ecgruffalo

You can change your core account from the FDIC sweep to SPAXX which is a treasury money market fund for the higher return.

Keizman55

IBKR has a calculator. I would be making less on my cash if I move my options portfolio from Fidelity to IBKR. The 7 day yield on Fidelity’s SPAXX is currently 3.38%. In IBKR I would be making 2.932%. About $3800 less.

crazybutthole

This is a pretty big deal to me. The financial advisor is going to get a pretty decent cut to tell you to do something really fucking simple Make a fidelity account Put in the money. Put it in SPAXX or SGOV Wait three years. Don't touch it. Three years later - take out money and buy a house. Done. No financial advisor fees required. Its all right there

ForeverInTheSun82647

Fidelity brokerage account in SPAXX or FZFXX pays the same 3.7 and you don’t have a FA taking 1 percent of it annually in fee. I’m highly against a CD as the money is locked up for the time duration. If it were me, I’d dump the cash into the broker account. Collect the interest on the money market. While that is happening, learn/read about investing. Maybe put some cash into the market. Your short and long term goals will define your strategy.

MedicalBiostats

Start conservatively with SPAXX at Fidelity while you learn about investment options. The market could correct by 25% over the next three years so go slowly until you learn more.

TurbulentProfit4204

Fidelity pays interest if you have core cash set up as SPAXX

Due_Blacksmith2072

Once I started making good money, I paid off 50k in student loans (graduated repayment so it was mostly Interest for a decade). 1-3k in extra principle a month at rather than investing most of my disposable income. That was roughly 8 years ago. I try to keep 3-10% cash in SPAXX and re-invest the gains in my investment account and keep less in the Roth if possible.

stealthlysprockets

40k which is in an HYSA. Then another 2,300 in a cash management account in fidelity that I’m building up as a second bucket of cash but with SPAXX as more core position

crazybutthole

>What would you say is the benefit of a covered call ETF then? The benefit is great if you are 65 and retired and need income every month. If you have spent 35 years building up a great portfolio of $1million (or whatever number applies to your situation) and you can coast and enjoy retirement and not check the stock market every day. Its a fine choice. But if you are 35 and investing $2000 a month - you need growth. (Not some silly income ETf designed for old people) Too many people see something good and think it's good for them - but sometimes what's good for others, might not be good for me. A very big part of investing is about realizing where you are in your journey, and does this process or this product or even this allocation fit your need ? I'm older than you but still 10-15 years from retirement (maybe more or less if my stock picks go well or poorly) (Im a baseball guy - love baseball so i modeled my portfolio around baseball how their organizations are setup if you see that below) I have several different "teams" - all with different purposes. 1 taxable brokerage - it holds my emergency fund (SPAXX and BOXX and SGOV) this helps with expenses and if I need to upgrade my home field I am ready. and it hold ETFs.(Not exactly part of my emergency fund but in that account - I only buy and hold ETFs. Mostly VOO + VTI + some international funds - but i Never sell.) That's growing money that i could access if I need it. But I don't plan to use it until later.... when I really, really need it.(Hopefully retirement when my income is a lot lower so tax burden will be less) 2 Roth IRA - its all individual stocks growth focused (i buy and swing trade in this account holding anywhere from 3 days to a year if the stock does well) + I call this the major league roster. Its my big holdings. I have 9 starters (biggest positions) all of those have stop losses set to lock in profits cause they already proved to be big winners. I also have a bunch of reserves(the bench) who are growing into positions to become a starter if one of those main 9 ever drops more than my rules allow. 3 Traditional IRA - a mix of some ETF & some individual stocks. ( I jokingly call it my minor leagues) - any stock on my watch list - i sell a share of an ETF and buy some shares of some watch list stocks. But in this account I keep a few shares of anything I think might eventually become a major league starter someday. 4 Rollover IRA from an old employer (its all ETFs - but its 25 different ETFs mostly momentum and sector ETFs i rebalance every week takes 10-15 minutes and it beat sp500 by 10% last year) - I keep track of all this shit in an excel document that automatically downloads the prices and price history as soon as I open the file. I am sure it sounds super complicated but I have major ADHD and I love it. Keeps me busy when my wife goes to bed early I can study all this shit for an hour or two and keep my mind going

er824

It’s SWTSX, assuming you mean Schwab’s Total Market fund. If you want International exposure their International fund is SWISX. You don’t need a separate account at Fidelity unless you want it for some other purpose. Their sweep options are better than what you get at Schwab for uninvested cash but that’s only an issue if you leave the cash sitting in your Schwab account. Investing, like you would be doing by buying SWVXX, SGOV or USFR, solves that problem. The downside to Schwab is having to do it manually whereas Fidelity automates (sweeps) the cash to and from their SPAXX money market for you. The manual options actually yield a bit more so are better as long as you are ok with the manual step. Personally, I don’t see a reason to overweight dividend stocks, all the stocks in SCHD are already in SWTSX and SCHB. If you do decide to hold SCHD consider holding it in your IRA to minimize the tax drag.

jarchack

I'm moving from Webull to fidelity myself https://www.fidelity.com/spend-save/fidelity-cash-management-account/overview. A lot of my cash is in SGOV, which pays 4.1% but is not quite as liquid as Fidelity's SPAXX

Murky-Gate7795

I'm considering moving some funds to TT since Fidelity is so restrictive granting options access (still at level 1 in IRA so no spreads). Any issues with TT or is everything good there? I've heard TT may have worse fills than some other brokers. I really like that Fidelity often fills my order at a better price than the limit I put in and also auto sweeps all cash into SPAXX. But if I can't do the kinds of trades I want with them I may have to branch out.

crazybutthole

Robinhood is a great starter account - but you only get 3% interest if you have robinhood gold. (Gold membership is $5 per month) Its not worth $5 per month with a tiny account. (If you are in fidelity their default position is SPAXX which pays nearly 4%) And that doesn't require a gold.membership for $5 per month. So - if I knew what i know now back then - i would swap and start with fidelity vice robinhood. But - since your parents gifted it to you - I would do 1 year on Robinhood and try it out for one year. Then consider pros and cons of adding a fidelity account in 2027. (Its ok to have two)

Fabulous-Transition7

I've had Robinhood. I now have Fidelity, Schwab, & IBKR. Fidelity is the best hands down for auto investing, fractional shares, and you can even pay bills straight from your account. Uninvested cash is also automatically swept into SPAXX that earns you interest. IBKR is complicated but has some of the best margin rates (don't do it unless you really know what you're doing). Schwab is good for traders - I prefer TOS for charting.

clingbat

SGOV is an actual ETF that includes investments in short term US treasuries bills, whereas SPAXX l FZCXX are government bills/securities backed money market funds. You can easily use the latter too to park otherwise uninvested cash at a slightly higher rate than most HYSA's and pull from them to buy shares of actual stocks/ETFs whenever, of or shift and back into say a checking account if needed very easily.

clingbat

SGOV is an actual ETF that includes investments in short term US treasuries bills, whereas SPAXX l FZCXX are government bills/securities backed money market funds. You can easily use the latter too to park otherwise uninvested cash at a slightly higher rate than most HYSA's and pull from them to buy shares of actual stocks/ETFs whenever, of or shift and back into say a checking account if needed very easily.

clingbat

>For cash equivalent either use their default money market or go a step further with SGOV I prefer FZCXX over SPAXX (lower fee and slightly higher returns) but you need $100k initial investment to gain access.

gabrintx

With my Fido account I use SPAXX. With Tasty I prefer SGOV, I have used TFLO and others but SGOV is closer to $100 and easier to match when needed. I live in TX and we don't have silly state and local taxes.

lobeams

I have a fidelity account. I guarantee it's in SPAXX unless you specifically declined to use SPAXX.

Shavenyak

Did some more digging, and I was wrong. That cash is sitting in SPAXX after all.

Shavenyak

Did some more digging, and I was wrong. That cash is sitting in SPAXX after all.

Shavenyak

I was wrong. /r/fidelityinvestments is saying it is invested in SPAXX.

Shavenyak

Ok, thanks. I asked about it in that sub. I hope you're right. In the "Balances" tab on Fidelity it is showing that money as "Cash set aside for options strategies". I can see that amount invested in SPAXX is different.

Shavenyak

SPAXX is already set as the sweep account. Money set aside for csp does not sit in SPAXX. I wish it did.

Terrible_Champion298

The $$ is doing nothing in the IRA at Fidelity because you are doing it wrong. Set up SPAXX, a federal money market fund, as your sweep account. The money set aside for the csp will earn interest.

Shavenyak

The IRA is in Fidelity. The cash for the credit spread sits as cash, not in SPAXX (money market).

invisiblylurking

I'm a big fan of dollar cost averaging I use a 3 fund port QQQM SCHD VOO I put money in each on a weekly basis. Just about all of my cash is in the SPAXX fidelity cash I just set up the auto purchase. I'm hesitant to drop all the cash into and fund all at once in the event if a market/economic downturn of in the event of an emergency. You could probably do a solid $3k per week and get a good average over the next year plus.

Artistic-Western6342

Fidelity is the superior path for your requirements. Because Vanguard’s digital experience is a relic of the early index era, it prioritizes internal cost structures over client execution. It’s reminiscent of May Day 1975 when legacy firms failed to modernize. So, Fidelity’s automated sweep into SPAXX prevents the idle cash issues you faced. Which makes your capital management seamless.

Qu_ietgrace

Lump Sum vs. DCA: Historically, investing a lump sum usually beats dollar-cost averaging (DCA) over the long term since markets tend to rise. DCA can help reduce short-term volatility and ease nerves. For HSAs, which are long-term vehicles, lump-sum investing is often more efficient—but DCA is fine if it helps you sleep better. Allocation: Keeping ~10% in a money market fund like SPAXX for liquidity and the rest in a broad index fund like VOO is a solid mix of growth + accessibility. Adjust based on your risk tolerance and timeline. Using HSA Funds: You don’t have to sell SPAXX to pay for expenses most HSAs let you spend directly from cash. If all your money is invested, you’d need to sell a bit to cover costs. Having a small cash buffer keeps things smooth without touching your equity positions.

Firebird5488

For emergency cash (5 months living expense if you have risk of getting laid off) below to get extra yield off them. Ally 3.3% with state tax on interest. Fidelity SPAXX (core money market fund) 3.62% instant access and about 52% of interest is state tax free. SGOV is currently 4.1% with little to no state tax. Would take a day or two to sell and access compared to traditional savings account. All 3 yields go down as interest rate gets cut. Yield calculator if your state has tax. [https://digital.fidelity.com/prgw/digital/taxyieldcalc/](https://digital.fidelity.com/prgw/digital/taxyieldcalc/)

Chemical-Fun3692

are these index funds? Do you use Schuab or Vanguard? What about? QQQM SCHD SPAXX

thethrifter

SPAXX and FDLXX are money market funds. They act like a HYSA except they are SIPC insured instead of FDIC insured. (Both up to 250k) The 75k principle is not affected unless there is a "breaking of the buck" event. From AI search... ​In the 50+ year history of money market funds, "breaking the buck" has only happened three times across the entire industry and Fidelity has never had a money market fund break the buck. ​1978: A small fund fell to $0.94 due to rising interest rates. ​1994: A fund fell to $0.96 because it used risky derivatives (which are now largely banned for these funds). ​2008: The Reserve Primary Fund fell to $0.97 because it held debt from Lehman Brothers when the bank collapsed. Although SPAXX is invested on US treasuries, the value does not fluctuate like TLT or other bond funds and is pegged to $1usd. SPAXX is considered the safest money market by most standards.

BagPristine4040

Let's say I invest $75k in SPAXX, and if the market is bad due to whatever reason, will I lose some of the original amount (75k) of money I put in? Sorry if I'm not making sense, but I'm new to all this investing thing.

thethrifter

I would park your full 50k "emergency" fund in a fidelity brokerage account, as it will earn slightly more APY with SPAXX or FDLXX than your current HYSA (FDLXX can save on state taxes too) Your 50k will earn $145-$150 per month in dividends. Use those dividends to buy $150 of SPY each month. That's the only way I can think of diversifying without risking any of your existing $50k.

Inevitable_Ad6868

HYSA yields less than SPAXX?

Extra_Replacement913

Fidelity and it's not even a question. You earn dividends on SPAXX just for having cash in your account

Nuvuser2025

I need to dump a lot of SPAXX on someone’s face, as it doesn’t put out like it used to.  Thinking of texting SGOV to see what she’s up to this weekend.

Helios330

Funny, my 12.5k in SPAXX says otherwise

crazybutthole

i have a 401k that is 50% sp500 and 50% life cycle funds. then me and wife each have fidelity accounts with a little over $100k which includes (our emergency funds in taxable accounts which are like 30% SPAXX / 30% treasury funds like sgov and usfr / 30% BOXX and 10% sp500) then we each have a traditional and a roth - hers are both ~ 30% each of ETFs ( VOO / VTI / QQQ ) and 10% in international ETF (similar to VXUS) mine is 1 account (Trad.IRA) has all kinds of ETFs and the other (Roth) is my gamble up individual stocks account - it made ~20% more than SP500 this year - so i will do it again next year - we agreed that if i cant beat the market - then i will switch to the all ETF approach. (i am only buying shares. no options and no shorting.)

CarbonGTI_Mk7

I almost sold everything in the beginning of last year and just let it sit on SPAXX because I was afraid of a crash. Fast-forward 11.5 months later I'm up almost 6 figures or 106% boy I'm glad I stayed in. 😂

Nuvuser2025

Thinking of shifting completely out of SPAXX to SGOV.  I live in a no tax state, so the benefits would mainly be to lose less yield to internal fund fees.  Sound like a plan, cash gang?

crazybutthole

> But really mostly it’s greed. People feel like 7% per year is beneath them. i agree, but really, you could make alot more than that if you just set simple rules and stuck to them (in an IRA i mean) with no tax drag. imagine if you said - i am completely satisfied with 18% per year every month i will wait till a red day and go all in on an ETF(voo vti qqq whichever you choose) - but as soon as my holding goes up 1.5% i sell it all back and wait a few weeks(or maybe at most a month) until i repeat this process. based on the current bull run - most of the times it would only take a few days or weeks until you get your 1.5% gain and sell it all (and even make 3.5 to 4% while holding cash in SPAXX or similar position) you might miss gains.....but im almost certain this little idea would work 12-13 times per year. (i never actually tried this yet. just thought of it today after reading your comment. but it makes me wonder if it would work.....im sort of tempted to try it....) (obv - the first year i try it might be my tiniest little traditional IRA. just for shits n giggles.)

quamikazee

Puts on SPAXX!

Sweetycherryx

honestly i’d lump sum it unless watching the balance bounce around stresses you out. VOO is basically the default long term play for most folks. SPAXX is just cash, so it’s like the holding tank. if you swipe your HSA card, Fidelity automatically sells enough of the cash position to cover it. you don’t have to do anything. also if you keep your short term money in a HYSA, make sure it’s paying well… BankTruth is good for checking that.

DryGeneral990

You can get 3.5% anywhere. Fidelity's core position SPAXX has a 7 day yield of 3.61%.

Heyhayheigh

If Merrill edge offered fractional stock and ETF I would agree with you. If you had the ability to set auto buys pulling from bank account, I would agree with you. If there was default money market with decent interest, I would agree with you. The Merrill platform isn’t “that bad” honestly, but Fidelity lets you do fractionals, auto buys stock and etf, pull from outside bank for the order. SPAXX default cash. It’s too strong. BOFA will never do default money market, it canabalizes their bank… Having emergency fund in edge for instant transfers and having the status, yea, makes sense. But the automation and ease of use and crypto of fidelity make it just a better offering. Chase is literal dog water of a broker. Their historical returns page on their website is a crime against humanity. Merrill’s is the cleanest historical performance I’ve seen. Even Fidelity isn’t great for the basic info. Merrill’s historical page is fantastic.

EducationCultural736

I personally keep $1k in SPAXX. My deductible and out of pocket are 1.65k. You don't need to sell SPAXX, that is your cash position. Also consider putting some of the money in funds with low volatility to avoid selling at a loss when you need extra money.

Beneficial-Ad-9986

Not financial advice, just what I’ve seen work for a lot of people: Lump sum vs DCA usually comes down to comfort. Statistically lump sum tends to win because the market goes up more often than it goes down, but DCA is totally fine if it helps you avoid second guessing and regret. As for using the HSA card later: yes, if you invest the balance you’ll need to sell the needed amount before spending. The HSA can hold investments, but the card only pulls from cash. VOO inside an HSA is a pretty common setup. SPAXX for the cash buffer + VOO for growth makes sense if you won’t need the money soon.

Various_Couple_764

I would go with CLOZ 8% and FXAIX (45% in each and 10% span. FXAIX is a fidelity S&P500 fund with a lower share price. CLOZ is a dividend fund. The dividend can be placed in with your cash Don't use dividend reinvesting. I believe SPAXX is a money market fund which is were the cash would be. Eventually the dividends will be enough to continuously refill your money market account. And if you want you can move the dividend out of the money market account to FXAIX or CLOZ.

Heyhayheigh

So I teach my nieces who are not working yet to invest 10% of their deposits to VOO. The rest stays cash SPAXX (Fidelity). If they want to invest more they can. They know when they start working they will auto buy VOO a weekly basis. They know they will learn as they go, Rome wasn’t built in a day. But that beginning is the foundation. They even know about SGOV, but the default money market is fine. It is teaching them the habits that’s the most important. They know to pay their future selves first.

Proof-Discount4455

if i had $120k to invest, how should I build my portfolio? edit: mid 20s, USA, make $80k, no debts, no specific timetable but trying to maximize long term growth / returns, have about ~215k in assets - 120k of that is in fidelity SPAXX fund & im looking to invest that elsewhere

Nuvuser2025

SPAXX has been a good payout for me for a few years now.  It’s dwindling now, with each Fed cut, which feels like my “punishment” for not throwing it all into the stock market, which is so up and down.  Might have to eventually move some money into SOMETHING, ANYTHING, that can battle against the higher costs of everything, every day.

twittalessrudy

Retirement is 50% S&P 500, 50% latest target date fund Brokerage is mostly indi stocks (mag 7, Aon, marsh, Union Pacific), and like 30% among s&p500, Russell 2000 and FTIHX And then I keep 18 months of expenses in SPAXX

UnitedElderberry

Thanks, great advice. As I was considering the options I became more and more risky. I’ve tuned that back I think. Planning to do: 60% VTI 25% VUG 15% Cash in SPAXX I think this is much less risk averse, while still allowing a good growth opportunity and not as much major drawback damage.

DistributionBroad173

SPAXX is Fidelity's HYSA Money Market account. I believe it is actually the Settlement Account and Fidelity just makes it so your money earns more than 1% like many other brokers do to you. Vanguard, Fidelity, or Schwab are all good brokerages or account holders. I use Vanguard and our Settlement Account is VMFXX and it pays 3.9% yield at this time, which is better than Schwab or Fidelity by a little.

gmredand

Is a mone market account the SPAXX in Fideliy? Is this the same as opening a brokerage account and just leaving the money uninvested?

IHadTacosYesterday

Question for Fidelity and Schwab users.... When you sell out of a position and it goes to cash, isn't that cash in some sort of HYSA? Like I thought if you have Fidelity and you sell out of a position, the cash automatically goes into SPAXX or whatever it is. I'm assuming that Schwab would be the same way. Yet, I've sold out of some positions in mid October, and the cash amount is exactly the same. Shouldn't I have earned some interest already? I know it'd be a small amount of interest, but my cash amounts are literally the same. At Fidelity, I have some cash in an IRA BDA (basically it's an IRA that inherited from my Mom who passed). At Schwab, I have some cash in a Roth. I'm not sure if those accounts are treated differently, and you need to manually put the money into some sort of money market account, they don't automatically do it for you? I just want to kind of have my cash just float right now. I don't want to put it into a specific hedge, nor do I want to invest it any anything. I just want my cash to be dry powder that I can use if need be, but otherwise I'm just hedging my risk on positions for a little bit. But if I'm not going to earn any interest at all, that's bullshit. Even the measly 3 percent yield that they're paying now (or whatever it is), would be better than nothing (NOTE: I'm retiring at the end of this year, so I don't mind having a bunch of cash temporarily. I also think this market is overdue for a 15 percent drop, so I'm anticipating that in the very near future. I'd be absolutely shocked if we get to June 2026 without a 15% crash in the SPY between now and then. At the same time, I'm not trying to actively short the market. Just want a little bit of interest on the side)

mvz5bs

For a 1-2 year timeframe with easy access and minimal risk, look at high-yield savings accounts (currently 4-5%) or Treasury bills (3-6 month durations). Both offer inflation-beating returns with virtually no principal risk. Money market funds are also solid options (VMFXX, SPAXX) with yields around 5%. If you're comfortable with a tiny bit more risk for potentially higher returns, short-term Treasury ETFs (SHV, BIL) or CDs with laddered maturities could work. Just avoid anything with stock market exposure or long-term bonds that could fluctuate in value. Remember that keeping house funds separate from investments helps maintain discipline with your timeline.

Heyhayheigh

Make a plan. Here is the plan I have with my nieces: every time they deposit money into their Fidelity youth account. Take 10% and buy VOO or QQQM. The rest they just leave in SPAXX in case they need to spend. Every once in a while they want to buy stocks in companies they like. No big deal. The habit you’re trying to learn is buy sp500 with an auto amount. They don’t have jobs, otherwise I would tell them to buy auto and weekly. But one day they will and I will show them that. What you’re learning is good habits. Spend less, invest more. Sell only when you have something urgent to pay for. That’s all personal finance is. Best of luck!!

HipOut

TL DR bought more index funds and have my emergency fund in SPAXX

Over-Computer-6464

Add checking to your Fidelity account. That is done via their captive bank, UMB. You can do ACH EFTs to and from UMB Bank and it automatically pulls or deposits into your Fidelity brokerage core account, such as SPAXX money market fund.

HipOut

Fidelity you can hold cash in your individual investment account as SPAXX and get a decent yield on it, think of it as a high interest savings account, way more than JP Morgan. You can get a debit card and a credit card through fidelity as well. And they have great customer service, even on Reddit. Their app is decent, too. I like their credit card rewards as well

therealjerseytom

Using BIL as a stand-in for SPAXX, 10 year performance: BIL: 1.58% per year FFFHX: 15.43% per year https://totalrealreturns.com/n/FFFHX,BIL?start=2014-11-25 https://totalrealreturns.com/n/FFFHX,BIL?start=2014-11-25

Murky_Voice3023

But you said it’s not even beating SPAXX. That’s a money market fund. Clearly these target date funds are beating that.

therealjerseytom

> but the returns are abysmal, barely more than SPAXX Using SGOV as a stand-in for SPAXX, total return over the past 12 months: 4.31%. Total return of a 2050 target-date fund (FFFHX) over the same time period: 19.21%. https://totalrealreturns.com/n/FFFHX,SGOV?start=2024-11-25