SPAXX

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

therealjerseytom

You can go into your account settings and choose how you want capital gains distributions etc. to be handled. They can either just dump into your sweep position (e.g. SPAXX), or be automatically re-invested. Not a big deal if this is in a tax-sheltered account, like an IRA. But if this is a taxable account, you will owe taxes on those short- and long-term gains.

Megaloman-_-

Yesterday I repurchased at a loss my Nov.28 @$125 CSPs. I think if you are found of the stock you can stick to your theory and, get assigned, hold and wait for the recovery while selling low-delta CCs. However, I think that things will get much worse than before than any recovery, and on top of that I rather park my cash on SPAXX for a while and observe the castle burn

Megaloman-_-

How about parking it on a SPAXX safe position for a while ?

Heyhayheigh

Yup, I understood completely. Sometimes people want to know "the little bit more risk option", which is rather silly. Sounds like that is not you, cool. I basically just do SGOV and dont overthink. Though some brokers have a convenient money market that works well with them SPAXX with Fidelity for example, which is treated as cash. SGOV will be slightly more, but it takes effort. SPAXX takes zero effort, that has a value to it too. Hope that helps :)

HartbrakeFL21

The only money that really matters right now for me is safe and sound.  Well, unless SPAXX shits the bed.

rpv123

I started my first Roth IRA this year (previously did only 401ks because I had no financial literacy before last year) so I can actually track my stocks more empirically than ever before. I put in $6,000 and have $7082. Well, technically I have $1000 sitting in SPAXX and $8082, but I took that out of the equation since it’s uninvested. 16% growth doesn’t seem bad for a first attempt (and obviously it was higher 2 weeks ago.) I actively managed it and put in the bulk of cash during big dips in otherwise stable index funds like the one in April. Might ruin my streak but I’ve been holding on to it in case we go lower. I know it’s small potatoes compared to most of this sub but they’re my potatoes.

bobdevnul

\>brokerage account with Fidelity and it looks like unlike other brokerage accounts you could pay bills with it. Yes, even the basic Fidelity brokerage account allows paper checks, online bill pay, debit card, and credit card that all draw from your settlement holding, typically the SPAXX MMF. Making the account Cash Management adds a few of features: no transaction fees on any ATM with the debit card, free wire transfers, and the ability to hold money in their FDIC insured bank. Fidelity has the best personal finance and broker services. Nothing else is nearly as good. Their high management fees MMFs aren't great though compared to Vanguard. Days to settle are business days. Consider that if you sell going into a weekend.

ParticularPepper8902

Your best investment is SPAXX

WestysAGS

Been buying a lot into this market but also have kept a considerable amount of dry powder in SPAXX waiting for this opportunity to really pull the trigger. Will be scooping some extra today and will see where we land next week!

DirtyLinzo

If you were single I’d say yes. Being married, the risk of “pushing back” the purchase of a house because you got greedy doesn’t result in the most net happiness if I’m being honest. Tuck it away in SPAXX and contribute to it often. Watch it grow.

Pale_Natural9272

SPAXX or laddered CDs

DramaticAd1683

Here are the funds that I’m holding in my employer 401k… JLGMX - Large Cap Growth - 45% FXAIX - SP500 - 35% FSMAX - Mid Caps - 10% RERGX- Europe - 7% SPAXX - Money Market/Dry Powder - 3%

HartbrakeFL21

Indeed, and I should have stated that cash in a mattress or standard bank account is losing its ass.  Invested in a near cash instrument with no limitations on liquidity, I use SPAXX, has been a good return these last few years.  Still, point stands: everything our government is doing is encouraging inflation and devalue of the USD.  Rate cuts, extended length mortgages, rebuilding the damn White House even.

Possible-Profit-3947

SGOV or SPAXX. 3-4 interest vs ANY loss. Why risk it this close?

Bluebaron88

If you need to have spending money in less than 2 years SPAXX for short term treasury bills. It’s fluid and you can get access to your money in a short time (slowest part is transferring back to a bank). Longer term saving I would recommend low cost index funds like FXAIX or FSKAX. Those are S&P500 and total US stock market. I would avoid gold/crypto/art as they do not generate wealth or grow like companies do. Best served checking out the flow chart in personal finance sub and bogelheads. 

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?