SUTXX
Schwab U.S. Treasury Money Fund Ultra Shares
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Looking at recently deposited funds (not taxable) of 1.8M sitting in a taxable brokerage account. Not sure whether to go with AUM for about .8% fees yearly or just managing funds myself with guidance from the same advisory firm on a per hour fee periodic advisory schedule throughout the year. USA based, age: 49, still working full time gross w2 wages of 120k, with about 575k in a pretax retirement account. No debt or mortgage and not interested in buying real estate at this particular time. Given my age, I'm tempted to be more conservative investing this large amount of liquid assets. Would SUTXX (minimum 1M be too boring? Reddit tends to suggest self management to avoid paying fees but because this is a large amount to work with, I'm tempted to just allow the CFP to make these types of choices as I am not a pro. But off the top of my head, that's what I was thinking .. SUTXX, and the balance at 40% market tracking funds (like VOO) and 60% other types of 5% type less volatile products or even safer than than for lower rates, again, just given my age. Thanks.
90% SUTXX doing same but next 3 years
The math is correct, and no, SUTXX does not have any unusual hassles. Note that the numbers you cite are 7-day yields, which can be a bit volatile if the underlying assets have lumpy distributions. SUTXX had a 4.11% return for the full year of 2025, while SNAXX returned 4.30% and SWOXX returned 2.63%. Using these numbers, SUTXX had an after-tax return of 4.32% and SWOXX had an after-tax return of 4.44%, so SUTXX and SNAXX are still very close, but SWOXX looks more appealing than it does based on the current 7-day yield. Also, an interesting fact is that Illinois is one of the few states that does tax municipal bonds from the state. This means it's not necessary to adjust for the small proportion of SWOXX interest that comes from in-state munis.
97% SUTXX since early feb. about 50/50 on options with the 3%
Why not switch out SNSXX to SUTXX and get little more returns?
When looking at money market mutual funds you should really understand what they hold. Some hold commercial paper and some hold just treasuries. Some are more liquid than others as well. The treasuries usually have a lower yield but they are safer. If I am going to be parking cash I want it to be in the safest fund I can find. This is not an issue now but there were money market mutual funds that broke the buck during the GFC and some had to be gated so it could be unwound in an orderly way. These are low risk but they are by no means risk free. I am currently using SUTXX from Schwab because it is 100% treasuries and no repos. If we hit a period of major disruption in the financial system then I do not have any credit risk or risk that some of the bonds held in the fund may not catch any bid if they need to be sold. They could gate a treasury money market fund in the face of mass redemptions but since all of the holdings are treasuries, with short maturities, then you should receive all of your principal back as the treasuries mature. I would definitely read the fact sheet and prospectus on any fund you buy to see how they would handle mass redemptions. If it is a FDIC money market account then no need to worry if you are under the FDIC limit. If you are trying to get a yield above the Fed Funds rate then you will be looking at a fund that invests in commercial paper rather than treasuries. That extra yield comes with extra risk.