SWVXX
Schwab Value Advantage Money Fund
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Investing in Money Market Funds vs Short Term Treasury ETFs
Suggestions for $350k. Keep in SWVXX until my refinance next year or recast my mortgage?
How can I tune my portfolio in the future or now to help keep up good growth?
Who's the target demographic for HYSAs -- if I already have a brokerage account and access to decent Money Market funds, would I still want to open a bank HYSA?
Inherited IRA: I want to sell all funds and buy SWVXX - HOW?
Strangles: 50% Delta Roll Mechanics - Simple Process Flow for Strangle Mgmt
Strangles: 50% Delta Roll Mechanics - Simple Process Flow for Strangle Mgmt
Tax-wise is it better to put money into High Yield Savings or Money Market Account?
ELI5: Why would someone keep money in a Money Market fund vs. HYSA?
Let's talk about short-term debt securities...
Timing on when getting in and out of SWVXX in a non-taxable account.
Fund to park money Schwab (SWVXX, SNVXX, SNOXX, SNSXX)
Buying SWVXX in IRA account and sell CSP against it
Best suggestions on where to hold cash for two weeks?
How meaningful is the "7-day yield" of a money market fund?
What does 7 day yield of 4.27% on a money market fund mean?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Schwab's sweep fund stinks. Help convince them to change it.
Schwab Value Advantage Money Fund SWVXX & SNAXX for cash substitute in IRA
Threw some money from Thinkorswim into Schwab Money Market, but I don't understand the dividend situation.
Mentions
I sold SWVXX and bought the S&P 500 index fund, while it was dipping, the same day.
Whats your strategy to move out of the position? Takes 2 business days? If you sell Monday, you can buy on Wednesday at opening? I have a large amount too. I usually pull out 20% to 30% a couple days ahead of big announcements so its ready for same day action. Curious how others manage the selling of SWVXX
Yeps. Just put deep 6 figures in to SWVXX and can either borrow on margin or turn it in to cash if an opportunity comes up.
Don’t bother with “financial advisors” half my neighborhood are in that role for JPM and they’re all dumbasses who get outperformed by the index. You have a few very easy options based on what you want. 1) Put it all into VOO and just collect the dividend or something like SCHD for a higher dividend payout. Tracking the overall index can always have the peaks and valleys but you will be fine in the long term and just collect the dividend in the meantime. 2) put it all into a MMF like SWVXX, collect the free 4% yield. You could also consider selling WAY out the money puts on SPY to be conservative on the SWVXX bag and collect something like .50% of your capital per month which would come out to a total of about 10% total return per year on what I would consider an almost zero stress passive income strategy (you’d be getting about $20k per month from this total). 3) start wheeling your favorite or preferred stock. Feel free to DM I’m happy to talk through any more with ya
I've been trading since 2008. Never used Robin Hood & probably never will. Started with Scottrade - now use Schwab & Fidelity. I personally find Schwab easier to use on the laptop & phone app. I decided to try Fidelity but still find Schwab easier and on the whole a superior site. Fidelity is better if you dabble in crypto and unused cash is automatically in high yield money market. I don't think Schwab deals with crypto at all (fine by me). Any unused cash at Schwab goes into a "sweep" account which pays almost nothing. HOWEVER you can buy into Schwab's Money Market ETF - SWVXX which pays at a high yield rate. If you decide on Schwab get an existing customer to use their "refer a friend " feature and send you an invite code. You'll probably get a free $100
You can buy SGOV through Schwab or the SWVXX money market fund that is at 4.16% right now.
I put cash in SWVXX. Let me know if you see a problem with this. I use Schwab.
I have answers! A few chats w/ the generally knowledgable folks you land through the webpage chat, and I know what's going on. \- yes, SWVXX does 'count' as cash to support CSPs \- yes, it does count 1:1 as collateral towards margin, so the margin req for that holding is 0. But only for funds that have been in there for at least 30 days. Same for other money mkts like SGOV \- I was immediately able to move the cash into SWVXX. When attempting the buy, the web interface suggested 0$ available to invest. But I told it 109k anyway and it went through. If it hadn't, customer svc said they could do it for me. \- most importantly... the margin req for short SPX box spreads is not what I was expecting. a 4000/6000 Dec '26 box spread has a margin req of 250k. Despite the fact that there are no outcomes where, 2.5 years from now, that holding requires anything other than exactly 200k to buy back and if it was worth 250k now that would imply an interest rate of like -10%. SO I think this is essentially an issue that the webpage is less correct about margin than ToS, but you can force it to do the right thing, and of regT vs PM. I do not actually want to increase my leverage. So I haven't felt motivated to move to PM, and tbh I don't feel 100% comfy with how it impacts the guardrails on the account. But given the way the short box spread is being handled, it's possible that I really should just do that.
I use Schwab Value Advantage Money fund (SWVXX). It is currently paying 4.16% and you can take your money out whenever you want.
I agree, either SWVXX or FZDXX.
Put it in Schwab SWVXX, it's 4.3%
VOO is at $484 per share. You can buy 6 shares and with the rest put it in SWVXX and keep,adding there until you can buy another share of VOO. Rinse. Repeat.
On Schwab, I can buy a stock and then sell money market fund SWVXX to cover as long as I sell SWVXX before that day's market close.
SWVXX, FZDXX and SCHDD should be a safe bet. For two the first two are cash holdings at 4+% return and long term dividend outlook for the last one.
ER and State Tax benefits is precisely why I chose SGOV over SWVXX. As far as ER goes, It's actually been mentioned a few times but not enough to jump out, you're right,
Noted. 7 day yield at Schwab SWVXX is 4.17%. You can get a little better with the one that has a one million $ minimum.
Money market fund to avoid transferring between a bank and my brokerage account and still collect some interest. I’m using SWVXX, but feel free to look around. Foreign currency ETFs as well, I’m holding some FXE and FXY.
https://preview.redd.it/9qbfzhiyaxue1.jpeg?width=1290&format=pjpg&auto=webp&s=73ba797bb4501675c3159e9abd34236a4d0c1202 I never time market but had good 2 year gains and didn’t want to lose all my money. Sold $1 Million Dec 31st and had in cash (SWVXX - 4.25%). I ended up using total amount to buy several beaten down positions on Friday April 4th, somewhat lucky timing. That Monday was that HUGE Day. So anyway. Taking 50% out saved me and helped me even out the losses. So % Wise I Cale out OK.
I’m in SWVXX, SNVXX and SNOXX ….. there’s a few more with better returns but require $1,000,000 initial investment. I’ll be there soon 😎.
Moved my 40% VOO position into SWVXX mid February. Bought some GLD. Waiting a few weeks for this to all play out.
When investors say they’ve “moved to cash,” they typically mean a money market fund (MMF). MMFs were less attractive when interest rates were low, but once the Fed raised rates, they started offering returns over 5%, which is excellent for a low-risk, low-fee investment. You can withdraw at any time (funds become available the next day), though rates fluctuate- currently Schwab’s SWVXX is at 4.17%. If rates drop again, MMF yields will shrink, and you may want to consider CDs instead, as lower rates also reduce returns on high-yield savings accounts. Like me, you are cautious and just don't want to make the wrong decision, and I would suggest you visit Bogleheads sub or their forum to bypass the crap and get clear answers to your questions.
Im chilling in SWVXX for a while. Going from 8 times leverage to a MM fund gon be interesting
With all of these bond fluctuations, will my Schwab SWVXX investment go down? I moved a large amount (for me) of money out of stocks and into this fund about 5 weeks ago. Should I be concerned? Would it be better left in cash?
So I sold and moved to what I thought was safest. SWVXX FDLXX and SPAX are these in danger now?
Your broker 100% has a money market fund. SWVXX on Schwab/TOS
Mine is in SWVXX too and its a non-tax advantaged account. Would be hard to "transition" it from SWVXX to something else though without triggering capital gains though I think. Ultimately, I think its splitting hairs between this one and the other recommendations. The only one I might like better would be an ETF so I don't have to wait a day or two for the funds to settle out of a Mutual Fund.
Yes put your emergency fund in, but no don’t take advantage of the dip in the market if that money is your emergency fund. Just put it in SWVXX or something.
Look at the beta rating. A beta of 1 is the S&P 500 volatility. A lower number is lower volatility. SGOV is basically 0. PULS is something like 0.01 SWVXX is something like 0.64 PULS has the highest return of the 3 at around 5.5%, SGOV around 4.8%, I think SWVXX is the lowest, but too lazy to check. SWVXX has the highest expense ratio at around 0.34, SGOV is around 0.09, PULS is 0.15 So for barely less risk than SGOV, you can get the highest return, and it’s cheaper and less risky than SWVXX.
It sounds like you're saying you won't touch the half in SWVXX but you're tempted to take some of it to buy more stocks but you're trying to be conservative? The emotions of fear and greed and the thrill that a gambler feels when he takes a risk and wins. Are you worried that you might lose too much? "Have you figured out how much you will need in retirement? A job you can keep at 68+ and Social Security Retirement and some percentage of $2M invested in a balanced portfolio seems good to me but I'm frugal. Could you create a "safe retirement portfolio" with some stocks, bonds, cash that would grow moderately and without much risk and also make a separate "get rich portfolio"? Do you have the discipline to sell the underperformers in your trading portfolio if you want to buy something new? Could you moderate the risk when you're losing? You will have to answer these questions for yourself.
Thank you, I'll read up on PULS. Are PULS, SGOV, and SWVXX all about equal in risk level? As crazy as it sounds, I want to guard my portfolio as best I can against a total economic collapse.
If it is a taxable account and there is an income tax in your state, look at SNSXX instead of SWVXX.
It seems like a HYSA might be a safer bet for at least a chunk of that SWVXX money.
yes, I am in SWVXX. That makes more sense the yield. You have a lot more $ then me in that!
I’m keeping my cash in SWVXX, currently paying 4.2%. It seems like a good time in history to have some cash that you are just sitting on.
I’m on the Schwab platform and SWVXX is what I’m using for now. 7-day yield is around 4%. I’m fine with it for right now.
JPST has outperformed PULS a little. BILS is my largest holding. PULS was/still #2...but reducing it in favor of JPST. During COVID it's max drawdown was 1%? JPST. PULS was 3%. PULS has more private capital/equity holdings from what I gleaned - like ARES, etc... still short term loans...but can underperform I'm learning. I'm sticking more in SWVXX. But drawing up a list of things to buy soon...things I used to own.
I bought a bunch of bond etf’s and SWVXX in December. Just started averaging out of bonds/SWVXX and averaging into equities.
At Schwab cash has to be manually moved to the "purchased money market" funds. SWVXX and SNSXX, for example. [Here is the full list](https://www.schwab.com/money-market-funds). Could that be what this is about? If so, that is the right thing to do. And Schwab makes money off of people who fail to do it. For example, my wife received an inheritance last year, and our FC called her to make sure that she was planning to make that move. Note that it would have been in Schwab's interest for her to just let it sit as cash, but he was making sure that she did not make that mistake. Handling a family member's investments is a mine field. Other family members can get their noses out of joint even when things are done properly. My suggestion, having been down this road, is to get a real financial advisor to manage the portfolio. And the Schwab Consultant can help you find the right match (doing so has been Schwab's bread and butter for a long time). It is not about the fees, it is about you not being the lightning rod for imagined wrongs.
Ok I probably should clarify: I'm a non-resident US citizen with a Charles Schwab brokerage account in USD. Money market like SWVXX would have been my first choice for this purpose, but apparently they are treated like mutual funds and therefore not available to non-resident clients...
SWVXX, Bitcoin, AAPL, NVDIA go UpUpUp in 10 years
Out of curiosity what are the pros and cons of SGOV vs SWVXX. I see people holding both and their rates seem pretty similar
I keep my HSA annual out of pocket max in SWVXX.
SCHD vs SGOV vs SWVXX Where would you park $200k in IRAs to set and forget? Or maybe somewhere else?
Basically every investment platform will have something like this. Schwab has money market funds like SWVXX where you sweep all your extra cash into, but you need to do it manually. Fidelity has auto sweep into SPAXX. Other platforms that don't have money markets will still have the ability to buy T-bills for no extra cost and auto-roll the T-bills. Some others like IBKR pay a high enough rate of interest that you don't have to worry about MMFs or T-bills. I would start with Fidelity or Schwab if I were you as both have MMFs and can invest in stocks & bonds too.
Short term government bonds. Or SWVXX if you’re on Schwab.
There's no sales fee on SWVXX. No idea what you're looking at. No money market mutual fund has any volatility, that's the whole point of them.
I have never been charged a fee related to SWVXX. I checked and saw no such fee on the investor materials associated with the fund. https://www.schwabassetmanagement.com/products/swvxx Couple of ideas. 1. Don’t ask reddit, call Schwab and get clarification. 2. If this has to do with entirely closing your SWVXX position prior to 90 days then leave $1 in SWVXX for 90 days so you don’t get charged.
Apple hit my stop-loss target and sold. bought SGOV. Protofio is 52% cash (SGOV+SWVXX)
At Fidelity your cash is in it automatically. At Schwab something like SWVXX. You can buy very short term treasuries outright or an ETF based on them like SGOV (has almost no change in value other than adjusting for the dividend). It's a waste to not have your cash in something like those as long as the Fed keeps rates up. Just don't get into long term bond funds without understanding that they can be volatile based on interest rate fluctuations. That's not a problem with short term (other than at times like 2020 they pay almost no interest).
I'm just gonna put my feeder money in SWVXX til we get close to a Great Recession dip. Then wait for the Depression dip.
I'd like the dilemma of having spare money for the dip. 🥲 EF is funded, any spare money + bonuses/refunds are earmarked for the next year's fully funding of the Roth IRA. Since that makes it a short term goal, it goes into.... SWVXX I think it's called? into the Schwab brokerage. No dip 🥲
For Zero Duration I went with Money Market & 3 to 6 month CD’s on Schwab Platform The other day I asked for advice on how to invest $1.5 million in non-equity funds for zero - or near zero - duration on the Schwab platform as I am expecting stable to rising interest rates due to sticky inflation, tariffs, etc. I decided to do one-third Schwab money market (SWVXX), one-third 3 month CD’s and one-third 6 month CD’s. (My wife/I live in Texas with no state income taxes and we will not be tapping these funds.) I was surprised at how high the current CD rates are being .15 to .17 basis points higher than the money market 7 day yield. I skipped Treasuries (though they are more liquid) as there is very little difference in yields from very safe CD’s. Also, I skipped VBIL Vanguard 0 - 3 month Treasury ETF as there is slight duration risk up or down and the yield is about the same as no duration risk CD’s.
I know it is .34% at SWVXX versus VBIL’s .07%, but their 7 day yields are much closer with .11 yield advantage to VBIL which yield advantage fluctuates, of course.
SWVXX for a house, will get a little interest while you wait.
Tips: - Only keep ~1 months expenses in checking. - Open a brokerage account at either Fidelity, Schwab, or Vanguard (recommended for no/low fees and industry leading services) for the rest of your money. Ideally your IRA should be held at the same institution. - Keep an emergency fund (3-9 months expenses) in a high yield savings account (HYSA) or a money market mutual fund (MMMF). Unlike a CD the rates will fluctuate but you can pull money out or put it in when you want/need. Examples are VMRXX, SPAXX, SWVXX, etc. - Invest the rest in a low cost indexed exchange traded fund (ETF). Examples are ITOT, SCHB, VT, etc.
I think a money fund is risk-free enough, and they typically earn slightly more than a HYSA... VMFXX 4.25%, SWVXX 4.18%, SPRXX 4.07%. Maybe still smart to leave some in a HYSA for immediate access, but money fund is pretty easy to liquidate quickly too.
SWVXX? I’m no fan of that expenses ratio but it’s as solid as it gets. I do like SGOV for similar (slightly lower) return but way better expense ratio.
This is my take as well, especially with T+1 settlement now. I have a set amount I keep in a savings account and the rest is in SWVXX.
when it was over 5% SWVXX felt pretty good for cash, now that it is 4.18, not so much. I moved the last of my free cash in my brokerage to a 6.75% dividend stock, but "emergency" money still sits at a credit union getting next to nothing.
SWVXX is about 4.18%. If your money is already at Schwab, then I would just put it in there. The extra ~0.2% isn't worth the hassle of transferring it back if you want to invest it.
I'm basically the same age, higher salary, but this is what I've been doing. Max 403B (basically same as 401k) in vanguard target date (Fidelity/my company won't let me add brokerage link, so this is all I got). My company doesn't offer HSA accounts. 60k in "HYSA" (which I just recently moved to Schwab SWVXX) @ 4.35-4.79% interest. This accounts for 6 months @ 10k/month, which are approx my monthly expenses. 250k in VTI in a brokerage account. This just sits. Another 100k in SWVXX - I use this to sell cash secured puts on stocks I want to invest in (PLTR, NVDA, etc). Only been doing this a month, made 2.5k so far. I deposit about 10k/month into the brokerage account and I'm going to be building up a position in SPY then sell covered calls against it. My total portfolio (with other holdings in other accounts) makes about 8k/year in dividends so far, which I drip back into VTI.
Thank you very much! You really summed up a lot of my fears and concerns about the current market -- it seems like a lot of these stock prices aren't following logic. Its all about unforseen potential, and actual profits dont really seem to be a driver of much anymore. I know that's not really a new thing, but a lot of these prices seem unsustainable/inflated. But I felt the same way about PLTR at 75 a few weeks ago 🫠 I feel like I'm getting into investing too late and have to make up for lost time; but have always been super paranoid about losing my money. I kept my money in a checking account for way too long, then moved my little bit of cash into SWVXX and bonds in 2023 because the market felt too volatile. I got like 20 shares of VGT at 335 and watched that double and then realized my mistake of not doing more sooner. Hindsight is always 20/20. Over the past couple weeks, I've made about the same amount of money I would have made in interest on 3month bonds (minus the tax breaks) by writing small puts that haven't been assigned. But, my brain tells me I would have made more if I had just bought NVDA at 116 instead of getting $2/share! I think the FOMO is clouding my judgment a bit, but I need to remember I didnt *lose* a bunch of money either, and that's a win!
It sucks Schwab doesn’t have a cash sweep where you can select a money market, but they do have money markets you can buy like SWVXX. I manually sweep cash to and from that every day to accomplish the same thing as other brokers do automatically.
I'm in a target date fund (2035) so it's still fairly aggressive. I have between 10-15 years to go. My personal investments are quite aggressive but i have padded with SWVXX and SGOV (will be moving more into SGOV due to lower ER). I am also fortunate to have a pension plan and that will be a nice bump if i can hold off tapping it for 15 years.
Not a dumb question - So they solve similar problems but arent exactly the same. HYSA are just that - a deposit at a bank and the bank pays you interest. The bank decides the rate, and can change it whenever they want. Money Markets can refer to some slightly different things, but I’m referencing purchased money funds which is essentially like buying shares in a mutual fund. This fund has a steady NAV (or “share price”) of $1 and pays interest (technically in the form of a dividend) monthly. The fund itself invests in short term debt that generates the income, the mutual fund company will take a cut of the interest off the top, and the rest goes to the shareholders. I happen to invest at Schwab, so the fund I use is SWVXX. It’s yielding ~4.18% currently and the expense ratio is 34Bps. The way to interpret this is that the fund actually made 4.52%, Schwab takes 0.34% off the top, and I get the rest which is 4.18%. I linked the actual page below. There are different types of money market funds and reasons to choose some vs others, but that’s a new conversation that my thumbs don’t have the stamina for. It’s also typically not that big of a deal. I hope that helps! https://www.schwabassetmanagement.com/products/money-fund-yields
Yep, I understand that. I haven't bought them (with the exception of a few shares of BBAI and RKLB), just have been watching the ones that caught my eye. Most of my money is in VGT/SWVXX/SCHD and the Mag7 stocks I could afford, but I'm trying to broaden my horizons a bit.
SWVXX or SNAXX if you’ve got over a mil in cash to park. Right now it’s floating around 4.2%.
SWVXX will cover you if you sell to open a put. No need to convert to cash unless you get assigned on the put.
I'm new to this, so I have the lowest options level (0) in my brokerage account. I'm not sure if I need cash to buy a put, or if money in SWVXX will "cover" me. I know if I get the contract, I would need to convert the necessary SWVXX to cash. Not sure if I get charged interest in the meanwhile.
Hello all, I am a 26 yo from the U.S with a moderate amount of investment knowledge, and I am looking for advice on how to better diversify my portfolio. I am employed full time, last year I grossed $61,000. I still live at home with my parents and I recently inherited stocks from family that I have added to my Schwab brokerage account, and I am curious as to what you guys think I should be doing going forward as I am concerned about the majority of my portfolio being in a single company. My main goal is to continue growing these investments. Since I am young I would like a fairly aggressive portfolio to expand as much as possible on what I have. Currently my only debt is my car loan at a 7.99% interest rate with a remaining balance of $21500, which I am working to pay off sooner rather than later. If I stay on track I can have it paid off within 24 months which is almost 2 years sooner than if I paid the minimums each month. Any extra income I receive I put towards the car loan as well. My brokerage account consists of 1) XOM 79.31% (Inherited) 2) T 15.91% (Inherited) 3) WBD 1.3% (Inherited) 4) SWPPX 0.58% 5) SWVXX 2.9% I am using SWVXX to put my savings in that I will need within the next 5 years. I also have a Roth IRA that I contribute to monthly and that is invested fully in SWYOX. I will receive a pension from my job when I retire so I do not have to rely solely on the Roth IRA but I do realize its importance. Any advice is appreciated, Thank you.
Look into MMA funds like SWVXX/SNSXX if capital preservation is paramount. $500K will earn approx 4%+ interest, paid monthly. SNSXX is exempt from state tax.
If you are going to use a cash account at least keep the cash in a money market fund like SWVXX at Schwab. Otherwise, use portfolio margin since it's the most efficient for selling options.
No it’s fine. I have the money for our house in SWVXX. It gets a good interest rate if you consider it a HYSA.
Not the guy you’re asking but I’m in Schwab so I use SWVXX
I prefer it. I keep mine in SWVXX, dividends get paid out every 2 weeks, which I move into my Roth or taxable.
SWVXX Still Safe in 2025 With Current Geopolitical and Economic Climate? I understand from what I read that SWVXX is a very safe place to keep money that isnt immediately needed in my checking account, but I am still new to investing. Should I be wary about the future of money mutual funds or would this be a safe place to keep cash and earn a little interest? Can I just leave the money there or do I need to actively do something to it? I've spent hours googling and just feel overwhelmed and underconfident with the amount of info I have come across. I am in my late 20's, married, employed full time. I have a little over 10k that has just been sitting in a checking account, not looking for anything risky. SWVXX just seemed a safe place to grow it and then relatively quickly withdraw if needed.
You're right that money market mutual funds like SWVXX aren’t FDIC insured, even though they invest in relatively low-risk assets. The FDIC only insures deposits at banks, not funds. If you're looking for FDIC protection, you'd need to consider a bank sweep account or a high-yield savings account instead of a money market fund. That said, you’ll likely get a slightly lower return with FDIC-insured options, but it’s a trade-off between safety and yield. Definitely worth exploring bank options or even FDIC-insured money market accounts for the best of both worlds!
SWVXX Schwab Value Advantage Money Fund Current yield @ 4.19% Just moved $40K there this morning.
How long have you been maintaining 18%? That includes the 4% on the SWVXX right? I’ve been running 13% but feel like I’m overexposed. I’m also wheeling Spy, and 14-45 days. What delta are you entering at?
So many factors, taxable account or not, risk tolerance, goals. I've been wheeling QQQ and SPY primarily, with smaller percentages in growth/tech stocks. I'm sitting at an 18% annual yield so far if I maintain pace. I keep the cash for CSPs in SWVXX for an extra ~4% (w/Schwab). Fidelity I hear makes this easier. I'm looking at 14-45 DTE contracts. Not trying to be greedy, I just want my cash to work harder while the market is potentially sideways or bearish. I'm in a taxable account because I want the money accessible before retirement. I'm also starting a Roth IRA for aggressive growth, and have a traditional 401K.
Bro, do yourself a favor, put that $6.229MM into a Schwab brokerage in SWVXX, and live off the monthly interest income. Thats $21,000 a month. You never have to work again. Don’t gamble like this 
If you want the fastest and easiest option, money market funds (SPRXX, VMFXX, SWVXX) are a great choice—they provide stable returns and instant liquidity.
Hard to say, if you have time to ride through it, ultimately, it will go up again, but it could be a while or just be extremely volatile up and down. You could start buying Tbills, CDs and or money market the money if you need somewhere to invest that is not VOO. 4.3% on a Tbill is not terrible, CDs have started to edge them out, and like SWVXX is 4.2 avg. Your bank may even have some good rates and your money is not caught in a wild cycle. Unless you're actively day trading running options, it's hard to make money when the market doesn't have any discernable direction.
Is SWVXX a good place to put cash in a Schwab IRA? Other ideas or suggestions?
I use Schwab and I have a large portion of cash in the SWVXX money market account.... Pays me over 4% for that money, and allows me to trade on "margin" based on the nest egg, though if I need to because of potential assignment, I can cash out SWVXX and never have to use real actual margin. Could also put your cash into SGOV which is an ETF paying over 4% and do the same thing. I am making over 10% per month between the free money I get from SWVXX and selling low delta put options on my nest egg.
I have SWVXX using Schwab.
I’ve parked about a half mil in CDs and SWVXX for this reason. Been easy money and serves as nice dry powder in case of a correction. However, just saw that the 30-day yield in VCRB was 4.6%. Check it out if you’re not familiar. That’s pretty wild for a core bond fund that serves as a nice hedge to US equities. Shifted some money over to that and will probably move more over to that and SGOV as CDs mature. At least with SGOV I could avoid paying state income tax.
0% bonds. Emergency fund + excess cash in SWVXX
No, I’m gonna get back in there but after it dropped 1100 points that scared me because literally I almost bought that day. I haven’t even been out of the market for like a week. It was in SWVXX Schwab Money Market FOR 3-4 days. Pays 4.4%! But a couple days ago I sold it to put it back into cash cause it takes one day to settle so I wanted to be ready to go
Put that money into a money market for now. Schwab’s SWVXX is paying 4%+. Let it sit there while you research long term investments. Study the market. Just remember this rule: never put money into the stock market that you might need suddenly for something else. The market goes up over the long term, but it does quite a bit of wandering in the short term. One more rule: don’t lend money to friends or family. You’re just giving it away.
Why not a money market? SWVXX is 4.2+% right now I believe
SWVXX is a Schwab specific fund. Fidelity will have their own, you can check and see what they offer, there should only be a few choices. But like I said. You're fine where you are. You're already invested in a money market fund with a decent yield. A few tenths of a percent isn't going to matter over such a short time. Keep in mind, funds like SPAXX only pay out interest once a month, just keep it where it is.
I was looking at SWVXX and VMFXX but I can't access either from Fidelity. I kind of want to put what I know I need to send into something, so I can see the progress but it is also locked off from my liquid funds and I know it's put away for Jan 15th. By default anything not invested on Fidelity is in SPAXX making 4.2 something.
4.2% is pretty good, you'd be fine with that. I definitely wouldn't put it in the stock market, not even an index fund. I store my tax money in a money market fund until it's due. (e.g. SWVXX is currently at 4.4505%). 0.2% isn't going to make much of a difference from now until Jan unless you're talking MASSIVE amounts of money.
I’m just under 20 years until retirement so my plan is to re-invest the rollover 100% in stock ETFs/individual stocks as my time horizon allows me to take on more risk. I have a few 401Ks still in previous employers’ accounts that I eventually want to consolidate to my rollover account to make management easier, but just need to figure out the right timing. Once this transfer hits my rollover account, I’m thinking of parking it in SWVXX, which I discovered through reddit is a money market fund with high liquidity. That way it collects some interest until I can figure out what to do. I feel paralyzed because I feel like a correction is coming (when, who knows?) and that’s when I want to buy; and it’s been top of mind that Buffett is sitting on a lot of cash right now (is he waiting to buy on a correction too?). But totally agree, grateful to be in this situation