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
No biggie and I was on a no margin IRA extensively for these trades. Got early assigned once so was very negative balance overnight. I happen to trade daily so I caught it the next day or two max. Liquidated SWVXX to cover. And no one at cs gave a hoot. I've done this long enough I'm certain I had some assignments on a Friday that I didn't cover until Monday and they also didn't care about that. So even in my no margin account I went into deep margin territory briefly but multiple times. In short I never took more than 1-2 sessions to cover just because I'm active/daily enough to notice. Talk to cs and double check how to set alerts and emails as a backup so it doesn't go unnoticed too long.
So what happens if a CSP gets assigned and your money is in SWVXX? I guess the assignment happens on Margin?
Yes for Schwab. The APY for the cash isn’t great, but you can put it into other cash money market funds like SWVXX for a better APY and it will still be available as collateral for options and is marginable.
Yep, same here. I buy/sell SWVXX several times a month and like you said it's no biggie. And while I am posting, I saw your other comment about you do need to sell the SWVXX shares if the short put gets assigned so you have the cash to buy the shares. Very important point and just wanted to add that to this since I missed that important point in my first reply,
Correct. And it's the only thing I've run across so far that can't be traded on ToS. I had to go to CS web to transact SWVXX. Once I learned about SWVXX I never had more than lunch money in actual cash. Interest paid on SWVXX is averaged over monthly balance so it doesn’t matter how much or often you add or subtract SWVXX you're earning better interest there than cash. *non margin IRA so I had additions and subtractions many times a month. Takes a few seconds so no biggie
Schwab has SWVXX which is essentially a money market. I had all my CSP collateral in SWVXX and freely wrote puts against it. IT WILL NOT AUTOMATICALLY SELL TO COVER ASSIGNMENT. You have to manually sell SWVXX to cover put assignments which is no big deal if you're attentive or at least set alerts at the strike. Made 4% last I looked. If you just leave cash laying around at CS it basically earns nothing to trivial interest
At Schwab with the options level I have (which I guess is *Margin Access Added)*. With the cash needed to cover the short put you can buy SWVXX shares which will cover the short put and you can do this in an IRA as well.
You’re not missing anything. I am with Schwab and doing exactly what you’re doing with SWVXX.
Not your point but SWVXX is exposed to state income tax, btw, while SNSXX/SGOV generally aren’t. Might not apply to your situation but thought I’d mention it in case it did.
At Schwab I put my cash in SWVXX which is some sort of cash mutual fund that gets 3%+ interest. But since it's a mutual fund when I sell the shares the cash only show up late that night. Let's say I have $0 actual cash in my account. If I buy some shares of XYZ costing $10,000 my account balance at that time shows -$10,000 (negative). But as long as I enter a sell order of $10,000 of SWVXX before the market closes (and therefore subsequently that night the SWVXX shares are sold and $10,000 cash is added to my account) I am have never been charge margin interest. Not sure exactly what the rules are to get charged margin interest, but that is how it works at Schwab.
This is super helpful! I will read up on these links! I didn’t notice any Bonds or mutual funds in your brokerage account and curious why that was, in specific no bonds? I believe this is what you mentioned, which I think i’ll plan on doing the same unless there’s a better way to strategize or optimize/diversify: SWTSX (MF, Total Market)/ SWISX (INTL MF) / SWAGX (MF Bond) - In ROTH IRA SCHB (US ETF) / IXUS (INTL ETF) - In Brokerage SWVXX (MMF) / USFR (FL TREAS ETF)
Ok so this is what I am going to do today: SWTSX/SWISX/SWAGX - Roth IRA SCHB/IXUS - Brokerage (taxable) SWVXX/USFR - uninvested in brokerage. What percentages should be the breakdown?
Ohh I see! I thought the SWAGX was in your Roth IRA. Since I am not elligible for a Traditional IRA, would I just forgo the SWAGX entirely and just stick with SWTSX and SWISX in my Roth IRA, or is it good to add the SWAGX to my Roth IRA? I would like to use the Boglehead 3 pillars to investment - which is having diversified accounts in each brokerage and IRA. This is what I am thinking: SWTSX/SWISX/SWAGX: in Roth IRA account SCHB/IXUS: in brokerage (taxable account). SWVXX and USFR for uninvested cash (for liquid money). Anything I can change to make it stronger? And regarding investing in 401k in index funds, can I invest in these same above at Fidelity since my 401k is with fidelity?
*> We have produced the same income as a CSP with less capital and a lower delta.* *> This is like having our cake and eating it too.* Maybe, assuming that is what the OP has been doing with options, Not sure what he has been doing with options. My concern is he has been seeing the massive gains people are getting doing the 0DTE stuff I see all over reddit and has he been doing that and has been successful (which is way easier in this constant up stock market) and now wants to really take advantage. And your statement of same income as CSP and therefore having your cake and eat it too, that comes with additional risk when using stock as collateral. If the entire market tanks your collateral becomes less valuable and if you end up with your short puts getting assigned you have to sell that covering stock/ETF for less that what he originally started when starting to get more serious with the options stuff. When I first started doing options people said to always stagger your short put expiration dates so that doesn't become a problem. But what they don't tell you is when the entire stock market crashes, they all eventually get assigned. I remember one guy (I think in the 2008 crash) having that issue and ended up in a margin call situation and it turned out the cheapest way out was to close one of his short puts that was still out of the money, but doing that changed his margin requirement enough to get out of his margin call situation (and cheaper than closing the ITM short puts to get out of the margin requirement problem). But I would agree it is having cake and eat it too if you put the cash into Schwab's SWVXX which is a interest bearing cash fund (doesn't change in value but gains 3%+ interest) and use that to back your short puts. Which you can also do in an IRA account which is really nice.
Regarding International…. It diversifies you away from just the US. The US market has outperformed the global market for a while but no idea if that will continue. Plenty of smart people say US only is fine because the biggest US companies are international businesses. Other people say that ignores large swaths of the global economy. I have no idea what the future holds. Personally I the I’m about 30% of my stocks allocated to International. Last year was the first time in a long time International outperformed the US. SWISX is fine in either in a taxable or tax sheltered account. It will tend to pay a bit more dividend then SWTSX but still pretty tax efficient. If you are holding in taxable accounts I’d favor the ETF versions. SCHB is the ETF equivalent to SWTSX, SCHF is the ETF equivalent to SWISX. SWVXX is fine, TBILL ETFs like SGOV or FRN ETFs like USFR, or TBills are all fine places for cash. Personally I found directly buying TBills to be inconvenient so stopped and just use the ETFs and Money Markets now.
Awesome; yes sorry was a typo and was SWTSX. The SWISX, is it a good idea to get international? And would this be in a taxable account? That’s a great idea on the sweep! Someone on my new post said that SWVXX is an unrated bond and to get something like a treasury bill instead, is this a good idea? Great point on SCHD as well in an IRA, but if there’s no need, I can skip it!
Oh nice! So would having SWVXX suffice?
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.
I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)
Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?
Ok gotcha! To clarify, you want a short duration basically?! Ok this is my plan so far. Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?)
Ah thank you! When we say effective duration of 0.1 or 0.2 years what does that mean exactly, what is an effective duration? Thank you for linking me to this boggle heads write up, that is super useful! I started reading though it and it sound like a floating rate treasury is super useful and he recommends getting one for sure, I’m still learning about this. Yea the reason I ask about short term ETF’s is to see if there are others comparable with varying returns. Like for instance there are diffeent 7 days MMF with varying returns and I wasn’t sure if it would be the case with short term ETFs like SGOV. Basically I wanted to know which list SGOV came from. But if they are all similar, I can certainly get SGOV and one of the floating treasuries like USFR and even include SWVXX as the MMF. I need to write all this down! It’s starting to sound like alphabet soup. If you don’t mind me messaging you to keep in touch that be great!
> Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? Yes SWVXX is a MMF. Different MMF's have different yields. > It’s specifically a 7 day yield fund. I don't know what you mean by this. '7 day yield' is how the yield is reported on MMFs. Its what annualized return of the fund over the previous 7 days. You don't get that yield every 7 days. >When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! SGOV doesn't mature. That Treasuries it holds matures and the proceeds are then invested in new Treasuries. Its essentially a bond ladder with an effective duration of 0.1 years. >What the difference between Floating Rate Treasuries and Government bonds? A floating rate treasury is a type of Government Bond. Its a longer term bond but the interest rate floats so it doesn't have the same interest rate risk as longer term treasuries. USFR's effective duration is 0.2 years. >I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. Not sure I follow, are you looking for other short term bond ETFs? How many variations of Vanilla ice cream do you need? Here are some I'm aware of: SGOV, BIL, VBIL, TBIL, JPST, ICSH, VUSB, USFR, TFLO. The only ones I have any first hand experience with is SGOV, USFR and TFLO Here is an oldie but goodie: [https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa\_mmf\_cds\_tbills\_searching\_for\_the\_best\_return/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/Bogleheads/comments/11prp0b/hysa_mmf_cds_tbills_searching_for_the_best_return/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button)
Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? It’s specifically a 7 day yield fund. When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! What the difference between Floating Rate Treasuries and Government bonds? I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. For sure looking for convenience too!
Super helpful info! MMFs yielding less than SWVXX, isn’t SWVXX already a MMF? It’s specifically a 7 day yield fund. When you say 0-3 month, does that mean it matures in 3 months or expires in 3 months? When I looked up SGOV, it had no maturity from my understanding, but I could totally be wrong! What the difference between Floating Rate Treasuries and Government bonds? I also, tried looking up where to find a list of short term government bonds on Shwab but couldn’t find a list? Their customer service didn’t know either so i’m wondering how do we find the different options out there other than SGOV that does something similar to keep funds liquid with a return. For sure looking for convenience too!
At Schwab you can put your cash into SWVXX and currently get 3.61%. The SWVXX doesn't work as cleanly as Robinhood cash because you have to trade to put money into the fund (and trade to get money out) and it doesn't trade until market closes, but it's still adequate for me. I don't understand why everyone likes the Robinhood UI so much. I hate it. I can see all my positions at Schwab including the options on one single page and see (depending on what I select to be viewed) things like the Ex-Div Date, the Div Pay date, Div Yld, Margin Req, Delta, Gamma, ITM. None of which you can see on a single page at Robinhood (and not being able to see the individual options on that page is really a problem). On the Robinhood website there is no way to see what your cost is for each individual lot nor can you specify to trade a specific lot. Thank goodness you can do this on the Phone, I hate using my phone to trade, but when I need to specify a specific lot to trade I will use my phone. There is no way on Robinhood to see what your current Realized Short or Long Term gains are. I have a spreadsheet I have to use and it takes me weeks to figure out what my Realized Long Term and Short Term gains are at Robinhood which I use for Tax Loss Harvesting near the end of the year. At Schwab I go to the Realized Gain / Loss page and select the current year and there is it, Short Term and Long Term (and Total) Realized Gains. Takes me 15 seconds. With Robinhood it takes me weeks in a spreadsheet to figure out this info. If I want to see all my Trades with NVDA at Robinhood I have to to the History page and can select to see just trades (which helps slightly) and I have to scroll down, down, down, down and go thru all the trades (not just NVDA, but every single stock I trade). Or I can download all my trades to a spreadsheet and go thru it the same way which isn't much better, At Schwab I go to Transaction History, select a Date of All (or I could select a Date Range or Current Year etc), put in NVDA for Symbol click Search and I see all my trades with NVDA, Takes less than 30 seconds. Why everyone is saying the Robinhood UI is so good is so strange to me. And then last but certainly not least visit this subreddit. r/ClassActionRobinHood . Tons of people having their account locked out when they try and take money out of Robinhood. A couple of years ago I transferred money to Robinhood for a 1% bonus and have regretted it ever since. It was not worth it. In a couple of months the hold period for my bonus will end and will be glad to get my money out of Robinhood (assuming they don't lock my account when I do that which I have a bad feeling about).
There's realms of information about the three fund strategy that have already been written. *I was also thinking of getting a money market fund that is the 7 day yield like SWVXX or getting a ultra short term bond like Us treasury - SGOV or both to park my funds before they are invested. What are your thoughts on this?* How much money are you investing that this kind of micro optimization matters? *Or what about maxing the Roth IRA before investing in funds?* You're confusing tax treatment with investment strategy here. Invest in index funds in your IRA.
I like this strategy! Is there one ETF that is encompassing of both US and international? What is the more common US and International ones on Schwab? When you say bonds do you refer to money market funds or another type? What kind of bonds or which ones in particular and why? I was also thinking of getting a money market fund that is the 7 day yield like SWVXX or getting a ultra short term bond like Us treasury - SGOV or both to park my funds before they are invested. What are your thoughts on this? Or what about maxing the Roth IRA before investing in funds?
That's a fair question, I should probably speed up the DCA. I may compromise for 1.5 years instead of 1 year. If I assume the market averages linearly long term and I DCA within a year instead of 4 years, the account would reach $5.6M in 15 years opposed to 5.3M. 5% gain. If the market drops 10% in 2026 and I lump sum dump the SWVXX in there, the account reaches $5.8 and exceeds DCA. 10% gain. The faster DCA approach is the safer thing to do than timing the market.
When I last checked Schwab's Treasury MMFs were yielding less than SWVXX. I'd save state taxes with SNSXX but the tax savings didn't make up the yield difference. SGOV and USFR are ETFs that invest in ultra short term government bonds. SGOV invests in 0-3 month Treasury Bonds and USFR invests in Floating Rate US Treasuries. There are several other ETFs that invest in ultra short term Gov't bonds that are equivalent. I actually have a bit of SWVXX but most of my uninvested cash is in USFR. I haven't checked recently but when I last checked it was yielding slightly more then SWVXX and is state income tax free. The key is they invest in ultra short term securities so you don't have the same interest rate risk you have when investing in longer term bonds. A Money Market Fund keeps a constant share price of $1, orders execute every night and you get paid interest monthly. A Treasury ETF trades like a stock. It has the same limitations of other ETFs at Schwab, no Fractional shares. USFR's share price hovers around $50 and SGOV around $100 so if your dealing with small amounts of cash that can be a pain. If you look at a price graph you'll see they make a nice sawtooth pattern. That's because they slowly increase in price throughout the month as they accumulate interest then drop when the interest is distributed. All of these are fine options and are easy to switch between. You mentioned iBonds and TIPS. You can only buy iBonds directly at Treasury Direct. You can buy TIPS at Schwab, either directly, via a Mutual Fund (SWRSX), or via numerous ETFs (SCHP, TIP, etc). Schwab has other options for cash as well, T-Bills, CDs, etc.... I dabbled with T-Bills for a bit but it was more effort then it was worth and just started buying the ETFs instead. The convenience was worth the minor cost to me.
Interesting! If you are using Schwab, I am on the research tab, under Money Market Funds and I only see the SWVXX under “Prime Money Funds”, where is the USFR and SGOV located? I clicked on ETFs and typed SGOV, and it says it’s an “ultrashort bond”, Does that mean it’s a bond or ETF? Is this like an iBond or TIPS? Do you get a return on these like the Money Market Funds? Is there a reason you prefer to buy the short term treasury ETFs in addition to the SWVXX? I am curious why you don’t choose Government and Trrasury Money Funds like SNVXX, SNOXX, SNSXX, or the money market ETF like SGVT? All of these have a 7 day yield.
Yes, in my taxable brokerage I use both SWVXX and short term treasury ETFs like USFR and SGOV. I don’t use uninvested money in my IRAs but if I did I’d certainly want it gaining something. You can usually put in the order to sell the mutual fund or ETF the same time you put in the buy order for your investment and everything should settle at the same time. You might need to enable margin in your account but I’m not sure.
Money market in your schwab account such as SWVXX
You can keep cash equivalents in your Schwab brokerage and get equal or better interest than a HYSA. Either buy a money market fund like SWVXX or a short term treasury ETF like SGOV or USFR.
I am annoyed but it is a really small amount, I do SWVXX in the Roth which has more in it. This is a taxable account. The weird part is I could not see a reason in my brokerage account, nothing about an ex date or anything which is why I asked the question in the first place Seems like lots of stuff happens in December. There is a mutual fund at another brokerage I have had forever and it has a special payout, I am waiting for that and then selling the whole thing. I have been wanting to sell it since October (never should have bought it but it is an ancient mistake). The only reason I knew about it was I went into the history and say it in last years
So it gets paid out twice? We won't lose? Historically it always seems to drop in DEC. I'm really mad at myself for not seeing this....... I have $750K in this fund and am down $1500 for DEC, made no sense. I read up on the fund because it's the lowest expense ratio compared to SWVXX etc. Everything was going well the past 7months I've been in the fund until this december w/ this non-sense.
I recently switched to SGOV. In the Schwab universe SNSXX is also an option. I was using SWVXX until I realized I was opting into MA taxes for no reason.
(I guess it doesn't really matter that much in this case, but there's no reason to keep your ticker a secret.) If you get assigned on both, you'll buy 100 shares at 270 and sell 100 shares at 220, essentially at the same time. This will cost you a net $5000. Note that this doesn't require $5000 cash, it requires $5000 buying power. I'm guessing you're already using up that much buying power by having these positions open. If you didn't have that much cash, this would simply result in a margin loan. If you didn't have enough buying power, the margin loan would result in a margin call, which you could resolve by simply selling some shares of SWVXX. But again, I suspect you do have enough buying power given the positions you have open.
This Friday, I have 2 options that I sold on the same ticker that are very likely to be assigned if I do not buy to close. There is a ticker trading at $250. I sold a naked call with a $220 strike, so that will be assigned. However, I also sold a put (kinda cash secured, but the money is in a money market SWVXX) with a $270 strike so that will also be assigned. I'm trying to figure out how Schwab is going to handle the transactions and figure out how much SWVXX I should liquidate to cash to cover these positions when they are assigned. Could anyone guide me through the logic on it? I suppose I could just buy to close both positions a few minutes before the market closes Friday, but Id rather not pay the fees and cover the spread if everything will just handle itself automatically in the background over the weekend,
SWVXX while selling CSP’s win win. I’m so tired of winning. I never lose. 🤷♂️
And right now at Schwab I am getting 3.79% in SWVXX. But if I transfer that money from RH back to Schwab I would lose my bonus at RH. At the time RH was offering over 5% which was higher than anyone else at the time (plus I get the bonus transfer).
Schwab has a money market fund as well that's more liquid. The Schwab equivalent to Fidelity is SWVXX
One more week to go and SWVXX paying me more tendies while I collect put premiums I sell to bear. What I time to be alive. Sensational
I am an early-career professional that has started building an investment portfolio over the last year or so. My long term goal is to save for a house, but in the short term, I’m mainly focused on building a diversified portfolio that isn’t too dependent on one specific sector / area. My current portfolio is broken down as the following: 10% in GOOG (my only single company stock) 10.5% in QQQ 17% in XLK 36% in SPY 20% in SWVXX (Money Market fund that serves as my emergency fund) 6.5% in cash on hand I want to diversify a bit more into other geographies or other ETFs. While I have probably a bit more risk tolerance given I am still early in my career, I want my investment portfolio to be a “set it and forget it” exercise that I make regular contributions to. Does anyone have any advice / suggestions for good options to continue building? Thanks so much!
The most boring company in the history of the world - Campbell's (CPB) - throwing me some green in a sea of red and still paying me a fat dividend. XLP possible safe haven for those who don't want to hold cash (SWVXX paying over 4% though - ahead of inflation).
I can’t sell put with the cash in SGOV like I can with SWVXX. Pretty much same interest rate and I’m collecting premiums on top of it. Yes I agree rates back to 7%. 😂
I’ve been holding SWVXX for safety and it’s outperforming many stocks and EFTs. Can sell cash secrued puts while collecting interest. I can’t complain other than interest rates going lower with every cut.
No, it’s not. SWVXX-based income is not exempt from state income taxes. The Schwab fund closest to SGOV is SNSXX. There are minor differences but it sounds like the highest priority for you is limiting exposure to state income taxes for this pile of cash.
SGOV https://www.ishares.com/us/products/314116/ishares-0-3-month-treasury-bond-etf Scroll down to the "Portfolio Characteristics" section SWVXX https://www.schwab.com/money-market-funds Just scroll down a little.
well then go to the web site for each and look for the latest yield SGOV 30 day yield is 3.92% SWVXX 7 day yield is 3.79% That makes SGOV about $11/mo higher for every $100,000 you put in.
Ok thanks, what about someone else suggested SWVXX pays higher , how can I figure and compare them
I hate both of these investments. Both of these are designed to make the investor feel safe and make the managers a lot of money. Worse is people who put money in target date funds. You want a defined risk? Buy bonds and hold them to maturity. My position… 63% cash because I believe this to be true as well. You didn’t say how long before making withdrawals… Retirement. All the big downturns have lasted just a few years before reversing. Some have taking a decade to be back positive, so if you have > 10 years you shouldn’t worry too much. But you can ask your advisor to move some percent, 10,20,25%, into a safe money market, Schwabs is SWVXX, and wait to see it play out.
I've been selling calls and CSP's in my IRA somewhat successfully for the last 9 months. I have been reading Options for the Beginner and Beyond. Looking at LEAPs I feel like I must be missing something. For example looking at UUUU. Jan 15 2027 Puts, a $10 strike had a premium of $2.5. I'm thinking I would take $5000, sell 6 contracts (using the income for the first 5 contracts to cover the 6th) As long as the price ends up above $10 I make $1673 a 33% profit on my original $5k over a year, additionally i can park the cash in SWVXX for a couple % on top. Given UUUU is volatile right now but 33% seems unreal. Is my math right or am I missing something?
I just rewatched The Big Short and I’m starting to worry about my money market funds. I need to figure out of they hold bonds, some reason bonds confuse me, essentially you’re just letting the government borrow debt and you make some of the interest right? I have a lot on SWVXX right now as collateral for CSPs, should I be worried?
don’t sit in cash. find a “risk free” money market fund like SWVXX to park it in.
SWVXX and sell puts til you get the price you want to own shares
I am too, bought 100 shares in the spring and have been selling CCs to make up for the negative return, I’m growing very impatient though… how can a stock this big be down in this bull market?! I would’ve made more in SWVXX
Ahhh haaa, but that's the trick. You do this on top of having the money on a money market :). I'm collecting 4.5% with SWVXX and then write cover puts to get that other 1-3%
It’s not a ton, this isn’t some get rich scheme which is why it’s low risk. It depends but in a bull market it’s easy to make money but I still am really cautious because things are weird and seem too high. I can make maybe 2-3k a month while keeping my money in SWVXX as collateral. I’ve been charting it for a few months and I’m just barely underperforming SPY but this is without owning stocks so if things hit the fan I’ll either get assigned on a stock I want to buy anyway but at a lower price plus premium or you can buy to close at a loss. Check out r/thetagang I also sell covered calls on stocks I own (because i do own some as well) but it’s been dicey in this market so I’m being more cautious. I started selling CSPs because after April I wanted a ton of cash put aside but my cash is almost keeping up with SPY with way less risk.
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?
Nevermind, I completely misread your post. I’m aware of running the wheel been doing it for years but I seriously just had a brain fart moment thinking I could write options against SWVXX
Can you elaborate further on this? I use Schwab daily, how much $ are you keeping in SWVXX and how many options are you running and which strikes etc? It’s not clicking in my head
I made about $40k doing this in the last 3months while having collateral in SWVXX.
Yeah, all positions transferred successfully, except the cash portion. Which I suspect was maybe because of a delay in settling SWVXX, specifically
I really like Robinhood's ease of use and customization (Legend). **Fidelity** basically **doesn't give out Options spread privileges** unless you can prove that you are **very experienced**. **Schwab does give out spread privileges, their 'Think or swim'** desktop app is so much more responsive than Robinhood Legend, the web app is still highly usable + responsive and I **feel like** I get better fills on Schwab. Think or swim also has a 'Paper trading' feature to let you practice the mechanics of trading or trying different trading strategies in paper accounts. AND Think or swim lets you **practice trading in the past** with the 'OnDemand' button (Desktop app only). Downsides to Schwab: 1. It **not have spot Crypto trading** (only through crypto ETFs) 2. You **need to manually move your cash into the SWVXX to get 4% APY** 3. Think Or Swim has a bigger learning Curve (TOS tutorials by Trade Brigade Matt: [https://www.youtube.com/watch?v=43KW04tRJOc&list=PL6lX7E8jCbmWOIgdenTuwaAA-O431DEPe](https://www.youtube.com/watch?v=43KW04tRJOc&list=PL6lX7E8jCbmWOIgdenTuwaAA-O431DEPe) ) If new to options trading, I highly suggest learning strategy and practicing before putting lots of money behind your trades. I really Like the training from [https://www.youtube.com/@MarketMoves](https://www.youtube.com/@MarketMoves) ; he's the best options teacher that I've come across (although I disagree with his takes on gold and Bitcoin). When trading options it's also really important to learn at least the basics of **Technical Analysis**: * [https://www.schwab.com/learn/story/investing-basics-technical-analysis](https://www.schwab.com/learn/story/investing-basics-technical-analysis) * [https://chartschool.stockcharts.com/table-of-contents/chart-analysis/chart-patterns](https://chartschool.stockcharts.com/table-of-contents/chart-analysis/chart-patterns)
It's hard to know just how deep a correction will run and so a defensive strategy should probably include stages. I'm holding on to he longterm assets I have faith in and feel will come out on the other side and resume growth patterns. The things that I am selling I'm shifting the funds into DX and ET. DX needs to be watched closely (as should probably anything returning 16% in dividends) and an entry at around 12 was what I looked for and got. ET is at a good price right now and should do fine with reinvesting the dividends so long as we don't enter a full on recession/depression. If it starts looking like that is where were headed I will probably park cash in something like SWVXX until the dust clears.
Park it in a Schwab money market fund or buy 3-month T-Bills through TreasuryDirect. Both pay around 5% and stay liquid. If you want no effort just use Schwab’s SWVXX and move back into stocks when ready.
I can't think of anything that will give you 5% and liquidity. Fidelity parks my extra money in SPAXX so what is Schwab's? Maybe SWVXX or SNSXX.
> I'd like to make 5% or more while remaining completely liquid I'd like 100%. But what I like and what's reality are different things. You can expect around 4%. I have a few hundred thousand spread amongst SWVXX, VMFXX, VUSXX and SGOV. They are all pretty much the same but why have everything in the same basket.
SWVXX is good but you will not get 5 percent. 3.97 percent is what you get, will go lower with Fed cuts.
I dont know about 5%, but I park some in SWVXX and SGOV, both at Schwab.
Park it in a money market fund like the SWVXX until you invest.
Yea but I think the point is Schwab money market funds current yield for SWVXX is 3.98%. This isn't because the fund is managed better or something it's because it's expense ratio is lower. So it is a trade off, fidelity has automatic sweep but their rates are lower. Schwab has no automatic sweep but their rates are higher. What is better? It comes down to preference. Some people think the convince of auto sweep is worth it. Others will say "it takes me 30 seconds to buy SWVXX I would rather get the higher rate" It may also depend on your trading or investing style, if you day trade and are constantly buying or selling the sweep may have more benefits vs if you are a buy and hold investors.
The issue with this is Schwab money market funds are a bit better vs fidelity. Fidelity offers an automatic sweep, but their expense ratio are a bit higher vs Schwab. So the Schwab funds will usually have a slightly higher interest rate. For example fidelity spaxx rate is 3.80 Schwab SWVXX rate is 3.98. So there is usually a 0.15 to 0.2 spread between the two. When rates are high let's say 5% vs 5.15 % it's probably not very noticeable. If short term rates drop to 1% it could be the difference between 1% and 1.18%, Schwab would be paying 18% more. Since I don't trade daily, it's really not that hard to manually move money in or out of cash to a money market funds or a fund like vbill/SGOV .
> VOO was $20 cheaper 2 months ago, I had the money sitting in SWVXX all summer. Have you not learned your lesson?
> I had the money sitting in SWVXX all summer Any particular reason why? How long are you going to be investing? Decades?
Honestly, bonds or SNSXX or SWVXX or worse comes to worst, cash. It’s all guesses, but I’d be surprised if we don’t see these price levels a few more times over the next five years. Things are literally FOMO, AI-bubble, CAPE 40 insanity. It’s not always a bad idea to take your chips off the table and watch some other people play for a while. But we all assess things differently.
SWVXX is giving you 3.9% at the moment and its a money market that OP needs to liquidate the day before wiring it out ..
I’d go SWVXX. I’m assuming we’re talking a multiple 5 figures amount, so 30 days in that would probably be several hundred dollars in interest
**Schwab** Fidelity is good too, but they do not typically give out permission to trade options spreads; and the UI isn't as good as Schwab or RH. I'd maybe open up a Fidelity Account, apply for level 3 options (spreads) and if they give it to you then transfer the account over. Otherwise Use Schwab. The downside at Schwab is that you'll need to manually put your cash into the SWVXX to get that 4% APY. But you can still use your SWVXX balance to secure PUTs.
This is true. With uninvested cash, you do need to buy SWVXX, if you're leaving it in cash. I buy my own t bills though with cash I'm sitting on. I also like Schwab's web site and user interface better and the fact they've got a lot of offices around to help you with basic questions. Some of the offices are better than others. Some have a few representatives to help you in the front and print out forms and answer questions. Some only have people sitting in front. Some of those folks have been amazing. One time I had a rep in Florida tell me they wouldn't print out a form for me because "it cost them money". (I was moving and didn't have my office set up yet). That's really unusual though and not the norm. Reps in house in California, Colorado, Illinois have been steller and knowledgeable. I do like Fidelity better for fractional share buying, their 2% cash back credit card depositing cash directly to your account, and the ability of having a self directed personal hsa there. I'd be careful about opening at Vanguard. Web site has always been clunky. And they charge 100$ per account to roll it elsewhere. So if your'e unhappy with them, you're hesitant to move because of the 100 fee. At the end of the day, because OP seems to have some limited investing knowledge, I think making an appointment at a local schwab office and getting assistance with moving it all over to an inherited ira account, doing yearly withdrawals to a a self directed ira or brokerage and learning about 3 fund boglehead investing is going to be easiest.
The rate announcement this week will cause a ~1.5% bump across the markets. Then, I'm shifting everything into money funds (probably SWVXX) until the correction hits. Every single fundamental macro analysis says markets are overbought and overvalued. Price movements have outpaced GDP, unemployment, and earnings. Stock buybacks and massive layoffs are also pointing to correction territory.
Take advantage of what Schwab offers. SWVXX is a great money market fund. Also schwab offers thinkorswim, as long as you have an account. Their thinkorswim app is great and has quick and accessible L2 data. Schwab also has a huge selection across different markets. And it’s just a legit broker so I know my investments are safe.
SWVXX pays 4.2% monthly and you’re not locked in.
Thank you for the response! My parents didn’t teach me when I was young but I’ve been fortunate to be curious, make a decent living and have a father-in-law who can give me some pointers when needed. I have a decent chunk of TSLA RSUs that got me started. I balanced my portfolio so SP500 is roughly 60% and I’m building on that monthly. SWVXX for dry powder still holding TSLA but selling to maintain about 30% as it grows. I’ll have to check out SGOV.
SWVXX and selling puts till I get assigned
Closed the day with another ATH and then wake up to a fat SWVXX interest payment. I’m so tired of winning. SENSATIONAL!!
> So, if I already have a Vanguard account with their money market Exactly. And if you're at Schwab, use SWVXX, and if you're at Fidelity, use SPAXX/SPRXX. This is one area where using the "house" funds can be worth it.
At Schwab, it doesn't need to be actual cash, but Schwab doesn't consider SGOV to be a cash equivalent (see page 21 of https://www.schwab.com/resource/charles-schwab-guide-to-margin). If you have a margin account, you'll get 70% of the value of SGOV position as "buying power", which you could use to sell your put "naked". However, I recommend swapping from SGOV to a Schwab MMF, like SWVXX, which is considered a cash-equivalent and has similar yields.
Fidelity does not really allow their users to trade options spreads (Credit spreads, Debit spreads, Poor Man's Covered Call, Calendar Spreads, Iron Condor ...) until they are deemed to have enough experience with options (it's an arbitrary qualification that no one really can explain how much is enough). Schwab gives out options spreads ability much easier. Schwab also gives their users 2 'Paper Money' Accounts to practice in; which is a great learning tool. The 1 thing better about Fidelity is that by default they give you \~4% APY on your cash (SPAXX). On Schwab, you need to manually move cash into the SWVXX.
I’ve use SWVXX but still haven’t seen anything happen.
I looked up SWVXX and the expense ratio is 0.34% vs Vanguard’s bond etf BND which is 0.03%. If you have hundreds of thousands then that would make a huge difference in expenses. I like exposure to international, VT has around 40% of its portfolio in international stocks. If you want a different proportion of US vs International, you can buy VXUS (international, not US) and combine it with VOO or VTI. Part of me is a value investor, so I subscribe to Morningstar and get their take on companies that have been beaten down (ASML, Novo Nordisk, Pfizer) and might be a good buy. I buy a few thousand dollars worth of each stock (individual stocks make up less than 5% of my entire portfolio) and let it ride. Good luck.
I have a much of money in SWVXX and nothing in bonds as I don’t really see the upside in bonds vs SWVXX. Any thoughts on this? Also, I use VT for international exposure. Any other recommendations?
Does SNSXX have an advantage over SWVXX in exchange for giving up 0.09% 7 day yield?
I use SNSXX, but SWVXX is great, too.