SWVXX
Schwab Value Advantage Money Fund
Mentions (24Hr)
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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 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.
Instead of borrowing, I keep about 3-4% of my portfolio in cash (SWVXX). That's enough to fund me for at least 2 years even if some unexpected expense pops up. I replenish it as opportunities arise - if I sell to take advantage of a tax situation or mitigate losses from a losing investment, I'll put part of the proceeds into the money market to keep that 1-2 years worth of expenses liquid. I've only done this since I retired - when I was saving for retirement, it would have killed me to have even $100 uninvested.
Currently paying 4.24%, compared to 4.13 for SWVXX (money market) and under 4% for HYSA. So, why not? Just keep an eye on it so that if the return drops, it doesn't catch you by surprised months later.
Instead of buying a CD buy a money market fund like SWVXX at Schwab. It pays around 4.2% and you can sell it anytime and use the money the next day.
Thanks, that makes sense - and that's exactly the reason I have so much money in SWVXX right now: at least it grows at little bit while I make up my mind. At the same time it kinda hurts (psychologically) to see the rest of my portfolio to go up while a large junk is just sitting there with a \~4.5% yield.. Food for thought.. thanks for your input!
Honestly, timing the market is a gamble — even the pros mess it up. If you’re nervous about dumping the whole $50k in now, DCA it over a few months so you catch dips if they happen. Your possible Europe move is huge here — if ETFs get taxed hard there, you might just start building positions in the individual stocks you’d hold long-term (BRK/B, MSFT, AAPL) so you don’t have to sell later. SWVXX is at least giving you some yield while you decide, so no rush-panic needed 👍. Just map out both “stay in U.S.” and “move to Europe” scenarios now so future-you isn’t stressed.
Depends on risk tolerance, but watch the trader Travis video about the enhanced buy and hold. I have screwed myself out of massive profits before. If anything create a collar spread. Personally would buy leaps and not overleverage. With a 79k balance, buy 2 leap calls in QQQ for Dec 2027 at the $600strike. Right now they are around $7700. Put the rest of your money in a fund like SWVXX to collect interest in the mean time. Hold until the Dec2028 calls come out. Buy the new calls that are 10% out of the money. Do it once a year. Been in a similar boat like you before. Was recently holding massive AAPL leap calls and decided QQQ was the better option.
The asinine thing is that the media keeps lying and claiming there was no warning. There was! I sold two calls on SPY at 3:50pm yesterday because I knew they would lie and claim this again. I watched CNBC this morning at 3am PST, and they were already fear mongering about this and claiming no one knew of the Aug 1 deadline which they had just warned us about the previous morning! That's how I knew about this. I was able to buy to close both options at an $800 total profit at market open. I made $800 on collateral that was just sitting in SWVXX for ten minutes of market open time. Even in this sub people often get too emotional, try to push politics, or talk about stocks and bonds like its celebrity gossip. Just go by facts. We knew there was the Aug 1st deadline. It had been announced.
I have Schwab and keep some cash in SWVXX but have recently moved most of it to USFR since it pays slightly more dividend but mostly since it is available immediately unlike SWVXX, which you have to wait until the next day to access funds. A friend has Fidelity and he says all his cash is automatically rolled up into their version of SWVXX, but is also available immediately.
You can move your money into SWVXX (?) and get roughly the same as you would at Fidelity. As far as buying fractional shares, unless that was a recent change, I was able to buy fractional shares of non-Schwab funds.
You can invest the emergency fund in a money market or SGOV or something. I don’t need most of my emergency fund in cash at home. I have a few thousand, 15k in business checking and 45k in SGOV and 15k is SWVXX. That way it’s liquid at different levels and not just sitting there.
Any broker that pays 4%. If it doesn’t then put the money in SWVXX
Transfer happens sometime later in the day after market close, same as Fidelity's auto-sweep I'm pretty sure. If you have margin enabled you can buy stock and sell the equivalent in SWVXX without incurring any margin interest, so that's what I do. Without margin enabled there would be a 1-day delay.
Yep, on Schwab I have to manually buy and sell SWVXX money market fund to make sure my cash is earning interest. On Fidelity they auto-sweep it into a money market for you.
SWVXX with Schwab is a no fee money market earning 4%, better to park cash in something like that. That's where my emergency fund is parked.
SWVXX. The Schwab money market yielding like 4.2%.
If you're weary of market fluctuation, then just dollar cost average in - $1000/month for 20 months. But, something to think about as well - time horizon. What are the odds you need a big chunk of that $20k over the next few years? At 18, odds are pretty good you'll need to make a security deposit on an apartment, car purchase or repairs, educational expenses, etc. Whatever you may reasonably need in cash over the next 5 years I'd hang onto. That might be the whole sum over the next 5 years. In that case, something like SWVXX is a money market fund paying 4% - so that will keep you above inflation on your cash and doesn't lock you into a time period like a CD does.
First step would be to open a brokerage account at a financials institution and invest it in a money market fund. So if you choose Schwab you could use SWVXX which currently yields 4%+. Do that immediately while you figure this out.
Have you done this at Schwab and if so can you share what money market you used? I've talked to at least 3 separate representatives over there including my financial advisor and I've always been told that it must be in actual cash - e.g. can't be in SWVXX. The only exception that the FA pointed me to was a managed product that I wasn't interested in. Now that I'm thinking about it I wonder if it's because it's different in a margin vs cash account.
T-bills are traded until 5 pm ET. Options expire at 4, so you can sell the T-bill after you know that they are assigned. You cannot sell SWVXX after 4 to meet assignment.
Yeah it’s hard to buy during crashes unless there’s a boat full of SWVXX or SGOV or whatever cash-ish vehicle is sidelined, and what retail investor is gonna have that much ready for black swan events? I feel ya, man. But I’ve also dropped the heavy FOMO. Can’t fix the past. If I sell for a solid profit and that position rips, I’m staying grateful I took profit. I have a couple crap positions—some can rebound, others who knows—but have been lucky primarily.
SCHD, SCHX, SCHG, VXUS - SWVXX as well for cash savings.
Started buying 08/30/23. Last buy was 01/31/25. Sold all shares with losses 06/12/25 (tax loss harvest, avg loss 8.6%). Put the proceeds into HWM, QQQM and SWVXX. Kept all positive shares. Remaining shares have gain of 29.85%. Can't sell again until 07/12/25.
I didn't sell or move anything, I just limited my buys to SWVXX.
Not sure it really counts as really "cash" if it's in SNAXX and SWVXX but about 50%. Coincidently happened to be moving from one account to another when Buffett bailed into cash in early February so I figured "huh, maybe wait until the Oracle does something with his". The other 50% still in mostly indexes doing "okay"
I was all in on SWPPX (Schwab S&P index fund) for the past 3 years, and converted 90% of it to SWVXX (Schwab Money Market) out of panic after the massive dip in early April. What would you do in this situation? Would you stay in the money market for another dip, or move back into the S&P 500?
Save and invest all you can keep it in VOO until you are ready to put in individual stocks. If you step away from VOO put your cash in SGVT or SWVXX to earn interest while waiting so you can earn interest. Never leave your money not making money while you sleep!! And do not YOLO, speculate with 10% of your holdings, but DO NOT YOLO or you will be BROKO.
If you have a margin account then you don’t even need to wait for the funds to become available after selling. You can sell SWVXX and buy something else on the same day, and it all settles at the end of the day and you pay no margin interest.
I park my cash in SWVXX. Currently at 4.13% and is available in 1 day.
Dumb luck went into SGOV and SWVXX Thursday morning after getting stopped out of several positions. Gonna give it the ol’ 3 day rule or just avoid June 20 and park it for now. Plenty of setups coming, no need to rush.
Tried to buy 97 shares of SWVXX with the little bit of cash I had left over in my account. Accidentally bought 97 shares of SPTM and had to liquidate some of my money market holdings. So far, up 12% in 2 months.
SGOV/SWVXX for the summer 😎
Split the difference. Put 75 in mix of small to large caps in our market and then 75 international. Put 150 in something safe like SWVXX and wait for a pullback. My two cents.
So the market is back to where it was when I sold..... no big deal. I will never bet against the US and its innovation ..... but the country is run by the mad king with lap dogs in the congress. Not comfortable with the risk. Happy to sit out. I might miss out on some potential upside but definitely protecting against the (to me likely) downside. I don't stay up at night thinking about what I could have made. I sleep a lot better with the security that I'm not exposed to the craziness driven by Washington. Happy to be comfortably making 4.15% with SWVXX. Just one man's mindset...
SWVXX or SGOV will net you around 4% annually, presuming the US bond market doesn’t shit the bed
Why not just dump it all in SWVXX and call it a day.
I like SWVXX as someone else mentioned. Here are some additional thoughts. Is 100k reserve accurate for your business needs? I put 3 months of potential needs in there and the rest is distributed to owners and or invested individually. I wouldn't invest money with multiple owners and a business. As mentioned you could distribute it to each owner, who can do what they want, each owner (say 4) is required to keep 25k liquid, then you can put yours into SGOV and they can do a savings account or money market or cd ladder. This would be easier than investing it as a business. CD Ladders require management and are not something you can initiate liquidity.
I use SWVXX for my cash reserves, highly recommend it.
My MMF savings is in SWVXX. You might want to look into what other banks are paying.
If you may need the money in the coming years, it is probably best to place the money in a high yield savings account where you'll earn \~4%. You could also open a brokerage and place the money in a safe money market fund (e.g., SGOV, SNSXX, SWVXX).
I'm not a bear or a bull; I'm a daytrader/scalper that runs on technicals. I take what I'm given from one minute to the next. But in November, the topdown technical analysis I normally conduct for day trading the ES looked odd. So I ran a topdown on NVIDIA, seeing as it's a key leader on the index. It was pushing up its ATH, but the volume profile indicated its value area was far below. I marked the levels for the liquidity clusters as the potential drop zones, and saw disaster. Pension funds and university endowments getting smoked. Market ruination. Alarmed, I called my broker for long term investments and asked him to pull up the NVIDIA chart. Asked him if he saw what I saw. He said he did. He said I could hedge with a credit options spread. My dough was in SWVXX, already pretty conservative. But not conservative enough. I took it out and spread it across FDIC 1-month new issue CDs. Been going back and forth between those and SWVXX since then. Also have dough in other currencies sitting in savings accounts abroad. I was so alarmed that I wrote a letter to a few trade publications about it, because it was clear to me that NVIDIA has been pumped for a bull trap since May 25, 2023, the day after the earnings report. The price on that date was a little over $38. The volume that day was higher than almost any day in the history of the stock. Remember that this was in November, before any of the tariff madness took place. It looks like the big dogs who set the trap have been rotating out of their massive positions since November. Which is great, it's the responsible thing to do, though those are obviously some large icebergs. The price dropped to two of my levels in the last few months. But if somebody panics and runs for the exit: we're all fucked to the lower levels that haven't been hit. Needless to say, I'd love to be wrong about all of this.
It does this on a transnational scale. USDC can go cross-border effortlessly while SWVXX cannot. This makes CRCL reminiscent of shadow banks.
Do not do a CD at your age and likely wealth level. If you want to safely store some money and get interest, you can invest in [SWVXX](https://www.schwabassetmanagement.com/products/swvxx) which essentially is an investment in CDs that can be withdrawn at any time. No penalty.
Now that I'm retired, I keep a few years of expenses in "cash" - high yield savings, SWVXX - so I don't have to worry about funding my life in a down market. Before I retired, I stayed fully invested in stocks, mutual funds, and ETFs, other than an emergency fund in high yield savings. Pretty sure the only people recommending whole life policies these days are those who sell them.
Inside an IRA nothing is taxed so investing in a fund to avoid state income taxes is not a benefit as you pay no taxes . With an IRA you get a tax break when you contribute , then when you withdraw you pay taxes, gains/losses/cost basis does not matter, gains on interest or gains on capital gains do not matter If you contribute 10k to a IRA you get a 10k income reduction . Example you make 100k but contribute 10k into an IRA you are taxed on an income of 90k not 100k So lets say you contribute 10k, you get a tax break on that 10k. Lets say it sits for 20 years and becomes 40k When you with draw 40k it will be taxed on income, it does not matter how that growth occurred weather it was interest , or growth or capital gains. So because the tax benefits of SNSXX do not matter you could buy their SWVXX fund that yields slightly more as the tax advantages of SNSXX do not matter in a IRA
I'm not sure I'm understanding your situation. In my Schwab account, I have a VOO Put that would cost $52,000 if executed. I have $750 cash in the account. I have other funds in SWVXX a money market fund. I'm not sure if they count that dollar for dollar collateral, but it appears that way. I get roughly 4.5% in that investment. Hope that helps a little.
I use Schwab Prime Advantage Money INV (SWVXX) current 7 day yield is 4.12% which is higher than SNSXX which is currently 3.97%
Yea I unfortunately found out too late while choosing where to move some cash out of SWVXX. Was already cut off :(. Was really wanting MMKT! Weekly payout. Are you able to still add, or can only sell? As to why, Schwab filed in March to release their own version, That’s the SGVT ticker I mentioned. Probably to go along with the other new active ones etf, SCCR and SCUS. Don’t know yet when it’ll launch tho, or if Fidelity wants to do the same
I've been dealing with this exact issue with my Schwab accounts for years. SWVXX is the most efficient solution - currently yielding 4.2% and takes about 30 seconds to execute trades. Think of it like parking a BMW in a secure garage versus dealing with the hassle of street parking (transferring to external accounts). When I'm rotating capital between positions or waiting for market pullbacks, I'll place ~$2M in money markets rather than letting it sit idle. The tax treatment is also more favorable than most HYSAs, which becomes significant once you're dealing with larger sums.
I like SGOV - pays like SWVXX but mostly state tax free in CA and several other states.
Yes, Schwab has money market funds. SWVXX is yielding over 4% currently
For one thing, you probably need to go ahead and pay some or all of that tax liability to the IRS this quarter, to avoid underpayment penalties. Unless your income is SO high that an additional $220k liability doen't make a material difference, it's awfully suspect that your accountant hasn't brought this up. Either way, you're basically asking, *"How can get better returns than an investment meant to guarantee principal, while also still guaranteeing principal?"*. The answer is, you can't. Because if you could, then THAT would be the new standard investment for guaranteeing principal. Other people in this thread are pointing you toward SGOV, and that's as fine an option as any. But looking right now, the yield on SGOV is about 0.10% lower than the yield on SWVXX, my money market sweep account at Charles Schwab. Point being, this is pretty much the pinnacle of the "preserve principal" universe of investments, and all the options here are nearly equivalent. There's not a magic extra option that returns 7+% without any risk, flying under the radar because people just don't talk about it much.
💯! MO and STWD and even SWVXX have been a great place to be during this political game of ... Idk what to even call it...make Trump and family rich? He should take the money from the sale of meme coins and donate it to the Treasury to pay down the debt. DJT stock too. Take the laid off fed workers and give them jobs with the IRS. Lot of people not paying their legal obligations.
Nothing wrong with cash, my friend. And you can park in in something like SWVXX to earn \~4% with zero risk. I previously said I was 20% cash, but that's just the money that's literally sitting in my brorkerage account not allocated to anything. If I count up all the vehicles that are cash driven (CDs, treasuries, treasury ETFs, money market funds) and add it to the cash pile, I'm at around 75% "cash". And for the last three months, I've slept very well.
The last sentence is true, but if with PM in volatility explosion even if you’re all SGOV or SWVXX for collateral, you shouldn’t exceed BPR usage 50% on the regular, then what’s the advantage of PM as the total number of strangles or whatever you can have on simultaneously is still the same (PM about halves the BPR, like 40%>
good breakdown. A lot of folks skip straight to investing without asking the basics. Parking it in SNAXX or SWVXX while you think it through is underrated
woah. calm down there buddy. step one: when do you need this money, are you going to buy another one soon? if so- you won’t be investing this money. you’ll be putting it in a HYSA or a money market fund such as Schwab’s SNAXX (higher yield for investments of $1 million or more. otherwise, look for SWVXX). step two: what are your goals? debts? how old are you? how far from retirement? what are your expenses? these are questions you should be asking yourself before you even think about doing anything with this money. until then, put it in SNAXX (or similar). step three: now that you’ve calmed down and asked yourself all the important questions and left the money in SNAXX for a month and gotten your $3200 interest payout- you’re now ready to figure out what you’re going to do with your money
is that what they call a cash "sweep". I use Schwab and i frequently read complaints that Schwab doesn't (or at least, didn't) sweep cash. I use TFLO for my savings, and I keep my cash in Schwab's basic money market fund (SWVXX) which is currently at about 4.1%. I know if you have $1MM or more there are other funds you can put your cash in that pay more. The thing I don't love about the money market funds is that I have to "sell" them, and let the funds settle before I can invest it / buy a stock. though, perhaps that's good because it reduces the amount of impulse decisions i can make. lol
Dec 2024 I took out the profit of a $900,000 that I made over 2 years (87% aggregate return) Sat on cash 4 months in SWVXX. I get impulsive, and almost bought back in several times. Market was tanking and people said it’s dumb to try to catch a falling night.! They are right. For some reason on this ONE DAY, in 90 minutes, I used the full $900,000 and bought a bunch of beaten down stocks (META, AMZN, COIN, QQQ, VTI, etc That day was APRIL 4th🙏😱when market tanked 2,900 points! I got lucky as shit! Then, Wed April 9th market went up 2,200 points, and Today May 12th, it went up 1,160! At Close of market Today, my 1 day gain was $100,000! 95% is IRA SO No Tax Consequences. After the market closed today, I spent over an hour and put “STOP LIMIT” Sell Orders on every single position I hold good until November 7th. If anything drops 10% it triggers to sell it all! Good Luck!!!🍀👍
SWVXX or your equivalent
You can spend an additional 2 minutes sweeping money in and out of SWVXX in addition to your 10 minutes.
SWVXX, which is usually quite competitive, is sitting at 4.14%. That makes only a 1.64% difference against their mortgage. There's a lot of indications that the market could go flat out sidewise or even down over the next 5-10 years, so I don't view it as a given that they are throwing away money by paying off the mortgage.
I think my general point is that it isn't necessarily a black or white call. With the next four years going to be incredibly volatile, I'd be a bit nervous lump summing such a massive amount of money. SWVXX is only sitting at 4.14%, so that's only a 1.64% difference. To me, that's not much of a difference to sway this in only one direction. I don't think it's necessarily bad to consider paying off the mortgage, and then redistributing the freed up monthly budget to broad market investing. One derisks and reduces the emotional and financial burden of the house mortgage and is able to take advantage of volatility by averaging out investments. By paying off all debt, including the mortgage, that's an amazing amount of financial freedom and destress. There's quite a bit of information missing from the original question as well. How much debt do they currently have aside from the mortgage? Their mortgage amount is actually quite low, so how many years is left on that? And what is their current retirement investment strategy?
You can’t just put it into a 401k or IRA Go on Schwab website and open a brokerage account Have the inheritance wired to this account and put it all into a money market account ie. SWVXX earning 4.16% Until you either learn how to invest or hire an advisor to show you
*The Bond Book* by Annette Thau is a great resource. And surprisingly easy to read, given the subject. IMO it ought to be every retail investor's bookshelf. The difference between a Treasury and SWVXX is that SWVXX's yield adjusts weekly, while the yield on the Treasury is locked in for the term.
I ended up figuring out how to buy the treasuries directly through Schwab. I'll have to do more research and figure out how they work as I have no idea what I'm looking at to make an educated decision. I'm in a money market fund (SWVXX) right now and that is giving me nearly the same as a treasury.
That's a smart move! Both VMFXX and SWVXX are solid options for investing your home down payment money. Good luck with your investment journey!