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Message
Fidelity MM Fund …SPAXX…question
Posted on 3/1/23 at 7:43 am
Posted on 3/1/23 at 7:43 am
Looking for a place to park cash that won’t require management or rolling of individual Treasuries. Their MM is showing a 7 day yield of over 4%. This seems as good as anything and is totally liquid so we’re not locked into a duration. I suspect this return will stay roughly the same unless there is a pivot on rates.
We want this cash liquid for real estate or other potential purchases given market conditions.
Thoughts? Am I missing something?
We want this cash liquid for real estate or other potential purchases given market conditions.
Thoughts? Am I missing something?
This post was edited on 3/1/23 at 8:02 am
6
Posted on 3/1/23 at 8:04 am to SquatchDawg
SPRXX has been great using it for my EF and I have a fidelity card I can use to access funds anytime.
Posted on 3/1/23 at 8:19 am to SquatchDawg
Not missing anything, but you will have to pay taxes on it
Posted on 3/1/23 at 8:21 am to SquatchDawg
SWVXX is good also. all the brokerages have these type of funds
Posted on 3/1/23 at 9:23 am to SquatchDawg
I use FDLXX in my taxable accounts as it's all treasuries and 100% exempt from state taxes. Though this isn't a core option and requires manually buying it. If you're doing a lump sum then this is just a one time action.
I'll use SPAXX or whatever govt/treasury mmf is a core option in tax advantaged accounts. I prefer to avoid SPRXX and other mmf that have commercial debt. While "breaking the buck" on a mmf is a very rare occurrence it has happened twice.
If you don't want to deal with individual T-bills but want higher yield, use SGOV etf. The only downside to this is that if you need to withdraw out of the account, you'd have to wait 2 business days for the transaction to settle.
Fyi, the bulk of my cash is in individual T-bills. 4 mo Treasuries are now over 5%.
I'll use SPAXX or whatever govt/treasury mmf is a core option in tax advantaged accounts. I prefer to avoid SPRXX and other mmf that have commercial debt. While "breaking the buck" on a mmf is a very rare occurrence it has happened twice.
If you don't want to deal with individual T-bills but want higher yield, use SGOV etf. The only downside to this is that if you need to withdraw out of the account, you'd have to wait 2 business days for the transaction to settle.
Fyi, the bulk of my cash is in individual T-bills. 4 mo Treasuries are now over 5%.
Posted on 3/1/23 at 10:04 am to gpburdell
Thanks…I didn’t spot FDLXX.
I’ve pretty much conceded that there will be some tax implications as I just don’t feel good with the muni bond tax free fund for personal reasons.
Also, I like having that in Fidelity as it can be used to buy anything else they’re offering if we’re so inclined…including individual Treasuries I believe.
I’ve pretty much conceded that there will be some tax implications as I just don’t feel good with the muni bond tax free fund for personal reasons.
Also, I like having that in Fidelity as it can be used to buy anything else they’re offering if we’re so inclined…including individual Treasuries I believe.
This post was edited on 3/1/23 at 10:06 am
Posted on 3/1/23 at 11:38 am to SquatchDawg
I have a bunch of money in SPRXX and SPAXX. Pretty safe ways to earn a decent return. If I had significantly more money I'd be chasing T-bills, but I don't have enough to make the additional 1% worth the hassle of managing that process.
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