Fidelity Core Money Market Funds | SPAXX, FZFXX & FDRXX vs FCASH | How To Change Core Position

[@DiamondNestEgg]

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[@turinreza]

should one keep all their money in one retirement account if it exceeds SIPC protections? for example, schwab and fidelity. prefer fidelity cuz of core money market ability but puttin all the money into fidelity exceeds SIPC protections.

[@robdupree5687]

My Fidelity Core was allocated to FDIC. And only yielded 2.47%. I just switched it to SPAXX.

[@rayscarla69]

Thanks! Moved from Cash to Spaxx with your assistance.

[@datbio7302]

me too

[@xx98765]

I have to say thank you for this. I have been in FCash for so many years with quite some cash in it 😢 now I just checked and switched all

[@michaelelam9102]

Yes, please do a similar video for Schwab money market funds.

[@ccos3302]

Yes to info on municipal money market funds!

[@cookmaster3626]

i follow exactly what you mentioned here. FDRXX is my parked cash. When i choose to invest in T bill / brokered CD i use the funds from there. When the funds mature they come into FDRXX thus i get consistently above 4.74% and as high as 5.4 in t Bills.

[@DiamondNestEgg]

Thanks for the info

[@davcon3]

Always wondered what to do with the leftover from a t-bill purchase. Now I’ll just let the cash sit in spaxx til the next t-bill purchase even if a month away. Thank you very much!

[@DiamondNestEgg]

You're welcome - that's what we do as well

[@scottwade820]

As a long-time Fidelity customer, I can tell you that if you have SPAXX as your core account and let's say you also have some money in another money market fund within the same account and you make a trade but don't have the funds in SPAXX to cover the purchase, they will take it from the other fund. It all shows up as funds available to trade.

[@nimh168]

Can second. This happened for me with my HSA account. I have all my cash treasury only money market fund and when I purchased a traditional mutual fund, it used the money from my non-core money market fund. I recently asked Fidelity about doingnthis in cash management account to pay bills but they said you can only pay bills from your core account and so to be safe, sell of your non-core mm fund is needed. Not sure if that's true since mm is still counted in available to withdraw, but also dont want to be late on my bills either to test the option

[@JasonBuckman]

​@@nimh168 That isn't true. CMA will use non-core MMFs.

[@VirginiaBrown-cl4ii]

Yes please give us info on municipal money market funds. This is all new to me and I'm so interested. I am just about to begin transferring 401K funds into Fidelity

[@freeroamer9146]

Your take on a similar opportunity with Schwab would be great!

[@Paulschultz-ny6hz]

You are so good at explaining everything. thank you so much.

[@amberfreeze5224]

You answered all the questions I had about my money market account perfectly. Thank you!

[@schadlarry]

I have Vanguard and glad I am finally getting 5%. It was crime of the century (one of many) that companies were getting free money for 10+ years buying up everything in sight.

[@SleepingMe]

Vanguard what?

[@marye813]

Thank you for the very useful information! I looked at my Fidelity account and discovered when I transferred funds to Fidelity and an agent opened a cash account for me the agent put most of the money in a sweep account on which I make zilch. Moved it all into SPAXX.

[@DiamondNestEgg]

Glad it was helpful

[@marye813]

@@DiamondNestEgg You have been super helpful for me. I now have a T-bill ladder and figured out how to do everything on Fidelity with your guidance.

[@shelleyn2884]

yes info on Vanguard please

[@BorisLikesBonds]

Thanks for the video and shining some light on Fideiity's cash sweep accounts, Jennifer! All of my Fidelity accounts are set to sweep set to SPAXX. I have a small taxable account at Fidelity to hold some cash, like another tier of savings. I try to throw $100 every two weeks in there. It's filling very slowly because I am focusing on Treasuries. SPAXX's rate may not be the highest of the high but it's still way more than my what my bank and credit union offer.

[@DiamondNestEgg]

Thanks for sharing Boris!

[@JEFFROTHHOLZ]

First time watching your video I have the Fidelity premium money market currently paying 5.16, love your video.. looking for an instrument close to 6 %

[@bctsteve]

Very informative even a year later

[@pensacola321]

Vanguard Money Market at 5.06%. Not bad. Holding cash makes some sense .

[@Measurable]

Also very interested in an overview for Schwab as well , thank you!!!

[@neilfraser1750]

I am interested in similar Schwab information.

[@mattsimmons5432]

Please do Charles Schwab. I haven’t gotten into Money Market Funds yet just Tbills. Love your content!!!

[@Blomiley]

WOW! Thank you so much! I too was stuck on the bank sweep in my 401k from a decision a long time ago. I've been enjoying lots of your videos lately, thank you!

[@DiamondNestEgg]

You're welcome!

[@lizardmilk]

Holy moly, I was just thinking about this subject, and considering whether to park some cash in a high yield savings or just park it in fidelity. Your video came out at the perfect time. The fact the yield considers the expense ratio and that it’s mostly exempt from taxes pushed it over the edge for me. Thank you!

[@DiamondNestEgg]

You're welcome

[@DavidLitman-ph9lu]

The Schwab Value Advantage Money Fund (SWVXX) is paying 4.97% but you can't make it a "core" position. You have to put in an order to buy it, and another to sell it.

[@Lcnacosta]

@@DavidLitman-ph9luFidelity works the same way. It takes days to have the money available.

[@VidoFunn]

Thank you so much for the daily videos as I watch them everytime you release a new one. You are so precise to explain everything and I love it!

[@diana25559]

I would really like to learn more about fidelity Municipal money-market funds specifically state level funds. I really appreciate this information!

[@nimh168]

Same. I'm in California and there's often higher thresholds here for tax exemption so I would appreciate learning more about municipal funds from your perspective.

[@PrincessAlexisfuntime]

Schwab/TD Ameritrade please!

[@kbdefay]

Yes, please do a Schwab core money market fund.

[@eduardocervantes8231]

Thank you for this! Presentation was very clear and the speed of your delivery was perfect!

[@davied5496]

Yes, please for Vanguard and Charles Schwab

[@johnsonch7292]

Charles is swvxx paying 4.95 percent now.

[@SleepingMe]

Really? I thought they paid much lower interest, I see their fees section

[@ExtraGuac007]

@@johnsonch7292How do you make SWVXX an automatic money sweep option for Schwab? I don't want to have to buy and sell it manually to reinvest the money elsewhere.

[@johnsonch7292]

@@SleepingMe 7 days yield

[@johnsonch7292]

@@kearney2398 don't count on it. It is very minimal portion.

[@kc6715]

This was great! I really hope you do a similar video for Schwab!

[@paulbiel517]

Excellent video! I just switched from FCash to SPAXX as my core position--thanks to you!

[@mrlakuda]

I have brokered cds with Fidelity and the core sweep account is the low yield cash mentioned. However, there's no option to change it! As for my brokerage account, yes the cord account is spaxx.

[@aucoima]

I have FZDXX 4.94% in my traditional IRA and SPRXX 4.82% in a joint account with my wife.

[@DiamondNestEgg]

Thanks for sharing

[@Findingariel]

I have Fidelity FZDXX Premium Money Market and the rate has been holding at 4.94 for several weeks.

[@DiamondNestEgg]

Thanks for sharing

[@machupikachu8349]

Hi Jennifer, I was wondering if you could do a video on investing in taxable brokerage vs IRA brokerage account. The pros and cons. thank you!

[@DiamondNestEgg]

Noted!

[@xtctrader1467]

Would appreciate a review of Schwab MMKT. Thanks

[@ironface76f]

Awesome, and informative video😊

[@russejones]

Definitely Charles Schwab please. Love your videos, Thank you.

[@estelilia]

Do you have to have a minimum? It doesn’t allow me to chance my core position

[@Mexicalirose2000]

Yes, Vanguard please, thanks

[@urbinblytte429]

yes --please do a video on schwab and VG😉

[@MidCenturyMikey]

Can you do a video on the Fidelity Cash Management Account? Love your videos and now buying T Bills w/Fidelity thanks to your step-by-step guide!

[@arpitjain2591]

Do Schwab next!

[@steveh6062]

Vanguard please!!!!😃

[@Kayfeathers]

Please also do similar for Schwab, thyou - really get so much from your videos

[@philzail2532]

Some of these don't show up in my accounts for Core. However I can put money into them if I select such.

[@dsytube]

Thanks! Never realized I had a choice and I just changed it all to SPAXX

[@nfrank99]

Great video! It gives me more information and options than my financial advisors gave me on these core accounts. I’ll have to talk to them about that 😮. Yes please, a video on municipal funds would be helpful. Thanks.

[@DiamondNestEgg]

Noted

[@larryzezula9847]

Thank you for the valuable information. Please include options with Vangard in future videos.

[@CMLiu329]

Ma'am. Thank you very much. This is a great lesson for cash management.

[@c.r.8c.r.828]

hey yall, im beginning to invest and could use some guidance where i could start with long holds and how much, as well as a quicker larger investment

[@MaxGrey03]

Regarding timezones: I agree you should use EDT (Eastern Daylight Time) rather than EST, (Eastern Standard Time) since EST is 1 hour behind, but until November 5, 2023 most people on the East Coast (New York, for instance) are observing EDT. Yes, you should also use PDT (Pacific Daylight Time) until November as well. Most people just ignore when the wrong term is used since they just interpret it to mean whatever time is currently being observed. There are some instances when it can cause issues, however so better to be accurate. Alternatively, you could just use Eastern Time or Pacific Time and then the assumption would correspond to the currently observed time (daylight savings or not).

[@johnperkins5450]

Yes to just simplifying to ET, PT, etc. 👍🏼

[@jorgehn7]

$91,909.77 invested. Nice!

[@gnascimento1979]

Thank you very much.... I learned a lot with your videos. God bless you...

[@iammack8818]

Yes. Please do a video on TDAmerittade Schwab and Vanguard.

[@DiamondNestEgg]

Noted

[@brandonxu1262]

How can I withdraw, transfer fund out from Government money market SPAXX account to invest ETFs, stocks?

[@randy74989]

Yep, I transferred all of my TD Ameritrade accounts to Fidelity in January and have not regretted it. And, I have SPAXX in all of the accounts. I also have the BIL ETF in some of the accounts for additional near cash investment for monthly interest.

[@DiamondNestEgg]

Thanks for sharing

[@yiukit09]

Would love to learn Vanguard money mkt fund, thanks for the super informative videos!

[@rebeccawehrle6159]

Vanguard too, please!

[@Marion_1]

Jennifer, thank you for sharing your knowledge - especially for small investors like me!

[@KR-th7mg]

I would also appreciate a video on Vanguard and Schwab.

[@philipdamask2279]

I would like similar info for Schwab money market accounts.

[@sunkissed6220]

I ❤ Fidelity

[@ararel3550]

Really clear and informative -- thank you! I've become interested in munis in general as well as muni MM mutual funds.

[@sandrahoward5512]

I just opened a Fidelity account and have SPRX as my core position.

[@warrengardner]

These money market funds all hold about 30% in US government securities, so about 70% of the fund returns are taxable. Note that in California, Connecticut, and New York these funds do not hold enough government securities to be tax exempt. So in those states 100% of the fund returns are subject to state and local taxes.

[@user-nj6rk5xs1m]

What would be best for those living in California ? I was thinking of choosing FDLXX

[@JasonBuckman]

FDLXX hilds above 90% of the fund in US treasuries.

[@jimdoetsch4885]

thanks for all the great info. what are your thoughts on FZDXX?

[@DiamondNestEgg]

Stay tuned

[@j.p.9189]

Yes, Schwab please.TY

[@mikemueller8778]

Schwab as well please.

[@narfec18]

Please do a similar video for Schwab and Vanguard money market funds. I appreciate your excellent videos.

[@James-100]

First time on your channel and very impressed by your informative and no-nonsense summary of the Fidelity Money Market Fund options. If you haven’t already done Schwab and Vanguard, might as well break it down. Thanks.

[@DiamondNestEgg]

Best Money Market Funds 2023 vs Cash | What Are Money Market Funds kzbin.info/aero/PLsv_4H5rP97F-KN9ubyZkNqwN8ViBJyGc

[@jimroberts6176]

Hi Jennifer. Vanguard for me, and nice to be getting 5% with safe money/dry powder for the time being.

[@SleepingMe]

What is that??

[@jimroberts6176]

Dry powder? Cash that is available to immediately invest.

[@tonyallen3138]

I just setup a Fidelity Bloom account with SPAXX as my core position.

[@davidhastings2603]

I just discovered your channel & I found you and it Absolutely Excellent 💯 ❤️

[@WendyLuckenbill]

Definitely would love to hear more about the Money Market Municipal Funds!

[@yoshi7527]

Great video. One question: when interest rates begin to drop next year (hopefully) will the value of the treasuries go down like bonds?

[@johnnymartinez9930]

I WOULD LIKE TO KNOW MORE ABOUT FIDELITY MONEY MARKET FUNDS

[@rickgreen9097]

I'm confused why you did not mention FIDELITY MMKT PREMIUM CLASS FZDXX. You have to invest a minimum of $100K at first, but the balance can fall below that amount and you will still earn the higher interest rate. I'm in FLorida, is this available in other states? Thanks! Love your site and professional delivery!!!

[@DiamondNestEgg]

Glad you enjoyed it - the focus was primarily on the core positions in this case

[@lindalam2273]

It is available in New York.

[@stephenbyrneireland]

With SPAXX, could you hypothetically leave trad IRA money in it instead of opening a cd? Just discovered your channel. It is excellent

[@mlkrinsky]

Any suggested money market for ETRADE/MS. or JP Morgan Chase ?

[@JustMike2]

There are other premium share classes of MM at Fidelity if you have over $100,000 - I use FZDXX (4.94%) in my IRA and FNSXX (5.10%) in my 401k. You may have to call to ask to trade into them.

[@kimappreciateslife]

I use FZDXX in my traditional IRA & my taxable brokerage account. You don’t need to keep 100k in it after you open it & only need 10k in your IRA.

[@gregharrison76]

The minimum investment for FNSXX is $9,999,999.99

[@JustMike2]

@@gregharrison76 Correct - a 401k has to have at least $10M of total money market in the plan to add FNSXX as an option (I was a Fidelity employee and they have a lot more than that), that's not an individual investor minimum. It's now returning 5.31%

[@gregharrison76]

@@JustMike2 I tried to place an order for FNSXX but was denied so I instead placed an order for FZDXX. The funds are currently in SPRXX so I will gladly take the additional yield.

[@kimappreciateslife]

@@gregharrison76 I wish I qualified, 😂

[@inabit1956]

Thanks Jennifer. Schwab next please!

[@pot8to3]

Would appreciate if we can get more info on Municipal Money Market Funds and when it may make sense to put money into that

[@DiamondNestEgg]

Noted

[@mmane257]

your information is very helpful 👍🏿

[@lopesphoto]

Fzdxx is the one I use at 4.94% currently. You need 100k though to buy into the fund but then can drop below that and still keep that rate. It’s not a core account but if you make cash withdrawal from the account that it’s in it will draw from that fund.

[@DiamondNestEgg]

Thanks for the info!

[@johnkennedy528]

Thank you for all you do for us. If you would show us how Schab does that would be nice.

[@emc6511]

Thank you as always! Interesting the detail about less STATE tax liability and the emphasis on IMMEDIATE access and your including SIPC reminder. I plan to use this account more to my advantage; had not fully appreciated this alternative to banks & credit unions.

[@DiamondNestEgg]

Glad the video was helpful!

[@gerry6931]

What will happen if I have outstanding checks written on my brokerage account and I make a change to my core Money Market Fund?

[@JohnL1950]

I recently opened a fidelity MM account to buy stocks. Here’s my ? I tried to change my core position to spaax the option was not available. How do I move my cash into spaax? Do I have buy spaax and then transfer mm cash?

[@sfpelkey]

Wait…the brokerage uninvested cash? I’m so confused

[@VworksArt]

What about FDLXX?

[@ramt1437]

Are dividends from SPAXX completely state tax free? it has more than 64% in repurchase agreements. I was told that only treasuries are exempt from state tax. Only a small portion of SPAXX dividends are state tax exempt. (I am in California.)

[@DiamondNestEgg]

Not completely - you can refer to their Statement of Additional Information for more details

[@halfdohm]

Someone please tell me how to get to the screen on Fidelity that shows FCASH, SPAXX, and FZFXX rates (i.e. 2.57%, 4.74% and 4.74%)

[@winterbubbletea]

Does Merrill lynch have one?

[@chrishennessey8306]

Does is make more sense to leave cash in SPAXX, which is compounded monthly, or put that money in 3/6 month treasury bills? Assuming the SPAXX rate stays close to the same for the next 3-6 months, would that earn similar over that period to a 3-6 month treasury bill with a slighter higher interest rate because SPAXX is compounded monthly?

[@ccos3302]

Similar I do on Schwab would be great!!

[@yankeedoodle6293]

I closed Schwab for fidelity because Schwab is greedy

[@NatureTab]

Can the APR be in negative for SPAXX or the other ones?

[@fe2896]

Could you do a video on Dollar Cost Averaging method? What is better monthly, bi weekly or else? Set it for beginning of the month, mid month or end of month? Which day of the week is better to buy? Thank you

[@DiamondNestEgg]

Noted

[@loopba]

Your content is really super helpful 😀