What money market fund(s) do you use? - Enjoy! Fidelity Municipal MMFs: www.fidelity.com/mutual-funds/fidelity-funds/municipal-money-market Twitter - twitter.com/DannySully_
I'd say it moreso depends on where your money is currently at and what is most convenient for you. Personally I view SPAXX as uninvested cash that I'm either about to invest soon or about to withdraw soon. HYSA I view as more high yield savings like emergency fund, or to separate a few things I'm saving to buy in the next few months to year or so.
Okay and that's cool but SPAXX popped up from out of nowhere and I guess that's okay, but my concern is why am I not seeing the three ETFs that I purchased in my dashboard? My positions tab says that I have five Flex funds that I've never seen before. What is going on??
It's as safe as a bank as long as there is no bank run. And there is no FDIC. SIPC does not protect the investment it only protects the security from your broker. So if you broker lost it or doesn't have it you would get the security or fund back. But it doesn't protect you from the fund or security losing it's value. But worse case they close the fund or halt redemptions. It's unlikely as most of the maturities are 1-7 days. But if 50% withdrew it could be like Silcon valley bank. You don't actually lose money it's just illiquid in treasuries until they mature. But the bank could not wait for them to mature that went under. People wanted the money now so they had to try and sell them before maturity on the secondary at a discount. Selling on the secondary market at a discount is the most money you will lose. If you just hold them tell maturity you can't lose money it's impossible. The government is never going to default as they can't go bankrupt like a company. They have money come in no matter what from taxes they never will not have money coming in. Companies don't always make profit but the government always has free money coming in from tax. You only need to worry that the Country no longer exists which is almost non-existent.
With roughly 5% state income tax, although it can't be a core position, just think of it as whatever interest you were making that is being taxed, 5% of that is going toward your taxes where with FDLXX it's much less. If you have a significant amount of cash sitting, it could be worth it. Not a financial advisor, please do your own research!
I always look at rate adjusted after tax. Since it's 5.03% with no state tax it beats out the other ones that are the same rate but have state tax on them.
Curious as to why having an emergency fund parked in SPAXX is a bad thing. I have a cash management account with Fidelity as well as my employer 401k, ROTH IRA, and taxable brokerage account. I can transfer money from my brokerage to my cash account and have it instantly to either withdraw, use the debit card associated with said CMA, or write a check if need be. That same CMA is also a deposit sweep account.
Hey! Thanks for your insight on this. It definitely is not a bad thing, based on your position, it makes clear sense what you're doing. It's all about understand your own position. But for many that only have an investment account with Fidelity, I personally think a separate account for a high-yield savings account to separate your savings goals is a good approach especially for someone beginning that doesn't know or prioritize an emergency fund. Many people don't even know what an emergency fund is, I want to bring awareness to it's important. With so much on Fidelity, and a cash management account, it makes complete sense for you - not a financial advisor. Thanks for your comment!
Great question! Thank you for mentioning this, SPRXX cannot be held as a core position, and although you can get a slightly higher interest, you still have to pay taxes. The reason I mention FDLXX is because it has reduced state income tax. Roughly 90%. I could see how in a state with no income tax where buying SPRXX would be logical if you have a significant chunk of cash. If not, I'd prefer the SPAXX core position. my personal opinion, not a financial advisor lol.
For sure is interesting, but as long as you are aware of the opportunity i'm happy! haha. If it's a significant amount of cash, and in a state with high income tax, it could definitely be worth it though. Not a financial advisor* lol.
Currently a college student but have some extra savings beyond tuition fees. Looking to invest $3-7k and made a fidelity account and have been analyzing different index funds. Any recommendations on other investment opportunities? Figure better to invest then to let my money sit dormant while im in college. Still learning a lot but investing can seem overwhelming
That’s awesome!! And I think you may enjoy this video based on your comment, ruclips.net/video/i56TU3Dmnv8/видео.htmlsi=wghgO-oDzkV9lgeq I appreciate you for watching my content :)
Yes, if you have high state tax this approach could help you out, especially if it's with a large amount it could be worth it. Not a financial advisor though*
It's literally a no brainer as it's got the same rate as the ones that would be subject to state tax. So why not get the same rate in one that doesn't have state taxes. But it depends on your state need to check with a CPA on the rules of your state.
What money market fund(s) do you use? - Enjoy!
Fidelity Municipal MMFs: www.fidelity.com/mutual-funds/fidelity-funds/municipal-money-market
Twitter - twitter.com/DannySully_
Vanguard pays 5.27 and it's in a settlement account like fidelity
does it send you a debit card?
What do you think about the SPAXX expense ratio vs a HYSA?
I'd say it moreso depends on where your money is currently at and what is most convenient for you. Personally I view SPAXX as uninvested cash that I'm either about to invest soon or about to withdraw soon. HYSA I view as more high yield savings like emergency fund, or to separate a few things I'm saving to buy in the next few months to year or so.
What kind of camera do you use? I hope the ligament heals quickly!
A SonyA7S3! And thank you so much, I really appreciate that!
Okay and that's cool but SPAXX popped up from out of nowhere and I guess that's okay, but my concern is why am I not seeing the three ETFs that I purchased in my dashboard? My positions tab says that I have five Flex funds that I've never seen before. What is going on??
Is SPAXX safe? I mean whatever I put in it, I can always get all back?
It is "safe" but is not guaranteed to do anything for you. Since its a mutual fund, it theoretically could lose value, just not common at all.
It's as safe as a bank as long as there is no bank run. And there is no FDIC. SIPC does not protect the investment it only protects the security from your broker. So if you broker lost it or doesn't have it you would get the security or fund back. But it doesn't protect you from the fund or security losing it's value. But worse case they close the fund or halt redemptions. It's unlikely as most of the maturities are 1-7 days. But if 50% withdrew it could be like Silcon valley bank. You don't actually lose money it's just illiquid in treasuries until they mature. But the bank could not wait for them to mature that went under. People wanted the money now so they had to try and sell them before maturity on the secondary at a discount. Selling on the secondary market at a discount is the most money you will lose. If you just hold them tell maturity you can't lose money it's impossible. The government is never going to default as they can't go bankrupt like a company. They have money come in no matter what from taxes they never will not have money coming in. Companies don't always make profit but the government always has free money coming in from tax. You only need to worry that the Country no longer exists which is almost non-existent.
What happened to your arm?
I tore a ligament fully in my wrist from my basketball season :/ thank you for asking!
I live in Illinois. Would it be worth doing the FDLXX
With roughly 5% state income tax, although it can't be a core position, just think of it as whatever interest you were making that is being taxed, 5% of that is going toward your taxes where with FDLXX it's much less. If you have a significant amount of cash sitting, it could be worth it. Not a financial advisor, please do your own research!
I always look at rate adjusted after tax. Since it's 5.03% with no state tax it beats out the other ones that are the same rate but have state tax on them.
What would you consider a Significant amount of cash ? @DannySully
Curious as to why having an emergency fund parked in SPAXX is a bad thing. I have a cash management account with Fidelity as well as my employer 401k, ROTH IRA, and taxable brokerage account. I can transfer money from my brokerage to my cash account and have it instantly to either withdraw, use the debit card associated with said CMA, or write a check if need be. That same CMA is also a deposit sweep account.
Hey! Thanks for your insight on this. It definitely is not a bad thing, based on your position, it makes clear sense what you're doing. It's all about understand your own position. But for many that only have an investment account with Fidelity, I personally think a separate account for a high-yield savings account to separate your savings goals is a good approach especially for someone beginning that doesn't know or prioritize an emergency fund. Many people don't even know what an emergency fund is, I want to bring awareness to it's important. With so much on Fidelity, and a cash management account, it makes complete sense for you - not a financial advisor. Thanks for your comment!
@@DannySully Makes sense to me! I appreciate it! Thanks for all the great insights!
Of course! :)
What about SPRXX?
Great question! Thank you for mentioning this, SPRXX cannot be held as a core position, and although you can get a slightly higher interest, you still have to pay taxes. The reason I mention FDLXX is because it has reduced state income tax. Roughly 90%. I could see how in a state with no income tax where buying SPRXX would be logical if you have a significant chunk of cash. If not, I'd prefer the SPAXX core position. my personal opinion, not a financial advisor lol.
Been considering FDLXX but it sounds like I’d have to do some tax math and I’m not sure it’s worth that 😂
For sure is interesting, but as long as you are aware of the opportunity i'm happy! haha. If it's a significant amount of cash, and in a state with high income tax, it could definitely be worth it though. Not a financial advisor* lol.
Good video. I like I don’t have to speed up the video because you don’t try to talk slow and I learned something
That's great!! Thank you so much for sharing.
i like the edit
I appreciate that!
good vid
Thank you!
Currently a college student but have some extra savings beyond tuition fees. Looking to invest $3-7k and made a fidelity account and have been analyzing different index funds. Any recommendations on other investment opportunities? Figure better to invest then to let my money sit dormant while im in college. Still learning a lot but investing can seem overwhelming
That’s awesome!! And I think you may enjoy this video based on your comment,
ruclips.net/video/i56TU3Dmnv8/видео.htmlsi=wghgO-oDzkV9lgeq
I appreciate you for watching my content :)
I would open a Roth IRA and invest into index funds
FDLXX??
Yes, if you have high state tax this approach could help you out, especially if it's with a large amount it could be worth it. Not a financial advisor though*
It's literally a no brainer as it's got the same rate as the ones that would be subject to state tax. So why not get the same rate in one that doesn't have state taxes. But it depends on your state need to check with a CPA on the rules of your state.
Vanguard VMFXX
Thanks bro for the clarity.
Of course!