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Fidelity Core Money Market Funds | SPAXX, FZFXX u0026 FDRXX vs FCASH | How To Change Core Position

Frames Fidelity Core Money Market Funds | SPAXX, FZFXX u0026 FDRXX vs FCASH | How To Change Core Position

Description Fidelity Core Money Market Funds | SPAXX, FZFXX u0026 FDRXX vs FCASH | How To Change Core Position

Comments Fidelity Core Money Market Funds | SPAXX, FZFXX u0026 FDRXX vs FCASH | How To Change Core Position

$91,90977 invested Nice! Comment from : Jorge Cardona

Definitely would love to hear more about the Money Market Municipal Funds! Comment from : Wendy Luckenbill

Can you make a video for Schwab Comment from : Livin the life of ivy

You can trade options on top of your SPAXX account As long as you don't get exercised into owning the stock you get to double dip Comment from : Scott Wyants Drones and Stuff

What is the difference between a Fidelity Cash Management Account and a Fidelity Brokerage Account? I have a cash management account and I'm not able to set my core position to SPAXX Comment from : John Almonte

i would like more info on Vanguard and TD Ameritrade Comment from : joshua 11

What about the fee? I heard that SPAXX has higher fee than FZFXX and FDFXX no? Comment from : Surya Chahar

Thank you, thank you, a thousand times thank you I don't know why but for decades Fidelity has put my money in the cash sweep earning virtually nothing When I asked, they just said that's what we do I asked about higher interest rates, they said that I was in the best option My money was in a ROTH for decades earning nothing I recently started putting it in mutual funds but I have $120K earning 2 I just switched this morning to 47 Comment from : Richard T

Vanguard plz Comment from : Tuan Vu

Yes and include Templeton Comment from : Trevor Weir

I do get paid dividends, lol Just noticed that when I looked Comment from : FelixTheCat

Thank you -This is what I haveLearning Learning Comment from : Kathy George

Hi sorry to repeat, but I thought the benefit of the treasury money market only having treasuries is that the capital gains per month are only taxed federally versus the other ones? Comment from : Kal Trex

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 Comment from : nfrank99

Yes, for a video on Schwab and Vanguard Can you touch on difference between the three brokerages? Comment from : Richard McDuffie

Approx what of SPAXX and FDRxx are treasury based? I pay state estimated tax and need a rough idea what is state taxable Thank you in advance Comment from : leeward1

This is a really informative video Thank you! Comment from : Sean Lauziere

What about TD Ameritrade Comment from : Chuck Altimari

Hi Jennifer , please give this information as it relates to Vanguard If you do I might join your Super-Supersaver $10 a month club I hope people stop hating on Vanguard Also how much longer are these types of funds going to be around 5? Do you think they may start dropping interest rates, later this year, or going into next year? Comment from : Murphythedog1

So I have a FCash sitting there and it seems like its not yielding much So would it be smarter to sell it and invest it(if possible) or just change the core to Spaxx? Comment from : Baby Toshiro

The conversion from EST to edt is exactly the same another commi goverment scam like esg , and dei Comment from : Dan Hall

Jennifer, thank you for sharing your knowledge - especially for small investors like me! Comment from : Emm Humphrey

Yes please for Vanguard 😊 Comment from : Eloisa R

What I didn’t like on these is that the money is not immediately available if you need Had to sell FDRXX, for example, and it takes days before you a can actually withdraw the money Comment from : Luciano

Yes please more info on Munis Comment from : Colombia Bound

Long Explanation of Fidelity Cash Management Folks, I've spent most of today trying to figure out how to set up Fidelity accounts to maximize interest earned from treasury money market accounts in a high tax state, while also utilizing all of the banking features that fidelity makes available (debit card, checks, online bill pay, ach transfers, direct deposit) I'm still in the process of funding my new accounts, so I have not yet implemented this strategy, but I think it will workbrbrFirst of all, there are two different Fidelity accounts that need to be opened: (1) a Fidelity cash management account, and (2) a Fidelity brokerage account brbrCash Management Account You cannot designate an alternative funding account for Cash Management - the only funding option is a bank account which pays a 26 interest rate and the funds are FDIC insured The cash management account really works just like a good bank account with a debit card, online bill pay, check writing, ach transfers, direct deposit, etd I believe you could directly purchase Fidelity money market shares in the cash management account, but it is not made for investments It's really just a bank accountbrbrBrokerage Account The brokerage account is made for investments, but they also have some cash management features like check writing In a taxable brokerage account you can designate SPAXX or FZFXX (two very similar funds) as alternatives to the FDIC bank funding account However, you cannot designate FDLXX (which is the treasury only money market account) as an alternative funding account As I discuss in a minute, I suspect that they precluded FDLXX from being an alternative funding account because they are holding mostly actual treasuries in that account rather than swaps and they are worried about too many people making too many transactions in the account and causing them management difficulties Swaps are generally shorter term and easier for them to convert to cash But there are real advantages to those of us in a high tax state to using FDLXX over the settlement fund optionsbrbrFDLXX: The 7 day yield is currently 482, which is actually higher than the settlement funds (about 475), but most importantly the settlement funds are holding about 85 of their assets in swaps or agency bills which are not exempt from state taxes, while FDLXX is holding 7971 in actual treasuries which are exempt from state taxes Also, in states like California and New York, I believe you will get no tax state tax exemption if the fund has less than 50 treasuries, so if the holdings remain for the full year as they are currently, no interest earned on the settlement funds will be exempt from state taxes in a 50 state While nearly 80 of the interest earned in FDLXX would be exempt from state taxes So FDLXX is a lot better in any taxable state (higher yield currently and much higher state deductibility) But it's trickier to utilize because it cannot be made a default funding sourcebrbrThe Cash Manager Don't confuse the cash manager with a cash management account The cash manager is a feature in a cash management account that can enable you to utilize FDLXX as your primary funding source, although it requires some setup and monitoring It has three important features: (1) it will give you notice when your cash management funding account is below the amount you set, (2) it will give you notice when your cash management funding account is above the amount you set, and (3) it will allow you to use FDLXX in your brokerage account as a free overdraft source for your cash management account So let's say you set the cash manager to notify you whenever you have more than $5 in your cash management account When you get the notice (from direct deposits, check deposits from your cellphone, ACH transfers, whatever) that there is more than $5 in the cash management account, you'll go in and transfer all of the money from the cash management account to FDLXX When you spend money, you have this automatic self overdraft protection enabled to charge FDLXX for whenever you spend It will pull whatever you spend from FDLXX to prevent an overdraft So you basically keep nothing in the cash management account, use the self overdraft protection to cover spending, and the only part that's not automatic is that you have to physically move incoming money to FDLXX So it sounds pretty good to me - if it works as advertised There may be a way to push money directly into FDLXX in your brokerage account, but it's not apparent If not, you'll have to transfer manually when you get notice that incoming funds are in the cash management accountbrbrSo that's the scoop If you're in a low tax state and want to use one of the available money market funds as the default funding source for your brokerage account, your transfers into the brokerage account would not have to be transferred manually But transfers into your cash management account still would have to be manually transferred since they cannot be default funding sourcesbrbrIf anyone has any better solutions, please chime in I'm new to using Fidelity for money management, but it seems like a really good solution in relation to very low yielding and fully-state-taxable bank accounts And Fidelity allows living trust accounts and other account types that are very difficult to set up at most of the higher-paying online banks Comment from : Gregory Germain

You missed the best one, FMPXX Currently paying over 5 Comment from : DK

5:58 Great helpful information Thanks! Comment from : Gary Bahnick

Do Vanguard next Comment from : D Patterson

Hi,brDoes Schwab or vanguard has same money market account that you can park your money and get interest? Comment from : John B

Ma'am Thank you very much This is a great lesson for cash management Comment from : Chun-Mai Liu

SPAXX 🙏👍🙌🏾👏🏿💪🏾👑 Comment from : Ty Jameson

or just use "PT" and "ET" Comment from : Nadie Nada

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

Yes Please info for vanguard please Comment from : deward67

I have a Fidelity account that I do my bill paying out of, it's kind of a bucket thing I do to manage by spending transferring a fixed amount out of my main brokerage account on a monthly basis (I'm retired) I tried changing the core account for this account but the only option it shows is one of those crappy FDIC option What gives? Comment from : James Buhnerkempe

If you use a money market fund as your core position rather than the bank account option at Fidelity, do you still have all the same cash management features? Do you have an account with an account number and routing number to make pulls? Can you use bill pay from your money market account? If so, that would be pretty impressive In comparison, Vanguard's money market funds pay a little higher interest rate, but you cannot use the Treasury MM fund as your sweep account (and the treasury MM account has been holding a lot of state-taxable swaps rather than pure treasuries), Vanguard only allows checks over $500, they have no bill pay, no debit card, and no account and routing number for pulls from creditors So Vanguard's cash management options are not great I'm not clear whether Fidelity solves all of these problems or not if you use a money market fund instead of a bank account as primary Does anyone know the answer? Comment from : Gregory Germain

Do a money market review of Ameritrade Comment from : stkedu

Great video One question: when interest rates begin to drop next year (hopefully) will the value of the treasuries go down like bonds? Comment from : Yoshi 75

Thank you for all your very informative videos For this Fidelity Core MM Fund video, could you clarify the tax exemption on the Fidelity SPAXX portfolio? I see that in my account as of 7/19/23, it's portfolio has 6454 of the portfolio in US Government Repurchase Agreements (these are not exempt from federal and state income taxes), and only 329 of the portfolio in US Treasury Bills (are exempt from federal and state income taxes) Comment from : Maria Salvador

Can you comment on FDLXX? With all of its dividends be exempt from state income tax, since it is based on US treasuries? Comment from : SW B

SPAXX is not state tax exempt in CA! Comment from : Raj K

Great video! Comment from : Zach

I just discovered your channel & I found you and it Absolutely Excellent 💯 ❤️ Comment from : David Hastings

Yes please for Vanguard I LOVE ALL OF YOUR VIDEOS! HUGE FAN! Comment from : Sin City

Someone please tell me how to get to the screen on Fidelity that shows FCASH, SPAXX, and FZFXX rates (ie 257, 474 and 474) Comment from : halfdohm

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 Comment from : Warren Gardner

I would like similar info for Schwab money market accounts Comment from : Philip Damask

Does Merrill lynch have one? Comment from : Winter Tea

SPAXX fell by 01 from 475 so that why it 474 apy now Comment from : Winter Tea

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! Comment from : Jon Blomiley

Love the detail, but what about Vanguard? I am moving funds from a bank saving account to my Vanguard taxable brokerage account and want to place that in Vanguard’s money market funds Details please? Comment from : Andre Butts

I have Fidelity FZDXX Premium Money Market and the rate has been holding at 494 for several weeks Comment from : Big Mac

Yes vanguard Comment from : kenn davis

Fdrxx requires $100,000 to open this account But, dirty little secret, once opened, you may allow the account to fall below the $100,000 limit But confirm this last point with your fidelity representative Comment from : Patrick McGuire

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 Comment from : Scott Wade

Thank you so much! I joined Fidelity due to your videos! Please make similar videos for Schwab and Vanguard which I have too Comment from : tripbargains

Yes Please do a video on TDAmerittade Schwab and Vanguard Comment from : IAM Mack

Any suggested money market for ETRADE/MS or JP Morgan Chase ? Comment from : M LK

If I'm not mistaken, unlike SPAXX, Schwab's SWVXX and Vanguard VMFXX both have ex-div, record date, and pay date each month listed under "fund distribution" But strangely enough, I bought some SWVXX on 7/11, well past the listed record date of 6/16, yet I still get a pro-rated dividend yesterday 7/17 (the listed pay date) So if that's the case, why did they even list the record date? Comment from : Dan Phan

Thanks immensely Comment from : P KJ

Please do a similar video for Schwab and Vanguard money market funds I appreciate your excellent videos Comment from : Scott Weiss

Yes, please make a video about this topic for Schwab Comment from : Lee Shamrock

Schwab please! Comment from : Margaret Lockhart

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

If you’re daytrading consistently everyday, do you still receive the 474 dividend? Comment from : Trading Simplified

FZCXX is available in my 403B and has a slightly higher rate I’m not sure why Comment from : Kent Robie

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! Comment from : machu pikachu

Super smart lady Comment from : Oswald Egiebor

Yes, please do the same video for Schaubcan't seem to find how to change the default position for cash there Comment from : Inna Cohen

FZDXX offers 516(as 8/19/23), min $100K😂 Comment from : BiwakoCalifornia

Great video (again)! Please consider doing a similar video for Schwab Comment from : Steve Merwin

Thanks for explaining the options I'm interested in understanding how a bond fund has a 30 day yield and the distributions are different Comment from : Ross Smith

Yes, please do a Schwab core money market fund Comment from : kbd918

Also very interested in an overview for Schwab as well , thank you!!! Comment from : Angelo

I would really like to learn more about fidelity Municipal money-market funds specifically state level funds I really appreciate this information! Comment from : Diane Eisen

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) Comment from : Ram T

I checked my HSA at Fidelity I have SPAXX and FDRXX They are both allowed Comment from : El Tigre

I would also appreciate a video on Vanguard and Schwab Comment from : K R

What is a good portfolio for 5o yo planning retire 67 who likes growth How many percentage you recommend international stocks How about bonds What type bonds Is domestic large cap and bonds enough? Do you need international stocks? Comment from : Jen

I tried to buy spaxx but it said it was my core fund and couldn't trade I'm confused Comment from : S B Man

Fidelity FCash at 257 is generous Plus Fidelity will let you use SPAXX for your sweep account Seems to good to be true brChoices are very different at Schwab and Ameritrade?br Beware that Ameritrade core money market is 035 Yes, you earn 1/3 of a percent or 35 basis points brSchwab is 045 Will they let me use SNOXX for my Schwab core account? Comment from : Jason Jason

Crazy question Have you read all the books behind you? 😂Nice background Comment from : SAVVY Investor

Thanks Jennifer Schwab next please! Comment from : Inabit 19

Millions to Billions Comment from : Jim Dixon

Would appreciate a review of Schwab MMKT Thanks Comment from : XTC Trader

Yes, please do a similar video on Schwab! Comment from : Ann Mckeighen

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 Comment from : Vince Hamon

Schwab plz Comment from : Vardman Turner

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

What about TDAmeritrade? Comment from : Lorenzo Mendez

Robinhood Gold gives 45 Comment from : sfpelkey

Wait…the brokerage uninvested cash? I’m so confused Comment from : sfpelkey

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