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

Yes, for a video on Schwab and Vanguard. Can you touch on difference between the three brokerages?

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.

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?

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

Thank you -This is what I have...Learning Learning

I do get paid dividends, lol. Just noticed that when I looked.

Yes and include Templeton

Vanguard plz

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 4.7%.

What about the fee? I heard that SPAXX has higher fee than FZFXX and FDFXX.. no?

i would like more info on Vanguard and TD Ameritrade

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.

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.

Can you make a video for Schwab

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

$91,909.77 invested. Nice!

How were you able to choose SPAXX as your core position in your CMA? When I try to change my core position, it says "There are no new core positions to select." Thank you so much for the content.

Since Fidelity's SPAXX is approximately 25% T-bills, 25% Agency securities, and 50% repos, does Fidelity separate out non-taxable with the taxable dividends year end? Seems like Fidelity does not, but would like to understand folks' / DiamondNestEgg's experiences if otherwise, especially in states like CA and NY.

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

Hello, this was very informative. Thank you. I am new to all this so figuring out what to do. Can you compare Fidelity's SPAXX versus Merill Edge's PREFERRED DEPOSIT which is FDIC insured and is currently giving 5.02% please. I dont know which one to chose.

SPAXX is SIPC insured and PREFERRED DEPOSIT (from Merill) is FDIC Insured. So which is better?

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.

newtek bank hysa 5.25%

Is there a similar feature for Schwab (without having to manually move to money market every time there is new cash) or are we stuck with the sweep rate of 0.45%?

What are the core money market fund positions that Schwabb offers? Are they better than Fidelity?

Thanks! Moved from Cash to Spaxx with your assistance.

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

I have 3 MMF's with Fidelity. Should I leave all money to 1 fund ? or should I divide into 2 Funds or 3 Funds ( SPAXX, FZFXX and FDRXX ) ? Thanks.

Your content is really super helpful 😀

Is either SPAXX or FZFXX exempt from California state tax? In the limited research that I have done, even though FZFXX does not hold agency securities, it is not exempt from California state taxes. Thanks in advance for any guidance.

these fund pays even higher rate than online bank (like Discover bank) ?? Online bank only pays 4.35% while SPAXX or FDRXX pays about 5% and with tax benefit? HOw?

Hi Jen, I've been buying Treasury bills through Fidelity using their auto-roll program. Not sure if you've covered the difference between Fidelity and Treasury Direct's auto-roll but Fidelity debits my SPAXX account (and puts it into a negative balance) for four days between when the old 4-week T-bill matures and the purchase of the new 4-week T-bill. This timing issue and negative balance isn't an issue to my knowledge with purchases on the Treasury Direct website.

On Dec 13 my balance was $1076, on Dec 14th my balance was -$1911 ($2987 was the cost of next 4-week T-bill) and on Dec 19th my balance moved back to positive at $1088 after $3000 was deposited once my T-bill matured four days later.

____________________________________________________________________________
Message received from Fidelity:

Please be advised that the trades executed on 12/14/2023 in your account left an obligation of $1,911.14.

Next Step
Payment should be sent immediately to avoid an account liquidation.
____________________________________________________________________________

It seems that the four days of negative balance is averaged over the month and effectively reduces the interest earned for that month on my SPAXX account.

If you have a small amount in SPAXX like I do the negative balance and loss of interest is probably capped at the potential earned interest amount of that small amount. However, if you have larger amounts earning interest in SPAXXS and are auto-rolling over larger amounts resulting in large negative balances I'm thinking this could be an expensive situation since you are losing (in this situation) 4 days of interest.

When dealing with hundreds of thousands of $ on maturing T-bills it might be worth doing it manually and earning either T-bill interest or then a somewhat lower SPAXX interest while you are waiting to reinvest your funds. By avoiding the negative balance, you should be earning interest every day.

Might be a good video to research the details with Fidelity and discuss with your fixed income fans.

I did call Fidelity and they verified my account was not going to be liquidated, ha.

Dave

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

Does it matter when during the month you switch over from FCASH? Can you lose interest accumulated?

Thanks I’ve learned a few things.

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?

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

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?

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

Is all of the dividend earned from money held in SPAXX, 100% exempt from State tax, or does it depend on the percentage of SPAXX which has allocation to government securities which is 77.05%. So meaning if I earned $100 as dividend from SPAXX only $77.05 would be exempt from state tax or the entire $100 would be exempt from state tax? This is really important as we would need to declare this info while filing our tax return. @DiamondNestEgg Can you please confirm this info?

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

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

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

What about FDLXX?

I park my cash in FLDXX.

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

I WOULD LIKE TO KNOW MORE ABOUT FIDELITY MONEY MARKET FUNDS

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

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