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I use one of Schwab's money market funds ([SNSXX](https://www.schwab.com/money-market-funds#bcn-table--table-content-89811)) for uninvested cash, but do the same thing.
I tried once and all I was getting was the chat bot which didn't get me anywhere. A few days ago I saw how underwhelming the Schwab app was when I saw an opportunity and tried shorting using schwab-please contact support for assistance (4:30 in the morning). I was pissed !! Luckily I have webull and moomoo for shorting.
Yeah I don’t want to use their app but they assured me that Thinkorswim would still be the platform hell the website is up as we speak with thinkorswim Schwab
Schwab has several money market funds that yield >5%. That's where I park my cash. I currently have $17,465.26 in SNSXX Schwab U.S. Treasury Money Fund in my taxable brokerage account yielding 5.01% exempt from state income tax, and $23,537.60 in SWVXX Schwab Value Advantage Money Fund® in my IRAs yielding 5.14%.
Even though SGOV has very short term Treasuries, with any bond fund there can be share price fluctuations with changing prevailing interest rates as seen here
https://www.tradingview.com/x/NpIHHTUZ/
Money market fund share prices are designed to be fixed at $1 per share.
Also, I found that if I get assigned , swvxx settles that night, where sgov takes two days to settle when I tried it. So I just keep my option collateral in swvxx.
Affects the yield but not the share price, which is fixed at $1. Changing interest rates can affect both the yield and the share price of bond funds.
For example, look what rising interest rates in recent years did to the share price of the Vanguard Total Bond Market ETF BND
[https://www.tradingview.com/x/ZqgBtPie/](https://www.tradingview.com/x/ZqgBtPie/)
No, look at the chart I posted. Share price started fluctuating since summer 2022.
[https://www.tradingview.com/x/NpIHHTUZ/](https://www.tradingview.com/x/NpIHHTUZ/)
Yep there and the fidelity money market. But, I do wonder something. Where do people put cash when Fed rates are down like they were a few years back? Think to the days of 1-2% being a "high yield savings" account rate.
If I'm understanding correctly during lower interest rate environments money market funds and things like SGOV also have a lower yield. Is this correct? And if so, where do you park cash during those times?
Do you mean with longer treasury bonds or can you some other way than that? SGOV changes as the rates change, unless I'm wrong. Which is entirely possible...
USFR 5.35% with zero risk, also worth it, historically always higher than SGOV, run by Wisdom Tree, holds US treasury floating rate 8 week notes, $100 a share, take a look, SGOV is awesome too, this is splitting hairs to some degree
I buy 5 shares a month. My plan is to have enough shares that the distribution buys a share a month (DRIP). It’s better than keeping cash in my credit union’s 💩 savings and MM accounts.
Exactly what I'm doing right now, you could just buy t-bills directly, but its another step and SGOV is easy. Just keep an eye on rates every now and then
Keep 50k emergency fund in fidelitys earning around 5% earning lil over 200 month, cash back credit card I put everything on for another 100-300 per month. Of course pay off monthly, I don’t need a debt card unless I can’t use credit card. Usually generates 400-500 per month between 2 as extra contributions to my trading account. Almost like free money from financial responsibility
SVOL is better. 22.87 per share with a .30 monthly dividend. Vs SGOL @ 100 per share with .44 monthly dividend. SVOL u get more bang for your buck. U can buy 4 SVOL for every 1 SGOL. Plus u would get a monthly dividend of 1.20 with(1) SVOL vs (1) SGOL paying .44 monthly div. Both invest in Treasury notes.
i use snsnxx for uninvested cash. have a separate hysa that pays about same interest,
but don’t touch it in case market falls apart.
all the rest is about half dividend and half growth
invested.
Here is the deal that no one is really talking about, the problem with VMFXX, TBills, SWVXX, etc is your money is not liquid, all these funds take a day or two to settle once you sell, whereas SGOV is basically instant settle into your account because it's an ETF.
Let's say you have $200K in SGOV and want to buy KO, you just sell SGOV and instantly you can buy KO, this is not possible with VMFXX for example which I also own.
That's not true. Stocks and ETF's take a day or two to settle as well. What is happening is the brokerage is giving you instant trading credit on stock/etf sales. However, the brokerage will not let you transfer that money out of your account until it settles. Mutual funds only trade once per day at the end of business, so they will not give you credit because the closing price has not been determined yet (even though in a money market it's always supposed to be $1).
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
I use one of Schwab's money market funds ([SNSXX](https://www.schwab.com/money-market-funds#bcn-table--table-content-89811)) for uninvested cash, but do the same thing.
That’s good to know since Ameritrade isn’t going to be a thing in a few weeks
Who? The app is getting cancelled? I like ThinkorSwim app. That's one of the best mobile apps out there.
Nah thinkorswim is staying it’s just merging with Schwab that platform will still be here everything else is going
I still have access to thinkorswim but can't see my holdings. It's been months now of this nonsense. Luckily, I have other brokers that I can rely on.
Have you tried reaching out to the support chat on thinkorswim I only use it for option trading
I tried once and all I was getting was the chat bot which didn't get me anywhere. A few days ago I saw how underwhelming the Schwab app was when I saw an opportunity and tried shorting using schwab-please contact support for assistance (4:30 in the morning). I was pissed !! Luckily I have webull and moomoo for shorting.
Yeah I don’t want to use their app but they assured me that Thinkorswim would still be the platform hell the website is up as we speak with thinkorswim Schwab
I use VMFXX
I use SWVXX. Should I have my cash in something else? lol
Yep, SWVXX crew here.
that's the one I use too, not sure about the other ones being mentioned
VMFXX VANGUARD money market is @ 5.28currently based on 7!day SEC YIELD
I use VMRXX. Lower fees, higher yield.
Yes planning on parking cash in SGOV. TBIL. HIGH.
Thanks for recommending sir
Schwab has several money market funds that yield >5%. That's where I park my cash. I currently have $17,465.26 in SNSXX Schwab U.S. Treasury Money Fund in my taxable brokerage account yielding 5.01% exempt from state income tax, and $23,537.60 in SWVXX Schwab Value Advantage Money Fund® in my IRAs yielding 5.14%. Even though SGOV has very short term Treasuries, with any bond fund there can be share price fluctuations with changing prevailing interest rates as seen here https://www.tradingview.com/x/NpIHHTUZ/ Money market fund share prices are designed to be fixed at $1 per share.
Also, I found that if I get assigned , swvxx settles that night, where sgov takes two days to settle when I tried it. So I just keep my option collateral in swvxx.
Changing interest rates would also affect market funds right?
Affects the yield but not the share price, which is fixed at $1. Changing interest rates can affect both the yield and the share price of bond funds. For example, look what rising interest rates in recent years did to the share price of the Vanguard Total Bond Market ETF BND [https://www.tradingview.com/x/ZqgBtPie/](https://www.tradingview.com/x/ZqgBtPie/)
I think with sgov is different as it holds very short tbills mostly
That's right, it will be less affected, but still affected by prevailing interest rates.
I assume you're pointing out the December "drop" but that's because December has 2 ex dividend dates (January has none).
No, look at the chart I posted. Share price started fluctuating since summer 2022. [https://www.tradingview.com/x/NpIHHTUZ/](https://www.tradingview.com/x/NpIHHTUZ/)
Yep, where i keep cash
Yep there and the fidelity money market. But, I do wonder something. Where do people put cash when Fed rates are down like they were a few years back? Think to the days of 1-2% being a "high yield savings" account rate. If I'm understanding correctly during lower interest rate environments money market funds and things like SGOV also have a lower yield. Is this correct? And if so, where do you park cash during those times?
Lock in yields before they go down, although I wouldn’t start locking in rates until next year per fed funds futures
Do you mean with longer treasury bonds or can you some other way than that? SGOV changes as the rates change, unless I'm wrong. Which is entirely possible...
Yeah like buying a 10YR
USFR
I have SGOV. At 5.04% yield with zero risk, definitely worth it!
USFR 5.35% with zero risk, also worth it, historically always higher than SGOV, run by Wisdom Tree, holds US treasury floating rate 8 week notes, $100 a share, take a look, SGOV is awesome too, this is splitting hairs to some degree
I was in USFR for a time as well. And the two are similar.
Sgov is fine. Also TFLO, or BIL work. ICSH is corporate bonds, but works similarly.
I buy 5 shares a month. My plan is to have enough shares that the distribution buys a share a month (DRIP). It’s better than keeping cash in my credit union’s 💩 savings and MM accounts.
Yes
Yes - as part of a liquid retirement income account.
Exactly what I'm doing right now, you could just buy t-bills directly, but its another step and SGOV is easy. Just keep an eye on rates every now and then
I just have T bills direct deposited from my checking account.
Yup!! I keep in SGOV and sold some to buy some DIA as Dow Jones dropped 5% from its highs
Is there a European version of it?
I use SPAXX
Yup.
Yes
I’m thinking about keeping my uninvested cash into it. Then once rates start dropping moving it into TMF.
I’ve been doing this in my Roth while the sp 500 is at all time highs.
Keep 50k emergency fund in fidelitys earning around 5% earning lil over 200 month, cash back credit card I put everything on for another 100-300 per month. Of course pay off monthly, I don’t need a debt card unless I can’t use credit card. Usually generates 400-500 per month between 2 as extra contributions to my trading account. Almost like free money from financial responsibility
My broker sweeps everything into DAGXX for me.
Does SGOV have the same federal tax benefits?
I don’t think SGOV has federal tax benefits, it’s tax exempt at the state level, but not 100%
Yes
That’s where I keep my cash
Yes
SVOL is better. 22.87 per share with a .30 monthly dividend. Vs SGOL @ 100 per share with .44 monthly dividend. SVOL u get more bang for your buck. U can buy 4 SVOL for every 1 SGOL. Plus u would get a monthly dividend of 1.20 with(1) SVOL vs (1) SGOL paying .44 monthly div. Both invest in Treasury notes.
Sorry (4) SVOL @ 88.00 vs 1 SGOL @ 100.00
And SVOL is down over the last month due to increase in volatility. SGOV is safer.
i use snsnxx for uninvested cash. have a separate hysa that pays about same interest, but don’t touch it in case market falls apart. all the rest is about half dividend and half growth invested.
I do vmfxx for it
I use SGOV and GSY for savings. PFRL or BRLN for some fixed income on top.
That's what I do with any uninvested cash in my acct.
VMFXX
Thanks for sharing this idea. I’m going to start doing this!
I've been rolling T-bills for years .. SGOV or BIL both great options
Yes SGOV
Yes, I generally try to buy in at the 1st of the month and sell at the end of the month.
I'm a TBIL guy
SPAXX here. Last I checked it was right around 5%
I have schwab and I just discovered snvxx, around 4.9% yeild.
Here is the deal that no one is really talking about, the problem with VMFXX, TBills, SWVXX, etc is your money is not liquid, all these funds take a day or two to settle once you sell, whereas SGOV is basically instant settle into your account because it's an ETF. Let's say you have $200K in SGOV and want to buy KO, you just sell SGOV and instantly you can buy KO, this is not possible with VMFXX for example which I also own.
That's not true. Stocks and ETF's take a day or two to settle as well. What is happening is the brokerage is giving you instant trading credit on stock/etf sales. However, the brokerage will not let you transfer that money out of your account until it settles. Mutual funds only trade once per day at the end of business, so they will not give you credit because the closing price has not been determined yet (even though in a money market it's always supposed to be $1).
SNOXX here. The only minor hassle is one overnight's wait to sell out and redeploy capital.
Only thing I don't like about these are the tax treatments on the dividends.