This is the reason I prefer Fidelity over Schwab because their default cash holding is the money market and you don't have to sell it and wait for two days to purchase a new stock or bond.
@@maicaster8985it is not a straight forward decision. Schwab website allows you to group accounts and securities. Makes it easier to manage your money.
This is exactly correct. Fidelity “allows” cash sweep into treasury type MM funds, which aren’t fdic insured but pretty darn safe. You can combine that with short term CD’s (insured) or treasuries, to optimize your interest rate returns. The much easier higher rate of return at Fidelity vs. Schwab or TOS is a big deal for active trading with a decent amount of cash parked. The downside of Fidelity is that they don’t have that addictive TOS trading platform or futures access (but the TOS micro emini commissions are terrible).
I almost didn't watch this video because I thought I knew all about my money fund choices. After watching, I switched my taxable brokerage accounts at Schwab from SWVXX to SNSXX immediately! In NJ, the tax savings will pay for my Super-SuperSaver membership and then some. Thank you!
I used to have an acct at Schwab , had the checking and brokerage. When rates were near zero this was ok, but now they are much higher, so I moved to Fidelity for the CMA and brokerage acct. I keep a low amount in CMA, to cover cash flow needs, and the rest is in an accompanying brokerage acct where uninvested cash sits in SPAXX earning much more than the CMA or the small amount I used to get if it sat in Schwab's bank sweep. Plus when i want to pull the trigger to invest in a stock I dont want to wait to have to sell a MM fund. I don't have to with Fidelity core account. Schwab must love customers who keep tons of cash sitting in their checking earning 0.45%, as they profit handsomely off that.
Liked the info, very educational. Thank you. All my cash for Schwab to use and me earning crumbs since 2020!! How do I reclaim all that interest back? I will move my accounts to Fidelity, Vanguard, or Robinhood.
I used to place my cash in SWVXX but moved to SNSXX during SVB & First Republic debacle, because on Schwab's site it says SWVXX's liquidity ("Measure of a money market fund's ability to meet shareholder redemptions, stated as a percentage of total money market fund assets, and calculated for one business day.") is only around 40% while their treasury money market funds have liquidity of 100%. 40% doesn't seem to be safe enough in case of a bank run. Also, I don't think Schwab advertises this but if you sell cash secured puts in your Schwab account, you can use their money market funds as cash collateral, which is pretty nice as it earns interest while you are holding the position.
Thank you for great video and valuable information. Regarding accessibility of the funds parked in money market fund (I have SWVXX): Schwab allows you to place an order to buy a stock even if it shows $0 cash balance, so usually I am buying stocks during the day and, at the end of the day place an order to sell required amount of shares in money market fund. The amount to cover is easily seen as negative number in cash balance.
Nice overview. I recently got pushed over from Ameritrade to Schwab and was surprised that Schwab didn't have a parked cash MMF like Fidelity's SPAXX. That paltry 0.45% yield on Schwab's cash sweeps is pathetic. And having to formally buy their MMF to handle something SPAXX does automatically seems equally pathetic. Thanks for excellent presentation.
I use SWVXX because I live in Florida where there is no state income tax. Schwab is very customer friendly. They also allow you to use the cash in the money market fund as collateral so I can sell cash-secured puts and still make good interest on my cash.
@@TaiwanFirst Yes, you can sell cash-secured puts in an IRA. It is not a margin account, but you will need the lowest (level 0) option approval level for the account. SWVXX is treated as cash, and SWVXX allows you to earn something on the cash. In case of assignment, you sell the needed amount of SWVXX to cover the purchase of the underlying stock.
Ur an angel, this should help a lot of folks I sort of stumbled across this issue about a year ago. Had Usaa accounts for many years- when I made my first trade at Schwab, I started to receive unpleasant sounding emails saying you “don’t have any money to make this trade”… yep I made the assumption that I could trade from my core money funds like I did at fidelity and usaa. Also I did have a big chunk of money in that sweep account in my brokerage account. All good now I’m in Snsxx for brokerage and swvxx for Ira. Note , just like I learned this lesson when Schwab bought USAA, I think anyone from TD ameritrade coming into Schwab should really take a look at how their core accounts were moved over…..😮
I learn something new with each video I watch. Trying to figure out what to do with a daughter's lump sum settlement - and this video (and others) was very helpful. Thanks!
Good for you Terry, Its hard but interesting navigating the investment world. I started in 2003 on my own with no help, we didnt have videos, just Scottrade, Yahoo Stock chat and limited access to real data. Its a new world, its a shame more people don't take a proactive role in their money
Hi Jennifer! Thanks so much for making this video. I followed your step-by-step and moved a lot of cash out of the sweep account and into SNSXX. Super, super helpful!
FWIW -- I was curious as to what happens if you sell a fund, eg SWVXX, before the 15th of the month -- do you get a dividend for the month? I think the answer is yes, based on below verbiage from the prospectus. The key is that dividends are DECLARED on a DAILY basis, but PAYABLE on a MONTHLY basis. "Each fund declares a dividend every business day, based on its determination of its net investment income. The funds pay their dividends on the 15th of each month (or next business day, if the 15th is not a business day), except that in December dividends are paid on the last business day of the month. If your daily dividend is less than $0.01, you may not receive a dividend payment. To receive a dividend distribution, you must be a registered shareholder on the date that dividends are declared."
Thanks for all your very informative videos, Jennifer! I’ve had a Schwab account for many years, and Schwab used to have a sweep with what Fidelity calls “core” cash positions. There were several to choose from and trading was pretty seamless. It’s a pain having to manipulate the accounts yourself. However, virtually all trades have T+1 or T+2 settlement dates, sometimes even longer (e.g. a Treasury auction), allowing time to move the cash from whatever money market fund it’s in to cover the trade. You can’t sell a stock (T+2) to cover a same-day mutual fund purchase (T+1), but in my experience you can buy a CD or T-bill (T+1) and sell money market shares (T+1) the same day to cover the next day settlement.
Unless you time things perfectly, your cash is going to be sitting in a low interest sweep account for at least some of that time. This is how Schwab makes more money off of your money.
Regarding the "spontaneous purchase". You have to take into account the "Settlement" timeframe of what you're purchasing. Stocks/ETF'S are 2 or 3 days, so you don't have to wait to purchase, since the Money Market funds are available the next business day.
I think a better strategy is to park idle money in your Schwab account into the short-term US Treasury ETF... SGOV. It is currently yielding over 5% and will probably do so for some time. I can sell SGOV any time during the trading day if I need cash to buy any equities immediately. No lag in time at all. Not only is the yield currently higher than Schwab's money market funds, but its interest is state and local tax free. I welcome any comments. Thanks.
@@kellylee514 SGOV is not listed on Schwab site because it is an ETF issued by I-Shares (part of Blackrock), so it trades like a stock. Also, the price does vary some with a 52 week high of 100.64 and a 52 week low of 99.6. So if you get your timing wrong, you could risk taking a capital loss.
Thanks for this video. I might need it in future. Right now, I am managing my T-Bill ladder in Schwab. I don’t keep much in the Sweep account. If I want to build the volume of that ladder, I transfer $ a few days ahead of the auction date. While my CFP manages the bulk of my securities investments, I manage my fixed income investments. I am learning a lot here! Thanks for teaching us how to make our cash work harder!
In buying equities at Schwab or from other brokers, there are three days to settle. That is more than enough time to make the money market funds available for the purchase. It is not necessary to sell the mmf before buying equities. I believe that applies to ETFs or to any other instruments except perhaps other mutual fund purchases. Option trading may also require immediate cash.
Jennifer: You don't need to have cash in your Schwab sweep account on the day you make a trade. Just sell enough of your money market fund the day before the settlement date, or in the case of a treasury auction, the day before the issue date. That way your money works for you longer. I do this all the time. Schwab order messages tell you to make sure you sell enough of your money market fund to cover the trade. Schwab money market trades settle the very next day. Thanks for all you do.
Correct. I do it all the time. In my IRA, once you post the sale (trade) of those funds, you are free to use up to that amount to make a purchase of any other equity. With my regular taxable brokerage account, margin accomplishes the same thing, So I can reverse matters and buy the stock, then make the trade of SVWXX to cover at the end of the day.
And lose at least one day of the higher MM fund interest, I assume, and hand it over to Schwab to do as they wish with that extra cash. I wonder why Schwab does it this way?????
About the Sweep account: i was just told by the Schwab fixed income customer service rep tgst the best prsctice would be to order a CD, and then leave the cash in the MM fund until the day before the CD settlement date (usually sbout a week out). Sell the MM fund the day before settlement, and then the cash used will have 0 days not collecting interest.
I'm with Ameritrade, which will be migrating to parent company Schwab accounts. Their target is to migrate everyone by year end. I'm discouraged to hear and confirm the low interest sweep accounts. Thanks for sharing that! I also have a Fidelity brokerage for our health savings accounts and was able to follow your directions to change my core sweep account there. Thanks for that help too!
Schwab is slow to move money but what I have done is setup standing wire instructions from fidelity. That way if I find a deal on a CD or something at Schwab, I can wire cash and purchase the deal same day
I value the 1-2 day liquidity in these funds over the slightly higher rate of a 3-6 month T-Bill or CD (from a good solid bank). I'm willing to pay .5% for that so I don't miss some opportunity like silver crashing into the teens. Wish it was zero days like Fidelity though.
A great video... just what I was looking for. I'll follow your advice (I live in Calif) and buy both SWVXX and SNSXX. I was going to buy SNOXX, but you gave me better fund options
3:54 & 14:20 assumes that you have a normal brokerage / retirement account - which by default - is NOT approved for margin trades. If you want an exception to this, the Schwab representative we spoke to suggests that you may call in & they may or may not grant the exception/ charge a broker-assisted fee (on a case-by-case basis). Mutual fund settlement, which includes money market funds, is T+1 as per industry standard. ------------- 👉 Help keep our one-of-a-kind videos unbiased & sponsorship-free through channel membership - become a super-supersaver member: th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin WATCH NEXT (member videos) ⭐ July Live Member Q&A: th-cam.com/users/livetQJDTNCzf68?feature=share ⭐ Agency Bond 101 Deep-Dive: th-cam.com/video/ggjZSBS4TVc/w-d-xo.html ⭐ Understanding Credit Ratings: th-cam.com/video/0kWPz01qxBc/w-d-xo.html ⭐ Risks Of Bond Investing: th-cam.com/video/LBCa2D95cPM/w-d-xo.html ------ Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
I do not have to wait to next day to buy stock with SWVXX. same day I purchase a stock, I just have to be sure I make a sell trade the same day in SWVXX to fund it.
Jennifer: I have IRA's and regular brokerage accounts with Schwab. I don't have a margin account. For years on all my accounts I can trade with no cash in my sweep account as long as I redeem enough funds to cover my trade the day before the settlement date. I don't know what the account rep that you spoke to is talking about. And re new issue CD's, those might not start earning interest on purchased CD's for three weeks before the first settlement date. If you buy early Schwab will take your money if its there in your sweep account and you will lose a significant amount of interest. Schwab is a great brokerage company but they have to make money some way since many trades are now commission free. They earn interest on the float. But you don't have to let them do that. Just read your order messages when you make a trade when you have no money in your sweep account. They will tell you to sell sufficient funds to cover the trade before settlement. Believe me. I have done this for years without a problem. If you were correct Schwab would not allow you to make an automated trade if you had no money in your sweep account. Only if you fail to have sufficient funds in your sweep account on settlement day will you incur a penalty.
Nice to know! I wonder if the same is true for their bill pay system. Currently, I add up my bills, sell enough SVWXX to cover them and then pay the bills the following day. It would be great to simply enter my bills online and then sell enough SVWXX that same day! @@user-ht3uu2bm2i
I go to SWKXX because I am in CA. I hate not having a MM as the default sweep account. I am thinking of moving it over to my Fidelity account but I like the idea of two accounts just in case...
@@miatafunrun3078 Thanks for sharing - the default sweep option is definitely a plus for Fidelity in my mind, but each of the leading brokers seems to have some area(s) that they specialize in (e.g. if you are interested in purchasing new issue munis, you may want to keep some of your funds with Schwab - I'll see if we can talk briefly about this in our member live when I'm back).
Interesting! I've always used SWVXX in my Schwab brokerage account for excess cash, but it looks like SNSXX would be better since it wouldn't be taxed in California vs 100% taxed for SWVXX. That should more than make up for the 0.08% yield difference. Thanks!
I knew I had a low rate with my Schwab sweep acct. so always kept my cash in t-bills. I think I'm good keeping it that way, but it's good to know there are alternatives. Thanks again for another excellent presentation! 👍
Spot on, Jennifer! My brokerage account is at TDAmeritrade (soon to become Schwab) but it was the same issue: idle cash in the sweep account earning nothing. No big deal until rates went up and then I had to act. I moved cash into SNVXX and SWVXX money market things. Then it became a little confusing to me, at first, because it was not moving cash but actually buying shares of a mutual fund. It is hands on because, as you said, when I want to use those funds I FIRST have to place a sell order to get that investment back into cash. My IRA at Vanguard is so much simpler in that regard. I think Schwab needs to get on a model like that for the sweep account to make things easier for the individual investor community. Pretty surprised they didn't lead the way.
Perhaps I missed it in the video but my understanding with Schwab is that there is a third downside or con which disallows the use of margin for stock trading on the funds held in these higher yielding mm instruments. Love ❤ NestEgg videos and all of the information provided to us 👍🙏- Vielen Dank!
Gerne! But unfortunately, this is one I can't answer as we do not trade on margin in our personal accounts - perhaps you can reach out to Schwab on this? Let us know what they say if you get around to it!
I don’t trade on margin normally, but the money I hold in SWVXX has an indication under the total as to how much is marginable. I think it has to be in the account for some set period, like 30 days, before it can be margined.
Hi Jennifer! Two questions.Does the interest made on SNSXX stay in the fund or dump to the sweep? And is the 0.35% expense fee already calculated into the 7 day yield? Thx. Also share the unfortunate NY tax burden with you!!
I have money sitting in my savings until the market corrects a bit more. I plan to transfer it to my investment account to purchase SNSXX for the time being.
I chose (inside and IRA) to go with SNOXX from these options, due to its very high liquidity compared to the others, and also it’s overall historical returns. All seem to be great options though!
I usually see a slow sell at Schwab for the mmf. I don't know why. If I put a sell order in by the end of day it's not fully completed until the end of the next business day and then I have access to the cash the day after that.
Right so I got hit with a margin loan when purchasing sometbing the next day after selling mm. Got the interest reversed by a rep but cash mangement with Schwab is a pain.
I am using SWVXX and will continue to as income taxes are not an issue. I wish Schwab had a core money market fund, but I don't want it enough to switch to Fidelity. I am switching my Treasury notes to Treasury Direct so I can get reinvestments without a one week gap in a low interest sweep account. And when I don't want to reinvest in Treasuries that the money is both swept in and out of my main bank account on the days of issuance and maturity.
If your bank has "early pay" (or equivalent, they may call it something else) you will actually get the money from maturing T-Bills in your account 1 business day BEFORE it matures, so an extra reason to use Treasury Direct! Your money collects interest in both accounts for that one day (or even 4 days if holiday weekends are involved, but that is usually only for T-Bills that mature on Tuesday when the Monday before it is a holiday, so 4, 8, and 17 week T-Bills).
S hwab is a PIA because you have to place a trade to buy or sell a money market fund. If you sell the mm fund and buy a security the next day you will generate a margin debit, the funds are not available for two trading days.
I have not found this to be true. Yes, I have to sell MM to get the cash, but MM funds have been available to me next day, and although Schwab may label this a “margin trade” I am never charged interest.
It would have been nice to mention that the sweep rates for their Intelligent Portfolio accounts follows the SWGXX fund which has a current 7-day yield of 4.95%. "Normal" accounts are using .45% that you mention. Is if possible for you to do a comparison video of Fidelity's managed account program vs Schwab Intelligent Portfolio!? Or maybe just managed accounts in general?
As always, great content and very timely. I was just on the phone a few days ago with Schwab asking if I could use SWVXX as my core cash position. No, of course but the rep did tell me something interesting. You have to sell your money-market a day before you buy a T-Bill but when purchasing a CD, you can set the trade to execute on the CD's settlement date so you don't lose the few days between purchase and settlement like on T-Bills at Schwab. I have not tried this yet but I am skeptical. I am looking forward to the Vanguard Video. Thanks!
Proceeds from that taxable money account are interest or capital gains? Interest is usually added to my ordinary income, but for capital gains, I can have losses or gains.
Was wondering if I bought SWVXX on the 18th of any particular month (in my IRA account) if I would get a dividend the following month...sounds like the answer is yes because the dividend is declared every day but paid every month. Answered my question. Thx
Thank-you for confirming that Schwab does not allow money market bank sweeps. Oh well. This means you cannot use it for cash covered puts. Oh well. I will limit such activity to Fidelity.
Great content! Here’s a question…when SNSXX matures in 37 days, do the funds go back into cash just like after Tbills maturing….and is there an option to auto roll after maturity?
The stated maturity is the average duration of the investments within the money market fund. It earns daily and pays earnings out monthly with the choice to auto invest the dividends earned.
SNSXX is a fund, it does not mature itself, but the bills the fund holds do mature. You are paid once per month based on the interest earned on the bills that matured in that month (and can re-invest those earnings). From a quick look at the prospectus, it looks like they simply buy T-Bills about every 2 weeks (and currently hold 27 T-Bills). The advantage of a treasury fund over buying the treasuries yourself is the flexibility of being able to sell part of the fund any time you want without having to deal with selling T-Bills on the market (so to you it can be thought of as just a high interest cash account). Funds actually do have a certain percentage of the fund in cash so they can handle payments to people who sell without having to sell any of the T-bills before maturity. You will generally get less interest from the fund then you would if you held the T-Bills yourself due to expenses (the fund managers need to get paid) as well as part of the fund not being invested so that they have the liquidity needed.
I just opened a Schwab SWVXX money market fund. I was told this is the best way to save for a house. Was this a good idea, now after watching this video, I'm thinking it is not. What do you think?
I opened the Schwab account in June 2023. My account doesn't mention bank sweep but just says cash balances, then two intersecting boxes, then Rates . Clicking on Rates it mentions the 0.45% what a Scam. Thank you for the information on how to get higher returns.
Great video. I waa going to park a chunk of cash in Schwab'a Advantage Money Fund SWVXX. I parked it in SNSXX instead. But maybe you could explain here or in a future video the pros and cons of like funds at Fidelty and Vanguard , if applicable.
Great video. It seemed to imply you have to sell your entire SWVXX to draw out some cash to buy a CD. But I’m sure you can just sell the amount needed, say 5 thousand, correct?
I'm a novice saver/investor. Can I have SWVXX in a Roth IRA and is it tax free if I have it in a Roth? Love your videos and have already taken your advice on I-bonds.
A couple of questions. Why would I limit my Money Market Fund to Schwab funds just because I have an account at Schwab? What are repurchase agreements - I'm assuming they are what is causing the first couple of funds to not be 100% state tax exempt? Am I wrong in thinking that I shouldn't have a short term t-bill plan (roll over a 4 week t-bill every 4 weeks) at Schwab (your money wouldn't really be earning anything for the "week" that it's waiting to buy the next t-bill)?
Thank you++++ What I didn't catch is did you review their fees for each? I looked up in my Schwab account and i found .33% !! My Vanguard looks like .11% ? Big difference - can you explain.
Margin account can access the proceeds same day you sell stocks, so I am guessing it also applies to Money Market Funds. Please correct me if I am wrong
Do u have a formula to calculate the maximum quantity amount of T-bills (in even thousands of dollars) that I can afford to buy? I like to put my order in for the maximum quantity that I can afford (using all the money in my ROTH account, in full thousands), but right now I have to guess how much that will really cost.
Good video. I'm in NC where the state tax is a flat 4.99%. I have a 401k at Schwab. Treasury bills I buy on Treasury Direct are not subject to this tax. But it sounds like if I buy with Schwab then they will be subject to the state tax?
Yes. You get paid even if your balance is zero on the 15th. Each day you accrue a day's worth of dividends based on that days number of shares of the MMF.
So excited about this. I was thinking about moving money from my high-yield savings account... but.. no fdic insurance? What is a reasonable amount to leave in my swoops account?
Schwab, the same is true for Treasury yield money appearing in your account. Usually the middle of the day on Tuesday, my 30 Day Treasury that just matured gets deposited into my money market. This allows me to buy a new Treasury on Tuesday and not wait one week. I also tested the rollover option and that did not make me wait a week either. I know there was an earlier video that said waiting a week was required but that was not my experience. Perhaps Schwab has changed?
It is true that you can put in an order on Tuesday when the previous t-bill matures, but the settlement date for that purchase order is 1 week later. The settlement date is when you starting receiving interest. It is that week between announcement date and settlement date that no interest is being earned on that money.
I know you will be coming out with a similar video dealing with Vanguard Money Market accounts, but off hand which Vanguard MM is similar to Schwab Value Advantage MM?
Hi Joseph. I'll talk more about it in the Vanguard video (coming sometime next week), but in a nutshell, there isn't one. Schwab's Value Advantage is a prime MMF & Vanguard basically got rid of their Prime MMF a few years back. Personally, we just leave our uninvested cash in Vanguard's core MMF/ settlement fund (VMFXX)
i just moved my ira acct from JPM to SCHwab and it was less than a week FYI so between large brokerages seems faster. I also tried to move some IRA funds from JPM to a bank IRA and it was 3 weeks and they still were processing, so I moved my JPM to self directed and then went with Schwab FYI So smaller firms might not move as fast to other firms
This is the reason I prefer Fidelity over Schwab because their default cash holding is the money market and you don't have to sell it and wait for two days to purchase a new stock or bond.
For this very reason I'm considering switching to Fidelity
Schwab will charge you if forgot to sell the money market funds to found your stocks purchases
@@maicaster8985it is not a straight forward decision. Schwab website allows you to group accounts and securities. Makes it easier to manage your money.
This is exactly correct. Fidelity “allows” cash sweep into treasury type MM funds, which aren’t fdic insured but pretty darn safe. You can combine that with short term CD’s (insured) or treasuries, to optimize your interest rate returns. The much easier higher rate of return at Fidelity vs. Schwab or TOS is a big deal for active trading with a decent amount of cash parked. The downside of Fidelity is that they don’t have that addictive TOS trading platform or futures access (but the TOS micro emini commissions are terrible).
@@maicaster8985I have transferred part of my funds to fidelity. Really suffering from their website.
I almost didn't watch this video because I thought I knew all about my money fund choices. After watching, I switched my taxable brokerage accounts at Schwab from SWVXX to SNSXX immediately! In NJ, the tax savings will pay for my Super-SuperSaver membership and then some. Thank you!
Glad it was helpful!
If Swab in the unlikely event if going bankruptcy, would the Money Market go under? As it is not FDIC insured?... thanks
I used to have an acct at Schwab , had the checking and brokerage. When rates were near zero this was ok, but now they are much higher, so I moved to Fidelity for the CMA and brokerage acct. I keep a low amount in CMA, to cover cash flow needs, and the rest is in an accompanying brokerage acct where uninvested cash sits in SPAXX earning much more than the CMA or the small amount I used to get if it sat in Schwab's bank sweep. Plus when i want to pull the trigger to invest in a stock I dont want to wait to have to sell a MM fund. I don't have to with Fidelity core account. Schwab must love customers who keep tons of cash sitting in their checking earning 0.45%, as they profit handsomely off that.
How do you like the Fidelity CMA compared to the Schwab checking?
Liked the info, very educational. Thank you. All my cash for Schwab to use and me earning crumbs since 2020!! How do I reclaim all that interest back? I will move my accounts to Fidelity, Vanguard, or Robinhood.
I used to place my cash in SWVXX but moved to SNSXX during SVB & First Republic debacle, because on Schwab's site it says SWVXX's liquidity ("Measure of a money market fund's ability to meet shareholder redemptions, stated as a percentage of total money market fund assets, and calculated for one business day.") is only around 40% while their treasury money market funds have liquidity of 100%. 40% doesn't seem to be safe enough in case of a bank run. Also, I don't think Schwab advertises this but if you sell cash secured puts in your Schwab account, you can use their money market funds as cash collateral, which is pretty nice as it earns interest while you are holding the position.
Has there ever been a situation where anybody ever lost any money in SWVXX?
Can you sell covered calls at Schwab ?
Thank you for great video and valuable information. Regarding accessibility of the funds parked in money market fund (I have SWVXX): Schwab allows you to place an order to buy a stock even if it shows $0 cash balance, so usually I am buying stocks during the day and, at the end of the day place an order to sell required amount of shares in money market fund. The amount to cover is easily seen as negative number in cash balance.
I guess I have been in money sweep and did not know it. Thank you for telling this important information.
Nice overview. I recently got pushed over from Ameritrade to Schwab and was surprised that Schwab didn't have a parked cash MMF like Fidelity's SPAXX. That paltry 0.45% yield on Schwab's cash sweeps is pathetic. And having to formally buy their MMF to handle something SPAXX does automatically seems equally pathetic. Thanks for excellent presentation.
I use SWVXX because I live in Florida where there is no state income tax. Schwab is very customer friendly. They also allow you to use the cash in the money market fund as collateral so I can sell cash-secured puts and still make good interest on my cash.
Can you do that in the IRA accounts as well? I asked and they said you could only do that in non-IRA accounts
@@TaiwanFirst Yes, you can sell cash-secured puts in an IRA. It is not a margin account, but you will need the lowest (level 0) option approval level for the account. SWVXX is treated as cash, and SWVXX allows you to earn something on the cash. In case of assignment, you sell the needed amount of SWVXX to cover the purchase of the underlying stock.
I was wondering about my Schwab account and loved all of the details in this video. Everything I wanted to know. Great content.
Ur an angel, this should help a lot of folks I sort of stumbled across this issue about a year ago. Had Usaa accounts for many years- when I made my first trade at Schwab, I started to receive unpleasant sounding emails saying you “don’t have any money to make this trade”… yep I made the assumption that I could trade from my core money funds like I did at fidelity and usaa. Also I did have a big chunk of money in that sweep account in my brokerage account. All good now I’m in Snsxx for brokerage and swvxx for Ira. Note , just like I learned this lesson when Schwab bought USAA, I think anyone from TD ameritrade coming into Schwab should really take a look at how their core accounts were moved over…..😮
My choices are the same as yours. SNSXX for taxable account and SWVXX for IRA.
Thanks for sharing!
I learn something new with each video I watch. Trying to figure out what to do with a daughter's lump sum settlement - and this video (and others) was very helpful. Thanks!
Good for you Terry, Its hard but interesting navigating the investment world. I started in 2003 on my own with no help, we didnt have videos, just Scottrade, Yahoo Stock chat and limited access to real data. Its a new world, its a shame more people don't take a proactive role in their money
Thank you for taking the time for putting out this great information. I’m investing and moving my Schwab cash now. Much appreciated!
Glad it was helpful
She comes through again! Thanks as always
Great video.... Even explains the one day delay.
Highly recommended watching.
Your channel is just awesome. I’ve learned more from you than anyone else. Thank you
Currently in SWVXX, but thanks to your video, I will move funds to SNSXX for state tax exemption.
Agree,same here.
Glad it was helpful
Hi Jennifer! Thanks so much for making this video. I followed your step-by-step and moved a lot of cash out of the sweep account and into SNSXX. Super, super helpful!
FWIW -- I was curious as to what happens if you sell a fund, eg SWVXX, before the 15th of the month -- do you get a dividend for the month? I think the answer is yes, based on below verbiage from the prospectus. The key is that dividends are DECLARED on a DAILY basis, but PAYABLE on a MONTHLY basis.
"Each fund declares a dividend every business day, based on its determination of its net investment income. The funds pay their dividends on the 15th of each month (or next business day, if the 15th is not a business day), except that in December dividends are paid on the last business day of the month. If your daily dividend is less than $0.01, you may not receive a dividend payment. To receive a dividend distribution, you must be a registered shareholder on the date that dividends are declared."
Thanks for all your very informative videos, Jennifer! I’ve had a Schwab account for many years, and Schwab used to have a sweep with what Fidelity calls “core” cash positions. There were several to choose from and trading was pretty seamless. It’s a pain having to manipulate the accounts yourself. However, virtually all trades have T+1 or T+2 settlement dates, sometimes even longer (e.g. a Treasury auction), allowing time to move the cash from whatever money market fund it’s in to cover the trade. You can’t sell a stock (T+2) to cover a same-day mutual fund purchase (T+1), but in my experience you can buy a CD or T-bill (T+1) and sell money market shares (T+1) the same day to cover the next day settlement.
Unless you time things perfectly, your cash is going to be sitting in a low interest sweep account for at least some of that time. This is how Schwab makes more money off of your money.
You literally answered my question I had about the SWVXX. Now I don't have to call Schwab and sound like a dummy. Subbed! :)
Regarding the "spontaneous purchase". You have to take into account the "Settlement" timeframe of what you're purchasing. Stocks/ETF'S are 2 or 3 days, so you don't have to wait to purchase, since the Money Market funds are available the next business day.
I think a better strategy is to park idle money in your Schwab account into the short-term US Treasury ETF... SGOV. It is currently yielding over 5% and will probably do so for some time. I can sell SGOV any time during the trading day if I need cash to buy any equities immediately. No lag in time at all. Not only is the yield currently higher than Schwab's money market funds, but its interest is state and local tax free. I welcome any comments. Thanks.
Thank you for the idea.
TBIL is another option for SGOV. Across accounts I have some of both and will probably continue to use these to park cash until rates change.
@@jbirdsong5413If you have a limited margin IRA account, I believe you should be okay with OP's strategy.
I’m not seeing that high of yield on SGOV?
@@kellylee514 SGOV is not listed on Schwab site because it is an ETF issued by I-Shares (part of Blackrock), so it trades like a stock. Also, the price does vary some with a 52 week high of 100.64 and a 52 week low of 99.6. So if you get your timing wrong, you could risk taking a capital loss.
Thanks for this video. I might need it in future. Right now, I am managing my T-Bill ladder in Schwab. I don’t keep much in the Sweep account. If I want to build the volume of that ladder, I transfer $ a few days ahead of the auction date.
While my CFP manages the bulk of my securities investments, I manage my fixed income investments. I am learning a lot here! Thanks for teaching us how to make our cash work harder!
You're welcome!
If your maturing Treasuries don’t get credited to your account, THE MORNING of maturity, move your ladder to Fidelity!
In buying equities at Schwab or from other brokers, there are three days to settle. That is more than enough time to make the money market funds available for the purchase. It is not necessary to sell the mmf before buying equities. I believe that applies to ETFs or to any other instruments except perhaps other mutual fund purchases. Option trading may also require immediate cash.
Jennifer: You don't need to have cash in your Schwab sweep account on the day you make a trade. Just sell enough of your money market fund the day before the settlement date, or in the case of a treasury auction, the day before the issue date. That way your money works for you longer. I do this all the time. Schwab order messages tell you to make sure you sell enough of your money market fund to cover the trade. Schwab money market trades settle the very next day. Thanks for all you do.
Agreed.
Correct. I do it all the time. In my IRA, once you post the sale (trade) of those funds, you are free to use up to that amount to make a purchase of any other equity. With my regular taxable brokerage account, margin accomplishes the same thing, So I can reverse matters and buy the stock, then make the trade of SVWXX to cover at the end of the day.
And lose at least one day of the higher MM fund interest, I assume, and hand it over to Schwab to do as they wish with that extra cash. I wonder why Schwab does it this way?????
See top/ pinned comment - it depends on our account type. Schwab rep confirmed & we tested it out live with them on the phone.
@@SpaceClick It's how Schwab generates its earnings.
As of August 12, Fidelity's SPAXX 7 day yield 4,96%, Schwab's SWVXX 7 day yield 5.23%.
About the Sweep account: i was just told by the Schwab fixed income customer service rep tgst the best prsctice would be to order a CD, and then leave the cash in the MM fund until the day before the CD settlement date (usually sbout a week out).
Sell the MM fund the day before settlement, and then the cash used will have 0 days not collecting interest.
I'm with Ameritrade, which will be migrating to parent company Schwab accounts. Their target is to migrate everyone by year end. I'm discouraged to hear and confirm the low interest sweep accounts. Thanks for sharing that! I also have a Fidelity brokerage for our health savings accounts and was able to follow your directions to change my core sweep account there. Thanks for that help too!
Glad the video was helpful!
at TD Ameritrade, you can buy these Schwab Money Funds in their TD Ameritrade Trade: Mutual Fund section easily
Schwab is slow to move money but what I have done is setup standing wire instructions from fidelity. That way if I find a deal on a CD or something at Schwab, I can wire cash and purchase the deal same day
Thanks for sharing
I value the 1-2 day liquidity in these funds over the slightly higher rate of a 3-6 month T-Bill or CD (from a good solid bank). I'm willing to pay .5% for that so I don't miss some opportunity like silver crashing into the teens. Wish it was zero days like Fidelity though.
A great video... just what I was looking for. I'll follow your advice (I live in Calif) and buy both SWVXX and SNSXX. I was going to buy SNOXX, but you gave me better fund options
3:54 & 14:20 assumes that you have a normal brokerage / retirement account - which by default - is NOT approved for margin trades. If you want an exception to this, the Schwab representative we spoke to suggests that you may call in & they may or may not grant the exception/ charge a broker-assisted fee (on a case-by-case basis). Mutual fund settlement, which includes money market funds, is T+1 as per industry standard.
-------------
👉 Help keep our one-of-a-kind videos unbiased & sponsorship-free through channel membership - become a super-supersaver member: th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
WATCH NEXT (member videos)
⭐ July Live Member Q&A: th-cam.com/users/livetQJDTNCzf68?feature=share
⭐ Agency Bond 101 Deep-Dive: th-cam.com/video/ggjZSBS4TVc/w-d-xo.html
⭐ Understanding Credit Ratings: th-cam.com/video/0kWPz01qxBc/w-d-xo.html
⭐ Risks Of Bond Investing: th-cam.com/video/LBCa2D95cPM/w-d-xo.html
------
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
I do not have to wait to next day to buy stock with SWVXX. same day I purchase a stock, I just have to be sure I make a sell trade the same day in SWVXX to fund it.
Jennifer: I have IRA's and regular brokerage accounts with Schwab. I don't have a margin account. For years on all my accounts I can trade with no cash in my sweep account as long as I redeem enough funds to cover my trade the day before the settlement date. I don't know what the account rep that you spoke to is talking about. And re new issue CD's, those might not start earning interest on purchased CD's for three weeks before the first settlement date. If you buy early Schwab will take your money if its there in your sweep account and you will lose a significant amount of interest. Schwab is a great brokerage company but they have to make money some way since many trades are now commission free. They earn interest on the float. But you don't have to let them do that. Just read your order messages when you make a trade when you have no money in your sweep account. They will tell you to sell sufficient funds to cover the trade before settlement. Believe me. I have done this for years without a problem. If you were correct Schwab would not allow you to make an automated trade if you had no money in your sweep account. Only if you fail to have sufficient funds in your sweep account on settlement day will you incur a penalty.
Nice to know! I wonder if the same is true for their bill pay system. Currently, I add up my bills, sell enough SVWXX to cover them and then pay the bills the following day. It would be great to simply enter my bills online and then sell enough SVWXX that same day! @@user-ht3uu2bm2i
@@user-ht3uu2bm2i Yes, that's true. Same goes with other Schwab's money market funds.
Thanks for the video Jennifer. I own SWVXX too & have to sell the day before like you. Not sure what type of accounts the other people have here.
I go to SWKXX because I am in CA. I hate not having a MM as the default sweep account. I am thinking of moving it over to my Fidelity account but I like the idea of two accounts just in case...
Looks like the 7 day yield for SWKXX is just 2.87% shown at TD AMERTRADE or 1.89% shown on Yahoo finance. Am I missing something?
@@fishifritz My combined fed and state tax is 46% which is why this works for me since SWKXX is tax exempt.
@@miatafunrun3078 Thanks for sharing - the default sweep option is definitely a plus for Fidelity in my mind, but each of the leading brokers seems to have some area(s) that they specialize in (e.g. if you are interested in purchasing new issue munis, you may want to keep some of your funds with Schwab - I'll see if we can talk briefly about this in our member live when I'm back).
Interesting! I've always used SWVXX in my Schwab brokerage account for excess cash, but it looks like SNSXX would be better since it wouldn't be taxed in California vs 100% taxed for SWVXX. That should more than make up for the 0.08% yield difference. Thanks!
Same!
Same insight!! Another great video. 😀
Making the switch 😂
I knew I had a low rate with my Schwab sweep acct. so always kept my cash in t-bills. I think I'm good keeping it that way, but it's good to know there are alternatives. Thanks again for another excellent presentation! 👍
You're welcome!
This is a great breakdown of Schwabs money market funds noting they do not have money market etf funds like Fidelity and others do.
Spot on, Jennifer! My brokerage account is at TDAmeritrade (soon to become Schwab) but it was the same issue: idle cash in the sweep account earning nothing. No big deal until rates went up and then I had to act. I moved cash into SNVXX and SWVXX money market things. Then it became a little confusing to me, at first, because it was not moving cash but actually buying shares of a mutual fund. It is hands on because, as you said, when I want to use those funds I FIRST have to place a sell order to get that investment back into cash. My IRA at Vanguard is so much simpler in that regard. I think Schwab needs to get on a model like that for the sweep account to make things easier for the individual investor community. Pretty surprised they didn't lead the way.
I believe she said in the video that they used to have it but got rid of it. Not sure why, but I am sure it makes them a lot more money this way.
Great presentation on Schwab money funds. Very thorough and helpful. Thank you
Thank you! My broker had me set up for the money sweep at .45 percent. I’ll be buying money market funds Monday morning!
You're welcome & good luck!
Perhaps I missed it in the video but my understanding with Schwab is that there is a third downside or con which disallows the use of margin for stock trading on the funds held in these higher yielding mm instruments.
Love ❤ NestEgg videos and all of the information provided to us 👍🙏- Vielen Dank!
Gerne! But unfortunately, this is one I can't answer as we do not trade on margin in our personal accounts - perhaps you can reach out to Schwab on this? Let us know what they say if you get around to it!
I don’t trade on margin normally, but the money I hold in SWVXX has an indication under the total as to how much is marginable. I think it has to be in the account for some set period, like 30 days, before it can be margined.
Thank you for doing the research and simplifying the message for us!
Hi Jennifer! Two questions.Does the interest made on SNSXX stay in the fund or dump to the sweep? And is the 0.35% expense fee already calculated into the 7 day yield? Thx. Also share the unfortunate
NY tax burden with you!!
I have money sitting in my savings until the market corrects a bit more. I plan to transfer it to my investment account to purchase SNSXX for the time being.
Thanks for sharing
@@DiamondNestEgg I put it into SNSXX a day later. Thanks for the video.
I chose (inside and IRA) to go with SNOXX from these options, due to its very high liquidity compared to the others, and also it’s overall historical returns. All seem to be great options though!
Excellent video. Very informative and easy to understand.
I usually see a slow sell at Schwab for the mmf. I don't know why. If I put a sell order in by the end of day it's not fully completed until the end of the next business day and then I have access to the cash the day after that.
Yes. It takes two days to get your money from Schwab when you sell some money market fund money I have experienced that too.
Thanks for sharing. May depend on whether you sell before or after market close. MMF usually have T+1 settlement.
Right so I got hit with a margin loan when purchasing sometbing the next day after selling mm. Got the interest reversed by a rep but cash mangement with Schwab is a pain.
In messages, is it customary to assume "end of day" means end of 'trading' day, i.e. 4pm EST?
I am using SWVXX and will continue to as income taxes are not an issue. I wish Schwab had a core money market fund, but I don't want it enough to switch to Fidelity. I am switching my Treasury notes to Treasury Direct so I can get reinvestments without a one week gap in a low interest sweep account. And when I don't want to reinvest in Treasuries that the money is both swept in and out of my main bank account on the days of issuance and maturity.
What part of Schwab is better than Fidelity?
If your bank has "early pay" (or equivalent, they may call it something else) you will actually get the money from maturing T-Bills in your account 1 business day BEFORE it matures, so an extra reason to use Treasury Direct! Your money collects interest in both accounts for that one day (or even 4 days if holiday weekends are involved, but that is usually only for T-Bills that mature on Tuesday when the Monday before it is a holiday, so 4, 8, and 17 week T-Bills).
S hwab is a PIA because you have to place a trade to buy or sell a money market fund. If you sell the mm fund and buy a security the next day you will generate a margin debit, the funds are not available for two trading days.
I have not found this to be true. Yes, I have to sell MM to get the cash, but MM funds have been available to me next day, and although Schwab may label this a “margin trade” I am never charged interest.
It would have been nice to mention that the sweep rates for their Intelligent Portfolio accounts follows the SWGXX fund which has a current 7-day yield of 4.95%. "Normal" accounts are using .45% that you mention.
Is if possible for you to do a comparison video of Fidelity's managed account program vs Schwab Intelligent Portfolio!? Or maybe just managed accounts in general?
Absolutely love your videos. You have a special gift! Why invest in a money market vs. buying CD’s, T-bills etc? Do you have a video on this?
As always, great content and very timely. I was just on the phone a few days ago with Schwab asking if I could use SWVXX as my core cash position. No, of course but the rep did tell me something interesting. You have to sell your money-market a day before you buy a T-Bill but when purchasing a CD, you can set the trade to execute on the CD's settlement date so you don't lose the few days between purchase and settlement like on T-Bills at Schwab. I have not tried this yet but I am skeptical. I am looking forward to the Vanguard Video. Thanks!
Thanks for sharing & you're welcome. The Vanguard video is coming next week.
Proceeds from that taxable money account are interest or capital gains? Interest is usually added to my ordinary income, but for capital gains, I can have losses or gains.
Are the SNSXX dividends taxed as qualified dividends, ordinary dividends or as interest? Thanks for the great information.
Pretty sure I read in the prospectus that they are taxed as Ordinary Dividends
Was wondering if I bought SWVXX on the 18th of any particular month (in my IRA account) if I would get a dividend the following month...sounds like the answer is yes because the dividend is declared every day but paid every month. Answered my question. Thx
The higher expense ratio for not being a millionaire bothers me.
Vanguard has a much lower expense ratio for everybody.
Thank-you for confirming that Schwab does not allow money market bank sweeps. Oh well.
This means you cannot use it for cash covered puts. Oh well. I will limit such activity to Fidelity.
Great content! Here’s a question…when SNSXX matures in 37 days, do the funds go back into cash just like after Tbills maturing….and is there an option to auto roll after maturity?
Following
The stated maturity is the average duration of the investments within the money market fund. It earns daily and pays earnings out monthly with the choice to auto invest the dividends earned.
SNSXX is a fund, it does not mature itself, but the bills the fund holds do mature. You are paid once per month based on the interest earned on the bills that matured in that month (and can re-invest those earnings). From a quick look at the prospectus, it looks like they simply buy T-Bills about every 2 weeks (and currently hold 27 T-Bills). The advantage of a treasury fund over buying the treasuries yourself is the flexibility of being able to sell part of the fund any time you want without having to deal with selling T-Bills on the market (so to you it can be thought of as just a high interest cash account). Funds actually do have a certain percentage of the fund in cash so they can handle payments to people who sell without having to sell any of the T-bills before maturity. You will generally get less interest from the fund then you would if you held the T-Bills yourself due to expenses (the fund managers need to get paid) as well as part of the fund not being invested so that they have the liquidity needed.
I just opened a Schwab SWVXX money market fund. I was told this is the best way to save for a house. Was this a good idea, now after watching this video, I'm thinking it is not. What do you think?
I opened the Schwab account in June 2023. My account doesn't mention bank sweep but just says cash balances, then two intersecting boxes, then Rates .
Clicking on Rates it mentions the 0.45% what a Scam.
Thank you for the information on how to get higher returns.
I use SWVXX since I live in the great state of Texas where there are no state taxes.
Awesome video, thanks for explaining MMAs. 👍
SWVXX has $132 billion; SNVXX 18.2 bil; SNOXX 33 bil; SNSXX 16 bil.
Great job, very well-done video, Thank you so much.
Great video. I waa going to park a chunk of cash in Schwab'a Advantage Money Fund SWVXX. I parked it in SNSXX instead. But maybe you could explain here or in a future video the pros and cons of like funds at Fidelty and Vanguard , if applicable.
Great video. It seemed to imply you have to sell your entire SWVXX to draw out some cash to buy a CD. But I’m sure you can just sell the amount needed, say 5 thousand, correct?
yepper just the amount you need.
i love your vids.. informative and to the point. 👌
THis video was so informative and very helpful.
Excellent info I needed to know. Thanks!
Really good info, glad I watched this.
I'm a novice saver/investor. Can I have SWVXX in a Roth IRA and is it tax free if I have it in a Roth? Love your videos and have already taken your advice on I-bonds.
Option buying doesn’t require you to sell the money market shares they will put them on hold but you still get the almost 5 percent
Great video - huge fan. Thanks!
yes. Please do Vanguard ETrade on same subject.
Noted
A couple of questions. Why would I limit my Money Market Fund to Schwab funds just because I have an account at Schwab? What are repurchase agreements - I'm assuming they are what is causing the first couple of funds to not be 100% state tax exempt? Am I wrong in thinking that I shouldn't have a short term t-bill plan (roll over a 4 week t-bill every 4 weeks) at Schwab (your money wouldn't really be earning anything for the "week" that it's waiting to buy the next t-bill)?
Thank you++++
What I didn't catch is did you review their fees for each?
I looked up in my Schwab account and i found .33% !! My Vanguard looks like .11% ?
Big difference - can you explain.
Thank you for sharing. Helpful video.
What happens to my $ in SWVXX or SNVXX if schwab fails??? I’m getting really nervous as things are heating up
Is Your Money Safe If Schwab, Fidelity or Vanguard Fail | SIPC Protection
th-cam.com/video/kY5BswpUlf4/w-d-xo.html
Margin account can access the proceeds same day you sell stocks, so I am guessing it also applies to Money Market Funds.
Please correct me if I am wrong
I'm working on finding this out. I've added margin to my account. This is sure a pain in the nuts compared to Fidelity and Vanguard.
Do u have a formula to calculate the maximum quantity amount of T-bills (in even thousands of dollars) that I can afford to buy? I like to put my order in for the maximum quantity that I can afford (using all the money in my ROTH account, in full thousands), but right now I have to guess how much that will really cost.
Unfortunately, I don't have a formula for this. Everyone's financial journey is different Ann.
do you consider do another one as rates went up and slowly down again.
Funds avail by settlement date; not auction?
Bid/ask spread loss moving in and out of these funds?
Good video. I'm in NC where the state tax is a flat 4.99%. I have a 401k at Schwab. Treasury bills I buy on Treasury Direct are not subject to this tax. But it sounds like if I buy with Schwab then they will be subject to the state tax?
So SWVXX for tax-exempt and tax deferral accounts?
Very helpful video, thanks!
Is there an expense ratio being charged to these funds?
What about E-Trade. Any tip on that platform?
We don’t have a video on that at the moment but can add to our list
What is the risk of SWVXX SNVXX SNOXX SNSXX?
Since the divdends pay on the 15th, if I sell the MMF before the 15th, will I still get paid of the dividens for the days that I held MMF?
Yes. You get paid even if your balance is zero on the 15th. Each day you accrue a day's worth of dividends based on that days number of shares of the MMF.
Are there any fees going to be deducted from my funds??
So excited about this. I was thinking about moving money from my high-yield savings account... but.. no fdic insurance? What is a reasonable amount to leave in my swoops account?
That's really up to you, but generally below the SIPC limit I would say
Schwab, the same is true for Treasury yield money appearing in your account. Usually the middle of the day on Tuesday, my 30 Day Treasury that just matured gets deposited into my money market. This allows me to buy a new Treasury on Tuesday and not wait one week. I also tested the rollover option and that did not make me wait a week either. I know there was an earlier video that said waiting a week was required but that was not my experience. Perhaps Schwab has changed?
It is true that you can put in an order on Tuesday when the previous t-bill matures, but the settlement date for that purchase order is 1 week later. The settlement date is when you starting receiving interest. It is that week between announcement date and settlement date that no interest is being earned on that money.
Great information. Thank you!
I live in California and I bought snoxx. I still have to pay state tax on it? Snoxx contains only T-bill, right?
why wouldn't someone just put in high yield savings accounts? and what about in ira account can i have uninvested cash?
Effective July 3 2023 the current interest is 4.67%
If you hold for only 7 days, then you sell, do you earn any interest?
Thanks
I know you will be coming out with a similar video dealing with Vanguard Money Market accounts, but off hand which Vanguard MM is similar to Schwab Value Advantage MM?
Hi Joseph. I'll talk more about it in the Vanguard video (coming sometime next week), but in a nutshell, there isn't one. Schwab's Value Advantage is a prime MMF & Vanguard basically got rid of their Prime MMF a few years back. Personally, we just leave our uninvested cash in Vanguard's core MMF/ settlement fund (VMFXX)
Can you do a video on how to transfer accounts from Schwab to Fidelity? Can this even be done with a retirement account? Thx!
Your best bet is to reach out to Fidelity on this - you'll probably get a faster answer
i just moved my ira acct from JPM to SCHwab and it was less than a week FYI so between large brokerages seems faster. I also tried to move some IRA funds from JPM to a bank IRA and it was 3 weeks and they still were processing, so I moved my JPM to self directed and then went with Schwab FYI So smaller firms might not move as fast to other firms
Good stuff. Thank you!