What's your Fidelity Core Position?

Thank you this video helped alot😊

@OptimizedPortfolio

4 ай бұрын

I'm glad!

Perfect pacing & right to the point- don’t listen to that other commenter to slow down.

@OptimizedPortfolio

3 ай бұрын

Thanks, Matthew!

This is helpful, thanks. I’m at Schwab but looks like they have a similar fund

@OptimizedPortfolio

6 ай бұрын

Definitely!

Great content. At the end it would be nice to have a slide with all the numbers and fees. It is hard to memorize everything and have a real time comparison.

@OptimizedPortfolio

4 ай бұрын

Thanks for the suggestion, Chris. Seems obvious; not sure why I didn't do that.

Mine's FCASH... never changed it, never messed with it. I only keep a small buffer amount on that anyways since almost all else is invested.

@OptimizedPortfolio

6 ай бұрын

Awesome!

Thanks

@OptimizedPortfolio

12 күн бұрын

You're welcome!

@keylypaiz4563

6 күн бұрын

@@OptimizedPortfoliotrying

I'm not understanding what you mean by the 7-day yield of 5%. Is this an annual yield of 5% (as it currently stands in 2024), or do you just get interest for 7 out of 365 days? FDRXX says it has an expense ratio of 0.42% which seems like a whole lot, so I'm also not clear if that money is deducted every time I use the cash to purchase an investment, such as an S&P 500 fund. I've only gotten into this finance stuff a few years ago, so am still quite confused.

@OptimizedPortfolio

4 ай бұрын

Annualized yield based on the average rate over the past 7 days. This provides a more recent, more accurate quote than the trailing 12-month yield. SEC yield is net of fees.

Great video. Thank you. My wife has opened a trad ira at Fidelity and wants to put a small bit of it into a portfolio and most of it into a cd. Would she be better off leaving tge lump in the SPAXX?

@OptimizedPortfolio

3 ай бұрын

Thanks! Depends on CD rate vs. SPAXX yield and when the money is needed, but not really sure why one would hold either for very long in a Traditional IRA where you can't withdraw without penalty until age 59.5. Unless you're 58 or 59 years old.

I have a nice lump sum sitting in a HYSA getting 4.35% (im gonna be using it for a down payment on a house in the next couple years). Would I be better off transferring that entire account to fidelity and letting it sit in spaxx?

@OptimizedPortfolio

2 ай бұрын

Depends on your personal goal(s), strategy, etc. Compare yields. You can always switch back.

I have SPAXX. Also I have Fidelity Bloom.

@OptimizedPortfolio

6 ай бұрын

Thanks for sharing!

So FCASH or FDIC... When does it actually pay interest?

@OptimizedPortfolio

4 ай бұрын

I'd guess it accrues daily and pays monthly. Not 100% sure. Read the terms.

I use FDLXX

@OptimizedPortfolio

Ай бұрын

Thanks for sharing!

Hi John, What is the safest place to keep your wealth, cash in SPAXX core account, ETFs, CDs, individual stocks (within Fidelity lets say) or cash in banks saving account? I particularly interested to cash out out of stocks for now and put it in SPAXX and keep it there collecting 5% interest, can you advise especially on SPAXX? Thank you.

@OptimizedPortfolio

3 ай бұрын

Safest probably HYSA or CD, and then as I noted SPAXX and other MMF are a tiny bit above that but still considered safe.

@STP-ok7zh

3 ай бұрын

@@OptimizedPortfolio Some say stock markets are manipulated and it would be good to cash out, do you agree?

@OptimizedPortfolio

3 ай бұрын

@@STP-ok7zh Someone is always saying something. I ignore the noise and I don't try to time the market.

Thank you, and thanks for the timestamps! I recently converted core positions from SPAXX to FZFXX as I live in a high tax state. It is funny that we have to say "it may appear" as an option for you. Does anybody really know what determines which options we see? Maybe only Fidelity?

@OptimizedPortfolio

6 ай бұрын

You're welcome! Thanks for watching and sharing your experience. Indeed. I'd guess probably account balance, date of account opening, account type, and self-selected experience level are determinants. No one knows.

Can I split $$$ between say SPAXX and FDIC in the same account?

@OptimizedPortfolio

4 ай бұрын

For the selected core position, no. But you could manually buy SPAXX.

I use FDLXX.

@OptimizedPortfolio

Ай бұрын

Thanks for sharing!

The only Fidelity MM fund I really wanted to know about and the only one that may have a real difference is FDLXX, which is a pure play US treasuries only fund. I've heard that this fund may not be subject to Federal or state tax (not sure which one) but I haven't been able to confirm this for certain. If you can post some information about FDLXX that would be great.

@OptimizedPortfolio

18 күн бұрын

Hey Chris, interest from FDLXX would be subject to federal income tax but would be exempt from state income taxes. This is the case for all US Treasury bonds and by extension, any fund that exclusively holds US Treasury bonds such as FDLXX and SGOV.

@chrisa.515

18 күн бұрын

@@OptimizedPortfolio Thanks! I've also noticed that FDRXX has a lower expense ratio than all the others, 0.38% vs. 0.42%. I'm not sure why this is but it doesn't seem to make any real difference in it's overall performance as compared to the others assuming that the stats shown by Fidelity are including fees.

@OptimizedPortfolio

18 күн бұрын

Yea there doesn't seem to be much rhyme or reason as to the different expense ratios Fidelity impose on these various funds, and they seem to change often. What may be a more useful comparison in this context is just to look at that 7-Day Yield aka SEC Yield, which is the fund's yield net of all fees.

I’m happy with SPAXX. It doesn’t matter which one you put your core cash. At the end of the day it’s all money for retirement.

@OptimizedPortfolio

6 ай бұрын

Not necessarily. Some may have other short-term goals.

@SilverHonda0767

6 ай бұрын

@@OptimizedPortfolio well, isn’t the ultimate goal to save for retirement? I have SPAXX for three years now and I enjoy the $15. a month dividends that get reinvested into my Roth IRA.

@SilverHonda0767

4 ай бұрын

@@OptimizedPortfolio that is true, no matter what your goals saving money. My SPAXX is set up for Roth IRA retirement.

At least for Virginia, income from government repurchase agreements are not tax deductible. Most of these MMFs are running around 50% income from repos in their composition by instrument. I also don't see Fidelity Treasury Only MMF (FDLXX) as a core position choice.

@OptimizedPortfolio

2 күн бұрын

Good observation. Thanks for sharing!

I have FDRXX

@OptimizedPortfolio

4 ай бұрын

Thanks for sharing!

HaPpY NeW YeAr

@OptimizedPortfolio

6 ай бұрын

Likewise!

SPAXX

@OptimizedPortfolio

Ай бұрын

Thanks for sharing!

Keep in mind when you do a transfer from your bank to Fidelity it goes and spaxx unless you change it Now, if you did that same transfer with Schwab or vanguard, it goes into some fixed cash account that pays significantly less and then you have to physically transfer that yourself to their money market Seems like a no-brainer, but how many people really make that other transfer Very few, I’m sure

@OptimizedPortfolio

4 ай бұрын

Thanks for pointing this out.

@jimsmith3760

Ай бұрын

If it's a brand new account at Fidelity, they ask you what the default investment should be, and the two options are FCASH and SPAXX. That is as of about a month ago at least.

@OptimizedPortfolio

Ай бұрын

@@jimsmith3760 Thanks for sharing, Jim!

Slow down. Talk too fast . Trying to write stuff down.

@OptimizedPortfolio

4 ай бұрын

Thanks for the feedback. People used to say I talked too slowly. You can adjust playback speed by clicking the gear icon.