Safe Harbor for cash

[Gumby]

If your concern is return OF capital rather than return ON capital, then you can't do better than your local FDIC insured bank.

[Lakewood90712]

Have close to 300k in a 457 stable value, going to transfer to the self directed option, and find a short term gov bond fund. dont care about return ON capitol at this time. Mattresses at home are already full.

[PatrickA5]

We have 100% of our retirement money in FZDXX. What would be safer that pays as well? I'm not really interested in moving funds to other brokerages/banks at this time.

[audreyh1]

Quote:

Originally Posted by Dtail Thanks. It looks like the MM Treasury fund at Fidelity which would qualify is FDLXX, but not sure of the current yield, as they only post the 7 day yield from 02/29 which is now way outdated.

Bookmark this: https://fundresearch.fidelity.com/mutual-funds/fidelity-funds-daily-pricing-yields

Then you can check every day.

Looks like 0.65% on FDLXX

[audreyh1]

Quote:

Originally Posted by capjak I use SPAXX treasury MM by fidelity

SPAXX is a government MM fund, not treasuries only. SPAXX = Fidelity® Government Money Market Fund

[audreyh1]

Quote:

Originally Posted by OldShooter I don't think there is any security more liquid than a govvie. Selling is as easy as entering the order and you will take a much smaller haircut than when selling a CD. But the answer is to plan cash flows so you don't have to sell and to keep a little cash if necessary as insurance against selling.

What could be more liquid? An FDIC insured bank checking or savings account? No security selling necessary.

[OldShooter]

Quote:

Originally Posted by audreyh1 What could be more liquid? An FDIC insured bank checking or savings account? No security selling necessary.

Well, those are not generally considered to be securities but they certainly have a place in one's financial strategy exactly because they can be accessed immediately.

[audreyh1]

Quote:

Originally Posted by OldShooter Well, those are not generally considered to be securities but they certainly have a place in one's financial strategy exactly because they can be accessed immediately.

Well we aren’t limited to securities for stashing safe cash are we? Hence my suggestion of using an FDIC insured high yield savings account.

[REWahoo]

Quote:

Originally Posted by audreyh1 Well we aren’t limited to securities for stashing safe cash are we?

Not as long as we have access to a mattress!

[OldShooter]

Quote:

Originally Posted by audreyh1 Well we aren’t limited to securities for stashing safe cash are we?

Jeez. Did you get up on the grumpy side of the bed this morning or are you just determined to have the last word in any conversation?

My statement that you decided to pick on began: "I don't think there is any security more liquid than a govvie." So, yes, it was limited to securities.

[audreyh1]

Viewpoint article from Fidelity published on 3/20/20 giving an overview of their different types of money market funds and how they differ. They also give an overview of recent Fed actions to stabilize the credit markets. https://www.fidelity.com/learning-ce...y-money-market

[SunnyOne]

Crazy thought. Could settlement fund accounts at a brokerage be even safer than an FDIC insured savings account? Brokerages don't lend out our money but banks do.

Side note - I have a Treasury Direct account for my I Bonds. How complicated is it to go in and buy T Bills?

Thanks

[Ready-4-ER-at-14]

I was just at the wsj bonds and rates page and what I saw was negative rates of return on 1 month and 3 month treasuries.

[audreyh1]

Quote:

Originally Posted by SunnyOne Crazy thought. Could settlement fund accounts at a brokerage be even safer than an FDIC insured savings account? Brokerages don't lend out our money but banks do. Thanks

No.

[audreyh1]

Quote:

Originally Posted by Ready-4-ER-at-14 I was just at the wsj bonds and rates page and what I saw was negative rates of return on 1 month and 3 month treasuries.

Yeah, I wonder if that’s a short term phenomenon like right after the oil price crash had 10 year treasury rate down to 0.4% during the day. 10 year rates have since returned to their prior levels and a bit higher.

I guess we’ll see what it means......

MM fund rates have been dropping super fast, but I assumed they would just go to 0....

[jetpack]

Ally savings is 1.5% plus the 1% bonus. . I got a bit parked there.

Moved about 500k to cash as this started going down, so now looking to DCA my way back in.

[VFK57]

Quote:

Originally Posted by jetpack Ally savings is 1.5% plus the 1% bonus. . I got a bit parked there. Moved about 500k to cash as this started going down, so now looking to DCA my way back in.

Not sure if Ally Bank 1.5% only for new accounts or an old ad. My Ally saving acct pays .75% down from 1% only a few month ago.

[capjak]

Quote:

Originally Posted by audreyh1 SPAXX is a government MM fund, not treasuries only. SPAXX = Fidelity® Government Money Market Fund

Correct.

[ownyourfuture]

I was going to start a separate thread for this, but since the money market fund in question has already been mentioned several times, I'll just ask here.

At Fidelity, I keep cash in a government money market fund (SPAXX)
As of today, it says the 7 day yield is 0.24% with an expense ratio (gross) of 0.42%

Will this translate into a negative yield ?

[Another Reader]

Quote:

Originally Posted by VFK57 Not sure if Ally Bank 1.5% only for new accounts or an old ad. My Ally saving acct pays .75% down from 1% only a few month ago.

That's not the savings account. That's the money market account. The savings account pays 1.5 percent right now. You might want to consider switching.