I can't push myself to move out of SWVXX

[kirby]

I have 401k's, and other stocks purchased, long hold etc, but over time I started saving a warchest to use for business/down payment on a home. Business is ok, do have regular employed income.

So all I do is have liquidity ready too much, about 800K just sitting in SWVXX. Always fearful to buy in, to DCA, to do anything.

I thought about just SP500, ETF's, etc hell but decision paralysis overcomes me.

 

[erkevin]

You can certainly do much better than 3.4% with very little risk. I have no idea of your time-frame, but a fixed income ladder could certainly generate quite a bit more income with little/no risk. Even 1 year CDs are paying 4%. 2-year, a little more. There are corporate bonds paying 5%, 20-year treasuries are at 5%.
If your emotional risk-tolerance is nil, begin exploring alternatives. These are a couple of threads that have many solid options:

Best CD, MM Rates & Bank Special Deals Thread 2024 - Please post updates here

I just saw a JPMorgan 5 yr callable @ 4.5%. First call is 4/27 so like getting a 1 year (or more) at that rate. I was on Etrade... CUSIP 46659CWG1

www.early-retirement.org

Corporate and Agency GSE Bond DEALS and NEW ISSUES

Just to clarify the exchange on credit risk and interest rate risk: both are risks which must be managed in my view. I buy corporates, but only the upper half of investment grade. I do not own bonds with duration beyond 5-6 years. I do not buy callables because I do not want to be given my...

www.early-retirement.org

What's your favorite income/fixed income sources?

Trying to build out a fixed income basket and wanted to see what are the favorite stock, bonds, preferreds, cefs, etc,. that others like. Not inluding covered call income funds but feel free to add if you wish. For myself here are some I like. HTD - 7.3% yield. No nav erosion and...

www.early-retirement.org

 

[RetiredHappy]

Maybe you can use the money to buy a home. Easy peasy.

 

[Koolau]

From your other recent post I think you realize that something like the S&P500 index would likely be a better investment for someone your age. BUT if you don't feel comfortable with it, I'd call it a non-starter for now. Perhaps you can get your feet wet with 10% of your holdings moved to S&P or similar.

Your time frame is significant so you could likely make up any losses should the markets tank. Here I sit 18 years after the 2008 downturn and I never touched a thing in my equity positions (including S&P500 index fund). I'm glad I stuck with my equities and they have rewarded me nicely. You need to increase your confidence in the markets, however before you make a big move. Free advice that's worth every penny you paid for it!

 

[target2019]

I pushed one account's cash from MMF to CD a week ago.

 

[Dtail]

I pushed one account's cash from MMF to CD a week ago.

The simplest thing to do. Start here first. Buy a brokered CD which is under 250k and fully protected.

 

[copyright1997reloaded]

I have 401k's, and other stocks purchased, long hold etc, but over time I started saving a warchest to use for business/down payment on a home. Business is ok, do have regular employed income.

So all I do is have liquidity ready too much, about 800K just sitting in SWVXX. Always fearful to buy in, to DCA, to do anything.

I thought about just SP500, ETF's, etc hell but decision paralysis overcomes me.

A no-brainer would be to do a ladder of 6 month T-Bills one week at a time, so about 30K per week (new issue).

Current 6-month t-bill is 3.751%, SWVXX is at 3.47%, so the spread is 0.281%. On 800K that is $2248/year. Not tons of money but enough for me to pay attention. Also the T-bill is state tax exempt, SWVXX is not. T-bills can also be margined at Schwab (if something crazy comes up and you need to do so). Once we get near the end of June, those new 6 month T-bills won't result in 2026 income (as they mature w/2027 dates).

You can also use the above strategy to nibble on things if the opportunity arrises. Not DCA per se, but if something interesting comes along - allocate a week or half a weeks T-Bill allotment to it. Rinse and repeat the next time.

I am doing the above with some house proceeds - eventually the money will likely be used for a few improvements on the new place and more importantly as a source of funds for Roth conversions. In the meantime, buying T-Bills weekly gives it something to do.

 

[Kings over Queens]

I have 401k's, and other stocks purchased, long hold etc, but over time I started saving a warchest to use for business/down payment on a home. Business is ok, do have regular employed income.

So all I do is have liquidity ready too much, about 800K just sitting in SWVXX. Always fearful to buy in, to DCA, to do anything.

I thought about just SP500, ETF's, etc hell but decision paralysis overcomes me.

I have no idea of your personal situation, time line, eyc., and am only commenting because your asked, or rather, shared your hesitation.

I'm an index investor and think the sp500 is a great start. Why not take 5 or 10% of your swvxx and buy voo or your index fund of choice. You might get more comfortable investing in smaller chuncks.

 

[Midpack]

Current 6-month t-bill is 3.751%, SWVXX is at 3.47%, so the spread is 0.281%. On 800K that is $2248/year. Not tons of money but enough for me to pay attention. Also the T-bill is state tax exempt, SWVXX is not. T-bills can also be margined at Schwab (if something crazy comes up and you need to do so). Once we get near the end of June, those new 6 month T-bills won't result in 2026 income (as they mature w/2027 dates).

If you don’t move to T-bills, at least move it all to one of Schwab’s MMFs with some or all treasuries so you can save on state income taxes. Interest on $800K probably not trivial in most states, though you’ve declined to share what state you’re in…

I keep all my cash in 100% treasury MMFs for that reason. If I need something in my settlement account, it’s there next day.

 

[UpQuark]

Always fearful to buy in, to DCA, to do anything.

Not doing anything is actually making a choice and IS doing something, you are choosing to invest it all in SWVXX which invests globally in high-quality, short-term debt. This includes certificates of deposit (CDs), commercial paper, corporate promissory notes, and government securities.

Not sure it works for humans, but when a horse is afraid of something repeating a limited approach and retreat lowers their fear about it. So maybe use a really trivial amount that neither gains nor losses would affect you, and buy that (such as use the SWVXX money to buy one share each of a few ETFs that you think you would like to be invested in).

 

[kirby]

Not doing anything is actually making a choice and IS doing something, you are choosing to invest it all in SWVXX which invests globally in high-quality, short-term debt. This includes certificates of deposit (CDs), commercial paper, corporate promissory notes, and government securities.

Not sure it works for humans, but when a horse is afraid of something repeating a limited approach and retreat lowers their fear about it. So maybe use a really trivial amount that neither gains nor losses would affect you, and buy that (such as use the SWVXX money to buy one share each of a few ETFs that you think you would like to be invested in).

That's what exposure therapy exactly is, and what I should be doing. Thank you for that. https://www.apa.org/ptsd-guideline/patients-and-families/exposure-therapy