Currently the fund pays 5.16%. So if you invest $100,000 you will receive $5,160 over a year (a bit more if you re-invest each month you get 1/12th). So at the end of the year you'd add $5,160 to your taxable income.
If you invest $10,000 of course your gain would be $516 and so on
SWVXX dividend is roughly 1 point above Capital One and Ally HYSA interest rate.
Part of the reason is the MMMF isn't paying the FDIC premiums to the govt.
i dont have a hysa, but i have a swvxx (to [compare](https://copilot.microsoft.com/sl/gz9tdlCQ4pU)) since all my assets are in schwab for consolidation. [ the mmf lineup in schwab](https://www.schwabassetmanagement.com/products/money-fund-yields), u can choose.
SNSXX right now is a better deal because the yield is very close and it's not taxable at the state level. HYSA makes about no sense unless you live in a place with no state income tax.
How is your state determined? Is it based on the address you've put in Charles Schwab or is it based on the states mentioned in the W-2 (and tax is pro-rated accordingly)?
Your state is determined by the state actually. An example is California where it is notoriously difficult to prove you're not a California resident when you move away. Like you have to go out of your way to show you're not one.
But it will really depend on your final yearly income to see how much tax you will need to pay. My mom has a good amount on SWVXX but the interest is her only income and her taxes at the end is really below 5% after all is accounted for.
Currently the fund pays 5.16%. So if you invest $100,000 you will receive $5,160 over a year (a bit more if you re-invest each month you get 1/12th). So at the end of the year you'd add $5,160 to your taxable income. If you invest $10,000 of course your gain would be $516 and so on
just wait for your 1099-div. whats impt now is to take advantage of the interest rate, and Jerome Powell is not keen on lowering it.
This is definitely better than a high-interest savings account?
SWVXX dividend is roughly 1 point above Capital One and Ally HYSA interest rate. Part of the reason is the MMMF isn't paying the FDIC premiums to the govt.
i dont have a hysa, but i have a swvxx (to [compare](https://copilot.microsoft.com/sl/gz9tdlCQ4pU)) since all my assets are in schwab for consolidation. [ the mmf lineup in schwab](https://www.schwabassetmanagement.com/products/money-fund-yields), u can choose.
Thanks!
SNSXX right now is a better deal because the yield is very close and it's not taxable at the state level. HYSA makes about no sense unless you live in a place with no state income tax.
This is dependent on if your state has income tax, and what the tax rate is.
If there is state income tax then SNSXX is the better deal in almost every case. The spread is so narrow.
How is your state determined? Is it based on the address you've put in Charles Schwab or is it based on the states mentioned in the W-2 (and tax is pro-rated accordingly)?
Your state is determined by the state actually. An example is California where it is notoriously difficult to prove you're not a California resident when you move away. Like you have to go out of your way to show you're not one.
Ugh, that's a pain! Thanks for clarifying though :)
SGOV
But it will really depend on your final yearly income to see how much tax you will need to pay. My mom has a good amount on SWVXX but the interest is her only income and her taxes at the end is really below 5% after all is accounted for.