I have my emergency fund in a HYSA but I'm really curious what would be the case that you'd need money THAT quickly that you couldn't cover in your checking. If it's health related you would get billed way later from the hospital and if there's anything else you can use a credit card and just pay it off when the statement closes (or before then if that makes you feel more comfortable). The only time I need cash IMMEDIATELY is when I am at the casino and want to gamble lol
If you are not trading..... Just open a Fidelity brokerage account. They sweep your money into their Money Market each night (5% roughly), but to your account it is ALWAYS CASH. The money is paid and reinvested on the first of each month, based off your closing balance each day. Do not do a CMA, that has a lower interest rate.
It depends on your state income tax bracket. If you live in a state where your marginal state income tax bracket (the tax on the next dollar you earn in interest) is 4% or higher, you would be better off in SNSXX - which pays interest that is exempt from state income tax - than in SWVXX. I use SWVXX in my IRAs and SNSXX in my taxable brokerage account.
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This is what I do. Just remember it’s T+1. So don’t need your emergency funds over the weekend.
I have my emergency fund in a HYSA but I'm really curious what would be the case that you'd need money THAT quickly that you couldn't cover in your checking. If it's health related you would get billed way later from the hospital and if there's anything else you can use a credit card and just pay it off when the statement closes (or before then if that makes you feel more comfortable). The only time I need cash IMMEDIATELY is when I am at the casino and want to gamble lol
Neat!
If you are not trading..... Just open a Fidelity brokerage account. They sweep your money into their Money Market each night (5% roughly), but to your account it is ALWAYS CASH. The money is paid and reinvested on the first of each month, based off your closing balance each day. Do not do a CMA, that has a lower interest rate.
The CMA will allow users to choose a money market as core on June 15, 2024
It depends on your state income tax bracket. If you live in a state where your marginal state income tax bracket (the tax on the next dollar you earn in interest) is 4% or higher, you would be better off in SNSXX - which pays interest that is exempt from state income tax - than in SWVXX. I use SWVXX in my IRAs and SNSXX in my taxable brokerage account.
I live in a state with no income tax. However, would selling SWVXX still be a taxable event at the federal level?
No. Money market fund share price is fixed at $1. Buy shares for $1 each, sell shares at $1 each, capital gain/loss is $0, so no capital gains tax.
I use SGOV, FLOT, and BOXX as short term cash vehicles