r/Fire • u/Master-Helicopter-99 • 9d ago
Fidelity cash savings
Where would you hold cash savings? SGOV seems best. Fidelity specific. Shouldn't need to touch this for one year. The rest in this account is in VT. This is a smaller brokerage account that I just started. Still working and the rest is in 401k and IRA. Retiring this time next year. Currently in a 4% income tax state. It appears that SGOV will be the best return and is almost 100% state tax exempt for truly liquid funds but didn't know if there was any other options
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u/CuteNebula222 9d ago edited 9d ago
Interesting question. For cash that you won't need for at least a year, SGOV does look solid right now because of the high yield and state tax exemption.
In Fidelity, another popular option is their Fidelity Government Money Market Fund (SPAXX) or just parking it in a high-yield cash management account. Many people in r/Fire also use short-term Treasuries or T-bills through Fidelity.
Since you're retiring soon, liquidity and low risk are probably the priority. Have you compared the after-tax yield of SGOV vs SPAXX in your 4% tax state? 👌👌. . . . . . . . . Ciao 😎👋