Row 8094

Row ID: 8094 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 8094 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

I have brokerage accounts at Schwab , Fidelity , Vanguard...while I like Schwab thr most, I thiught id share so e slight difference in theie cash sweep festure for their accounts.

For those that don't know, a cash sweep is basically how your brokerage investment account auto-invests the cash that isn't currently invested in stocks, mutual funds, bonds, etc...

So for example, if you have $100k in your brokerage account that's not doing anything, the brokerage auto-invests that money in something. Typically it's a money market fund. .

Fidelity and Vanguard allows you to specify how your cash gets auto-invests, and they both offer a money market option that has a yield of 4.8-5%...

Schwab cash sweep feature only allows you to pick among "safer" choices....so the return on cash swept up is closer to 1%. If you want it to be earning a higher rate, you need to manually move the money I to the Money market funds it sells.

Thus slight difference is apparent is if you buy and sell investments frequently...when you sell stock, there's usually a brief 1-2 say settlement . During that time, you can't really do anything with that money (unless you have a margin account) and the money is just sitting there .. earning the sweep rate of your brokerage ..

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FieldValue
text I have brokerage accounts at Schwab , Fidelity , Vanguard...while I like Schwab thr most, I thiught id share so e slight difference in theie cash sweep festure for their accounts. For those that don't know, a cash sweep is basically how your brokerage investment account auto-invests the cash that isn't currently invested in stocks, mutual funds, bonds, etc... So for example, if you have $100k in your brokerage account that's not doing anything, the brokerage auto-invests that money in somethi…
label r/investing
dataType post
communityName r/investing
datetime 2024-05-18
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url_encoded Z0FBQUFBQm5Lak9IRHdCaTcteGhFMjAyMnp3aW04OGQtektIM0p0bGhkYjhuZHQ2SFV3WUlCd1VBY1ExZkt2N2ZTT3R1NTEyT25RejVGalFlWjVxY3YxLWtKMklHYnNuT1BCX2cwdzFManZ1QjdBNDgySUdoaHNYRUx6QV9pTjluT2laVGdTbGF1TnZTaFZ5cDNnbHpYdnBXX014OVZNTXp0NFB5RXN1VG1HMGlsTUg0dDVfNC1xNVdOOGI4VjVpN2szQUhYZEY3Y3Q5S3BnRkZORVZMZ3lZQkdmc0NyZ1hUQT09

Raw Record

{
  "text": "I have brokerage accounts at Schwab , Fidelity , Vanguard...while I like Schwab thr most, I thiught id share so e slight difference in theie cash sweep festure for their accounts.\n\n\nFor those that don't know, a cash sweep is basically how your brokerage investment account auto-invests the cash that isn't currently invested in stocks, mutual funds, bonds, etc...\n\nSo for example, if you have $100k in your brokerage account that's not doing anything, the brokerage auto-invests that money in something. Typically it's a money market fund. .\n\nFidelity and Vanguard allows you to specify how your cash gets auto-invests, and  they both offer a money market option that has a yield of 4.8-5%...\n\nSchwab cash sweep feature only allows you to pick among \"safer\" choices....so the return on cash swept up is closer to 1%. If you want it to be earning a higher rate, you need to manually move the money I to the Money market funds it sells.\n\nThus slight difference is apparent is if you buy and sell investments frequently...when you sell stock, there's usually a brief 1-2 say settlement . During that time, you can't really do anything with that money (unless you have a margin account) and the money is just sitting there .. earning the sweep rate of your brokerage  .. \n\n.\n",
  "label": "r/investing",
  "dataType": "post",
  "communityName": "r/investing",
  "datetime": "2024-05-18",
  "username_encoded": "Z0FBQUFBQm5LakwzTVc1dFlfZ1hmSFpJU1pnUEo3UXluRXctQmlnYUd4SF9xeEY2WFhkdGFGd09Ib09zQmJXR2xmM1BwdlFCaE9oZnU5N2gtVFJic0QtY3FrT3k1b2pSNGc9PQ==",
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}
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