This is a spin-off of a question I asked earlier (viewtopic.php?t=466104) about where to temporarily park the proceeds of a home sale. Based on the advice I received in that thread, I decided on a Fidelity money market fund. Then I realized there are 31 of them! I'm not sure of the best choice and would welcome advice.
The house sale proceeds will be around $2.5 million. We will use these funds to buy another house as soon as possible, but we don't know how long it will take to find the new place. We need the funds to be safe and easily accessible. We are in a fast-moving housing market so we may need to do a wire transfer out on short notice. Are there any differences among Fidelity's money market funds in terms of safety or access to our money?
We're in California. We're still trying to get a handle on our unusual tax situation this year, but we think our marginal tax rate will be 13.3% for state tax and about 32% (28% AMT + 3.8% NIIT) for federal tax.
It looks like there are four categories of money market fund: Fully taxable; Exempt from federal tax; Exempt from state tax; Exempt from federal and state tax. Here's an example of each.
Fully taxable: FMPXX (Fidelity Money Market Portfolio Class I). Minimum $1m. Expense ratio .21%. Avg. annual return 1 year 4.19%.
Exempt from federal tax: FTCXX (Fidelity Money Market Tax-Exempt Class I). Minimum $1m. ER .21%. Avg. annual return 1 year 2.55%
Exempt from state tax: FSIXX (Fidelity Money Market Treasury Only Class I). Minimum $1m. ER .21%. Avg. annual return 1 year 4.09%.
Exempt from federal and state tax: FSBXX (Fidelity California Municipal Money Market). Minimum $1m. ER .25%. Avg. annual return 1 year 2.3%
I bet this seems obvious to many people, but it's not obvious to me![:-)]( "Smile")
. Any advice or suggestions? Thanks.
The house sale proceeds will be around $2.5 million. We will use these funds to buy another house as soon as possible, but we don't know how long it will take to find the new place. We need the funds to be safe and easily accessible. We are in a fast-moving housing market so we may need to do a wire transfer out on short notice. Are there any differences among Fidelity's money market funds in terms of safety or access to our money?
We're in California. We're still trying to get a handle on our unusual tax situation this year, but we think our marginal tax rate will be 13.3% for state tax and about 32% (28% AMT + 3.8% NIIT) for federal tax.
It looks like there are four categories of money market fund: Fully taxable; Exempt from federal tax; Exempt from state tax; Exempt from federal and state tax. Here's an example of each.
Fully taxable: FMPXX (Fidelity Money Market Portfolio Class I). Minimum $1m. Expense ratio .21%. Avg. annual return 1 year 4.19%.
Exempt from federal tax: FTCXX (Fidelity Money Market Tax-Exempt Class I). Minimum $1m. ER .21%. Avg. annual return 1 year 2.55%
Exempt from state tax: FSIXX (Fidelity Money Market Treasury Only Class I). Minimum $1m. ER .21%. Avg. annual return 1 year 4.09%.
Exempt from federal and state tax: FSBXX (Fidelity California Municipal Money Market). Minimum $1m. ER .25%. Avg. annual return 1 year 2.3%
I bet this seems obvious to many people, but it's not obvious to me
. Any advice or suggestions? Thanks.Statistics: Posted by Trillium — Wed Feb 11, 2026 2:55 pm — Replies 0 — Views 8