Hello! Very (very) new to investing. I transferred some money into my Fidelity account to invest it in a TDIF, and noticed something called “SPAXX” came up. What exactly is that? Is it just holding onto my money until I decide to do something with that money?
I also noticed that I can’t transfer that money directly into the TDIF, so should I first “sell” the SPAXX shares and then re-invest that into the TDIF?
Thanks!
SPAXX is just a holding account (think savings or checkings account).
When you buy/sell thats where your cash will go when you want to transfer it out.
It doesn’t have “shares” it’s just cash.
SPAXX is a Fidelity Government Money Market Mutual Fund. The cash sitting in a Fidelity brokerage account automatically gets placed into this fund as a default. If you click on the fund name (or “FCASH”) in your Account Positions tab on Fidelity’s website, it should give you a couple different options if you would like to change this.
That doesn’t sound quite right about having to first place a sell order for SPAXX before you can buy something else. I think it might be worth calling Fidelity’s customer service to ask more details on that. Their customer service team has always been very helpful with any questions that I have asked them over the years!
I hope this helps and let us know if you have any other questions!