holding cash in 401k/IRA

Legend

Joined: Aug 16, 2002

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8:37p, 2/14/24

AG

I have a 401k brokerage account that I use to buy stocks (separate from my main 401k in mutual funds) that has about 20% cash. It is currently in FDRXX by default. Is there a better place to hold it until I deploy it?

P.H. Dexippus

Joined: Mar 24, 2002

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10:46p, 2/14/24

AG

https://institutional.fidelity.com/app/tabbed/dailypricing/FIIS_PP_SP28_DPL3.html?tab=dailypricing&productLineId=3&navId=325&previousDay=true

12thMan9

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In reply to Legend • 5:07p, 2/15/24

AG

Legend said:
I have a 401k brokerage account that I use to buy stocks (separate from my main 401k in mutual funds) that has about 20% cash. It is currently in FDRXX by default. Is there a better place to hold it until I deploy it?

I believe there are many other options but you are not clear on how long you want to hold it for deployment. If it's more than a year I'd buy an income(dividend) producing stock & hold for a year. MLP's can pay above 7%.

Ronnie '88