what to do with stock my company gives me spax: fidelity government money market

[treesner]

hey guys ever paycheck my company gives me stock in fidelity called 'spaxx' "FIDELITY GOVERNMENT MONEY MARKET". I've always just sold it off right away and purchased vanguard index VTSAX as thats where most of my money is. wondering is this the right decision or am I loosing money moving the money around like that?

[seattlecyclone]

A money market fund is basically just cash. If you want to invest in stocks instead of holding cash, swapping the money market fund in for stocks is absolutely the right thing to do. Are there any transaction fees for buying VTSAX in that account? If so, is there another good index option that might avoid these fees?

[terran]

Is this in a 401(k)? There's usually a way to set what new contributions are invested in, so my guess is that the money market is just the default since, as @seattlecyclone says, it's basically cash.

For me, in Fidelity Netbenefits I click the plan name, then click the Investments tab, then click Change your Investments, then click Change Investment Elections. From there I can click a Select Funds button at the bottom of the page to select percentages of available investments to put future contributions towards. I don't know how universal this is across Fidelity's workplace plans, but maybe it will at least point you in the right direction.