Can someone one explain to me how this works? I googled it and i'm still a little foggy. I have a brokerage account that i use for buying stocks. This seems to pay me a monthly payment similar to a divide. I'm trying to figure out how to increase this payment. How is this monthly payment determined? Say i have 100k invested in this brokerage account and 10k in cash how could i increase the monthly payments? Can i add more cash to brokerage account? to increase monthly payment. Any help would be appreciated.

This post was edited on 11/13/23 at 4:38 am

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Posted by whiskey over ice

Member since Sep 2020

3725 posts

Posted on 11/13/23 at 9:04 am to FLObserver

It’s the money market fund your sweep account uses. They invest in short term government bonds.

A sweep account is where cash goes when you settle a trade or add money to your brokerage account. Think of it as a savings account for the money you don’t have invested.

To increase the monthly payment you would increase the amount of cash you have in the sweep account. Most banks offer money market accounts so you don’t necessarily have to move money to this particular brokerage. Some banks may even offer higher savings account rates than this money market fund.

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Posted by FLObserver

Jacksonville

Member since Nov 2005

15973 posts

Posted on 11/13/23 at 9:20 am to whiskey over ice

Thanks for the info. I just moved more money into my Brokerage account because the money sitting in my savings was collecting only a few dollars of interest a month. I'm around a 100 a month with the cash sweep payments just sitting there for me in my brokerage account to buy stocks.