Are Money Market Funds a Safe Place To Stash My Savings?
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- čas přidán 18. 04. 2023
- Clark has recently espoused money market funds as a great place to hold your liquid savings. But they aren’t protected by FDIC insurance. Are they safe?
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Depends on the underline assets of the money market fund. The one I keep my emergency fund in is 100% 1-3 month U.S. treasury bonds. The money market fund itself is SIPC insured up to 500k$ by the US government. So, if I lose money, it means the US government has defaulted for the first time in its history. Also, the world as we know it would likely be in epic turmoil shortly afterwords do to the US defaulting, so your cash would likely be worthless shortly afterward anyway.
Hello , would you send me the ticker symbol on the your fund I’m looking for that t-bill type of fund I like short term ! I’m currently in the SNOXX AT SCHWAB . I would appreciate the advice !
gvt is in deficit crisis... selling new t bonds to pay for interest & redemption of older maturing bonds...
income taxes arent making a dent in the deficit.. greedy buzzards in kongress can't wait to spend more & more borrowed bux for payola... kickbacks... payoffs...
plus some are blackmailed to support the radical destructors..
bribery has a shelf life ; blackmail does not
@@troycrews5815 Wow no response back ? ? ?.
Which one?
@@troycrews5815 I would also like to know. by the way I use Schwab as well. It won't let you buy fidelity or vanguard funds. Here is what I am looking at schwab snsxx .36% net cost 5.03% all treasuries. I found that swpxx, snvxx and snoxx have repos and I want to avoid repos. Any more info you guys can post please do.
Clarks phenomenal. Thanks clark
Thanks Clark I love listening to your show and Krista is great too!
Clark I have a certain amount of money in a management company.
I want to know should I take it out and put it in a money market at my bank . The interest rate is much better then the money market. Thank you for your timely response.
Recently sold off a lot of stock (Vanguard) due to the weirdness over the past few years. Swept it into VMFXX (Fed M’Mkt) and agree it is safer there, climbing/reinvesting at a consistent rate. Plan to leave it there until interest rates come back down and the economy improves.
I did same. I think Schwab’s equivalent is SNVXX so I went with that.
@@MmmhMarky - We are brilliant 👌🏽
VMFXX currently paying 5.27 pct annual on a monthly basis.
How does the gross expense ratio work? Is if it is .26% is that less per month or is that taken up front when you buy? What I am trying to ask is the expense ratio taken as soon as you buy?
@DesignBuildFixReview my understanding is the 5.27 pct is net. It is mentioned in the fine print at Vanguard.
Clark, bless you!! I have a question and am not sure how to find you to ask....Is
TEMU safe and do you advise it? I have to tell you that I feel like a traitor when I order. I've ordered twice and liked the products.
Question: I have 1/2 my savings in the stock market diversified and the other half in cash. I want to know what I should do with my money in the bank to gain safe interest with low to zero fees with no risk of losing money should the govt wish to come into our bank accts and steal our money or if the market crashes. Should I stay w my stock portfolio as well? I am retired and live on my retirement. I want to keep my money safe...any suggestions would be appreciated. Thank you Clark.
I'm no financial advisor. But don't invest money such as with the stock market if you can't afford to lose it
Fidelity offers a cash management account that is basically like a high interest savings account and even has a debit card. It is not technically classified as a savings account but the money is FDIC insured just like a bank savings account. currently I'm getting about 2.7% interest. I wish I'd have known about it years ago
What do you mean by cash? If you are not at least earning interest inflation is taking your money away now.
This is a late response, but CD are providing more interest than savings accounts at the moment. Lots of options, but check with your local banks. They update their rates daily. You can put a portion of your cash in them for a year to three years and gain nice interest.
@@Moonless6491YES .. this is similar to having a “CHECKING” act but you can use their 2% CASH BACK REWARDS CARD .. your money in this account is similar to it sitting in a checking act - only you are getting a Lil’ interest .. and it’s liquid gold - meaning you can move money in and out easily thru the 2% CASH BACK CARD .. my normal credit union checking act receives next to no interest .. so this is a safe place to park “checking act” money & receive a Lil’ more interest 2.4 % or whatever it is these days .. though there’s no checks .. 💚
I've bought $80,000 of (physical) Gold and Silver this month, but I still have $80,000 evenly distributed in 4 different high yield online savings accounts, with over 5% interest - UFB, Bask,
BMO and CIT Bank (not Citibank). I'm using the different banks as (some) protection against bank failures, as it appears that The FDIC is out of funds. I also have my checking account
($10,000) at US Bank, which I use for my usual banking needs, and I keep $20,000 in cash for "emergencies". I'm wondering about "bank dependability", ESPECIALLY because I have
the "problem" of $4,000 of surplus cash every month, and I need to decide where to put that too, going forward.
The federal government can print money; running out is impossible although they can choose to default. Any bank is going to be more risky than the government backing.
@@jmwichert8842 I emptied all of my savings accounts a month ago and put the money into 4 week US T-Bills.....
I don't know where you are getting your information but you should stop. The FDIC is not out of money and never has been. You can see the current financial reports which are all public and the fund currently has $120 billion. You sounds like you're way too paranoid and consequently you're overcomplicating your finances. Never head of anyone needing more than a few hundred dollars in an emergency. I have had many emergencies in my life and never needed lots of cash immediately. Credit cards can easily handle any emergency and I can get cash in 24-48 hours by selling my shares of a money market fund. Not sure why you would keep cash sitting around.
Thanks for the great details.
My question: What happens to money in a government money market fund at a financial house such as Fidelity, incase the US government defaults on its debt obligations?
Will SIPC insure this money?
Great question...hopefully Clark will answer.
Nope. SIPC will not. But you're f** anyway in that case.
Clark which tax free muni fund do you have your money in today?
yes Clark, I would like to know too?
@@joyridle Likes making utube money but he doesn't respond to questions..
Sure great investments..you get 5 per cent and inflation is 8 ....you lose....buy growth company funds and hold. If you cannot hold for years do not invest...😊 I like VGT an ETF by Vanguard but you have to hold it!! 10 years! Time is the key folks!
U.S. inflation is 3%. get a clue.
JudeReggie and everyone replying to JudeReggie is a shill for a financial advisor who may or may not be worth your time. But if it looks, acts and talks like a shill, perhaps it is a shill - and perhaps really good financial advisors do not require shills to promote them in comment sections of other people's financial videos?
Cash in a 401k too a money market, WOW,,,,,
Traditional IRA is not a 401k. They didn't cash anything in, just transferred. Get a clue.
what if treasury delays repayment of matured T bonds ? econocrash..
cant happen , you blurt ?
oh you have evidence do you ??????????????????
Wow, you're obnoxious
Why would that happen and do you have historical examples?
@@jmwichert8842
you are an apologist for the thieves who own the NGO 'fed' ? i hope not
Every single penny is in money markets and CDs. Never invested since I don't want to lose half my money. It's all in the bank safe.
Bad idea. You never lose money in stocks only if you sell. I had a 20% return on my 401k this year. That is how you become wealthy.
They litterally double every 7 years
@@kylemckennie2599 What doubles every 7 years? Stocks?
These MMFs can still be hacked!
Examples?
Ever notice this guy gives advice but NEVER answers any questions. Maybe he isn't as bright as he thinks he is.
Typical clark howard answer. He turned simple issue into very complex, very confusing. By just rambling on and on. What a crook.