What Is A Money Market Account?
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- čas přidán 3. 07. 2020
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Feel investors should focus on under-the-radar stocks, especially given the present rollercoaster nature of the stock market, because 35% of my $270k portfolio consists of plunging stocks that were once respected, and I'm at a loss for what to do now
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence I will suggest you get yourself a financial advisor that can provide you with entry and exit points on best stocks to buy now or put on a watchlist
A lot of folks downplay the role of advisors until burnt by their own emotions. I remember couple summers back after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. He helped grow my reserve notwithstanding inflation, from $275k to $850k
Regardless of whether you're a Wise person, it's best to consult a professional advisor right away. As a business owner in the service industry as well as an ebay reseller of all product categories, I can attest to the fact that we are in a severe recession and that everyone is running out of money
Everyone talks about the importance of trading with an expert but no one gives clue on how to find a reliable one to work with, do you mind helping
@@soniadonald152Timothy Eric Meek
An individual may invest in the money market by purchasing a money market mutual fund, buying a Treasury bill, or opening a money market account at a bank.
At the wholesale level, it involves large-volume trades between institutions and traders.
it includes money market mutual funds bought by individual investors and money market accounts opened by bank customers.
According to my manager Timothy Eric Meek an expert trader, the money market is characterized by a high degree of safety and relatively high rates of return.
He is right, that the real fact because the money market investments are characterized by safety and liquidity, with money market fund shares targeted at $1.
Timothy Eric Meek is a genius and a very smart trader.
I knew what a Money market account was before the call. After Dave “explained” it now I have no idea
Exactly
looooooool
🤣🤣
Lol
LMBO!
She had more than one question, but they didn’t even get to more questions!
ikr
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for...
@rachealhubert74 That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@rachealhubert74 I will give this a look, thanks a bunch for sharing.
@@Amelia-Elizabeth Bridget Mary Turow her trading strategies is working for me for more than a year now and I’m making good profit from the stock market and she's 100% honest, reputable and trustworthy
Crookec system? Capitalism is the best?
@@johnyang1420 How is it the best when hard working Americans reach retirement age with little to no savings?
Money market accounts at a mutual fund company are a great pass through between your home bank account and that company's stock funds, both inside and outside of an IRA. Put an automatic deposit into them until your emergency fund is sufficient. Then start buying stock funds.
Exactly what I use my MMA for, Emergency fund and 3-6 months worth of bills saved. That's it.
Thx for clearing that up!
There are stricter rules with withdrawing money from the account, which is a good incentive for those who want to save
What rules? Are there fees to withdraw?
@@ms.ashley7643 small fees, you have a limited amount of time to withdrawal a month, it’s not much.
@@KP-rh5qz I’m not sure if all banks have done this but they did change it to limitless due to the pandemic.
@@antonioallison2754 I didn’t know that. That’s cool. Thanks
They just want to be able to play with your money more to make some money
Thanks Dave! Love listening to this guy, I don’t agree with everything(like I think building a great credit score is good for people) but he describes things well
I agree with you, but i will say that credit cards are not a good or safe way to do that unless you already have a good income. Credit for things like housing or a (cheap) car. Other than that you're almost guaranteed to go under on it.
A good credit score can save hundreds of thousands on a mortgage
I am personally neither here nor there when it comes to his advice about credit cards, but listening to his callers I do understand why he says to cut them up. A lot of these people have 30K to 50K in credit card debt and they are struggling to pay it off. A lot of my friends and family believe that in order to build credit you need to put a lot of things on your credit card and then never pay it off. Imagine paying 20% + on $50,000 of credit card to prove your credit worthy enough to get a mortgage. Couple that with the fact that using too much of your line of credit or not paying your bills on time sometimes because you're struggling to make the payments actually hurts your credit. Imagine the stress that puts you in? For those people The disadvantages of credit cards outweigh the advantages tenfold.
I've never been the kind of person who was tempted to live outside of my means. I've been a saver since I was a small child. I pay for gas with my credit card for the negligible 3% cash back and then pay it off right away before it accumulates interest. But almost all family member and friend that I know spends their entire paycheck on shiny things the very same day they get it (or they use one of those apps to get their paycheck in advance so they can spend it before they even get it). The very same people use credit cards to live outside their means, and when they've maxed out one credit card they sign up for another, all the while rationalizing it by convincing themselves that they are building good credit for themselves by doing so. I am convinced that MOST people will benefit from cutting up their credit cards in the long run.
It’s a parking spot. Not somewhere you need to go to get rich. He explained it very well. Simple. I like that!
Thanks for asking
I feel like I know even less about Money Market accounts after listening to this video.
Seriously, I love Daves message and all, but these videos and most of his course are virtually worthless to the financially illiterate. Sometimes they forget a lot of people don't even know the basics.
Ok so at banks and credit unions, a ‘Money Market’ account is simply a brand-name/catch phrase for a high-yield savings account. Just like how some banks call their savings ‘Premier Savings’ or ‘Premier Plus Checking’. It is not on any actual stock market, but the interest rate mirrors what an actual Money Market on the stock market pays. Most right now are paying around $50 a year for every $10,000 you keep. It’s not a lot, but way better than Chase or BoA which pay 0.01%
@@jakepatchogue9478 fidelity said they are paying 4.1%
@@davidlopez-rl4sh Interest rates have gone up a lot so they pay more now.
right? like he didn't say does he recommend using them or not?
This was very helpful! Thank you 🙏🏾 ❤🎉.
These online savings accounts are looking less attractive by the month
They're just holding cash. I mean those accounts haven't been "amazing" for years. Not too long ago getting 5% was normal.
Yeah I had a synchrony account, it was cool you cant use your debit card everywhere like a that.
Eh but it’s better than .5% at local banks and it’ll go back up eventually
Rip the 3% interest rates 😭 on online accounts
A money market account or money market deposit account is a deposit account that pays interest based on current interest rates in the money markets
Love the tracksuit
Ramsey got that swag on
Thanks fellas
So where should we invest money today? Like right now?
Hi Mr. Ramsey, I keep hearing about Heloc to pay off mortgage... is that true? Do you suggested to people?
I think it is true but you should know everything about it before you do it. We are going to practice before actually implementing it. I'm going to take a few years to learn even about it. Also I will learn the Nelson Nash method of infinite banking. Dave would probably not like either of these.
Thank you for sharing 🙌
Do you think it's worth having a Money Market Account?
They pay 2-5% now
To sum it up, a money market is simply a means to an end. If you are actually trying to use this a wealth building tool, then you will never ultimately be wealthy.
Ally Bank is my preferred savings account and it often is giving the higher interest rate than some money markets ,most really
But not more than the stock market
I remember when Country Wide Bank, because of all its seemingly corrupt practices and seriously bad financial practices had to change its name to Ally Bank. Because of that I still don't trust 'em.
whats ally’s savings ir? marcus by goldmans is about 1.8%
JKL LIFESTYLE Marcus is 1.05% as of today.
The Cat Next Door oh yes youre right its been decreased a couple times since this pandemic started
I like how the computer sticker says "everyday millionaires". Lol We're all going to be starving billionaires after the Fed's done printing to the moon!
Are there fees to withdraw money from your money market account?
It's pretty much just a high yield savings account.
5% now😎
Dave G’d up with the jacket
I was thinking the same thing 😂
Is it harassment if every time I go to the bank they keep on taunting me about getting a money market account even though I already told them NO ...
🎩
👩🏽
👚👍🏾 Love you Dave🌸Thank U
👖
That guy's voice is amazing.
Pretty much high yielding savings account >1% interest.
I know this video is from three years ago but at current the money market seem to be pretty good. Wonder how long this will last?
So where do I put my 3-6 emergency fund? CD , Money market , or regular savings account?
Do not put your Emergency Fund in a CD. There's zero upside and it isn't liquid. Put it in a High Yield Savings/Money Market account if make a little percentage.
@@ClaxtonBay123 so something like Goldman Sachs 1% apy savings account?
@@93mlo just fyi some of these good accounts can require a couple business days in order to withdraw, and the primary feature you want is something fast to access (liquid).
My personal advice is make sure you can immediately access some of it 24/7, maybe a few grand. The rest of it can be in a better account that takes a couple days to access and that's probably fine.
In my case I keep a small amount in a regular boring savings account attached to my checking account at my credit union that I can easily access or transfer 24/7 instantly. I'm not going to need $10k in the middle of the night, but I might possibly need 1. Some people just keep that in cash in their house. The rest I keep in a high-yield savings.
That's what I currently do, but I'm up for learning any other methods.
Marcus has CD can withdraw any time
@@JiisTube At my credit union CDs can be broken and you lose 3 months simple interest, so having the bulk of your emergency fund in there could work. It's probably not worth the couple bucks in a decade. I am somewhat on the cautious side being single with only one job, plus growing up with my parents being a financial mess so I keep at least 3 months cash on hand and 6 months in the savings account. If you use investment accounts many of them are quite liquid (cash within a week) but you risk having to pull out while the market is down although 3-6 months of cash should avoid that.
It seems like all MMA, CDs and saving accounts nowadays are straight trash. Interest rates are a slap in the face.
A lot of banks are now offering 5% and above. You can make some serious cash over the years.
Hey uncle Dave miss ya and wondering when you are gonna come back down to Georgia! Love ya
*It's better to invest in Index ETFS other than have that account...*
I got a 3 million dollar settlement and put it all in a money market averaging 4.1% yearly and I live off the interest which is about 100k before taxes
High yield savings or money market accounts are nonexistent anymore unfortunately haha. It’s very sad
Check out Discover Bank for high yield savings and Ally Bank for no penalty CDs if you like online banking. They have good high yield savings accounts, although the interest rate has been cut substantially since the fed lowered the interest rates.
So if not money market accts what would yall reccommend to get a decent interest rate to get richer
I have a good money market account with my credit union but online savings account will pay pretty well too like ally or discover bank just look around. Remember though you won’t get richer with these accounts the goal is just to try to off set inflation
I have a good MMA with Capital One.
No bank will pay you high interest when they can just get money from Fed at 0.25%?
I swear, it’s like every other caller on this show forgets that there is this website called “Google.”
Sometimes the research can make it more confusing. Its simpler to just ask Dave directly
Your right everyone should google and not call Dave.
Google brought me here! XD
@@SisyphusJP Dave was born to help us plebs
They’re calling from the 90s.
Question for you smart people that understand money.
If I use this to save money for land to homestead on and I also add money in it every paycheck (about 100$) would it work?
Define what you mean by “work”.
Chris Hogan is my spirit animal!
Hulk Hogan*
This comment didn’t age well... LOL
@@willmahan4161 Hulk who?
I agree, that's how I view CD's as well. As a high interest savings account. Feel free to disagree but if I put my money in a bank or credit union. They give some actual interest. Its not like banks indirectly loan out you're money and charge the next person 8% and give you far less than 1% interest.
Cannot seem to find a clear answer on this on the internet or youtube so far. Scenario: I have $500,000 in a Credit union Jumbo MMSA and the the Dividend rate is 2.03% compounded and credited monthly. What does that look like at the end of the month. How is that actually calculated and what is the reflection in the account? My simple brain says you take the current balance, multiply that by 0.0203 and that is the dividend credited to the account. Is that incorrect?
Quick question I’m 18 years old just graduated high school and I’m looking to start up my credit score and such what is the best way to do that why I ask is well everything asks for a score these days I couldn’t even get a phone and a phone bill at a local phone company without a credit score so I bought one straight from Walmart and straight talk maybe it will work decent in my area lord knows AT&T prepaid doesn’t oh and I love your videos your a very intelligent person and I love that you give God all the glory for it thanks for being a light in people’s darkest hours on this side of eternity and maybe just maybe they will take away from what you teach and find Jesus along the way as well thank you again and may God bless you.
Sign up for a credit card with a low limit, maybe $500. It starts you on your way to building your credit score and keeps your spending in check.
late reply. but to build credit fast, open up a savings or MM account. then take out a Cash-secured loan on that account. the rate is always very low and you're basically paying yourself back and the bank a little interest. your credit score will thank you in 6 months
So Dave where do we put our money and if we have an extra $5,000 to invest? How can we get the most out of that.?
@@zanestein3099 im older
Vanguard money market
A place where you park you money to lose money to inflation. High yield savings account which essentially holds your money in municipal bonds minus the banks take currently 1.?% 🤔 why not just put some of your emergency in municipal bonds and corporate bond etf like BND.
I suppose the point is not to worry about being very sophisticated with the pennies, but with the dollars.
Putting $5k in a basic investment account with the purpose of increasing value is going to out earn even $25k in the most lucrative emergency fund account. Trying to maximize the emergency fund may save you $250-500 per year in inflation loss, but you'll make more than that with your first $5k invested anyway.
That's my understanding anyway.
But what about a high yield savings account paying 5% intrest
So is this where I put my emergency fund?
I’ve just Ben parking my money in checking account (direct deposit from work) while I save for a home. Am I foolish for doing this?
Yes. I hope you’re still not doing this…
@@BlessedYoungSoul29 Not now. Most of it’s invested. $22k in Roth and $36k in Traditional.
Didn't the caller have the 2nd question? lol
Make sure to ask the most important question first when you call.
Might as well get a "high yield" savings with the feds lowering interest rates they're not very attractive but its better than what your local bank will offer you
I have a high yield credit union savings account in my 401k that holds 30%. With 20% in CDs and 50% into stocks.
Quite a bit in there so can’t complain.
Thanks! Trying to get my ducks in a row in 2024. It looks like the difference is much more substantial than it used to be. The current credit union I'm looking at offers a savings account at .15% APY but a Money Market account at .40% APY. It requires a much higher minimum balance, but I was wondering why the difference was so drastic. Perfect explanation.
If you're getting less and 1% of your credits union you need a different bank (for savings purposes)
My allow account is at 4.2% HYSA & my citizens access is at 4.5%
@@KeenVanguard I went with a bank that offers 5.2%.
I need to transfer my baby step 3 to one of those accounts. Thank you for the explanation.
Yeah I plan on doing that this Monday.
Because the emergency fund is insurance, costing you money and not making you money, to me it makes sense to have it in the bank for FDIC insurance. Other savings make more sense in money market accounts like saving for the new tv.
Caleb M they’re also FDIC insured and you can transfer money in like 2-3 business days. Edit money market account not the fund he was talking about.
@@euenfheiejrj alright my bad but I'd also like my emergency fund money to not take 2-3 business days to get at but I guess that's also part of the point for people who find emergencies everywhere.
What is baby step 3???
He sounds like Jim Ross
1- Money market account at your convenience bank with low return rate or
2- Real Money market account at a large bank branch and returns more interest.
I like the money market treasury funds instead of the bank
Miss Chris Hogan. 😢
Some money market accounts are now paying 5.25%
*Awesome!!! your potential seems limitless.* I have always been fascinated by investing, but without any knowledge on what’s best to invest in, I find it difficult to begin. *I ask politely, what’s the best sector to invest in?*
I will suggest you get a financial advisor who will help you build strategic plans that will meet your financial goals in a short period of time. I got help and also built a passive income working with a Financial Planner (Hamilton Phoebe Zoe). I’m happy with this decision, as it was the best for my finances.
@@winifredmorris8507 I’m interested and need to start now. If you don't mind how can I get in touch with your consultant?
@@rudriguezbauer7520 I work with an Investment Analyst *(Hamilton Phoebe Zoe).* Quickly do an internet research with her full names as mentioned where you can easily get in touch and as well write her.
It’s best to start early to plan your future by making important financial decisions which can help you build passive income and make you live comfortably. I realized that the secret to becoming rich isn’t having multiple jobs but multiple sources of income.
@@winifredmorris8507 Thanks, Got it 👍
Uhh so he just explained that banks don’t offer a “real money market account” but never explained specifically what a real money market account is. Wtf
2024 and money market is now 5%
Individual blue chip stocks only for me rn
Its for emergencies only. Earns money yes but it takes years for it to be any usefull
What is the best bank to have your money in a money market?
Take a look at Ally bank.
I don't know the best, but I can tell you SunTrust isn't it. Their interest rates are almost next to nothing.
Interest savings account at Ally bank. Currently 1.10%
Go straight to 1:55 where its simplified
Or parking it In there until your 18 and you can actually start investing
Now it’s 5.3%
Well, you can actually get 5.2% APY on money market right now.. so I guess you can get something decent
I have to constantly remind myself that the whole world has money in the US stock market and the rest of the world is as dependent on us are we are for them. Therefore, the market will ALWAYS find a way to always correct itself. Now is the time to invest. 5% is out there. Now if our country can stay a country things might start to get better for many
Money market accounts seem to be going the way of the dodo bird. Historically, they offered a higher savings rate than a savings account, but that doesn't seem to be the case for the most part since the financial crisis. Interest rates are just too low that banks are not offering anything. You're lucky to get 1% if you have an online bank account. Most banks don't even offer money market accounts anymore.
I'm starting to notice that. I'm still trying to find a good spot for my emergency fund to where it can at least keep up with inflation but not risky.
Jose Garcia go with Ally
This aged well
This didn’t age well.
@@martinlutherkingjr.5582 What are you talking about? Money market accounts at most banks still offer a pathetic .10% APR. Online savings accounts are offering 4.5%+.
I found a money market account over 5%. is this legit?
1:15
Chris: Dav I need the mic.
Dav: Wait. I'm not finished.
1:38
Chris: I really need the mic Dav, what's wrong with you???!
Dav: Not finished yet.
2:10
Chris: I warned you dav, I'm getting it right now
What you use to get rich?
Do not sell your Hongkong bonds. It will surge believe it or not.
So confusing how he explained it
😊😊🙏🏽
Woah this dude sounds like Jim Ross
Who is the guy next to dave?
Chris Hogan - fired after infidelity surfaced.
Why not google instead of calling Dave ramsey
I park my money in forex . It’s not gone so well 😜
Look into "Celcius Network" - they offer about 8% p.a. on USD. no fixed terms
Kind of forgot she was there because they don’t let her talk
Would you folks believe I fetch 7% on one of my savings accounts here in India?
Project Better Finance
But you’re in India.
So it all kinda balances out. 🤷🏻♂️
Project Better Finance
Jk
Top Comment lol
Top Comment It’s actually the case because India being a developing country is growing way more than the US YoY
No offense but I wouldn’t put my life savings in India, even if it offered me a 17% interest rate.
A money market account is a place where you put your money to lose money.
How so? I don't understand the difference between CDs , regular savings account and Money market account
@@93mlo Inflation that eats away its value year after year.
A high powered savings account
What is a high powered saving acc?
They’re relevant now that inflation is high.
Is it true if you have 💲250,000 in a money market account will your dividends will be like 💲2,000 a month? Anybody?
$2000 a month is 9.6 percent interest rate, so not at all, you’ll be lucky to get 1 percent now, or $208 a month on $250000
Hello
@@engineer1able ok ty
WE MISS CHRIS
What is Gold? Should I own some?
Ha, not unless you're so rich that "saving for retirement" isn't in your goals.
I think if you want to remain diversified, gold is a decent hedge against inflation and market downturns. But I would only keep it as a small percentage of your portfolio.
You got a Canadian maple leaf 1 ounce coin as your display picture. I’m sure this a test question lol.
Gold is an element, symbol Au.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol
This is superb! Information, as a noob it gets quite difficult to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
@@maryHenokNft I've been thinking about going that route. I have a lot of stocks that I have maintained, but they are beginning to lose value, so I'm not sure if I should hold onto them or sell them. I feel hiring your investment coach would make it easier to restructure my portfolio.
*Mary Onita Wier* serves as my portfolio coach, and I discovered her on Bloomberg where she was prominently featured. After conducting an online search of her name, I was fortunate to find her website and promptly reached out to her. You can independently verify this information.
Thank you, I copied and pasted his name on web browser and sent a email waiting for reply.
Boonk gang
Keep your emergency fund in a savings account. It’s all about liquidity and easy access to that money when you need it. The interest rates are so low today that MMA’s and CD’s are useless.
Unless you wanna retire
@@bayleeshea8037 ?
Question.
Where I'm from, which is Costa Rica, you can easily live off $4k a month.
Would it be a good idea to inevst $200k in a money market in that case?
Hello
It's kind of sad how generally clueless people are about finances.
True but credit to those who are young like the caller and reach out to people like Dave to ask and educate themselves. It encourages others to.
@@jmc8076 no sense in making fun of anyone trying to educate themselves on the matter, though.
It is sad that most schools don't teach basic personal finance
Very few people outside of the finance industry can answer what exactly a money market account is. It was a good question imo
True! So many people don't even have idea in what they spend their money in, so imagine for them learning how to do so... And simple things like savings it's a boogie monster.