[quote=walterwhite]i dont know; those money market funds are kinda risky in a meltdown. maybe just put it in fdic bank not likely to fail.[/quote]
There are money market funds and money market bank accounts. My understanding (which could be wrong) – if the money market account is through an FDIC insured bank – it’s a savings account with FDIC insured up to $250k. If it’s through a brokerage account it’s “insured” under SIPC… which will cover the asset – but not the value of the asset… a MMF is typically $1/share. So if you have $100 in it, you have 100 shares. SIPC would guarantee you that if your brokerage account went tits up you’d get your 100 shares. It does NOT guarantee the price per share… so if the underlying fund goes broke, you’d be broke.
There was a big deal in 2008 about 2 MMFs “breaking the buck” – meaning their shares dropped to less than $1. For a while the treasury backed the value of the money market funds – but that expired a while back.
Breaking the buck is very rare. But it *can* happen.
