Vanguard and Fidelity

[JustLurking]

I have quite a bit of cash in money market funds at both Vanguard and Fidelity. It looks like the SIPC only covers $100,000 per customer. Is it safe to keep more than that in money market funds? Vanguard and Fidelity both seem very conservative and “safe”, but am I being stupid?

[Raybyrnes]

I would say the stupidity that I se is in holding large sums (if it simultaneously represents large % of portfolio) in cash. I would open up a treasurydirect.gov accout and look to get a tax free yield off an I-bond. If you do not feel like looking through bond offerings you would be better served to find some tax free muni bond funds. With a couple of Hundred thousand to invest you can go into the A shares and take advantage of the break points with respect to sales charges. JMTC

[Raybyrnes]

I would say the stupidity that I se is in holding large sums (if it simultaneously represents large % of portfolio) in cash. I would open up a treasurydirect.gov accout and look to get a tax free yield off an I-bond. If you do not feel like looking through bond offerings you would be better served to find some tax free muni bond funds. With a couple of Hundred thousand to invest you can go into the A shares and take advantage of the break points with respect to sales charges. JMTC

[Raybyrnes]

I would say the stupidity that I se is in holding large sums (if it simultaneously represents large % of portfolio) in cash. I would open up a treasurydirect.gov accout and look to get a tax free yield off an I-bond. If you do not feel like looking through bond offerings you would be better served to find some tax free muni bond funds. With a couple of Hundred thousand to invest you can go into the A shares and take advantage of the break points with respect to sales charges. JMTC

[Raybyrnes]

I would say the stupidity that I se is in holding large sums (if it simultaneously represents large % of portfolio) in cash. I would open up a treasurydirect.gov accout and look to get a tax free yield off an I-bond. If you do not feel like looking through bond offerings you would be better served to find some tax free muni bond funds. With a couple of Hundred thousand to invest you can go into the A shares and take advantage of the break points with respect to sales charges. JMTC

[Raybyrnes]

I would say the stupidity that I se is in holding large sums (if it simultaneously represents large % of portfolio) in cash. I would open up a treasurydirect.gov accout and look to get a tax free yield off an I-bond. If you do not feel like looking through bond offerings you would be better served to find some tax free muni bond funds. With a couple of Hundred thousand to invest you can go into the A shares and take advantage of the break points with respect to sales charges. JMTC

[Bubblesitter]

I personally have shifted assets out of Money market funds, into 6 month CDs and Gold (via ETFs)

With the credit crunch intensifying it is growing more likely that some large institution (or smaller for that matter) will “break the buck”

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Bubblesitter

[Bubblesitter]

I personally have shifted assets out of Money market funds, into 6 month CDs and Gold (via ETFs)

With the credit crunch intensifying it is growing more likely that some large institution (or smaller for that matter) will “break the buck”

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Bubblesitter

[Bubblesitter]

I personally have shifted assets out of Money market funds, into 6 month CDs and Gold (via ETFs)

With the credit crunch intensifying it is growing more likely that some large institution (or smaller for that matter) will “break the buck”

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Bubblesitter

[Bubblesitter]

I personally have shifted assets out of Money market funds, into 6 month CDs and Gold (via ETFs)

With the credit crunch intensifying it is growing more likely that some large institution (or smaller for that matter) will “break the buck”

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Bubblesitter

[Bubblesitter]

I personally have shifted assets out of Money market funds, into 6 month CDs and Gold (via ETFs)

With the credit crunch intensifying it is growing more likely that some large institution (or smaller for that matter) will “break the buck”

http://www.washingtonpost.com/wp-dyn/content/article/2007/11/17/AR2007111700209.html

Bubblesitter

[Bubblesitter]

Here’s another article on MM funds that are offered in many 401Ks, 403Bs, or taxable accounts.

Your tax dollars at work in this analysis done by the FDIC. It provides good background on what a MMMF is, and how it can “break-the-buck”. A bit dry reading though…..

http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html

Bubblesitter

[Bubblesitter]

Here’s another article on MM funds that are offered in many 401Ks, 403Bs, or taxable accounts.

Your tax dollars at work in this analysis done by the FDIC. It provides good background on what a MMMF is, and how it can “break-the-buck”. A bit dry reading though…..

http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html

Bubblesitter

[Bubblesitter]

Here’s another article on MM funds that are offered in many 401Ks, 403Bs, or taxable accounts.

Your tax dollars at work in this analysis done by the FDIC. It provides good background on what a MMMF is, and how it can “break-the-buck”. A bit dry reading though…..

http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html

Bubblesitter

[Bubblesitter]

Here’s another article on MM funds that are offered in many 401Ks, 403Bs, or taxable accounts.

Your tax dollars at work in this analysis done by the FDIC. It provides good background on what a MMMF is, and how it can “break-the-buck”. A bit dry reading though…..

http://www.fdic.gov/bank/analytical/fyi/2004/051904fyi.html

Bubblesitter

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