Author Topic: Money Market rates  (Read 604 times)

contender

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Money Market rates
« on: October 25, 2018, 02:04:28 PM »
I'm having a tough time finding returns on our money and have thought about the funds in a money market with Charles Schwab. A little research discovered a Money market with Schwab(SWVXX) that pays 2.05%. I need the money accessible in case I find an investment property with a cap rate of 8% or higher. However, I believe that could be one or more years out. Does anyone have any other ideas or suggestions? Roths are maxed out; all debt is paid off except one rental which is at 3.9% fixed 20 years with 100k debt and 340k RMV. I don't know what to do with the cash, and any advice would be appreciated.

Thanks
« Last Edit: October 25, 2018, 02:41:16 PM by contender »

Another Reader

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Re: Money Market rates
« Reply #1 on: October 25, 2018, 02:12:26 PM »
Short term treasuries at the auction are your best bet.  State income tax-free. You should be able to buy them through Schwab, no commission.  4 week, eight week, 13 week rates all much better than CD rates.  I buy them through Fidelity.

Radagast

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Re: Money Market rates
« Reply #2 on: October 25, 2018, 02:24:32 PM »
I like Charles Schwab, but not for money markets. It seems like they make their money on those to keep fees low in other places. There are FDIC 2.25% money market bank accounts around, and Vanguard also offers better MM funds. Also see https://forum.mrmoneymustache.com/investor-alley/where-should-you-put-your-short-term-investment-money-(0-2-years)/

Another Reader

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Re: Money Market rates
« Reply #3 on: October 25, 2018, 02:43:05 PM »
I like Charles Schwab, but not for money markets. It seems like they make their money on those to keep fees low in other places. There are FDIC 2.25% money market bank accounts around, and Vanguard also offers better MM funds. Also see https://forum.mrmoneymustache.com/investor-alley/where-should-you-put-your-short-term-investment-money-(0-2-years)/

Schwab and Fidelity both have high ER's on their money market funds.  Vanguard requires $50k for their treasury money market fund, but the ER is very low, 0.09 percent. VUSXX.  They have a prime money market fund that has a slightly higher rate but invests in corporate money market paper.  If you ladder out some short term treasuries, that should get you a decent return with no risk.

Radagast

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Re: Money Market rates
« Reply #4 on: October 25, 2018, 08:40:58 PM »
I like Charles Schwab, but not for money markets. It seems like they make their money on those to keep fees low in other places. There are FDIC 2.25% money market bank accounts around, and Vanguard also offers better MM funds. Also see https://forum.mrmoneymustache.com/investor-alley/where-should-you-put-your-short-term-investment-money-(0-2-years)/

Schwab and Fidelity both have high ER's on their money market funds.  Vanguard requires $50k for their treasury money market fund, but the ER is very low, 0.09 percent. VUSXX.  They have a prime money market fund that has a slightly higher rate but invests in corporate money market paper.  If you ladder out some short term treasuries, that should get you a decent return with no risk.
Fidelity lets you make an automatically rolling ladder, right? Do either of the others (AFAIK, no)? If that is not the case, I'd rather use the 2.25% money market bank accounts to avoid rolling it my self.