Choosing A Money Market Account

The discussion revolves around selecting money market accounts within brokerage or investment platforms. The person inquires about various options, highlighting the confusion due to the multitude of choices, and seeks advice on the recommended money market accounts, specifically asking about a certain ‘c-35’. The advisor clarifies that ‘c-35’ is a placeholder for tracking purposes and encourages evaluating different options offered by discount brokerage accounts, advising to choose based on stable value and maximum yield available while considering tax-free options if in a high tax bracket. They also address concerns about BRI (Biblically Responsible Investing), indicating that it doesn’t significantly affect money market accounts as they typically involve debt investments like government securities, regardless of the company offering them.

The conversation aims to provide clarity on selecting suitable money market accounts while factoring in yield, stability, and tax considerations without overly concerning the investing entity, such as Vanguard or Fidelity, as these entities typically construct the money market portfolio rather than utilizing them for direct investment. They also express appreciation for personalized assistance and the BRI approach in their investment strategy, highlighting gratitude towards the advisory team for their continued support. The response reaffirms the selection criteria emphasizing yield and stability and addresses the need for careful evaluation based on individual financial situations.Read Transcription

So, my question is regarding money market accounts, either in a brokerage account or any investment account. As we explored money market accounts through our investment platform, I noticed there is a wide variety of options to invest in. Are there any specific recommendations, or can we choose any money market accounts based on the rates they offer, even if they are by Vanguard or some other company? And does BRI matter in this context? I need some help with understanding money market accounts, sorry for rambling.

Yeah, no problem. I guess, and I don’t have my list in front of me, is the c-35 just a generic one? Is the ticker number the one that starts with an ‘f’?

Yes.

Okay, so that’s just a generic one we use as a placeholder in the tracker because there needs to be something held in its position, but you can use the ticker symbol for the actual money market account you have. To your point, there are many different brokerages and choices for money market funds, and we didn’t want to place only one or just a few options because there are many. So whichever discount brokerage you use, you can choose from the options they offer. I would just compare them. Ensure that it maintains a stable value, like every share is worth a dollar, and look for the highest yield. If you’re in a high tax bracket with a taxable account, you could consider a tax-free option.

I appreciate it. So, I was wondering about BRI. BRI is our number one investment rule in our household. Is it a consideration in money markets?

No, not really, because they are generally considered debt-type investments, usually made up of T-bills or government securities. Even if it’s from Vanguard or Fidelity, by nature, they’re not BRI. You aren’t actually investing in them, they’re just the ones who put together the money market investment.

Perfect, thank you, Shannon. I appreciate your answer, it worked out well.

Great, thank you very much. God bless Seth, Darlene, and the staff. We really appreciate you guys and all that you do for us, along with the insights from the buy list. Thank you.

Become a wiser steward of your investments

A Financial Issues Partnership provides rich online tools and resources to give you financial wisdom, strategies, and tools to effectively self-manage your investment portfolio using Biblically-responsible principles.