Money Market Ideas

From: DukeoW@aol.com
Subject: Money Market Ideas
Date: Thu, 14 Jan 1999 12:14:22 EST

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In a message dated 01/14/1999 10:50:14, owner-persfin-
digest@lists.xmission.com writes:

<< 
Date: Thu, 14 Jan 1999 09:00:49 -0600
From: "Robert R. Kalt" <rrk@aps.anl.gov>
Subject: Money market account recommendations?

Hi All,

The interest rate on my money market account (not fund) has
steadily declined and now is 3.13%.  I am looking for a new
FDIC insured account for my super safe money.  Any ideas??
 >>

Why do you insist on FDIC?  We use a tax exempt mutual fund where the bonds,
etc., are promises of the state where we live. No Fed bite, No State bite.
Present yield around 5% which if taxable for our income is around 8.5% rate.
It is used for what used to be escrow *house is ours, not the banks*, payments
for insurance, taxes, major fixes, etc. Check writing, phone service on 800
#s, etc. 

Look for lowest possible fees and overhead if U use this route. Obviously, use
a no load company. Vanguard comes to mind. However, ours is TR Price as they
have our state and V doesn't. Risk for these in large funds is trivial. Some
funds are insured as well, cutting yield but the insurance pays if the
state/county goes belly up <Orange Co. comes to mind>. I don't feel its worth
it. There is some risk in rising interest rates eating some of the capital,
but short term funds earnings (MM type) have somewhat lower yield. 
duke  $=)>

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