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Cash from selling house.
Old 09-11-2008, 07:32 PM   #1
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Cash from selling house.

I should be selling my house shortly. I am not sure where to place the cash until I decide the final investment strategy. I am concerned about FDIC insurance with the current banking news. I would like to have some opinions.
$700K in Fidelity money market fund or Wachovia bank account? I am reading up on the bucket system and I'm not sure were to place the money yet.
Should I be overly concerned?
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Old 09-11-2008, 08:02 PM   #2
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I would chunk it up and not exceed FDIC limits. There doesn't appear to be a blinking neon sign over a banks doors saying "We may fail before you figure out where to put your money!"
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Old 09-11-2008, 09:58 PM   #3
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Multiple FDIC- insured MM accounts until you figure out a long-term strategy. Good Luck.
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Old 09-12-2008, 08:05 AM   #4
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Old 09-12-2008, 09:50 AM   #5
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Why would you not put it all into Fidelity's money market at this point til you know what to do with it? Just curious about the cons to that.
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Old 09-12-2008, 10:25 AM   #6
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Why would you not put it all into Fidelity's money market at this point til you know what to do with it? Just curious about the cons to that.
That is my question to the forum. If something happened to Fidelity like what could happen to a bank, then puff all your money is gone
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Old 09-12-2008, 10:52 AM   #7
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That is my question to the forum. If something happened to Fidelity like what could happen to a bank, then puff all your money is gone
I can't think of any money market funds that have flat-lined in recent memory. If you want to keep things simple, put it into a US Treasury money market fund.
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Old 09-19-2008, 10:45 AM   #8
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Here in Canada we have Short term government bonds (1yr till maturity) or short term guaranteed investment certificate (GIC) (6 month) not sure what these are called stateside but the benefits are some interest on your money and you are not locked in for a long time.
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Old 09-19-2008, 05:51 PM   #9
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I can't think of any money market funds that have flat-lined in recent memory. If you want to keep things simple, put it into a US Treasury money market fund.
Plus the government has just announced that it is insuring MMF until further notice. Personally I would split it between several MMF's.
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Old 09-19-2008, 06:19 PM   #10
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I can't think of any money market funds that have flat-lined in recent memory. If you want to keep things simple, put it into a US Treasury money market fund.
That was my thought, too. A treasury MM fund, like Vanguard's Admiral Treasury MM fund (VUSXX) might work out nicely. It may not be the best interest but I think it would be pretty safe, even though MM funds are not insured by the FDIC or anything else for right now.

If you really, REALLY want to be safe and earn good interest rates, I'd put it into FDIC insured savings accounts at places like Ing (who is advertising 3% in the junk snail mail I got today). I'd divide it between a number of such banks so that you have no more than $95K in any one bank, since the FDIC limit is $100K. The disadvantage of doing this is that it is inconvenient with your money in 7-8 different financial institutions.
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