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09-11-2008, 06:32 PM
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#1
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Dryer sheet wannabe
Join Date: Aug 2008
Location: Monroe
Posts: 17
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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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09-11-2008, 07:02 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 1,183
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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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09-11-2008, 08:58 PM
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#3
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gone traveling
Join Date: May 2008
Posts: 3,864
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Multiple FDIC- insured MM accounts until you figure out a long-term strategy. Good Luck.
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09-12-2008, 07:05 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2008
Posts: 1,281
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No Message - (just a signature)
__________________
Retired 2009!
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09-12-2008, 08:50 AM
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#5
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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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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09-12-2008, 09:25 AM
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#6
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Dryer sheet wannabe
Join Date: Aug 2008
Location: Monroe
Posts: 17
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Quote:
Originally Posted by Bestwifeever
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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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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09-12-2008, 09:52 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2006
Posts: 12,483
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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.
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)
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09-19-2008, 09:45 AM
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#8
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Full time employment: Posting here.
Join Date: Oct 2007
Location: Montreal
Posts: 940
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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.
__________________
"Second star to the right and straight on till morning"
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09-19-2008, 04:51 PM
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#9
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,124
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Quote:
Originally Posted by FinanceDude
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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Plus the government has just announced that it is insuring MMF until further notice. Personally I would split it between several MMF's.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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09-19-2008, 05:19 PM
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#10
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by FinanceDude
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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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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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