Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Selecting a Money Market Account
Old 01-30-2006, 02:17 PM   #1
Dryer sheet aficionado
 
Join Date: Jan 2006
Posts: 38
Selecting a Money Market Account

Well, it looks like I need to add yet another financial spoke to my wheel of FIRE. I am looking to place $25K into a MMA for my easy access Oh S*** use. Of course ideally this money will not be touched so I want it to work for me while getting dusty. Anyone have suggestions on the best place to open a MMA? I have a Fidelity Mutual 401K and they have quite a few MMA's to choose from. This one, Fidelity Institutional Money Market: Money Market Portfolio Class I (FMPXX), shows an annual return of about 5% which I thought was great for a savings account. Looks very accessible, $2500 min deposit, $500 min check amount. Thanks for any input.
__________________

__________________
What's all these crazy questions you're asking me???
Intuit is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Selecting a Money Market Account
Old 01-30-2006, 02:24 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Selecting a Money Market Account

If this is really Oh s! money, you might want to make sure that you have immediate access, even if it means giving up a fraction of a % a year. At the least, make sure that any MMA you choose offers check-writing privileges, and you might want to see if you can have money wired from your MM account (for a fee) if it were absolutely necessary.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-30-2006, 02:41 PM   #3
Dryer sheet aficionado
 
Join Date: Jan 2006
Posts: 38
Re: Selecting a Money Market Account

Brewer, you are right, quick access is a must and this one does have the checking part covered. I have a local savings account that I can access for emergencies. This is more for a safety net in case of job loss or similar situation. Thanks.
__________________
What's all these crazy questions you're asking me???
Intuit is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-30-2006, 03:08 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Selecting a Money Market Account

Quote:
Originally Posted by N2FIRE
Brewer, you are right, quick access is a must and this one does have the checking part covered. I have a local savings account that I can access for emergencies. This is more for a safety net in case of job loss or similar situation. Thanks.
In that case, why not pick something that pays higher yields but is still accessable if you really need it? Instead of a MMA for my Ohs! reserves, I use 5 year CDs. They pay significantly more yield and if you need the money, you cash them in early. Just make sure the cash-in penalty is 6 months interest or less. Naturally this only applies if you are unlikely to need the money.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-30-2006, 06:19 PM   #5
Thinks s/he gets paid by the post
grumpy's Avatar
 
Join Date: Jul 2004
Posts: 1,321
Re: Selecting a Money Market Account

If you own a house you might want to consider setting up a home equity line of credit for your Oh S*** coverage. That way you can keep the $25K in a higher yielding investment. There should be little or no cost to set up the HELOC and most will give you checks to use to draw on the funds in an emergency.

Grumpy
__________________
...you can check out any time you like, but you can never leave...
grumpy is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-30-2006, 07:46 PM   #6
Recycles dryer sheets
 
Join Date: Dec 2005
Location: San Diego
Posts: 468
Re: Selecting a Money Market Account

N2Fire,

Hope you don't mind if I ask a question on your thread. What's the best MMA deal for absolutely liquid cash? I've seen Emigrant Direct and ING mentioned here. A friend told me Countrywide Mortgage has an attractive one (I didn't even know they dealt in MMAs).

Thanks all!
__________________
califdreamer is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-30-2006, 09:23 PM   #7
Recycles dryer sheets
 
Join Date: Jan 2004
Posts: 188
Re: Selecting a Money Market Account

I have been happy with Corus Bank. Service is great and rates have been consistantly high with frequent updates on MMA after FED acts. One year CDs are usually best in nation.

http://www.corusbank.com/
__________________
Ol&#039; Rancher<br /><br />I wake up in the morning with nothing to do, and by the end of the day, I feel lucky if I&#039;ve gotten less than half of it done.
Ol_Rancher is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-31-2006, 02:52 PM   #8
Confused about dryer sheets
 
Join Date: Mar 2004
Posts: 7
Re: Selecting a Money Market Account

We recently found Superior Savings. They have a MMA with an APY of 4.50% on deposits >$25K. As I recall, there is a penalty if you close the account within the first 6 months.

http://www.superiorsavings.com/

Good luck,

CTB
__________________
ctbktb is offline   Reply With Quote
Re: Selecting a Money Market Account
Old 01-31-2006, 05:07 PM   #9
Dryer sheet aficionado
 
Join Date: Jan 2006
Posts: 38
Re: Selecting a Money Market Account

Grumpy,
That might fit other's financial plan, I already have a LOC established with a 2nd mortgage. I prefer to stay our of debt and would like to have about $25 - $40 K sitting in an accessible fund, earning a decent return rather than incurring intrest expense. Regards.

Califdreamer,
No problem, I'm here to learn from the pro's.

N2FIRE
__________________

__________________
What&#039;s all these crazy questions you&#039;re asking me???
Intuit is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
High interest saving account? Scout Hi, I am... 19 10-31-2006 08:04 AM
Future of stock market jimhcom FIRE and Money 45 07-13-2005 04:19 PM
I-bonds or money market for Emergency Fund? mangodance FIRE and Money 26 07-11-2005 12:17 AM
How to locate a no fee Money Market fund Natalie Other topics 1 08-04-2003 07:50 AM
Money market in 401K Bill FIRE and Money 2 05-31-2003 08:15 AM

 

 
All times are GMT -6. The time now is 09:37 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.