Where in the heck can you put money?

[kent]

Given the situation in Europe and the fact that money market funds have both U.S. and foreign holdings, where can you park $$$ and have it be relatively safe.

If the Euro goes in the tank (which wouldn't surprise me on bit) then money markets could break the $1 mark, right?

I think that's happened before but don't know exactly when or what the results were.

Now, before you label me as stupid, try to accept that I've previously gone on record saying I'm not a sophisticated investor so be nice! Thanks!

[verrip1]

"Given the situation in Europe and the fact that money market funds have both U.S. and foreign holdings ..."

I do not believe that foreign holdings comprise anything more than minor amounts of most money market funds available in the US. Certainly not in large, mainstream US money market funds. I would surmise that most US money market funds have absolutely zero european holdings.

"If the Euro goes in the tank (which wouldn't surprise me on bit) then money markets could break the $1 mark, right?"

No, US money markets won't break the $USD1 in the event the euro goes in the tank. Only one or two US money markets broke the one dollar mark in late 2008 as I recall, and they were small ones. See above about european holdings in MM funds.

I think you have been reading some unreliable sources. Perhaps you misread them. If you own a money market fund and are worried, they all have annual reports which would tell you the amount of foreign investment in them. Or you could do a Morningstar search by ticker symbol and look for that data.
=================================================
Oopsies! I was wrong. I checked several large money market funds and they now DO have foreign holdings. I had to go to the fund family sites to get the data, as I found that Morningstar does not give such data.

Sorry for the incorrect info.

[Mad Dawg Wiccan]

Where in the heck can you put money?

In my personal account. I promise to treat it as an honored guest.

[verrip1]

I've often offered to accept worthless fiat currency and provide small metal discs in return, but nobody seems to be willing to do the trade.

What's with that?

[kent]

Jun 20, 2011 19:39:58 GMT -5 verrip1 said:

"Given the situation in Europe and the fact that money market funds have both U.S. and foreign holdings ..."

I do not believe that foreign holdings comprise anything more than minor amounts of most money market funds available in the US. Certainly not in large, mainstream US money market funds. I would surmise that most US money market funds have absolutely zero european holdings.

"If the Euro goes in the tank (which wouldn't surprise me on bit) then money markets could break the $1 mark, right?"

No, US money markets won't break the $USD1 in the event the euro goes in the tank. Only one or two US money markets broke the one dollar mark in late 2008 as I recall, and they were small ones. See above about european holdings in MM funds.

I think you have been reading some unreliable sources. Perhaps you misread them. If you own a money market fund and are worried, they all have annual reports which would tell you the amount of foreign investment in them. Or you could do a Morningstar search by ticker symbol and look for that data.
=================================================
Oopsies! I was wrong. I checked several large money market funds and they now DO have foreign holdings. I had to go to the fund family sites to get the data, as I found that Morningstar does not give such data.

Sorry for the incorrect info.

Update: I called Fidelity the other day to find out the percentage of foreign holdings in the FDRXX Cash Reserve Fund. I ended up on hold for about 5 minutes while the rep contacted another unit.

He came back with what sounded like a tap dance. The bottom line answer was "about" 14%. He then went on to say Fidelity was considering sending an e-mail to clients regarding this issue be cause they've received numerous inquiries.

I saw the following on the Internet this morning:

"As an example, the Fidelity Cash Reserves Fund (FDR XX) has more than 45% of its assets invested in Europe."

money.msn.com/currency/mutual-funds-with-return-free-risks-fleckenstein.aspx

I find this discrepancy more than a little disconcerting.

[verrip1]

Personally, I have my emergency reserves in the Vanguard Short Term Corporate Bond ETF, VCSH. It's got longer maturities than a MM (3.0 yrs) and a lower credit rating (A). Making up for that is a 1.7% yield, 2.9% YTD total return, and availability to trade while the market is open. No check writing, but can get immediate transfer to my sweep MM that does have check writing and wire transfer. Re Kent's issue, it has 0% foreign holdings. It's not for everybody, but if you want to get above 0.1% money markets, you have to deal with incremental risks. Even CDs add a risk: inability to liquidate early or penalty for early liquidation.

[maui1]

TCB Rates Texas Citizens Bank in Houston

Deposit Rates
Rates current as April 19, 2011
Reward Checking Accounts

APY
< $25,000 2.05%
>$25,000 0.20%
*If the requirements for Reward Checking are not met, the annual percentage yield is 0.02%.

Reward Plus Accounts

APY
< $25,000 2.50%
>$25,000 0.20%
*If the requirements for Reward Plus are not met, the annual percentage yield is 0.02%.

Money Market Savings

APY
< $2,500 0.05%
$2,500 - $25,000 0.20%
$25,000 - $100,000 0.25%
$100,000 - $250,000 0.40%
>$250,000 0.70%

BizReward Money Fund

APY
< $2,500 0.00%
$2,500 - $25,000 0.20%
$25,000 - $100,000 0.25%
$100,000 - $250,000 0.45%
>$250,000 0.75%

IRA Money Market

APY
< $2,500 0.10%
$2,500 - $25,000 0.25%
$25,000 - $100,000 0.40%
$100,000 - $250,000 0.65%
>$250,000 0.80%

Savings Account

APY
0.10%


Now Account

APY
0.10%

>Back to top

Certificate of Deposit Rates
Rates current as of January 22, 2011
Certificates of Deposit (<$100,000)

APY
3 Months 0.30%
6 Months 0.50%
9 Months 0.60%
12 Months 0.75%
18 Months 0.85%
24 Months 1.00%

Certificates of Deposit (>$100,000)

APY
3 Months 0.30%
6 Months 0.50%
9 Months 0.60%
12 Months 0.75%
18 Months 0.85%
24 Months 1.00%

Reward Certificates of Deposit*

APY
3 Months 0.35%
6 Months 0.55%
9 Months 0.65%
12 Months 0.80%
18 Months 0.90%
24 Months 1.05%
*Must have, or open and maintain a Direct Deposit to a Texas Citizens Bank Personal Account.


Rates current as of January 22, 2011
"One Bump" Certificates of Deposit
(Minimum Deposit $10,000.00)
APY
30 Months 1.25%
48 Months 1.40%

[maui1]

ing checking 1.25 over 50k

ing reg savings 1%

both fdic ins

[The Virginian]

Large Cap Dividends is the place for me! Fresh Air ! Town Square! ;D

[verrip1]

Jun 27, 2011 11:17:49 GMT -5 The Virginian said:

Large Cap Dividends is the place for me! Fresh Air ! Town Square! ;D

I suppose we could hear from the guy on IBB who thinks that penny stocks are good for all people, at all times.

[The Virginian]

I suppose we could hear from the guy on IBB who thinks that penny stocks are good for all people, at all times.

I'd rather try my luck in Vegas at the Craps table!

[frankq]

High dividend Blue Chips.......

Or, you can buy gold through Monex and they only want 25% down and accept those worthless fiat debt notes for payment .......... so much for gold being "scarce". Just kidding about buying gold.

[maui1]

Or, you can buy gold through Monex and they only want 25% down and accept those worthless fiat debt notes for payment .......... so much for gold being "scarce". Just kidding about buying gold.

or you can buy stock on a 10% option margin?

[maui1]

xyz- show me some of those 4% fdic cds you were talking about........as i posted, i can't find them

[maui1]

OP wanted safe cash equivalents. I hope he has enough knowledge to realize that many of the more recently posted items listed here are far from safe and far from cash equivalents.


i am sure the op wanted good information as well

[maui1]

show the current ones available in my state.

wyz- show me! ...........i posted that they are not available in your state! 2010 was last year if you are not aware.

[maui1]

i am not an asshole..........although i have been told i look like one