Money market funds
We have been retired fo 7 years and have an IRA and some CDs with Edward Jones.
We have heard you talk about money markets on the radio which offer higher interest rates than our bank. We would like to put some money into a money market but Edward Jones’ accounts are not FDIC insured. Our advisor claims the MM is very low risk, but we need to feel secure that we won’t lose on our money. What is your opinion?
Terry Says
All money market funds are not alike — but in their 50+ year history, only once has a money market fund failed to be worth the promised $1 a share. If you want the safest — but slightly lower yielding — money market fund, insist on a “government securities money market fund.”
One example is the Vanguard Federal Money Market fund — https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx
It’s current yield is 4.23%.
Surely your Eddward Jones advisor can put you into that fund.
