Charles Schwab Money Market Trust Account
WE are in our 80’s and concerned about our Money Market account titled in our trust. I know the rate can fluctuate and they aren’t covered by FDIC. Should I consider moving funds to banks in amounts covered by FDIC?
Terry Says
No, you don’t have to worry about that. The Federal Reserve has said that it will stand behind the commercial paper and other short-term securities that back most of these money market mutual funds. That includes the Schwab money fund you are invested in.
But, if you think you have too much money there, here’s a lesson in How to Buy U.S. Treasury Bills.
One thing, though, you can’t buy Treasury bills in an IRA — except by using a Treasury-only money market mutual fund.
