Can Money Market Funds Drop Below $1? How Safe Are They for Retirees?

[@lalsingh7340]

Good advice to anyone today, Don't simply retire from something; have something to retire to. Start saving, keep saving, and stick to investments. Everyone should have BTC in their portfolio…

[@RichardArthurBaker]

As a beginner in this, it’s essential for you to have a mentor to keep you accountable. Jihan Wu is also my trade analyst, he has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.

[@GregFunnell-q9f]

Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's

[@AmirRezaie-d2h]

His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

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I'm favoured, 90K every week! I can now give back to the locals in my communities and also support God's work and the church. God bless America,, thank you Mr Jihan Wu😊🎉

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Waking up every 10th of each month to £210,000 it’s a blessing to I and my family… Big gratitude to this same Jihan Wu🙌

[@kburkes4245]

Thanks for explaining MM funds so clearly. Learned some new things! I have two MM accts for my emergency funds. Good to hear you chose that for your mom, too.

[@Sondan1988]

Ok Erin....THANK YOU !! I think these kinds of videos are what people really need !!! Many people don't know what a Money Market is, don't know what a T-bill is, what a CD is. I know I suggested these kinds of videos a while back and you are now delivering. GREAT JOB !! Thank you again

[@JoseRodriguez20242]

I have my emergency/retirement funds (until SS kicks in) in a MMF. When I first placed those funds there when I retired I was earning 5.03% now it down to 4.25% due to The Fed lowering the rates. It is still a competitive yield and your money is liquid when needed. Great explanation on the differences and FDIC protection.

[@tothra]

How has Erin not become a certified financial advisor? Do others realize how lucky we are that Erin gives us quality, easy to understand explanations of economics and finances, and all she asks in return is a thumbs up and to subscribe? Erin rocks, and I'm grateful for her videos. Thanks, Erin 😊

[@dstevens518]

I think in a past video Erin revealed she IS credentialed, but decided making these videos is more helpful, reaches more people. Agree, it's like a public service she's providing. Even luckier for those that found her while they're still young. I only really discovered FIRE and personal finance in middle age, and it's still done us a world of good.

[@jefferya.meixner8540]

Middle age is still young, you have plenty of time for compounding growth.

[@kirklandphil]

I agree; I wish I had this information starting in the '80s! 🤣

[@floydestelle6242]

She make plenty of money from her podcast

[@kirklandphil]

@@floydestelle6242 She earns every penny of it.

[@ElizabethHughes-p7b]

I use money market funds for my 2 year cash bucket. One year from retirement and getting my investment/bucket strategy tuned up. Hello from Canada.

[@johngrubb5486]

I absolutely use a MMF. I use it to park cash that i make from my other long term higher yield investments. Right now, the returns on MMF are pretty good, so it is a good investment tool for those who don't have money to risk in other investments, or just enough money, $100k to get a nice little payout at the end of the year at about 4.25 percent currently. Thank you Erin!!

[@barrybritt3352]

This video is one of the best on YT in explaining MMF. Thanks!

[@ErinTalksMoney]

Thank you!

[@brandonblahnik6002]

The cash that goes into my HSA is defaulted to SPAXX. If the amount of cash in there goes over the trigger amount I set, the excess cash is automatically invested in various index funds.

[@educatedwanderer9293]

Monday mornings are better with you Erin!

[@williamfrench3796]

I use Vanguard Treasury MMK fund (VUSXX)- consists of short-term government securities (97.7% T-Bills and 2.3% Govt-Obligations; maturities 120 days or less) for my primary emergency fund. in addition there are tax advantages regarding exemptions from state and local taxes (depending on the state). Also brokerage accounts use MMK as settlement funds to park cash, interest, dividends, cap-gains for future purchases or distributions. Keep up the good work Erin!

[@peacefrog0521]

I was just looking up VUSXX and wondered how it’s different from VFMXX.

[@paulg2132]

This has been on my mind lately. I'm very close to being debt free and I've been thinking about where to park my money. Great coverage as always. Thanks!!

[@martinyeager7948]

As my CD's mature I am moving out of the CD ladder to a Money Market fund for my two year cash fund. The Money Market fund is less trouble and the difference in interest to the CD Ladder pay is negligible.

[@RDP59]

This is good refresher to know the difference between each of these and what are the risk you take. Some of them I didn’t know. Thanks

[@MattMetcalf-m1o]

Must have nailed this one on the first take...no blooper reel. As always good content well presented.

[@paulmartin8212]

that's what I was thinking. I do miss the bloopers though.

[@devenchy3k947]

Great video and great timing! I was going to put my emergency savings into a money market fund before the end of the year.

[@ErinTalksMoney]

Perfect!

[@herculesrockefeller8969]

I use them, but only use those backed by Federal paper, not commercial. Thank you, Erin!

[@nelsonvermilyer8941]

I find your videos very helpful. Thank you

[@SantaBarbaraAlberto]

When we sold company stock in our 401K, we had a value stable fund similar to a money market fund. We didn't find a similar fund when we converted into an IRA. The market fund serves the same purpose.

[@marklopez4762]

I do use one for my cash position.

[@kronsonfamily]

I had a MM for my savings when it was paying 5.25% but then it all of a sudden dropped to 1.5% so I moved it all to a credit union's HYSA at 4% and I'm happy with that.

[@lonnieevans4127]

Congrats on hitting (and blowing right through) the 100K subscriber mark!!!

[@ErinTalksMoney]

🎉

[@MichGoBIue]

Always wondered how this worked. Wow on the Lehman fund going down to 97.

[@jrace2718]

This is very timely. I have wondered about this recently. Thank you for posting about this topic!

[@ErinTalksMoney]

Glad it was helpful!

[@ronlarson6530]

My Money Market fund generates $2000/mo, I withdraw $2000/mo to supplement my Social Security The market terrifies me as a retired person

[@BrianK-zz4fk]

This would be a great option for my mom as she stopped rolling her CDs and has more than the FDIC insured amount at her bank. Didnt even think of this option as I had money frozen for years in auction rates swaps, sold as liquid. I will take a look at it and thanks 👍

[@Firefighter53]

Another great job! Thank you.

[@ia6980]

It seems like its safer to keep it at HYSA thats fdic insured, like wealthfront and others. Because with financial stress, theres posibility of breaking the buck

[@Just_Stevo]

If Vanguard breaks the buck money likely doesn't matter anymore.

[@anotherperspective6247]

^this. If you are in a MM fund at Vanguard or Fidelity or a megabank (Chase, Citi, BofA/ML) if they break the buck you will have bigger daily issues to worry about like nuclear fallout.

[@DavidKnicks]

Erin you are the best!❤

[@ErinTalksMoney]

Thanks! 🙏

[@huy3967]

A really good video with useful information. Thank you.

[@ErinTalksMoney]

Glad it was helpful! 😊

[@NormanOkada]

I think people confuse money market savings account and money market funds. They don’t understand MMSAs are FDIC insured while MMFs are not.

[@BrianK-zz4fk]

depends on your cash values. fdic is only insured up to 250k. Also Fdic is funded at about 10% of what they are covering so def not safe with a market meltdown.

[@Opa-RI-Andrew]

Hi Erin, can you please explain what covered & uncovered shares mean. I think it might be shares that a mutual fund did not track for an accurate basis & when I’ll sell them I will have to figure out the basis myself. Help?

[@mariatreloar9482]

Uncovered shares are shares with no documented cost basis usually shares purchased before 2010 before the regulations changed forcing brokerage houses to be responsible for maintaining cost basis records instead of investors. Covered shares are those included in the regulations now in place.

[@Opa-RI-Andrew]

@ I guess I should have kept better records - all I have are annual statements.

[@mariatreloar9482]

@@Opa-RI-Andrew when or if your selling the shares, you can work with a cpa or tax advisor to come up with a possible cost basis for your shares

[@victorbaird8220]

I am always SO excited for new videos 😊❤😊

[@hanwagu9967]

Although there isn't a formal, standing backing by the US government on MMF, the government did set precendence by insuring MMFs during the 2008 financial crisis.

[@murfsgaming8740]

Have you ever looked at ETF's like SGOV. It's not a money market, but it's liquid and avoids state and local taxes

[@haldriver1378]

I have some SGOV. Mostly, I have Tbills, in $1000 increments. But, I buy SGOV in $100 increments. The rest of the "table scraps" go into a MMF in $1 increments. Returns are similar for each of them.

[@MichaelToub]

Great Video!

[@Steve_SEC]

Are Treasurys such as VUSXX as safe as HYSA?

[@christiansailor2880]

Thanks, Erin!

[@robertrodriguez3614]

Thank you for the content!! Appreciate it

[@shawnbrennan7526]

MMSAs were where we parked savings for things like a down payment on a house. Slightly higher interest and very low risk for money we were going to need for an upcoming move.

[@misterbill42]

If by MMSA you mean money market savings account, that is not the same thing as a money market mutual fund (which was the subject of this video).

[@shawnbrennan7526]

@@misterbill42 Good clarification. I’ve actually used both. MMSA through a bank and MMF through a brokerage.

[@cgrilley]

Do you think MM funds would be a good place to deposit a larger amount of money temporarily? Say for example you receive 300k in cash, which exceeds the FDIC limit of 250k. Would it make sense to deposit the 300k in a brokerage account and then a MM fund so that the full 300k is safe (with the exception of breaking the buck)?

[@James4cycling]

Buy a Treasury bill in a brokerage account.

[@pwong0227]

I save in GIC 4.15% with no maturity date and I can redeem anytime. The interest is pro-rated and paid monthly. It is just like high interest savings account that I use cash from the bucket.

[@alanm7186]

I have a Money Market fund to keep money for a future car purchase so that I can pay cash. Grows everymonth until I need it.

[@hunterandchavy]

Always providing value Erin. Thank you 😊. Congratulations on hitting 100k! Been watching your growth and how you are able to do all this while raising a family. So proud of you

[@ErinTalksMoney]

Thanks so much!! 😊

[@jarenmcknight6838]

So would you not recommend putting cash into VMFXX over a HYSA?

[@briankowald6465]

I have SPAXX. I noticed the expense ratio is higher than I thought. 0.42%

[@miamivicefanatic9736]

Could you do a video explaining SIPC? Would SIPC coverage go into effect if, for example, the Vanguard Money Market Fund went under $1/share?

[@mariatreloar9482]

No, SPIC coverage protects against the brokerage firm going under, it does not cover market losses

[@zeldyrrolorin9962]

Look at that post-100K subscriber energy. :-P Interesting topic. I've been using high-yield savings accounts and hadn't really considered a money market fund.

[@matthewroth5062]

Its great to understand the role that a money market fund can play in a portfolio, but in my circumstance, I don't need to put money there. An online-only savings account - which is fully insured by the FDIC (

[@martinyeager7948]

Have you ever done a video on I-bonds?

[@TheSkite575]

Is a money market account the same as a money market fund I'm actually moving money from a high yield savings to a money market account tomorrow

[@LiamRappaport]

Loving the AI Rob Berger pics you've been using.

[@moe-df9qx]

i dont have an MMF but ive been contiplating puttin my small 5k E fund thats earning .05 in my bank cause it aint nuffin🤓

[@ld5714]

Hi Erin. Informative and good discussion on this topic. Thank you for all the effort you put into your content on the channel. It is helpful and I'm certain you are helping many of your followers. Have a great week and I'll see you on the next one. Larry, Central Valley, Ca.

[@fredswartley9778]

I still prefer high yield savings accounts over money market funds. Many hysas are paying just as much as money market funds and they are FDIC insured.

[@livingunashamed4869]

I'm sticking with Barclays high yield online savings right now, they have a tier savings starting off at 4.5% love it.

[@markreichman5922]

Just noticed you have developed your own sign language.

[@WealthyChronicle]

So money market funds are almost like investments in disguise? 😲 Kind of scary but good to know that a little risk can give better returns!

[@7SideWays]

MMFs pay dividends. Better tax treatment than interest if you get up there.

[@Very_Concerned-Citizen]

The MMF 'Broke The Buck' in 2008.

[@curtiswfranks]

That is indeed a safe.

[@MrGrumpy1]

Commercial paper is the New York Times, Chicago Tribune, and Washington Post, right? 😆

[@joethecomputerguy1]

No bloopers :(

[@jojocrawdaddy]

Erin, as many people are easily influenced on KZbin, I hope you are able to squash the scammers that leave bait in your comments section.

[@wagon9082]

Good video

[@trackguy4038]

Give a video on talking about getting adequate health care. So many people that are financially responsibie go bankrupt since they do not have health care

[@MathildaCarina]

"Retirement isn’t an end goal, but a journey best secured by careful and consistent investments."

[@GraceOliviaf7y]

Well said! Retirement is the reward of disciplined investing over the long term, not just a destination.

[@TeddyAlexanderv6]

Well said! My adviser guided me through retirement planning, ensuring my investments were strategically positioned for long-term rewards.

[@OscarBarnaby3k]

That's a great point! Finding a reliable financial adviser would be essential for me to ensure my retirement plans are well-structured.

[@TeddyAlexanderv6]

My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further.

[@OscarBarnaby3k]

I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you

[@sugershakify]

5:36 explained by the Congressional Capital Markets Committee chairman at the time. kzbin.info/www/bejne/pnWbp5yHlKmbiZYsi=FhQSPS_gOhCxFBXL&t=126

[@martinguldnerAutisticSwanGuru]

With the rash of stories of people being tricked by a scammer that they are from their bank and having their savings account cleaned out. I say having your savings in a US government money market is safer. I keep most of my cash in a US government money market fund with the brokerage arm of a regional bank. When I make a request to transfer money from the US government money market fund by 2 PM the funds are in my checking account the next business day.

[@DudeAutonomy]

Breaking A Buck has happened at least twice in the past 50 years.

[@floydestelle6242]

She makes money from her podcast

[@Twest130]

First for once!!

[@sheldoncooper0]

Simp!

[@Allen-by6ci]

no one cares