Stocks and Trading Thread - Channeling your inner Mono

[Admiral Yi]

For some dumb reason Princesca is bugging the crap out of me to put $1,000 into a "safe" money market fund.  Do any of you guys hold one and, if so, which?

My cash sweep goes into an Ameritrade money market, but the yield on it is only 0.03%.

My parents have some money in a MM fund that pays 0.09% Might as well stuff it in the mattress.

[Richard Hakluyt]

$1,000    ?

[Caliga]

It comes from some thing she read in a book by this guy named Dave Ramsey that advises you how to get debt-free as quickly as possible.  We don't have an inordinate amount of debt (mainly just the mortgage and associated HELOC) but for reasons unclear to me she's paranoid about paying it off as fast as possible.

[Admiral Yi]

How about a money market account at your bank?  FDIC insured.

[DGuller]

It comes from some thing she read in a book by this guy named Dave Ramsey that advises you how to get debt-free as quickly as possible.  We don't have an inordinate amount of debt (mainly just the mortgage and associated HELOC) but for reasons unclear to me she's paranoid about paying it off as fast as possible.

Pop financial gurus.

[Ed Anger]

It comes from some thing she read in a book by this guy named Dave Ramsey that advises you how to get debt-free as quickly as possible.  We don't have an inordinate amount of debt (mainly just the mortgage and associated HELOC) but for reasons unclear to me she's paranoid about paying it off as fast as possible.

Actually, I sorta agree with that, as long as you don't deplete yourself getting debt free.

There is another storm a comin'. I can feel it in my bones.

[Richard Hakluyt]

Yes, being debt-free and owning a house is a desirable position; you can manage on almost nothing with that behind you.

[DGuller]

Yeah, but you're losing the subsidy the government gives you to reward you for leveraging yourself.

[Caliga]

I agree with the general principle but the $1K thing seems totally arbitrarily and annoys me.  We have much, more more than that already put away in IRAs for retirement, all if which is sitting in what I would consider to be extremely safe investments.  I don't understand why I need an additional $1,000 sitting in a fund that's going to be flat.

[Richard Hakluyt]

No subsidy in the UK anymore; but I take your point.

[DGuller]

I agree with the general principle but the $1K thing seems totally arbitrarily and annoys me.  We have much, more more than that already put away in IRAs for retirement, all if which is sitting in what I would consider to be extremely safe investments.  I don't understand why I need an additional $1,000 sitting in a fund that's going to be flat.

Yeah, I don't get it either.  What's the point of it anyway?  I can understand holding something like $10,000 in money market account, as a short-term slush fund in case you lose your job.  What will $1,000 give you?  Gas money to the soup kitchen?

[Richard Hakluyt]

It's just $1000 then? Not even $1000 a month? I mean, you are quite well-off..................surely a $1000 is irrelevant?


But then, that is what you are saying 

[Caliga]

Yeah, I don't get it either.  What's the point of it anyway?  I can understand holding something like $10,000 in money market account, as a short-term slush fund in case you lose your job.  What will $1,000 give you?  Gas money to the soup kitchen?

Yeah... it's supposed to be an 'emergency fund'... but see I thought that's what my savings account was for.

[DGuller]

No subsidy in the UK anymore; but I take your point.

If there is one thing that I hope comes out of the budget crisis, it's the death of the mortgage interest deduction.  Unfortunately, not only does it make too much sense, but it also runs counter to the home-ownership fetish in America, and will hit too many voters directly in their pocketbooks, so this will never happen.

[Caliga]

But then, that is what you are saying 

That's why I'll probably just cave and do it.