Financial Planning Fridays #13: Money Market

Today, in our thirteenth episode, we wanted to talk with you about optimizing your accounts that are not invested for the long-term. At Presilium, we want you to get the best possible returns on all of your accounts. These include accounts that you may want to access in the next couple years and consequently want to minimize the risk and volatility on. As it stands today in early November 2022, the money market options at Fidelity are now paying our clients around 3.5%. We typically keep funds invested here that you want immediate access to each day. We then look to use short-term CDs and treasury bills for funds that you may not need immediate access to but still want to protect the principal. These tend to yield slightly more than the money market options- anywhere from the high 3%s to the low 4%s as of today, providing a slightly higher payout for slightly less liquidity. The CDs that we use are FDIC insured up to $250,000 each. And, while Treasury Bills don’t have FDIC insurance, they can also be an attractive option as they are backed by the full faith and credit of the US Government, making them another relatively safe option. Again, none of these options are to distract, or deter, you from maintaining the long-term investment strategy that is part of your overall financial plan but simply to explain a few of the strategies that we are using for client’s short-term funds. Please continue to like, comment on, and forward our videos. This helps us to reach even more people that could benefit from our services in order to reach all of their financial goals. Also, please feel free to reach out to us at any time to discuss your own short-term accounts. Be on the lookout for our next Financial Planning Fridays episode. Subscribe to our Youtube Channel so you never miss an episode. Or contact us directly; schedule your 15-minute call with us today.