Hello,What is a good money market for a brokerage and IRA account? Is a money market "fund" necessary or just a money market? I'm more concerned about holding the money for investing opportunities not so much for a return. After researching a few I noticed there are government, national, state and many have management fees. Never knew this! With such low interest rates the fees are surprisingly high. Please advise. Thank you.
Most brokerage accounts offer money market accounts. People use them to park funds as from dividends until they are invested. Or with shorter settlement dates broker prefer cash in the account before executing a purchase.Afik they differ in the tax status of interest. Some are fully taxable, some fed tax free, and possibly some free of state and/or local taxes.With rates so.low this hardly matters to many of us. But of course for those parking sizable sums there its important to make the right choice.It comes down to the tax rates you pay vs the difference in interest rates.
Thank you for the response. I suppose the differences are minimal and I will reevaluate what is best for my short term long term goals. Appreciate it.
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