U.S. News & World Report quotes Michael Ciccone in "5 Best Cash Equivalents Amid Rate Hikes"Submitted by Tradition Advisers on February 11th, 2019
With interest rates still relatively low, finding a cash investment that pays a reasonable interest rate can be difficult. Tradition's Michael Ciccone is quoted in a recent U.S. News & World Report article, "5 Best Cash Equivalents Amid Rate Hikes."
Money market mutual funds, not to be confused with lower yielding bank money market savings accounts, invest only in highly liquid cash and cash-equivalent securities with high credit ratings – typically government and commercial debt. Money market funds’ interest payments will increase along with escalating rates.
Money market mutual funds include the Vanguard Prime Money Market Fund with a current yield of 1.94 percent, Fidelity Money Market Fund with a current yield of 1.86 percent and Schwab Value Advantage Money Fund with a current yield of 1.78 percent.
“It is important to remember that these funds are not FDIC-insured. And while they target a constant $1 net asset value, there is no guarantee that they don't 'break the buck' and drop below $1 a share,” says Michael Ciccone, certified financial planner and associate vice president at Tradition Advisers in Summit, New Jersey.