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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: rayvt 🐝  😊 😞
Number: of 6131 
Subject: Re: where to store money
Date: 07/25/25 2:07 PM
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One might add
"When the US sneezes, the world catches a cold, and the US dollar loses 40% of its global purchasing power"


For a US citizen, there is nothing you can do about that. Like a fish going up and down with the tide. That's the water you are in, and that's that.

One can hold assets other than US dollar cash or cash equivalents.

Well, yeah, sure. Theoretically. Not practical for almost all US people. Not many of us have the situation where we can float between Canada/France/Monaco. We are stuck where we are.

If you want the yield on T-bills, for heaven's sake buy T-bills. Conversely if you want a higher yield (which money market funds typically do not even offer), buy something with a higher yield and live with the increased risk.

Yes, this is a conundrum I run into every time I think about what to do with cash. That allocation is supposed to be held in a very safe asset.
But "safe" means low yield.
To get decent yield you have to go with higher risk.
But avoiding higher risk is the whole reason you embarked on that journey to begin with.

FWIW, FLRN pays 5.32%.
Top 10 MM accounts (yahoo) pay about 4.30%
VMFXX (Fed MM) is 4.21%
FDLXX (Treas-only MM) is 3.93%. For me, that's tax-equivalent 4.12%.

110 BPs might be worth the higher risk. 10 BPs is certainly not.
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