Hi my name is Will Street I'm an Agent here at Paradigm Life and today's tip of the day is
Money Market Accounts
Now Money Market Account is a savings
account its a savings vehicle.
If you done any research at all
with your bank or credit union you
probably have noticed that they offer a
money market account
often a money market account that is
utilized through a bank or credit union
promises a certain rate of return but
often that rate of return is tiered
in other words the rate of
return increases
the greater the number of dollars that
you dump into that account
so as you cross certain thresholds of
savings
the race of return on those accounts
typically get better
now what does that mean what is the
return these days on a money market
account you can do some research and
find out for yourself but typically
there
on the order of maybe one percent are
often less
they can get higher than that but
they require
literally tens if not hundreds of
thousands of dollars to be
maintained in those accounts a that can
be a difficult
threshold for a lot of families to
maintain. You also probably noticed if
you have
a brokerage account Scott trade, E-Trade, Vanguard, TD Ameritrade any those
types of brokerages
that they offer a money market accounts
there as well and often the strategy
with the money market account
as it pertains to a brokerage
account is that is designed to be safe
is designed to be minimized
minimize the amount of market exposure
in other words if you're positioned in
the market in you sell
and you wanna have take a breather
before you jump back into the market a
lot of times your position your money
in a money market account so it's designed
to be an accumulation vehicle
and it's designed to be safe in to be
insulated from market risk now
are there other vehicles out there are
other
type serve a vehicles that can serve a
similar purpose
the answer to that question is yes there
are other vehicles
one of those his whole life life
insurance cash value
accumulating pro-life life insurance
we build policies like that for our
clients every single day in the purposes
we want those vehicles to accumulate
cash value
to insulate you from the risk that comes
with exposure to the market
and to allow you access to that money
whenever you choose
and not require that you maintain a
certain balance
in order to achieve the types of
returns that come
from having a whole life policy with the
mutual life insurance company
