Personal accounts, held directly at a Federally-insured bank or credit union, are earning more than they ever have since 2007. DepositAccounts is showing over twenty Federally-insured savings accounts paying over 5%. I find it ironic that people are willing to reach for an extra fractional percent in "cash-like" vehicles at exactly the time when it's least needed.
This is a way the present environment feels like 2006 and 2007. Schwab YieldPlus. Fidelity Ultrashort Bond Fund. GE Enhanced Cash. And "auction rate securities." The details are completely different, but the psychology is the same: the website says it's pretty safe, columnists are saying it's almost as safe as traditional cash vehicles, lots of people online are saying good things, and I've heard of them... so it must be OK.
This is a way the present environment feels like 2006 and 2007. Schwab YieldPlus. Fidelity Ultrashort Bond Fund. GE Enhanced Cash. And "auction rate securities." The details are completely different, but the psychology is the same: the website says it's pretty safe, columnists are saying it's almost as safe as traditional cash vehicles, lots of people online are saying good things, and I've heard of them... so it must be OK.
On the one hand, I believe Wealthfront is safer than Yotta. On the other hand, that's hindsight, and if we were discussing this before the collapse, I think Yotta customers would have pushed back against arguments that Yotta was less safe than Wealthfront because of the presence of the third party....Every month you get two separate statements, one from Wealthfront and one from Green Dot. So there won't be any ledger issues, and your funds are always safely held in a FDIC insured bank...
Statistics: Posted by nisiprius — Mon Jun 17, 2024 6:02 am — Replies 53 — Views 3457