Permalink Submitted by Alan - IRA critic on Mon, 2018-10-29 18:41
If this is your emergency fund, or at least the first dollars you will use of your emegency fund, it should be in taxable. If not an emergency fund you can maintain the MM fund in either taxable or tax deferred accounts. Now that some MM funds yield over 2%, you could almost look at these accounts as a surrogate for your bond allocation.
If your broker uses a MM fund for a sweep fund, it still may be yielding next to nothing, and if so you should only keep enough in such a fund to settle trades with any excess being transferred to other investments or possibly a prime MMF such as those yielding over 2%. This is all a function of the MMF structure your broker uses.
Permalink Submitted by Alan - IRA critic on Mon, 2018-10-29 18:41