Emergency Money Market Fund?

Jess, this is interesting.

First of all, I did not know, are money markets state tax-exempt?

I was literally thinking about that as she said.

I suppose you maybe can find some that are, that maybe have a higher yield.

They're not generally.

No.

I think there could be like a municipal money market that exists, certainly.

Yeah, that would make sense.

Not that I know of.

And then that way you would, yeah.

Um, and yeah, I, so what you're talking about is a couple of things.

Um, number one is shopping for yield.

And I think that's wise.

I think shopping for yield, uh, is something you should always be doing.

Uh, because again, you should deserve to get paid the most on your money.

I think anytime you venture out into things, you don't.

know about like let's say you got an offer from I don't know some broke I'm making stuff up but some brokerage account you know put your money in this fund and we can guarantee you seven percent or something like that you are going to run the other way like you like it's not worth eking out another you you know, 50 basis points or sorry, half a percent or 1% or 2% to risk losing your money.

So when it walks like a duck, talks like a duck, acts like a duck, it's a duck, right? Move on.

So that is going to keep you in the confines of high yield savings, CDs, even treasuries, even, and again, I know we're talking emergency funds, so you want it liquid, but I'm just talking about safety, like cash and cash equivalents.

And yes, money market accounts at reputable banks or mutual funds, et cetera, that you, again, can vet, can research, et cetera.

However, you're right.

There has historically been times when money markets have traded less than a dollar and what you're talking about is called breaking the buck.

So money market accounts trade at a dollar and you buy, if you have 10,000, you get 10,000 shares at a dollar and then they pay you interest on that 10,000, but it stays at a dollar.

In times in the past, in historical times before, The most recent, I believe, was 08 and 09.

It might have happened during COVID too.