What is the Money Market Mania Portfolio (MMMP)?
The MMMP is the easiest way to earn interest on your money at your brokerage account. Think of it as the default way to make some interest.
Why is MMMP Useful For?
The MMMP is where you put your money if you don’t have a plan or any goals for your money at your brokerage account. You might not know what you want to do with your extra cash. If you don’t know or don’t have any ideas put your money in the MMMP.
What is The Income Yield?
The income yield is 4.00%.
What are the Main Benefits of the MMMP?
- High Interest – You get the best rates available, somewhat tied to Federal Reserve short term rates.
- Flexibility – The day you decide you want to move the money somewhere else, you can do it.
- Par Value – This is a fancy term for “protecting principal”. The money invested is not market priced, because the investments maintain a par value, which doesn’t change.
- Optionality – There are different options available, some with higher interest. Pick those that fit your needs and perhaps some of these are accounts that you already have.
What are the Risks of the MMMP?
The Money Market Funds in this portfolio do not trade on markets, so they are less risky. They have a defined par value (typically, $1). What this means is that you can always get your principal back and sell for $1.
These investments technically have no insurance such as FDIC insurance. They may invest in government debt or sometimes privately issued debt. It is possible that these funds could fail, but the risk is very low, but not zero.
These MMFs contain many investments spread across duration and parties. The risk of default on any individual bond is not zero. However, systematic failure would need to occur for the fund to fall.
The safest MMFs on this list are ones that invest in “treasury government debt and repurchase agreements”. These investments are tied to the full faith and credit of the Federal Government.
Another risk of the MMMP is interest rate risk. Interest rates are priced very quickly and frequently, you can’t depend on these rates staying around. They can also go up quickly as well.
What’s A Municipal Bond Fund MMF?
Municipal bonds are debt issued by state and local governments to support the financing of services and capital projects.
Typically, but not always, these bonds are exempt from Federal taxes and sometimes state/local taxes. If you are in a high marginal tax bracket, these MMFs can be useful to lower your tax burden.
It is possible to get an exemption from state/local taxes. The bonds would need to be issued by your local jurisdiction. In the MMFs listed below, there are funds specifically for residents of California and New York State. These MMFs only buy municipal bonds issued from those respective states.
How do I get the Money into these Accounts?
We recommend that you use what is called Automated Clearing House (ACH) to fund your accounts from your bank or other institution. ACH transfers typically are no cost and universally accepted between banks, financial institutions and investment exchanges.
How do I sign up for these Accounts?
It is possible you may already have accounts at these institutions, but just need to know where to put the money to get the high interest.
If you don’t, we include a link where you can sign up for an account.
MMMP Portfolio – 03/01/2025
| Brokerage | Symbol | Name | Yield | Expense % | Open Account |
| Schwab | SWVXX | Value Advantage Money Fund | 4.19% | 0.34% | Schwab Signup |
| Schwab | SNVXX | Government Money Fund | 4.10% | 0.34% | Schwab Signup |
| Schwab | SNOXX | Treasury Obligations Money Fund | 4.09% | 0.34% | Schwab Signup |
| Schwab | SNSXX | U.S. Treasury Money Fund | 4.02% | 0.34% | Schwab Signup |
| Vanguard | VMFXX | Federal Money Market Fund | 4.26% | 0.11% | Vanguard Signup |
| Vanguard | VUSXX | Treasury Money Market Fund | 4.27% | 0.07% | Vanguard Signup |
| Vanguard | VMRXX | Cash Reserves Federal Money Market Fund | 4.27% | 0.10% | Vanguard Signup |
| Vanguard | VMSXX | Municipal Money Market Fund | 2.37% | 0.11% | Vanguard Signup |
| Vanguard | VCTXX | California Municipal Money Market Fund | 1.98% | 0.12% | Vanguard Signup |
| Vanguard | VYFXX | New York Municipal Money Market Fund | 2.32% | 0.11% | Vanguard Signup |
| Fidelity | SPAXX | Government Money Market Fund | 4.02% | 0.42% | Fidelity Signup |
| Fidelity | SPRXX | Money Market Fund | 4.05% | 0.42% | Fidelity Signup |
| Fidelity | FTEXX | Municipal Money Market Fund | 2.17% | 0.39% | Fidelity Signup |