JoeSpareBedroom wrote:
"Short Wave Sportfishing" wrote in message
...
On Tue, 22 Jan 2008 11:28:01 -0600, Vic Smith
wrote:

On Tue, 22 Jan 2008 17:12:08 GMT, Short Wave Sportfishing
wrote:

On Tue, 22 Jan 2008 10:06:19 -0600, Vic Smith
wrote:

The money market fund in mine was always a couple points lower than
"free market" rates were offering.
It's all about risk/reward. I'll bet your 401k money market funds
were being put to work in less risky markets.
Probably cost a point just for the fund manager vigorish these
401k's extract. Very little transparency with these funds, and they
can skim as well as any mob casino operator.
That's not true at all. If you drop into a fund which participates in
T-bills or muni, Fed funds or Fed Short Term, that's very transparent
- has to be by it's base function.

Even funds that do commercial paper or chase LIBOR spreads have to be
transparent. I'm not sure what you are talking about with "skimming".


I think he's referring to the fees, which are clearly spelled out in the
prospectus which he did not read. Or, he thinks the managers work for free
out of the goodness of their hearts.



My main complaint as I neared retirement was their was no low-risk
(read FDIC) place for my retirement money. Even money markets can go
negative, or so I was told.
Sure there is - it's called a savings account. Which, when you think
about it, is a money market fund that isn't transparent.


Maybe he was referring to what was available within his 401k plan. Many
don't offer anything resembling a plain vanilla savings account like you'd
find at a bank. A MM fund is as close as they get to that sort of thing.




Whoops. Forgot this morning that we have some holdings in a private
REIT. The shares don't trade, though.