I have a nice predicament... I managed to cash out my GME for a bit of a profit a few weeks ago, and after using most to max out my 2021 NISA, I will still have a couple thousand USD in my Rakuten account.
So I was looking at what I should do with it and came across MMFs.
I've searched the forum but there isn't much information that I can find. So, some questions:
- Does anyone use this for their spare cash in their brokerage account, and can you relate any pros and cons
- Are the yields taxable or are there tax-sheltered options
- Is this something that gets settled in a general, specific, or NISA account like securities or ETFs, or is it separate to those
- I have USD, so am I limited to buying the USD MMF, or can I buy the Turkish Lira or South African Rand MMFs (offered on Rakuten)
Really appreciate any insight you have! Thanks!
MMF Money Market Funds
Re: MMF Money Market Funds
If you don't want to convert the USD back to JPY you could just put them in VT. But for temporarily holding I guess putting them in a mmf works and might give some very very small returns(they're just so small that I personally haven't bothered).
- Does anyone use this for their spare cash in their brokerage account, and can you relate any pros and cons
Nope, the main benefit of using an mmf if I'm not mistaken is just having quick access to the funds if you need it. Their returns in any stable currency are VERY weak.
- I have USD, so am I limited to buying the USD MMF, or can I buy the Turkish Lira or South African Rand MMFs (offered on Rakuten)
You may be tempted by those 13% returns on the turkish lira, but if you are seriously considering that, you must understand that one lira 5 years ago was worth 38 yen. Now it is worth 15. If you're not sure about how to trade these, you really should not be considering them
- Does anyone use this for their spare cash in their brokerage account, and can you relate any pros and cons
Nope, the main benefit of using an mmf if I'm not mistaken is just having quick access to the funds if you need it. Their returns in any stable currency are VERY weak.
- I have USD, so am I limited to buying the USD MMF, or can I buy the Turkish Lira or South African Rand MMFs (offered on Rakuten)
You may be tempted by those 13% returns on the turkish lira, but if you are seriously considering that, you must understand that one lira 5 years ago was worth 38 yen. Now it is worth 15. If you're not sure about how to trade these, you really should not be considering them