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Money market alternatives

1,538 Views | 5 Replies | Last: 8 mo ago by Monywolf
kyle field 94
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AG
I have some emergency funds sets aside in a money market account earning about 5%, however the income is taxed as interest or non qualified dividends.

Are there any money market type funds that pay qualified dividends vs ordinary dividends?

Or other tax efficient suggestions that are essentially risk free that would allow access to money in a day or 2 if needed.
Maximus Johnson
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AG
Following
Business Time
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AG
Look at BOXX ticker symbol. Its an ETF that uses box spreads and other tricks to essentially match treasuries but provides capital gains (long or short) depending on your hold period instead of ordinary income.

mosdefn14
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AG
Are you in a 37% tax bracket?

Tax free money market funds are in the 3.2 range, so 5.2ish TEY, which is what most MMFs are.
kyle field 94
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AG
Probably in the 35 or 37% brackets. One further issue is that I have a family limited partnership with some of the funds and they are not eligible for all tax free money market funds that individual are eligible.
Monywolf
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There are tax-free money market fund options.

edit - already answered above
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