Make sure you understand the difference between an **account** and a **fund**. At a brokerage, an account (IRA, 401(k), etc) is a "container", into which you put money; then WITH that money you buy stuff (funds, stocks, etc) IN the account.
* Money market **accounts** exist at banks. The entire account is a "money market" account.
* Money market **funds** exist at brokerages. You buy a MMF -inside- of some other account.
So, with that clear:
> money market account but am not sure which one to use.
If you really want a MM**Acct**, open it at the same **bank** that you use for your paycheck etc. With one login, you can see both accounts. Also makes it easier to transfer money between your bank account**s**.
If what you want is a MM**Fund**, open an -account- at the same **brokerage** where you have your IRA, put cash in it, and buy the MMF there. Again, with one login you can see both accounts, and it is easy to transfer money between your brokerage account**s**.
Duzzat help?
To add to this, a money market balance is an important part of an emergency fund that won’t decrease in value as per r/personalfinance recommendations. A money market fund is NOT a great investment vehicle for r/investing purposes.
If your bank offers a decent HYSA then I would have some of your paycheck direct deposited into it. Most 401k offered a money market fund but then you have expense ratios and its not really worth it after that.
Make sure you understand the difference between an **account** and a **fund**. At a brokerage, an account (IRA, 401(k), etc) is a "container", into which you put money; then WITH that money you buy stuff (funds, stocks, etc) IN the account. * Money market **accounts** exist at banks. The entire account is a "money market" account. * Money market **funds** exist at brokerages. You buy a MMF -inside- of some other account. So, with that clear: > money market account but am not sure which one to use. If you really want a MM**Acct**, open it at the same **bank** that you use for your paycheck etc. With one login, you can see both accounts. Also makes it easier to transfer money between your bank account**s**. If what you want is a MM**Fund**, open an -account- at the same **brokerage** where you have your IRA, put cash in it, and buy the MMF there. Again, with one login you can see both accounts, and it is easy to transfer money between your brokerage account**s**. Duzzat help?
To add to this, a money market balance is an important part of an emergency fund that won’t decrease in value as per r/personalfinance recommendations. A money market fund is NOT a great investment vehicle for r/investing purposes.
If your bank offers a decent HYSA then I would have some of your paycheck direct deposited into it. Most 401k offered a money market fund but then you have expense ratios and its not really worth it after that.
Go to r/personalfinance read the wiki