2 ms·
> no one should be using bond funds as a checking/savings account replacement Literally all money market accounts are bond funds under the hood, actually.
by all_blue_chucks 8y ago
> no one should be using bond funds as a checking/savings account replacement
Literally all money market accounts are bond funds under the hood, actually.
- whatok 8y agoUnder the hood vs how they function in everyday situations are completely different things. If I sock away $100 a month for the next 12 months to pay for something, which one is more likely to have >=$1200?
- ac29 8y agoWith the important difference that money market accounts should never lose principle (aka "breaking the buck"). It has happened, but its fairly uncommon. Bond funds, however, frequently can and do lose value - if interest goes up, price goes down (the reverse should also be true, though).