• 375 days Will The ECB Continue To Hike Rates?
  • 376 days Forbes: Aramco Remains Largest Company In The Middle East
  • 378 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 777 days Could Crypto Overtake Traditional Investment?
  • 782 days Americans Still Quitting Jobs At Record Pace
  • 784 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 787 days Is The Dollar Too Strong?
  • 787 days Big Tech Disappoints Investors on Earnings Calls
  • 788 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 790 days China Is Quietly Trying To Distance Itself From Russia
  • 790 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 794 days Crypto Investors Won Big In 2021
  • 794 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 795 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 797 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 798 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 801 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 802 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 802 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 804 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

A Smarter Alternative To Money Market Funds

Investors are rushing into cash as the financial system is deleveraging. But what form of cash will preserve investor's wealth? 'Cash-like' instruments, such as adjustable rate securities, have become illiquid with the credit markets. Some money market funds, full of asset-backed commercial paper, have had to be supported by their sponsors. Even bank deposits could be unavailable for a time in an FDIC backlog (they expect to be quite busy as their recent hiring suggests).

But what about U.S. Treasury money market funds? We have three reasons why our U.S. Treasury Bill Account is a smarter alternative for your cash than a U.S. Treasury money market fund.

Lower Fees

According to Lipper, the average expense ratio for U.S. Treasury Money Market funds is currently 0.76%. Our annual management fee is 0.50%. It is always important to keep costs down, but more especially in a low rate environment. However cheaper does not always mean better. That's why we have also simplified and improved the structure for holding U.S. Treasury Bills.

Pure Cash

When you buy a U.S. Treasury money market fund, you own the fund shares, not the underlying Treasury Bills in the fund. While this is usually a minor detail, in times of financial system stress ownership claim becomes very important. Liquidity problems at a fund company could arise and the fund family could theoretically be forced to halt redemptions. So in this case, simpler is stronger. Instead of having barriers between you and your funds, we purchase U.S. Treasury Bills directly for your account at a conservative wealth management firm. When you open a LTA U.S. Treasury Bill Account, you have a greater claim to a purer form of cash.

Private Wealth Manager

When you place assets in our care, you also gain a personal advisor that is working for you. We are easily accessible (by phone or email, whichever you prefer) to discuss financial trends and offer a historical perspective on the latest economic news. Try calling a Wall Street money market fund manager! As a client, you will also receive our Investment Analysis Report free of charge. In this monthly newsletter, we highlight investments which hedge investors and business owners from the effects of a bear market.

For investors seeking principal protection, the LTA U.S. Treasury Bill Account provides a low cost, simpler option to U.S. Treasury money market fund shares. With the addition of personalized service from a private wealth manager, you will see why our clients have chosen us to assist them in protecting their wealth. If you are interested in a smarter alternative for your cash, please complete our Inquiries form and we will contact you promptly.

At Lamont Trading Advisors, we provide wealth preservation strategies for our clients. For more information, contact us. Our monthly Investment Analysis Report requires a subscription fee of $40 a month. Current subscribers are allowed to freely distribute this report with proper attribution.

***No graph, chart, formula or other device offered can in and of itself be used to make trading decisions. This newsletter should not be construed as personal investment advice. For informational purposes only.

 

Back to homepage

Leave a comment

Leave a comment