Money Market alternatives to LPL

or Register to post new content in the forum

11 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Jul 10, 2008 10:47 pm

Being very new to LPL I am shocked at the lack of MMkt options.  This is the only drawback I have seen so far (other than the Portfolio Review tool is wayyyyyy to complex for the average client)....(oh and the online annuity order entry system is mucho-complicated!)...other than those minor blips I LOVE lpl!

 
Question....what you you guys at LPL...or anyone else for that matter use for a money market?  The Insured Cash Acct at LPL is paying next to nothing so do you folks have any favorite mutual fund mmkts???? 
 
Any help is greatly appreciated.
Pin
Jul 11, 2008 10:19 am

If the cash is going to be there a while, I will use the American Funds Cash Management Trust. You have to fill out the American Funds account application, and send in a check, but it pays pretty good (I should say competitively). And, the client can write checks on it. You buy into the A shares with no upfront load (money market funds only). 

 
Yeah, it's a hassle, but if someone plans on having over $50,000 in cash for over six months, I can't see giving them the ICA rates, they're pathetic. 
Jul 14, 2008 11:33 am

I use that too.  Once you send the first check, you can tie the account via ACH and client can then sweep money from checking to the MMKT.

Jul 14, 2008 12:51 pm

I don't know if it would work for you like American Funds would, but DWS Scudder has a really good MMKT.  Better rate than many other vendors out there, including American.  I've used it from time to time like they two indy's have used American.  We just buy it in firm name like any other mutual fund, so I'm sure you'd have some other hoops to jump through as an indy.

Jul 14, 2008 4:52 pm

ING Direct Savings account,  FDIC insured,  for those who don't want/have a brokerage account ..3%   no fees no minimums.  Beat that at the Bank!!  A good hook to get people to come in and talk to me and free advertising.  Also good to get that uninvested cash away from the notice of the Bank brokers.     .25bp trails to me.





 
For brokerage accounts. Depends on how much cash they are going to keep in mmkt and for how long.  I have about 30 different funds to choose from.   The standard ING Classic Money Fund.  1.86%  and no minimum.  If they are going to open with 100K, I have several Federated Money Funds in the mid 2% range.   All have checking capabilities with no annual fee for the checking...other restrictions like stop payments and purchasing the second set of checks (first set is free) etc do apply.
 
American Funds Cash Management account is also good as others have said or DWS Scudder if a fee based account.
Jul 14, 2008 8:28 pm

If it's truly idle cash then I will use the municipal money market funds available at LPL as long as the balance is greater than $20K. If it's a large amount of cash I tell clients to open up a joint account at HSBC online and link it to their LPL account. They get 3.5% FDIC w/ no fees. 

Jul 17, 2008 2:16 pm

How are you getting the .25bps on ING savings account?  I'd like to be able to do that.

Jul 17, 2008 2:21 pm

How are you getting the trail on the savings account at ING?  I would use that if I knew how.

Jul 29, 2008 8:39 pm

ING Direct Savings account,  FDIC insured,  for those who don't want/have a brokerage account ..3%   no fees no minimums.  Beat that at the Bank!!  A good hook to get people to come in and talk to me and free advertising.  Also good to get that uninvested cash away from the notice of the Bank brokers.     .25bp trails to me.

**
I use this strategy too.  Good way to open an account, get a trail and eventually invest idle cash.  I take it you clear through PERSHING as well.
 
 
Jul 30, 2008 9:49 am
levelheaded1:

ING Direct Savings account,  FDIC insured,  for those who don't want/have a brokerage account ..3%   no fees no minimums.  Beat that at the Bank!!  A good hook to get people to come in and talk to me and free advertising.  Also good to get that uninvested cash away from the notice of the Bank brokers.     .25bp trails to me.

**
I use this strategy too.  Good way to open an account, get a trail and eventually invest idle cash.  I take it you clear through PERSHING as well.
 
 
 
Yes, through Pershing. 

EDJ4now.  I don't know how you would do this.  I would just contact ING Direct and check with their licensing department and see if your B/D has an arrangement with them.  You also have to take an on line training for bank products and get certified first.  The .25bp trails are a nice perk and great for keeping that inactive cash out of the attention of the bank brokers.
Sep 11, 2016 11:40 pm

What is MMkt?