About this video

• Video Title: Highest-Paying Money Market Funds At Fidelity, Schwab Or Vanguard? | Weekly Bond & Annuity Update
• Channel: Diamond NestEgg
• Speakers: (None explicitly named, but the transcript is a monologue)
• Duration: 24:45

Overview

This video provides a weekly update on interest rates, focusing on money market funds, CDs, annuities, and Treasury yields. It aims to inform viewers about current rates, compare them across different institutions and investment types, and discuss the potential impact of future Fed rate changes.

Key takeaways

• Money Market Fund Rates: The video details the 7-day SEC yields for various money market funds at Fidelity, Schwab, and Vanguard, differentiating between government/Treasury and prime funds, and noting minimum investment requirements. Vanguard's funds generally offer higher yields due to lower expense ratios.
• Annuity, Agency, and Treasury Rates: It compares rates for multi-year guaranteed annuities (MGAs), non-callable agencies, and treasuries, indicating that MGA rates are currently more competitive, especially for longer terms and larger investments.
• Fed Rate Impact: The video explains that Fed rate cuts will likely decrease short-term rates on money market funds and CDs, while long-term rates are influenced more by market supply and demand. The Fed faces a dilemma between employment and inflation, making future rate decisions hard to predict.
• Treasury Yields: It analyzes recent trends in Treasury yields, noting a general decrease across maturities but also a narrowing gap between short and long-term yields, suggesting investor preference for short to medium-term maturities for balance and flexibility.
• CD Offer: A specific offer for a 6-month, 4.34% APY penalty-free CD from Climate First Bank is highlighted.

The rates for a 7-year MGA (Multi-Year Guaranteed Annuity) at different investment levels are:

• $10,000 investment: 4.35%
• $50,000 investment: 4.45%
• $100,000 investment: 4.60%
• $1 million investment: 4.65%

The highest potential rate mentioned for a 7-year MGA with a double A+ rated carrier, for investments north of $10 million, is 4.75%.