Finding an Asset Management Account
Background:
An Asset Management Account is an all-in-one account that conveniently combines a checking account with a money market fund, a credit or debit card and a brokerage account.
Barbara Lynch launched these accounts in the ’70s, and today almost every brokerage firm offers them. You must be able to meet the minimum balance requirement — $5, ” Two of the accounts’ best features: Once a month you get a complete statement covering all brokerage, checking and savings transactions, as well as necessary tax information. Secondly, any cash coming in (from stock dividends, maturing CDs, bond interest payments, sale of securities) is automatically “swept” into a money market fund, so you won’t lose interest. Most help track where your money is going, in categories such as mortgage or rent, medical expenses, insurance, child care, car, etc.
First:
Before opening an account, take time to get literature from any brokerage firm you may already be using or whose office is near you.
Next:
Call the four brokerage firms listed below. Compare fees, features and the interest rate on the money market account.
Most important, ask how much you’ll be penalized if you fall below the minimum balance amount. A word of caution: Don’t sign on with a firm that charges for extra bells and whistles you can’t use.
Another cautionary note: If you do open an account, you’ll immediately start receiving lots of literature suggesting you purchase other products, services, stocks, etc. Don’t be swayed by them into buying or investing in anything you don’t want or don’t understand.
