North Shore Financial Planner Interviewed on Money Market Fund Safety

Mark J. Gilbert, CPA/PFS, MBA and principal with Reason Financial Advisors, Inc., contributed to an article titled, “Money Market Funds Weathering the Storm,” published on Bankrate.com. Bankrate is a data research company that publishes personal finance stories with the intent of helping consumers make informed financial decisions.

Lara Bruce, a reporter with Bankrate.com, published an article on February 29, 2008, discussing the potential risk association with money market funds. The article featured several advisors discussing whether to limit exposure in their clients’ money market funds.

Gilbert indicated that Reason Financial Advisors had converted their clients from prime, or corporate, money market funds to U.S. Treasury money funds in December 2007. The decision was based on Gilbert’s perception that there was unnecessary risk in the uncertainty of the market, especially related to asset-backed commercial paper and structured investment vehicles, or SIVs. Gilbert was concerned that if credit markets deteriorated further, money market funds might “break the buck,” which means their share price would be less than $1.00 per share.

Gilbert said, “It became apparent that many more of the underlying securities in these types of funds were subject to principal loss. we just didn’t have the same level of confidence that the fund companies would step in to keep the fund from falling below the dollar.” Gilbert, a Downers Grove resident, provides portfolio management and financial planning services to middle market and high net worth clients in Cook County and DuPage County.

Reason Financial Advisors, Inc. is an independent, fee-only financial planning and investment advisory firm working with individuals and families throughout the Chicago metropolitan area.