Money Market Funds
We have all had questions on Money Market Funds before. Below are the top questions posed by visitors just like you to our. We hope our answers located below will help you solve your funding problems today. Feel free to ask another question, or even comment on what has been written.
There has been a lot of debate recently regarding Money Market Funds, and it is therefore critical for you, the reader, to grab all of the information that is out there on the vast topic of funding. Your funding can have a huge impact on your future, so don’t procrastinate any longer. Read up on Money Market Funds today!
Marvin Said:
When Money Market Funds Increase and Decrease?We Answered:
Money market funds do not set their rate of return. They invest in short term debt, usually corporate IOUs (called commercial paper) with some short term government notes.This is done on a best effort basis and the profits are passed to the money market investors. The return realized by the fund managers goes up and down with market conditions, so the fund yield varies.
Milton Said:
Is there a list of money market funds that broke the buck?We Answered:
Bank money markets are covered by FDIC, up to the current limit. Money market funds sold by mutual fund companies are not covered, you gain or lose. Stay with a reputable fund company.Bonnie Said:
Should I reallocate all my funds in my Money Market account into savings due to the bank scare?We Answered:
Do not worry! The Fed has just announced that eligible MMF will be backed and insured by the Treasury so your money will be safe (for now).Ashley Said:
Mutual funds, money market, how much do I need to have to start out?We Answered:
You need to speak with a reputable financial counselor who can sit down and go over your financial goals. Stay away from the banks and credit card companies, those counselors do not work for you.Before you invest, make sure that you are free of debt. It makes no sense to invest at 12% while paying a credit card at 18%. Start small, minimize your risk by diversifying (mutual funds are great for that) and plan on investing for at least 5 years before you move money. That allows you to take advantage of market fluctuations.
Jackie Said:
What are my best choices for retirement-IRA'S, 401K, Money Market Funds, etc. ?We Answered:
1) Put enough money into your 401(k) plan to receive the maximum match from your employer.2) Fully fund your Roth IRA, if you can do a Roth (there are income limits).
3) Buy stock options or put more in your 401(k) with the rest.