| You may need to be concerned about being able | | | | It is unclear as to how pervasive this suspension |
| to withdraw your money from Money Market | | | | would be applied during a meltdown. Would all such |
| Funds during times of an economic crisis or | | | | funds suspend redemption? There may be some |
| meltdown. The Securities and Exchange | | | | that do not suspend, but every MM Fund has the |
| Commission (SEC) allows Money Market Funds to | | | | authority to suspense redemptions. |
| suspend redemption under "extraordinary | | | | What does that mean to an investor? It means |
| circumstances". | | | | that an investor may not be able to withdraw |
| Most all of us have some money in such a MM | | | | their own money when he/she wants to. If you |
| Fund. In accordance with your financial planning for | | | | are retired and normally withdraw from your MM |
| retirement, you may have an IRA or 401(k) and | | | | Fund for living expenses, then you may not be |
| if so, you most certainly do have money in that | | | | able to do so. Even if you are not considering |
| type of fund. As an investor, you have your | | | | financial planning for retirement, you will be |
| money working for you in stocks, bonds and you | | | | impacted. If you have all of your money in |
| have some sitting in a such a fund. | | | | stocks, and you decide to sell part of your stocks |
| Such a fund is usually a "sweep account", used as | | | | to withdraw the cash, you may not be able to so |
| a holding account for cash. When one purchases | | | | since that cash has to go through the sweep |
| stocks, stock funds, bonds, bond funds or other | | | | Fund. |
| instruments, money is transferred from your | | | | The SEC indicates that suspending redemptions |
| sweep Money Market Fund to pay for them. | | | | may impose hardships on investors who rely on |
| When stocks, bonds or funds are sold, the | | | | their ability to redeem shares. It seems like the |
| monies received from the sale are placed in your | | | | hardships that they pushed upon the investors |
| sweep account. Most investment firms do not | | | | are completely irrelevant to the SEC. The just |
| have a "cash" account available that is separate | | | | want to protect the banking industry so there will |
| from a MM Fund. The end result is that most of | | | | not be a run on the money market accounts |
| us do have some money in such funds. | | | | during a meltdown. It looks like the investor |
| The Securities and Exchange Commission (SEC) | | | | comes last. |
| allows the suspension of redemptions from MM | | | | Investors should always communicate with their |
| Funds under extraordinary circumstances, such as | | | | investment firms and advisors to ensure they |
| a financial crisis. | | | | understand financial choices. |