| Making cash from a money market never sounded | | | | The last you are taking with money market |
| easier. You should understand these few | | | | funds has to do with inflation. If you plan |
| things before blindfully entering the caged | | | | to have your investment in for a long time, |
| arena. Money market funds are a popular cash | | | | inflation may slowly but surely eat away at |
| management tool. Before you use money market | | | | your money. That is why it is best to keep it |
| funds, you should learn what they are, and | | | | short and sweet. |
| what are your risks. | | | | |
| | | | Why should you use money market funds? It is |
| Money market funds are mutual funds that | | | | a relatively safe investment with a descent |
| invest in the "money markets". If you imagine | | | | return. The money you put in is not frozen; |
| that people buy and sell stocks in the stock | | | | this means you can get your money out-a there |
| market, then you can see how people buy and | | | | within a few days. You can also take |
| sell money in the money markets. This means a | | | | advantage of rising interest rates by keeping |
| legal loan shark, or other wise known as a | | | | your money in an investment that will adjust |
| bank. | | | | to the markets. In addition, a lot of |
| | | | companies allow you to write checks that take |
| Just like your savings account at the bank, | | | | from a money market fund. That means you get |
| you earn a dividend of interest on your money | | | | the advantages of a checking account while |
| you have invested. However instead of a | | | | earning cash at the end of the month. It is |
| quarterly dividend being dropped into your | | | | like a savings account with out the bank |
| account, you are getting a piece of the pie | | | | haggling you about too many transactions. |
| every EOM: or end of the month. Money Market | | | | |
| funds invest in short term instruments that | | | | Where can you get a money market fund? When |
| mature in less than 13 months. By doing this | | | | it comes to money market funds, you have many |
| they reduce the amount of risk. It is | | | | choices. They are relatively easy to find at |
| basically like this, the longer you have your | | | | brokerages and mutual fund companies - your |
| money lent out to someone the less chance you | | | | free cash is sometimes swept into a money |
| have of getting back. | | | | market fund automatically. More over, a lot |
| | | | more banks are offering money market funds to |
| Therefore, what risks are you taking when you | | | | their customers now. |
| invest in a Money Market Fund. Well a money | | | | |
| market fund is technically a security. The | | | | You can learn more about money market funds |
| managers of the fund try to keep the share | | | | is the funds prospectus. You should always |
| price at $1 per share. Although, there is no | | | | read one of these before buying any fund, and |
| guarantee that the price will stay at $1. And | | | | you can really learn a lot by reading the |
| if the share price goes down, you can lose | | | | prospectus from several different funds. One |
| some or all of your principal investment. And | | | | of the best I have used is PayPals Money |
| for this risk, you earn a greater return. | | | | market fund. I have always seen the highest |
| | | | percentage rates here as opposed to any local |
| Money market fund rates are never constant. | | | | banks. |
| In other words, you are playing with | | | | |
| variables and you'll never know how much your | | | | Now with this new found information you can |
| getting at the end of the month. The rates | | | | become a loan shark and not get hunted down |
| could go up or down. When it goes up, you | | | | by the FBI. There is a lot of money to be |
| earn money. On the other hand, if it goes | | | | made in Money Markets, You should go out |
| down you earn less than you expected or even | | | | there and get your piece of the pie before I |
| loose capita from your principal investment. | | | | eat it all. |
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