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