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