investing

Money market mutual fund lifeline

"I tried to buy a 30-day T-bill and there were no offers," says Edward Gjertsen, vice president at Mack Investment Securities in Glenview, Ill.  "The rate, the annualized rate was .05 percent. I talked to a couple of (trading) desks and they said some people were paying premiums to get into a T-bill. They were losing money for the security of government paper."

Herb Hopwood, president of Hopwood Financial Services in Great Falls, Va., probably best sums up the current mindset: "What's important in this environment is return of principal, not return on principal."

Hopwood says he wants to learn more about the government's money market mutual fund guaranty program before he moves from Treasuries and government agencies back to money funds.

"The devil is in the details. We have clients with a couple million dollars in money markets. I'm keeping them in government securities for 45 days. I want to know the skeletons."

If you're still concerned about money market mutual funds, you could consider FDIC-insured alternatives. There are plenty of money market accounts offering excellent yields. In addition, high-yield CDs are also paying well and can provide a parking space for your cash for anywhere from one month to five years.

advertisement

          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

How should my teen invest $150K?

Dear Dr. Don, My son will turn 18 years old in December. He has $150,000 from a settlement now sitting in the bank. What is the best plan to pursue for investing this money? Is investing in precious metals a good way to... Read more

advertisement

Blog

Allison Ross

Bitcoin takes to YouTube with video

In the latest attempt to bring bitcoin to the masses -- or perhaps just to ruin another Billy Joel song through parody -- a bitcoin-themed spoof of "Uptown Girl" has made its way to YouTube audiences. The video, called "Bitcoin Girl," is produced by the nonprofit Moving Picture Institute and stars Naomi Brockwell, who works  ... Read more

Partner Center
advertisement

Connect with us