money market funds

Why invest in the stock market?

Posted 5 weeks 14 hours ago by Philip Brewer

The conventional reason for investing in the stock market--perhaps offered with a bit less confidence now that we're in the midst of a stock market crash--is, "It offers higher returns." But that gets us ahead of ourselves. We can learn a lot by taking a couple of steps back and looking first at our financial goals.

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Update on money fund guarantee program

Posted 9 weeks 11 hours ago by Philip Brewer

Personal Finance

Seal of the US Department of the Treasury

The key thing to know about the Temporary Guarantee Program for Money Market Funds that the Treasury announced 10 days ago is that it only guarantees the money that you had in the money fund on that date. Any money you have in the fund that exceeds your balance on September 19th is not guaranteed--those shares are only worth their net asset value.

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Deposit insurance for money funds

Posted 10 weeks 3 days ago by Philip Brewer

Investment, Consumer Affairs

Early this morning, the Treasury announced deposit insurance for money market mutual funds, provided that the fund pays a fee. The money to provide the insurance will come from the Exchange Stabilization Fund (the government account holding the profits that the federal government realized when they seized everyone's gold in 1934).

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Money lost in money fund

Posted 10 weeks 5 days ago by Philip Brewer

Investment, Consumer Affairs

For thirty years, people have treated money funds as being just as safe as a bank. On the rare occasions when money fund management made a bad investment, they've voluntarily coughed up enough money to make investors whole. Today, though, the money market mutual fund The Primary Fund (part of The Reserve Funds) announced that its shares, normally worth $1, were only worth 97 cents.

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To Tax or Not To Tax: That Is The Money Market Question

Posted 30 weeks 2 days ago by Kate Luther

Personal Finance, Investment, Taxes

As America’s love affair with self-investing continues to grow, so does our fascination with tax-free accounts. Don’t believe me? See for yourself. The next time you’re in a conversation, try working the words “tax free” into your conversation and watch the ears perk up. Admit it. We despise taxes. We loathe them. So much so in fact, that Uncle Sam made not paying those taxes a crime. So the idea that we can legally earn a buck without sharing it with our dear old uncle is well, deliciously criminal.

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