Financial Information
Money Market Fund. Is this too risky at this time in the Market or is this a good investment to have? ?
Question : Money Market Fund. Is this too risky at this time in the Market or is this a good investment to have? ?
I am trying to save and make money for a house down payment within the next 2 or 3 years. Is this the way to go? Any suggestions?
money market investment
Best answer:
Answer by mikeburns55
A money market fund is very safe, much safer than stocks.
You’re doing the right thing.
Money Market accounts are very safe. However, they don’t earn much of a return (more than savings, but still not fantastic). If you want something safe that will get you a better return, look into certificates of deposit. You can start short-term, then add to your money market account until it matures, then add to the CD whatever you’ve saved since then in the money market account. Repeat. When you have a bit in one CD, make it longer term (say, one year), and open another short-term CD that you can continue adding to. It seems complicated, but it’s simpler than you think, and for your relatively short-term goal, it will earn you the best return.
Good luck!