|
Money Market Funds will be your safest and most liquid money. The rate of return achieved here is nothing to write home about, but it does provide the more timid investor with a very low-risk investment vehicle. In addition, it is money that is readily available to handle any unforseen emergencies that may arise.
Money Market Funds are very similar to your regular checking account but generally pay a little higher rate of interest. They will usually have some limitations on the number of checks you can write on a monthly basis and a minimum amount for each check that can be written.
These types of funds can be obtained through your local bank, credit union or savings and loan. Investment brokers also have them available. Shop around and try to obtain the highest rate of interest that you can.
When your money market account reaches a balance that you feel is adequate to handle most unexpected situations, you may want to curtail any further investments into the fund and invest all of your available money into the S&P 500 Index Fund which should get you a better return.
Next time will look at your company pension plan.
| 
