CHAPTER 5
Money Market Accounts—The Parking Lot 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“The idea is to make a little money first and then to make a little money last.”
Do I Need to Read This Chapter? • Am I looking for a place to temporarily invest idle cash? • Do I want a relatively safe investment that usually pays slightly higher yields than bank savings accounts and certificates of deposits (CDs)? • Am I interested in an account where I can write checks and earn interest? • Do I understand the major types of money market accounts, including tax-frees? • Have I considered a money market direct account (MMDA)? • Are my money market investments insured? Safe?
A
s far as I am concerned, the money market is nothing more than a parking lot, a temporary area for buying and selling high-yield, short-term instruments of credit. In the money market, securities such as jumbo
37 Copyright © 2008, 1998, 1994, 1991, 1988, 1986 by Joel Lerner. Click here for terms of use.
