Stock market
The stock market has always been a risky place to invest. If you do make sure you research your company and watch the trends of the market very closely.
Money market funds I would advise to watch what you invest in.
Money market mutual funds are low-risk mutual funds that are simple to invest in. Just like other mutual funds, this type of fund is operated by investment companies, not banks, and is made up of many shareholders who buy individual shares. Since these are not bank products, they are not FDIC insured; however, they are considered a relatively safe investment because they invest in short-term government and corporate debt obligations, like Treasury Bills. A money fund, as it is typically called, does not invest in stocks or bonds so the return is fairly constant and the risk is fairly low. Money market mutual funds generally pay a higher rate of return than a bank-issued money market account, but lower than you might receive in a securities-invested mutual fund. Since a money fund is a mutual fund, it carries management fees, although the fees tend to run lower than other mutual fund fees. You can easily withdraw funds from a money market mutual fund without penalty.
(MMA) Money market accounts (editor note: I have most of my money in a MMA.)
A money market account you buy from a bank is different from a money market mutual fund you buy from a broker. Make sure you know the difference!
A money market account is similar to an interest-bearing checking account, and is a product you buy from a financial institution. It's a product insured by the Federal Deposit Insurance Corporation (FDIC), and is a good option for maintaining your emergency fund. A money market account generally pays better interest rates than a typical checking or savings account, and gives you the flexibility of easy access, along with the higher rates of return of an investment product. The interest paid on a money market account tends to follow short-term market interest rates and varies as the market changes. Money market accounts may require a large initial deposit to open the account. They may also require a minimum balance, and you may have to pay a fee if your balance falls below the minimum required.
