Re: [MLUG - DISCUSSION] Money Markets?

["Ryan Thornton" <EMAIL:PROTECTED>]

This blog gives good weekly reports on what's out there:
http://bankdeals.blogspot.com/

The best deal with fewest requirements looks to be:

• GMAC Bank - 4.75% MMA (min $500)
  

-- Ryan

On 5/22/06, Dave Lloyd <EMAIL:PROTECTED> wrote:

On Mon, 22 May 2006, Jennifer Dozar wrote:

> Would the money market thing be a mutual fund? I guess, i wonder what i
> should look at. I"d like some kind of long term, but i can only put
> about 2k into it right now. I just wanted to have something put back,
> earning interest, so i could in theory have more money later. I guess
> i'd like to put something back like that, so maybe i'd be ahead someday.

Well, it sort of is.  Usually money markets stuff your money in a pool
used to buy short term government securities.  Your investment isn't
protected by FDIC insurance, but the securities that it is invested in
are.  Then again, you really only need to worry about FDIC insurance if
you think that the bank is going to go under, a doubtful occurance.

If you know that you won't touch your money for a while, you might look
at Certificates of Deposit (CD).  Think of them like a savings account
that you can't touch for 3,6,9,12,24,48,60, etc. months without
forfeiting the accrued interest.  More like short to mid term fixed
income (constant rate of return) securities.  Banks are willing to offer
you a higher rate of return since they're pretty sure that they can use
your money for at least a fixed amount of time instead of an indefinite
amount of time like the money market account.  Check out the comparison
in rates between CDs:
http://home.ingdirect.com/products/products.asp?s=OrangeCD

And a money market account from the same company:
http://home.ingdirect.com/products/products.asp?s=OrangeSavingsAccount

If you were to invest in the 5-10 year span, I'd suggest an index fund,
like the Vanguard S&P500, Windsor or Windsor II funds.

> Or would it be more beneficial to pay off some on my credit report?

I'd go for paying the credit cards.  You almost assuredly are losing
more money by paying at a bare minimum 8% interest than you could make
by saving your money elsewhere.  The real trick is to keep them paid
down.

> Oh, I had a question on credit report too. I was looking over mine, and i
> had a few accounts on the delinquint... but these same ones showed up in
> the accounts in good standing too... and they were school loans I had
> consolidated (I think!)  is this normal??

If you think that it's in error, talk to the reporting individual.  Ask
them.  If it's an error, then they must correct it on your credit
report.

--dlloyd

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