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This is financial planner Patrick Munro asking the question: "Is a money market account better
than a mutual fund account?" It depends on your perspective. A money market account is
great for liquidity. However, it does not pay normally a higher rate of return than
a successful mutual fund. The expenses on a money market account are however lower than
the expenses on a fully managed active mutual fund. So, if expenses are your key benchmark,
then you want to stay with a money market account. If you are a long term player you
want to make sure you stay with the mutual funds and continue adding them to your portfolio.
I guess the best mix would be to have both where by you take money from a money market
account and place it into mutual funds as you deem possible to do so. This is Patrick
Munro comparing the differences between money markets and mutual funds.