How safe is my money in a money market account?

Question

how would you invest $5000

at sharebuilder.com

Answer 1

Definitely Safe.

I would invest $5000 in VMWare or Google. They are hot stocks..

Safer approach is a CD.. use bankrate.com to find the best rate

Answer 2

Extremely safe, but I would invest my money into a Vanguard index fund. I like the Vanguard Total Stock Market Index Fund. No commissions to anyone, good returns, just a great Company and a great fund. www.vanguard.com

Answer 3

No individual investor has ever lost money in a money market fund. How I would invest $5k (due to my needs) maybe very different than your needs and how you should invest. If you want us to answer the question about how you should invest the money, please provide more information about what debts you have (pay off high interest credit cards/loans first), your time horizon, when do you need the money, etc.

Answer 4

Not with the money market they are NOT that safe. Plus if you pick the right stock, etf, fund, you WILL do better than the 4-5% range that the money market offers. 1k in money market the rest in the market itself.

and yes it IS possible to lose money in an Money Market..Hedge Funds anyone?????

Answer 5

People tend to confuse money market ACCOUNTS (MMAs) with money market FUNDS (MMFs). They're two different things.

MMAs are basically enhanced savings accounts offered by FDIC-insured institutions like banks. So these are very safe.

MMFs are offered by mutual fund families and brokerages and are not FDIC-insured. Theoretically, you could lose money in a MMF, but I believe it's true that, to date, no one ever has.

Sharebuilder's money market is a FUND and is not FDIC-insured.

Answer 6

Money markets are very safe, but, because of the lack of risk, the money to be made is very small.

Answer 7

It is not by definition completely safe, regardless of what the sales people tell you, but you won't make an appreciable return. I usually take my chances buy derivatives.