Daily Money - Issue #53: I'm going money market mad

Still, money market accounts might be a good option to consider when I’m looking at my overall situation, said Sean Wilson, a senior director of investment products at financial services organization TIAA.

“Because of what’s going on, lot of people have had to rely more on their savings,” he adds. “Making sure they are maximizing where they can — that’s important. Understanding the difference is important.”

Moving on to money market funds. Also called money market mutual funds, these are investment products. By nature, they’re not insured by the FDIC, meaning my money isn’t protected. I could lose it.

Money market funds are usually for short-term investing, working “similar to cash accounts where the number of dollars you invest is the number of shares you own,” Holliday said. They can help people get “more return on their money versus an interest-bearing bank account,” but there is a degree of risk involved because of that lack of FDIC backing. 

“Money market funds may be part or all of an investment portfolio, and determining if that’s good for the investor is only based on the individual investors’ investment objectives and financial condition,” Holliday adds.

Even so, Wilson said they’re still pretty conservative as far as investments go — and a solid option if I’m moving around assets. It’s quick and easy to access, so I can park money there while I figure out what I really want to do with it. 

(but please don't tell me you scrolled past all of my hard work)

It’s a personal decision as to whether I need a money market account (which is basically a savings account) or a money market fund (which is an investment). In choosing which is best for me, I should be aware of the current financial climate, look at the yields, weigh the risk involved and consider how I can access them. 

It’s all about my goals. What do I want my money to do? For example, if I’m looking for a place to keep my emergency fund, Wilson said both money market accounts and funds could work. They’re not going to beat inflation in the long run, but they can generate small returns while still staying relatively liquid.

via GIPHY

check out this crazy celebrity purchase

via Instagram

Like many brides, the UK’s Princess Beatrice had to reimagine her wedding thanks to the coronavirus crisis. So instead of wearing a $434,000 gown like her cousin-in-law Kate, Beatrice took the frugal route and borrowed a dress from her grandmother, Queen Elizabeth II. Beatrice looked great, AND she didn’t spend any money. That’s what I call a crowning achievement.

five things I'm loving online right now

send me cute pictures of your pets, please

CREDIT: TAMARA NONAMAKER

This is Kitters, a 3-year-old tabby mix who loves to lick people, pots, cobwebs and even hair gel. Kitters smartly keeps his savings in a money pawket account.

Send tried-and-tested air fryer recipes, please and thank you.

See you next week.

Julia

P.S. One last thing about moose in pool before I shut up... Scholar Kay once had a moose in the window (and shared a pic with me, OMG). Re: negotiating bills, though, Scholar Laura said she pays $34 for internet, so I'm definitely overpaying. Scholar Bill told me he saved a whopping $270 by calling Verizon, Spectrum and Sirius about his bills. I am in awe.

P.P.S. Do you have a money market account? Have you smelled any good candles lately? What’s your favorite cereal? Talk to me at julia.glum@money.com or tweet @SuperJulia.