An absolutely safe way to store $100,000 of your Money in the bank that pays a nice yield is in a Money Market Savings Account, also known as a Money Market Deposit Account. They are insured up to $100,0000 (if a retirement account, up to $250.000) by Federal Deposit Insurance Corporation if in a bank and if in a Credit Union by National Credit Union Share Insurance Fund. With a spouse you can also have a joint account also insured.
With your Money Market Savings Account or Money Market Account, there is a minimum balance, but the money market account pays about twice the interest rate that a Passbook Savings Account or a Statement Savings Account pays. The rates are set by the bank or credit union to reflect the directions of overall interest rates and can change on a daily basis althought most banks change only weekly. The money market savings account has advantages of liquidity, security, and accessibility. You don't have to worry about the vagaries of the stock market, about price/earnings of different companies, about income statements, and balance sheets. No second guessing is required - Should I have gone to large income producing stocks or small-cap stock or midsize-cap stocks, should I invest internationally, or domestically? Or should just go gamble a lot of loot on Junk Bonds.
Unlike the other money making funds of stocks, bonds, or mutual funds which invest in stocks, bonds, commerial paper, REITs ( Real Estate Investment Trusts) mortgages, Treasury Bills or Corporate Bonds, you can be assured if you have the protection in knowing if you should need the money in the bank, it will be there. If you have more to invest than the insured amount you can open up new accounts at other banks or credit unions. which are then insured up to $100,000 or if a retirement account up to $250,000.
In fact, you may wish to consider a credit union. Credit unions are groups of people with some common bond who form a cooperative. They may work at the same company or belong to the same branch of the military, or take part as members of the same church or religous community. Since the members are the owners, the profits come to them. Often Credit Unions offer beneficial ompounding and a good rate of return on you money than other banking institutions. The more often interest is compounded, the faster the interest grows.
You may wish to consider using one of the large online banks and make deposits in you Money Market Savings Account through cyberspace. You can find online banks advertised on various money and financial websites.
After you build up a nice, safe nest egg, and if you have a tolerance for risk and you want your money to work for you in more diversified ways; you may wish to put your money on Wall Street by starting some money making funds, the most common of which are mutual funds. They are made up of all combinations of stocks, treasury bills, commercial paper, junk bonds, Fannie Maes, etc., and you can choose between investing in managed funds wihch usually have a large management fee or an index fund wich is indexed according to the S&P or NASDAQ or some other index, which often perform well and have low management fees.
About the Author
My name is August and I am a baby boomer. I've been retired for 4 years. I enjoy gardening, reading, and studying investments and finance. Visit my Money Savings Savings Account Blog at <ahref="http://ivaugmoneymarketsavingsaccount.blogspot.com">Money Market Savings Account<>blog and also visit me at My squidoo lens at <ahref="http://www.squidoo.com/Money,Savings,andFunds">moneymakingfunds<in> squidoo lens.
