Re: Alternative to Money market Funds?

"Jay" <[EMAIL PROTECTED]> wrote in message news:<[EMAIL PROTECTED]>...
> I have 60% of my money sitting in Money Market Funds that is yielding
> probably 0.75%. What is a better alternative with similar risk-return
> characteristics. May be, a little more risk than Money Market Funds but not
> like the usual Equity and Bond Funds. I do not mind tying it in for 6 months
> to a year.
> 
> Thanks,
> Jay

There are the following options:
- Go to money-rates.com and find a higher interest CD/savings account
  (typically around 2% these days)
- Invest in i-bonds.  Requires a 5 year holding period or you lose
  3 months interest.  Earnings are exempt from state and local
  income tax, and federal income tax can be deferred until you sell.
  Was a better deal until the beginning of this November when the
  rate fell to 2.19%.
- Find a short-term bond fund.  But with these, even though there
  have historically been no years when they might have negative
  returns, there is no guarantee that it will never happen.

Anoop