Re: Alternative to Money market Funds?

Jay wrote:
> 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.

Some of the most attractive aspects of MMF are that the $ is accessible 
at any time by writing a check, interest rates are reset regularly to 
reflect current rates, and there's an extremely low risk of losing 
money. You usually need to give up one or all of these by going to CDs, 
bond funds, or savings bonds.

One notch higher in interest rates, with little added risk, would be a 
short-term, FDIC-insured CD with a bank. Something like 3 or 6 months 
for example. You could even open several, at intervals, so there's one 
coming due every month or two (if that's what you want). Current rates 
for a bunch of banks are posted at www.money-rates.com

-Tad