Money Market Archives

By David Pitt, AP Personal Finance Writer DES MOINES, Iowa (AP) — The federal government has decided to abandon a Bush administration plan that would have permitted mutual fund companies and brokerage firms to offer investment advice to 401(k) customers. The rule would have allowed financial advisers, who work with mutual fund companies and brokerages to sell investment products, to provide investment advice to 401(k) and individual retirement account customers. Read more»

By Mark Jewell, AP Personal Finance Writer BOSTON (AP) — The U.S. Supreme Court is taking a close look at a question individual investors have long asked about their mutual funds, but the courts have largely ignored: Why am I getting charged twice as much as big institutional clients? Read more»

Legendary investor Warren Buffett is doing something he’s always avoided — splitting shares of his beloved Berkshire Hathaway (Stock Quote: BRK.B). Each current share will be turned into 50. Read more»

The problem: You just don’t have time, the inclination or financial experience to manage your retirement investments on your own. Read more»

A growing number of companies are scrambling to come up with enough shares for their employee stock-purchase plans, suggesting that employees are eager to get the most they can from this benefit, despite the risks. Are those risks really worth taking? They can be, if they are kept under control. That takes some diligence. Read more»

Bonds have long been the backbone of the safer, or more conservative, portion of an investment portfolio, and bond-owning mutual funds have been stellar performers this year. But now bonds are looking riskier. Interest rates are so low that they’re more likely to go up than down, and that could undermine bond prices. Read more»

Fixed-income investors searching for higher yields have an alternative to stingy bank savings and money market funds — bonds backed by mortgage debt. Some mutual funds that invest in them yield more than 4%. Is that a joke? Didn’t a mortgage-market implosion trigger the financial crisis and Great Recession? Aren’t mortgage-backed securities terribly risky? Read more»

When bank savings and money markets pay almost nothing, it seems logical to reach for a bit more yield by taking on a smidgeon of additional risk. Read more»

For many investors it is an article of faith: Never spend principal. In other words, if you need to take money from your investments to live on, withdrawals should be confined to interest and dividend earnings. A retiree or long-term investor should never, ever, dip into the investment itself, whether it’s a stock, bond, mutual fund or bank savings. At least, that’s the common wisdom. Read more»