Comments for "Why Money Market Funds Are a Senior's Best Bet During This Financial Crisis"

Jeffrey Moskovitz Says:

These days, the phrase, "backed by the full faith and credit of the U.S. Government," isn't exactly what it used to be, but that's a topic for another story altogether.

However, in my opinion, the author's advice is on the money (no pun intended). In "normal" economic times, the experts continually tell us that the amount you have in equities (i.e. stocks and mutual funds that hold stocks) should be decreasing the closer you get to retirement. Typically, their advice was: "put more into corporate bonds, bond funds, U.S. Treasuries, and municipal bonds." In these uncertain economic times, though, even the perceived safety of bonds have not been able to fully escape the wrath of the markets. The markets simply do not react well to uncertainty, and if I were a senior, I would certainly seek to minimize my investment in the stock and bond markets. I personally see no end to this uncertainty (and thus, volatility) in sight, and the return one forgoes by choosing safety is the right move - no matter what the talking heads tell you. Unless you have an unusually high appetite for risk, or don't care very much about sleeping at night, keep it simple - stick with the money market funds.

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