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Dry Powder: Where to Park Your Cash
Many Happy Returns
Things you can put in an investment account and their safety measures
Money market funds are considered safe investments that have special safety provisions to avoid any remotely risky purchases./nExamples of investments that can be held in money market funds include government bonds from developed markets about to mature, loans to companies with short durations and high credit quality, certificates of deposit, and reverse repos with the Fed./nA reverse repo is a collateralized loan where the bank lends to the Fed and receives US treasuries as collateral./nMoney market funds are a way to park money in the short term and generate income, but it's important to consider if they are as safe as holding cash./nBreaking the buck, or the net asset value falling below $1, is something money market funds must avoid, although there has been one notable case where a fund broke the buck.
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