Basic concepts everyone needs to know, from compound interest to the stock market.
Why index investing makes sense…
What indexes and index funds are…
How to build a simple portfolio…
…and a tiny list of index funds and ETFs.
Tax Calculator …
Capital Gains Calculator
Payroll Tax Calculator (Social Security and Medicare)
Roth IRA basics,
income and contribution limits,
and a Roth IRA calculator.
Financial Statements: the Big Picture.
Learn volatility basics;
plan your life with a Monte Carlo calculator.
Modern Portfolio Theory:
understand diversification and the Efficient Frontier,
find a portfolio with the maximum Sharpe Ratio;
why index funds are
Note: This page has been archived and is no longer being updated. It may include obsolete or out-of-date information.
Money market funds, sometimes called money funds, are a type of mutual fund developed in the 1970s as an option for investors to purchase a pool of securities that generally provided higher returns than interest-bearing bank accounts. Money market funds invest in high quality, short-term debt securities and pay dividends that generally reflect short-term interest rates. Many investors use money market funds to manage their cash and other short term funding needs. They have since grown significantly and currently hold about $3.0 trillion in assets.
There are many kinds of money market funds, including ones that invest primarily in government securities, tax-exempt municipal securities, or corporate debt securities. Money market funds that primarily invest in corporate debt securities are referred to as prime funds. In addition, money market funds are often
Despite the many advantages of an MMA, there are a few areas where it can come up short for some. Let’s look at the other side of the coin.
Withdrawal and transfer restrictions — The Federal Reserve places limits on withdrawal and transfer activities for both savings accounts and MMAs. The Fed generally considers these account types to be vehicles for savings, after all, and actively tries to discourage too much fund-draining from them.
It does this through its Regulation D, a rule that prohibits account holders from making more than six withdrawals and/or outgoing transfers per month. Any MMA holder that exceeds that limit is subject to a penalty fee from their bank or other financial institution.
That sounds restrictive and it can be, but it only covers certain types of withdrawals/transfers. These include:
- Electronic transfers
- Wire transfers
- Automated Clearing House (ACH) transfers
- Transfers by debit card
- Transfers by
Chevron Corp. said Tuesday it is cutting its 2020 capital spending program by $4 billion, or 20%, as it works to reduce costs in the face of declining demand due to the coronavirus outbreak and falling crude prices due to oversupply. “Given the decline in commodity prices, we are taking actions expected to preserve cash, support our balance sheet strength, lower short-term production, and preserve long-term value,” including the payment of its dividend, the company said in a statement. The company will reduce production in the Permian Basin by 20%, cut $700 million from upstream projects and exploration and $500 million from its upstream business. It will reduce its downstream and chemicals activities by $800 million. Excluding 2020 asset sales and price related contractual effects, the company expects 2020 production to be roughly flat
A money market account is a type of deposit account that pays interest on deposits and allows withdrawals with some restrictions.
MMAs are offered primarily by banks and credit unions of all sizes, and can be used for short-term or long-term savings.
Some examples of common uses are:
- Emergency savings
- Money you’re putting away for a large purchase, such as a car or house down payment
- Money that’s not currently invested, but will soon be put into stocks, bonds or some other form of investment
MMAs share many features with standard savings and checking accounts. The main differences are that MMAs generally pay higher interest rates, require higher initial deposits and minimum balances, and limit the number of certain types of withdrawals and transfers.
Certificates of deposit, or CDs, also usually pay higher rates than standard savings or checking accounts. However, unlike MMAs, CDs
Read more about Banking Benefits – Deposit Introductory disclosures
(Bloomberg) — You know things are bad in the stock market when Jeffrey Gundlach is closing out his shorts.“The panic is palpable,” tweeted the billionaire money manager, saying it was the first time in years he didn’t have any bearish bets in his private portfolio. His words came as the S&P 500 was having another 5% plunge, its eighth consecutive daily swing of 4% or more en route to the fastest 30% drawdown.At this point, such chaos isn’t completely unwelcome to some stock market bulls. The notion that capitulation or even panic is needed to drive the market to the lowest of lows is gaining traction among money managers hoping for signs of stabilization.It’s a risky proposition, counting on the very thing that is driving stocks down to somehow arrest their descent. Spooked investors could obviously just keep selling. But for analysts looking for anything to premise a