Wed May 29 2024, by Tyler Gardner
How to Maximize Your Savings Earnings with Money Market Funds
If you wanna make over 55 times what you're currently making in your savings account, but you have no idea where to start, then you need to do the following three things right now.
1. Open a Brokerage Account
Open up a brokerage account with Fidelity, Schwab, or Vanguard; it doesn't matter which one. It will take you less than 10 minutes, and you never have to use it if you don't want to. Fund that account with $20 or $25 a month.
2. Research Money Market Funds
Go to NerdWallet and look up the following money market funds:
- Vanguard's VMFXX
- Schwab's SWVXX
- PIMCO's AMAXX
Each of these funds is earning over 5% on your money, which is more than 50 times what you're making in most of your savings accounts. Additionally, the money is invested in short-term, relatively safe securities.
3. Invest and Relax
Put that $20 to $25 into one of those money market funds and then sit back, relax, and let compound interest and time take care of the rest. But as always, do your own research.
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