A beginner's guide to Money Market Funds (MMFs)
Today I have a beginner's guide to money market funds as told by a beginner. A few weeks ago, I had never heard of money market funds, and so I thought it would be useful to find out what I could, see where money market funds might fit in an investing strategy and see where they can be bought. Money market funds for beginners, by a beginner!
Free Stuff / Help The Channel
Use my code PPC10 on sign-up to get yourself $10 when you deposit just £1.
lightyear.app.link/Pretty-Pen...
Capital at risk. The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: lightyear.com/terms. Seek qualified advice if necessary.
Disclaimer:
Your investments are your responsibility.
I do not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of watching/reading any of my publications.
You acknowledge that you use the information I provide at your own risk.
My publications are never investment advice and nothing in them should be construed as investment advice.
Investments can go up and down.
Please do your own research!
Пікірлер: 12
That is a very helpful video. Thank you.
@PrettyPennyClub
5 ай бұрын
Thanks for watching
Thanks. I didn’t have a clue either. Off the top of my head, before investigating further, it feels like a better idea at the moment than bonds which normally are recommended for money needed in the next 2-3yrs. Bonds just strike me as pretty scary right now.
@PrettyPennyClub
8 ай бұрын
Thanks for watching. Horses for courses, I guess. It's why we have so many options available. 👍
You should’ve gone into more detail about the types of cash instruments; commercial paper is especially interesting.
@PrettyPennyClub
5 ай бұрын
Fair enough. I think the whole thing is a pretty dry subject! I think money markets are useful to the average investor like me, and average investors like me are unlikely to be thrilled by the absolute fine detail.
You mentioned tax if held outside an ISA. Would that be Capital Gains tax, so £3K allowance or basic/high rate tax so £1K /£500?
@PrettyPennyClub
9 күн бұрын
Everyone's tax situation will be different, but capital gains is certainly one consideration 👍
@SootheSound
9 күн бұрын
@@PrettyPennyClub Hi, thank you for your prompt response. It is very confusing, as a Google search has highlighted money market funds are classed as interest... whilst another search has highlighted Capital Gains applies? So in order to Invest, we need to know exactly, which I don't think the fund details state. Frustrating when we want to do the right thing by the tax. Any advice for the community in what you have found?
@PrettyPennyClub
9 күн бұрын
@SootheSound i never put out advice! I'm not formally qualified in any manner shape or form. Any kind of earnings from money market funds are taxed in a similar way to interest on cash accounts, but every individual will have a unique tax situation.
@SootheSound
9 күн бұрын
@@PrettyPennyClub Hi, and thanks again. Forgive my use of the word 'advice', I've heard the FSC is coming down hard of Creators in this niche regarding 'advice'. Which is something we have at work where we don't 'train' people, we 'familiarise' them, as less legal connotations! 😁 Thanks for your personal view, which I will not use to guide any investing or personal decisions I may/may not choose to make upon post hearing it in an informal context... 🙂.
@PrettyPennyClub
9 күн бұрын
@SootheSound haha, it's not about that. I'm not an expert, and never have been. I just like to invest.