From Mich Richards
A question I have been getting recently is what is a money market fund, and why would I want one?
Most people assume money market accounts are only for banks or credit unions. Brokerage firms also offer money market accounts. They are often called: Money Market Funds. If you have extra money in your brokerage account, like for example in between trades or you are decided on what to purchase, the money market fund will earn interest on the money you have that is not invested.
The interest rates will vary between different companies. It is highly recommended to call your brokerage or even your bank and see if you can get a higher rate of interest. You can also ask them for information on sweep accounts.
Also when you sell a stock, the cash will automatically go into the fund you select. It makes it really easy to earn a little extra each month. Plus when you purchase stocks or options, the money will be withdrawn from the sweep account.
There are multiple tricks of earning a little extra cash, here and there. We just need to do the research, and find out where and how to get the extra income coming.
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