Maybe you are now considering money market account to earn success in your life. However, it’s better to take a glance first at Money Market Account Advantages And Disadvantages. Its investing surely carry a low single-digit return. There are pros and cons related to money market account so let’s check them out.
Compared to stock market, the risk to principal of money market account is rather low. That’s because its fund invest in low-risk vehicles as well.
Money market account advantages in liquidity. It tends to me more liquid than stock market. Meanwhile, the diadvantage of money market is when the investor losing purchasing power since the inflation is at 4% for each year.
Another disadvantage of money market is that the expenses can put you in difficulties as an investor. You need to keep pace with the inflation where fees have their own negative impact as well. In addition, the return of a fund in money market may vary.
Before getting your hands in money market account, it’s great to learn how it works and how will you handle the situation that may occur in the future. Knowing Money Market Account Advantages And Disadvantages can be helpful to take your decision.