A 401(k) has no yield or return it is simply the vehicle through which tax benefits, rules etc are enjoyed or observed.
The money in a 401(k) has to be invested. It is that investment vehicle that gives a yield or return not the 401(k).
A money market account or fund is just another place to put money. I doubt that anyone would regard it as an investment. It is most similar to a bank savings account. And unless you regard a bank savings account as being a good investment, you should not regard a money market account/fund any differently. Even CDs are usually better for yield. Money Market funds like bank savings accounts have no diversification feature..
pax
Jan 26 2005, 02:55 PM
QUOTE (johndiaz @ Jan 26 2005, 11:59 AM)
I have heard that money market accounts are great for retirement. How do they compare to the 401k in terms of yields and the ability to diversify?
I think this is another "stealth" ad.
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