Inspired by tax return thread... let's talk $$

[staceyfe]

This is from the Paypal website:

"Unlike checking accounts, money market funds are neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the Fund. Distributed by Funds Distributor, Inc. To learn more about the Fund and its expenses, read the prospectus carefully."

I know money markets are *very* low risk, but I'd rather have the FDIC insurance. I'd reconsider if it were a company like Edward Jones (where I do have a money market--retirement investments are drawn from it) or other long-term (been around a while) financial entity.

 

[Rozzie]

I am way nervous about this year. I think we are going to owe for the first time, and I really want to know how much NOW. DH has been claiming "0" this year, not to my knowledge, thought he had it changed when he got his promotion. We have money in savings, but the wondering is what kills me!

 

[LoraJ]

Why assume that if someone wants a higher tax refund that they are not putting other money asside that they can "get to in an emergency"? I have money going into an ING account, 401K and an IRA. I also file as married but withold at the higher single rate.

Same here. I get a return, have an ING account, regular savings, 401K, and 2 pension plans.

 

[disneysteve]

This is from the Paypal website:

"Unlike checking accounts, money market funds are neither insured nor guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the Fund.

Yes, PayPal's money market is not FDIC insured, but neither is anyone else's. Not a single money market fund has ever lost money in modern history. These are ultra-safe investments.

Personally, we have a bank checking account and a few US savings bonds. That's the extent of our insured savings. Over 90% of our money is in uninsured accounts so I don't have a problem with putting my money in a money market mutual fund. I realize not everyone shares my risk tolerance though.

 

[zippeedee]

I am way nervous about this year. I think we are going to owe for the first time, and I really want to know how much NOW. DH has been claiming "0" this year, not to my knowledge, thought he had it changed when he got his promotion. We have money in savings, but the wondering is what kills me!

Unless he usually claims "0" plus an additional $$ amount in withholding, "0" is the highest rate. The more exemptions you claim, the less money is withheld for taxes. I'd think you should be fine with "0" but everyone's situation is obviously different.