This is the chapter 1 for my series Ways to Invest when you have $100,000 In chapter 1, I will share with you the conservative ways to invest your $100,000. This is the part 2 for this Chapter. Check my part 1 here.

Suggestion 1: cash Bonus life insurance + Money Market Fund

Before we start, why don’t we have a closer look and understand what cash bonus life insurance and money market fund is.

In part 1, I already explained what bonus based life insurance is. So this part 2 will talk about money market fund.

In general, money market fund is a fund that invests in short term investment. The main investment for this fund is treasury, commercial papers, Banker’’s acceptances, Commercial papers, Futures contracts, Futures options, Short-term investment pools (STIPs), Short-term municipal securities and other short term investment.

Basically Money market fund is having the following benefits compare to other funds.

1. The value of money market fund unit is always same and set at the value of $1 per share. For example, if you invest $100, you will have 100 shares of money market fund. After 1 year, the fund has 8% of returns then your shares will be 108 and worth $108.

2. High liquidity because you can buy and sell your fund shares at any time according to the current share price ( The price is revised daily)

3. Money market fund is a low risk investment because Money market funds invest exclusively in dollar denominated high-quality, short-term instruments issued by the federal government, corporations, municipalities, and banks.

4. Money market fund can give you tax benefits because municipal money market funds can provide state and federal tax-free income, which can be beneficial for those in higher tax brackets.

Money market fund is a good investment that suitable to most of the family budgets. Sometimes it can bring you a higher interest rate and high liquidity that those Bank saving account don’t have. But one thing you should remember. Money market fund still has its own risk and not 100% can guaranteed you can receive any interest. Sometimes its liquidity also limited. Therefore, please do some researches before you invest in money market fund. Good Luck!

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