You need to be affected can withdraw your money from money market funds in times of crisis or economic crisis. The Securities and Exchange Commission (SEC) Money Market Fund for the redemption allowed in “exceptional circumstances to suspend.”
Nearly everyone has a little money in such funds after the MM for retirement financial planning, you can have an IRA or 401 (k) and if so, you can certainly money in such funds. As an investor, you will have your money work for you in stocks, bonds and you have some sitting in a fund.
Such a fund is usually a sweep account, “used as an investment account money. If you buy stocks, equity funds, bond funds or bonds of other instruments, is money from your money market transfer sweeping funds to pay for it. In stocks, bonds or funds sold, the proceeds from the sale be placed in your scan. Most of the investment firms no “cash” have-account available, which separated from a MM fund. The bottom line is that the vast majority of us a little money this Fund.
The Securities and Exchange Commission (SEC) permits the suspension of the redemption of fund-MM in exceptional circumstances, such as a financial crisis.
It is unclear how pervasive this suspension are used during a crisis. If all these funds suspend redemptions? There may be some, not suspend, but the GM has the power of each Fund will maintain Buy.
What does this mean for investors? This means that the investor may not be able to withdraw their money when he / she wants. If you withdraw in retirement, and usually your MM fund for the cost of living, then you may not be able to do so. Even if you do not plan, financial planning for retirement, you may be affected. If you have all your money in stocks, and you decide to sell some of your shares to get cash, you may not be able, as long as the money must go through the discovery sweep.
The SEC said that the suspension of repayments could be serious problems for investors who rely on their ability to redeem shares pose. It would seem that the difficulties have pushed investors are indifferent to the SEC. They want to protect only the banking sector, it will not be a run on money market accounts during a crisis. It seems that the investor later.