1. You need a safe, lucrative place to stash your cash until you make a more long-term investment decision.
401K? Roth IRA? Single Stocks? You’re not sure, but instead of letting your money sit while you make up your mind, you can put it to work in a money market account.
2. You want to sell a higher-yield investment so you can cash in on its maturity before deciding what to purchase next.
A money market account is a great option in this case because you can easily transfer it when you choose your next investment.
3. You discover you have money in a dormant investment.
When you pull your dormant money, a money market account will allow you to make a higher yield than a regular savings account.
4. You are saving for a special vacation or a new car.
Instead of putting your money aside in a regular savings account, consider a money market. With a higher yield, you could have an upgrade on your hands when it comes time to cash out and buy that car!
5. You need a high liquidity investment.
If you need access to your cash, but still want to put it to work for you, a money market is a great choice.
