However, FDIC insurance does not protect you from potential capital loss in a prime money market fund.
FORBES: Euro-Crisis Side Effect: Your Prime Money Market Fund Could Break The Buck
Exactly how much annual interest are you currently earning on your prime money market fund? 0.10% per year? 0.15% per year?
Well, let me take you down the unlikely road that may make you think twice about holding your prime money market fund.
Indeed, Fitch Ratings issued a report in June concluding that 50% of all prime money market fund assets were invested in European banks!
Some ETFs she likes include SSgA Money Market Fund (SSMXX), SSgA Prime Money Market Fund (SVPXX) and iShares Dow Jones Financial Sector Index Fund (IYF).
FORBES: Intelligent Investing Panel
Imagine what might happen to your prime money market fund when a good portion of the European banks that comprise the fund cannot make you whole on the money you have lent them.
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