I am very very hungry right now, sadly I have to wait for my girlfriend to get off of work so we can both go get some grub at the same time. So I am going to write a small guide on money markets funds and LLC (Limited Liability Company) to take my mind off the pain. Haha.
First we are going to cover a money market funds. What is a money market funds? A money market acts like a CD, when you put money into your money market fund savings account, that money is being invested into very short term investments. Such as Dept Security (Dept Security’s - A security representing a loan given by an investor to an issuer. In return for the loan, the issuer promises to pay interest and to repay the debt on a specified date.). The payoff of a money market is the crazy interest rate it produces. Normal savings account produce an interest rate of about .50%, on my money market account I’m getting 4%. That is a HUGE difference! The funds are also highly liquid, such as a savings accounts. The only downfall of this is that the interest rate money is not guaranteed. But for me, that is a risk I am willing to take.
The reason I am blogging about this is because I recently opened a money market fund. Like 95% of my cash money is tryed up in some sort of paper assets. So 95% of my money is not liquid. However, I need about 50k for the down payment on my house I’m getting in January (hopefully). So I needed some cash money to be available for me to use then, but I still wanted to make money off of my money. I opened a money market savings account that gets me 4% (maybe even close to 5%, I forgot..) at which I put the money into until the house gets done. That way I will be able to use the money for the down payment, and I will also be making close to 1k in the mean time with that money.
Is there a reason why you should have a money market account? 
LLC’s (Limited Liability Company)
LLC’s are assets savers! The sole purpose of them is to separate you from your company. That means if your company gets sued, they wont be able to touch your personal assets (most of the time). If you get sued, they wont be able to touch your businesses assets (most of the time). They are also used to save you tons of money with taxes also!
The best thing about LLC’s is that they are only $100 to set up here in Idaho. I just barley sent off 2 new requests to open to new LLC’s. One is for a partnership me and my Buddie are doing, and the other is to separate my Arbitrage stuff from my content websites company (Developer Hut, Inc.). It is also a good idea to put your biggest website under a LLC, and then putting that company under your main company. Just to be safe…
So say I have Loser Alliance, LLC. I will then put that company under ownership of Developer Hut, Inc.. That way I am extra safe, and if something bad happens, everything wont crumble at once.
However, I suggest doing this AFTER you talk to your lawyer.
I hope this blog posts helps..
Keep it simple stupid…
- Jon Waraas
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Hi,
If LLC is down INC was there, put 3 say 4 under it 5 on left if its right I say INC but do down no left right on the 3 4 to the 9 or so you put LLC that in the INC. How you put 6 or say why but put that 3 4 to the 9 under the 6, it no sense to one big thing 6 other. If did that you would be in that?
Thanks
Why didn’t you open an account with Emigrant Direct? It’s a 5.05% savings account, your money is guaranteed, and insured by the FDIC for up to $100,000. Plus it’s liquid, and it won’t be tied up should you need it in an emergency.
I have an account with IGN Direct. It’s at 4.59% I believe. I have money automatically withdrawled frmo my checking account bi weekly into that savings account. I’m very happy with it.
I mean ING.. i guess my mind was on gaming ?
Along with the LLC, do you trademark your name or anything?
Or HSBC (hsbcusa.com). They are pretty tight.
John & David - I had an ING account back in high school, I really like it. However I dont feel that secure having my money with a website, I rather deal with people when it comes to $50,000 plus..
I also couldn’t find the 5.05% deal? I found the 4.50% deal though.
And my money market is 4.68%..
Bill - No i dont trademark… I just purchase the LLC…
4% isn’t that great. A lot of banks around here are offering 9% but you can only put a max of $2,000 in the 6-month CD. We have at least 10-12 banks in my neck of the woods that are offering this. Why not split up the cash and earn 9% on your money versus half that? However, if you really want to make money, visit http://www.prosper.com. You can make up to 35% on your money per year but there is a lot of risk.
nice article Jon, I cant talk with you guys on ING and stuff.. im at Rabobank
Web Enterpriser - That prosper site is pretty wicked, thanks for sharing it with me. That is a crazy return, but it looks like a lot of risk, haha.
The 4% is for the money market account, 9% is really good for a CD. My CD’s are all 7-8%
I believe PayPal is returning 5.1% with their money market system.
Good to see you are investing your money wisely even at a young age. I’m young myself, but it took me quite a while before I truely understood how to save money.
I to use an ING savings account. I need to set up a LLC though, something I haven’t gotten around to yet.
Hmm does anyone know if those Monkey Market accounts are available in Canada? I’m also saving up for a house, but right now I’m just earning interest on the money I’ve saved up…