What Should Investors Do With Low Money Market Rates

As far as investors are concerned, there is pretty much nothing that could be done by individual efforts in order to make money market rates rise. Despite the fact that many people are still hoping that the rates will climb up this year, there is practically no way of determining if it will happen for real. And many investors are crossing their fingers in order to gain more from their money market investments.

Actually, the government is constantly pushing for the progress in money market investments. But aside from securing money market investments through the Federal Deposit Insurance Corporation (FDIC), the securities arm of the government, there is nothing much that the government can do because it has its own endeavors in the field of commercial investment.

Because of the flat performance of money market funds, many investors are now considering and looking for other investments with greater returns and higher rates. Unsecured investments are one of these. Speculative securities, while these pose great risks on the part of the investor, these are still pretty accepted in the field of investing as one of the most profitable ventures—given that the investor chooses the right speculative security.

Also, it is important to point out that this is not yet high time to call it quits with money market ventures. Although it does not provide much financial satisfaction to many investors because of the low rates, the investment is still appreciating every month—although not in the manner that we want it to be. Waiting is not an advisable thing to do, as well. The longer people notice how fast or how slow the developments in money markets are, all the more that it will bore them before seeing substantial change in the rates of money market investments.

The best way out of this financial dilemma is to find other financial streams and investment opportunities that may in fact give investors the opportunity to invest their money in different industries. However, if there are existing assets pooled in a money market fund then do not be dismayed about it no matter how low the current interest rates are compared to other investments. Patience is a valuable virtue in investing so do not give up the money market assets just yet.

There are 2 things that you can do while you are waiting for money market rates to rise:

# 1: Find other investment opportunities

Since investors can easily pull out a portion of their investment in the money market realm, they could use this money n order to make other investments in more financially rewarding opportunities. This does not necessarily mean that everything must be siphoned out of the money market and transferred to another investment. Set a feasible deadline for this investment and wait for signs of improvement.

# 2: Pool more of your idle money on secured money market investments

Although it might sound like it is contradicting the first suggestion, idle money is defined as assets that are not used for other business opportunities and are just sitting idle on the bank safe. Note that money market investments still have higher interest rates compared to passbook accounts so the money will do better in the money market field.

In the end, after reaching the deadline set for money market rates to rise, the investor will have to decide whether to stick out with the so-so condition that is tied with the money market investments or to call it quits to move on with more rewarding ones. Ultimately, the choice will be between secured and stable rates vs. fluctuating but financially rewarding rates.