401k vs. money market accounts

[Guest johndiaz]

I have heard that money market accounts are great for retirement. How do they compare to the 401k in terms of yields and the ability to diversify?

John Diaz

Online tutor, homework help, term papers

[GBurns]

A 401(k) has no yield or return it is simply the vehicle through which tax benefits, rules etc are enjoyed or observed.

The money in a 401(k) has to be invested. It is that investment vehicle that gives a yield or return not the 401(k).

A money market account or fund is just another place to put money. I doubt that anyone would regard it as an investment. It is most similar to a bank savings account. And unless you regard a bank savings account as being a good investment, you should not regard a money market account/fund any differently. Even CDs are usually better for yield. Money Market funds like bank savings accounts have no diversification feature..

[david rigby]

I have heard that money market accounts are great for retirement. How do they compare to the 401k in terms of yields and the ability to diversify?

I think this is another "stealth" ad.