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Old 09-02-2018, 12:48 PM
queasy27 queasy27 is offline
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Default Question about money market fund

I know almost nothing about investing, so please be gentle.

My 401k portfolio is invested exclusively in mutual funds. About 10 years ago and close to retirement I got very nervous about losses and fluctuations in my portfolio and moved everything into a money market fund. Yes, yes, I know. But it gave me peace of mind.

I expected almost no dividends and that's what I got; perhaps a dollar or two every quarter. The fund remained that way for quite a while, but at the end of 2016 I suddenly started seeing some minor returns. It was maybe $30 at first but has gone up consistently every quarter since then until this quarter was almost $700 reinvested.

So what has changed in the market? It's USAXX, if that matters.

Thanks.