How to calculate money market fund interest
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- Опубліковано 14 жов 2024
- Still contemplating on whether to join a money market fund? Or you've invested in a money market fund but you have no idea how your interest is calculated? Well, let me take you through how this is done.
Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
Uncertainty... it took me 5 years to stop trying to predict what bout to happen in market based on charts studying, cause you never know. not having a mentor cost me 5 years of pain I learn to go we’re the market is wanting to go and keep it simple with discipline.
Could you kindly elaborate on the advisor's background and qualifications?
“NICOLE ANASTASIA PLUMLEE’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
Dave Ramsey didn’t want to tell the truth. But you told the truth! Thank you!!!🔥
I replicated your spreadsheet. Very helpful, thanks again.
Glad this was helpful 🙏
a good teacher indeed
Nice informative video sir. Thanks
Thank you sir. Very informative
Very clear.good job
thanks alot bana
Very good video. Thank you
Well put but according to you, compounding is on monthly basis however I feel it should be compounding daily.
Yes, seen both approaches in use (daily / monthly) and thanks for pointing out. Nonetheless, hope you understood the computation.
I honestly don't understand how it works...bt thanks man
This was really helpful
Nicely put
Thank you so much
valuable info....
Thank you, I appreciate
thank you
Question. Isn’t interest of an MMF compounded daily but doled out monthly? Therefore wouldn’t the monthly earnings be higher because on the second day it wouldn’t be the original amount that is the principal but rather 100027.40?
Good question. Based on my research on most MMF, it's the interest that is calculated daily (hence the daily variance in rate) but compounded monthly. Nonetheless this could vary (share a resource if you find otherwise) though the difference would be quite tiny, approx 0.05% on effective annual rate.
On the same grounds, some money market funds published rates are net of withholding tax. Meaning what is published is what you earn.
My feeling too. I think it should be compounding daily.
@@kcmwambeta4454 ooo
can i continue contributing monthly too, like every month, what will the maths look like?
Yes you can, and anything you contribute will immediately be included in computation of interest. Example, you had contributed 10k, then 3 days later you add 3k. On the 4th day, your interest will be calculated against 13k and not 10k.
@@kcmwambeta4454what if I have direct deposit of my retirement check does it go to savings or checking.
Xcel skills they need ur kind in the States
How do u calculate to get 1650
Well put!!!
What of the money you keep topping monthly?
That adds up to the invested amount and included when calculating the interest.
Is my calculator working abnormally? Check your calculations again please
Let me know what's abnormal in the calculations.
@@kcmwambeta4454 No, the Math is Mathing😂, its okay
@kcmwambeta4454 100000×0.027395
nice video I'm new to cryptocurrency and I don't understand how it really works. Can someone guide me on the right approach to investing and making good profit from cryptocurrency investment
All you need as a beginner to make good profit from cryptocurrency is a professional trader who will trade on your behalf else you may make losses
@ben james *How can someone know a professional trader that is trustworthy when legit ones are hard to find this days
Assume 10% APY ? are u dreaming? maybe 1 to 3% APY....Big difference the outcome
Reality, some are doing above 10% - just for your info. Not sponsored link but educate yourself here >> www.money254.co.ke/post/top-money-market-funds-in-kenya-and-their-average-annual-returns-investments
I always want to ask this question if you invest in a money market fund then you want to withdraw your funds are you allowed to withdraw the initial principle eg in this video the kshs. 100,000
Yes, you can withdraw the entire amount if you so wish. However, withdrawals conditions do vary based on who you invest with. Some allow instant (via USSD or app) others upto 2 days or more.
Yes you withdraw the principal plus your earnings i.e.