1.  Life Insurance - expense ◦ Owner ◦ Annuitant ◦ Beneficiary  Back-end load  Aftertax deposits

2.  “Wrap account”  Fixed  Variable ◦ Investment accounts  Management fees, other expenses

3.  Accumulation  Withdrawal ◦ Periodic withdrawal ◦ Life ◦ Life with period certain ◦ Life with refund option ◦ Joint and last survivor ◦ Fixed period ◦ Fixed amount

4.  Aftertax deposits (tax on withdrawal)  Tax deferred  59 ½ withdrawal (10% penalty)  Never (99.999999999999%) in a retirement account  Probably last investment choice ◦ High tax individuals  Average of 2.37% annual expenses

5. www.wsj.comwww.wsj.com 11/11/12

6.  Maturity < 1 year  Pure discount securities  Started because of Regulation Q ◦ pre 1980  NAV = $1 ◦ not guaranteed ◦ May change to variable rate NAV  Check writing Money Market Funds

7.  Treasury bills  Commercial paper  Jumbo CDs – Negotiable CDs  Eurodollar CDs  Banker’s Acceptances  Repurchase agreements (Repos) Money Market Securities

8.  US Treasury  US government  General  Tax-free Types

9.  “Breaking the buck” ◦ 2008 ◦ Reserve US Government fund ◦ Treasury set up insurance program like FDIC  Inflation  Income risk – changing returns MM Risks

10.  Short-term, safe investment  Cash alternative  Liquidity MM uses

11.  http://www.bankrate.com http://www.bankrate.com  http://www.ibcdata.com http://www.ibcdata.com MM Information

12.  Expenses, expenses, expenses  Turnover not important ◦ No capital gains What to Look For

13.  Floating NAV  Fund can impose a liquidity fee ◦ If liquidity falls below a specific level, redemptions are suspended. New Rules?