How Safe Is Your Money?

Sept. 19, 2008— -- The financial meltdown of loaning insurance giant American International Group, or AIG, has international and domestic investors troubled.

Some consumers wonder just how safe their mutual funds and investments are during this turbulent economic time.

"Good Morning America" financial contributor Mellody Hobson explains what the market's changes mean to you and lets you know how safe your money is.

It actually takes some very easy detective work on your part. You will not be able to simply pick up the newspaper and determine if your fund is in good stead based on its current net asset value — the price description or value for a mutual fund. There are, however, a couple of simple things you can do to determine if there are any red flags:

Also, ask the representative about the fund's quality controls: How do they make sure your money market investment is stable? This is information the call center representative should easily be able to tell you.

You should be investing in a money market fund for quality, not for an aggressive return. I would be leery if your fund is advertising its high yield. Think of yield as risk — the higher yield the greater the risk. If you go out on the margins, you are walking closer to the cliff. If it sounds too good to be true, it probably is. My bias is to stay away from the cliff.

No. The sudden Lehman Brothers demise and the extreme market volatility are not typical. In fact, since 1970 when money market funds were first created, there is only one case where a fund fell below a dollar.