TheStreet.com Ratings: Shop for Money Market Funds

Yes, investor, there are differences in money market funds -- enough to potentially reward a person making a careful choice with a five-figure retirement vacation. Tax-free, to boot!

A study of taxable and tax-exempt money market funds found that choosing those with TheStreet.Com Ratings at the high end of the scale produces returns superior enough over bottom-rated funds to generate an extra $19,768 on a $10,000 investment over a person's working years, assuming rates remained at current levels.

An investor's research into a mutual fund provider usually focuses entirely on stock- and bond-fund offerings. The money market choice is reduced to an afterthought. "Well, I have to park the cash someplace" is a typical attitude. People don't realize that the quality of the "parking spot" can add up to a significant payoff over time.

Just as many consumers automatically say "OK" to the extended warranty on their new TV, they put their money into any money market fund their advisor places in front of them. But just as the extended warrantees often have some of the highest profit margins to the consumer-electronics retailers, some money market funds seem to be better deals for the brokerage house than for the investor. ...