Rodo Abad

I created a PayPal account several years ago because I thought it was ‘cool’ (hint: teenager) and after a couple of months I saw another ‘cool’ thing which is the PayPal Money Market fund. Back then, it had a yield of around 5%. I the tried to invest around 1/4 of my earnings to PayPal thinking that going ‘e’ is the way to go and is the future. After a couple of years I slacked off in putting in money because well…hobbies changed and I WANTED MORE STUFF (hehehe). So my investments were mostly Roth IRA and 401k. Fast forward to 2011 and I just use my PayPal account to purchase online goods as opposed to something I’m looking forward too after retirement. It turns out that my choice to not include PayPal as part of my retirement plan was correct as PayPal’s Money Market fund took a HUGE HUGE HUGE dip just right after I stopped putting in money every month. Just look at the screenshot from Bloomberg.

Now, I am by no means an expert and I’m probably looking at this scenario on my side only but seriously…damn. The financial crisis of 2008 really hit PayPal hard and most of the other Money Market funds out there.