Money Market Fund - drop in price

Dear Mr. Tan,
I deposited $300,000 in their Money Market Fund. It generated about 3% interest at the end of the first year (2007). But this year the MMF is not doing well. For the first time, the units bid price went down from 1.088 to 1.087. I am not sure whether I should continue to leave my money in the Fund or should I look elsewhere to park my cash. What's the next best alternative that could preserve my capital sum and give me reasonable amount of interest.

As I am depending on this saving for my old age, I can't afford to make a wrong decision. As I can't afford to pay for professional advice, I hope you could kindly help me.
P

REPLY
I suggest that you talk to the insurance company and ask for their explanation. I suspect that the drop in the price of MMF is due to the recent increase in interest rate. The existing investments are locked in at the old yield. When interest rate increase, the bonds have a small drop in price.

The good news is that the future yield should be higher, say 2.5% or 3% (compared to 2% previously). In the absence of other better alternatives, it is all right to keep invested in the MMF.