VMFXX
Vanguard Federal Money Market Fund Investor Shares
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Blow Up Risk of a Money Market Fund
Question about taxes on tbills vs money market funds
buy VMFXX after dip from jobs report?
I purchased VIPSX in 2017, this is how it has performed so far
What prevents dividend arbitrage with MFs like VMFXX?
Considering investing my HSA into a money market fund (VMFXX). Why would I not want to do this?
Vanguard Idle Cash/“Settlement Fund” Options
Vanguard Idle Cash/“Settlement Fund” Options
Vanguard Bond Holdings (e.g. VBTLX) versus holding in settlement fund (e.g. VMFXX)
Would it be worth putting money in my "safe" money in a Money Market ETF?
What is the difference between Vanguard's settlement fund and VMFXX?
VMSXX has now temporarily surpassed all MMFs for higher federal tax brackets.
PSA: You can max out your Roth IRA or other tax advantaged account immediately if you have excess cash you don't wish to invest in stocks
Why do CD, when you have better rates on the money market (VMFXX)
Money Market Fund (Euro or USD) available in the European Union?
Parking cash short term in money market funds?
5 Great Fixed-Income Funds to Buy for 2023.What do you think?
Vanguard's Settlement Fund or Treasury Bills?
Vanguard's e-mail contact to ask a KID's translation
If I hold money in Vanguard VMFXX for over a year do the issued dividends become qualified dividends?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Money Market vs. Cash? What's the difference? Also, what are current cash (and equiv) yields on Fidelity, Vanguard, Etrade, etc?
Vanguard MMF (VMFXX) alternatives for non-resident
If you're on Fidelity, what's the best money market fund?
Why t-bill ladders with options like VMFXX and VUSB available?
U.S. Govt Obligations and Repurchase Agreements
Mentions
Not 5% but VMFXX yields closer to 4%z
I mean your 401k is pretty much controlled by your employer so you have no control over that IRA yea you can choose any company HYSA , personally I do not have a savings account I just use a brokerage and invest in money market funds or ETFs holding ultra short term treasuries . With vangaurd if you just open a brokerage account and transfer money int, the money will be invested into VMFXX what is a pretty good fund and should pay comparable rates to a HYSA. So yea its normal to have a few different accounts. I like to sort of simplify what is why outside of my 401k controlled by my employer I basically have everything at schwab , checking , brokerage , Roth IRA .
i too called them and they said there is a problem at their end, they are working on it. the VMFXX dividend is received, it is just the VUSXX having problem
I don’t get how me having low seven figures invested means I shouldn’t be commenting… my point is a lot of people are more focused on capital preservation. I’d rather miss out on some gains than have losses for an extended period of time especially when VMFXX pays close to 4% Reddit tends to skew UMC so a lot of people probably have more cash invested and are also more focused on capital preservation and don’t want to buy now
Even before the war these guys thought that there was going to be a bear market. Scott has said it may be as bad or worse than 2008 btw One of them, in October, said that “early 2026 will be the end stages of the bull market” … looks like he was right. This guy used to be employed as a professional trader Nobody has a crystal ball but these guys seem to know way more than me. I’m waiting to see what they say before I go back in with the 50% of my post tax account that’s sitting in VMFXX
I’m down 200k I have a bit more than OP has invested I can also save 100k-120k a year. At this point, it’s like why would I throw good money into a bad market. I’ll still max my retirement accounts because they’re mutual funds, but post tax I’m stacking VMFXX. Everything this admin is doing is terrible.
Similar age here and slightly more invested. I’ve been down 200k or so, but I’m also an individual stock investor in my post tax port. I don’t trade my retirement funds since they’re in low risk mutual funds Right now I’m 50% cash in my post tax account—- I have a few hundred thousand sitting in VMFXX earning 3.6%. I’d rather miss out on some gains than go red in my portfolio tbh Right now I can save at least 100k-120k a year across my accounts, I feel like it’d be dumb to throw good money into a bad market. So right now my plan is to stack more cash in my post tax accounts into VMFXX Fwiw I follow a few traders and Scott Galloway and all of them think it’s going to get worse from here. One of them even called the top back in October but I wasn’t yet following him
Cr, I mean people talk about holding though lows. Can they really hold if we go down 50%+? I’d rather miss out on some gains than go red in my port I’m 50% cash in my post tax account. Have a few hundred K in VMFXX making 3.6% in post tax My 401k I don’t trade since they are in mutual funds but I’m already down 200k in my post tax account and don’t want to wait until I’m down another couple hundred K or whatever
For people starting out the Fidelity Zero Expenses Funds puts it over the top. I recommend FNILX all the time. The negative on these Zero Expense Funds, if you get mad at Fidelity, you must sell to get your money out, they are proprietary. I am Vanguard since 1983. I was a Fidelity client from 1996 to 2021 or so. moved it all to Vanguard. why? I had been with Vanguard the longest Vanguard VMFXX actually beats SPAXX, so Vanguard wins the sweep accounts contest. Schwab sweep account pays something like 0.01%. For me, it is either Fidelity or Vanguard. Fidelity has more bells and whistles and real physical offices. Vanguard NEVER asks me to talk to their advisors. Vanguard HQ Campus in Pennsylvania is the only offices site and is under high security. Fidelity has the most money under administration, Vanguard has the most money in Assets under management.
Same thing happen to me. Layoff, 401K to rollover IRA, no choice but cash out everything a month ago. I bought money market fund VUSXX / VMFXX and energy ETF while buying myself time to do more research. Then suddenly war began.
I didn't say anything bad about Fidelity it's a great company maybe you should reread my comment I am just trying to figure out why this CFP is specifically recommending that particular money market fund from Fidelity when you can do better at Vanguard money market funds in terms of yield could be a difference of 20 -30 basis points between the 2 and I don't want lose a few thousand dollars at the end of the year investing with Fidelity over Vanguard .By the way just go to Google and check out the yield on VUSXX or VMFXX and compare it to FDRXX .
Actually the highest money market fund yield right now should be Vanguard VUSXX or VMFXX since they have the lowest expenses it's between 3.60 -3.70 now
VMFXX is currently paying 3.59%.
I am in FL so VUSXX or VMFXX is the clear winner for me anyway
The knock against Schwab is that their sweep account pays diddly. If you do not care about Schwab automatically paying you 3.5% on your money instead of 0.01%, unless you do something, then go with Schwab. Fidelity and Vanguard puts your money into their HYSAs, Fidelity is SPAXX and VANGUARD is VMFXX.
I have all 3 and would recommend Fidelity. Fidelity: good sweep fund (SPAXX right now. is 3.32%, Schwabs pays 0.1%, so uninvested cash gets nothing), fractional shares, easy treasury ladders, easy platform to use, can do bill pay right out of your sweep fund (so get HYSA level interest on money you pay bills with), running balance on activities make using it for bill pay easy. If you decide you wanna move, no fees for closing the account (others charge $100). Schwab: best for active traders (good tools, and opens trading activity on the side instead of reloading over your current window), people who want a Coverdell ESA IRA (not offered by Fidelity or Vanguard), and people who think they may go ex-pat in the future (had int'l branch). Not supporting fractional shares and not offering any interest on the sweep fund are my main issues. Vanguard: find myself going through lots of menus to do simple things, and doesn't offer running balance on activity screen (have to generate a PDF report). An example is I'm looking at a holding. I click the "cost basis" link and it takes me to a screen of all my holdings again where I can scroll to the one I was just looking at and click a expand arrow to see all the bases. I should be able to access all info relevant to that holding from one screen. Vanguard offers the best rate on their sweep fund (VMFXX is 3.59%, so 0.27% better than Fidelity). Vanguard offers eft versions of their biggest mutual funds at a lower ER (0.01% lower), so you can access all of Vanguard funds anywhere. Fidelity and Schwab have their own versions as well.
25yo is not late. We have all three (Fidelity, Vaguard, Schwab). I've used Vanguard for 30+ years. I would recommend Fidelity of the three. As others have mentioned, Fidelity allows fractional shares more broadly. Sweep fund yields: Current 7-day yields are 3.32% for SPAXX (Fidelity) and 3.59% for VMFXX, so about 1/4 of a percent more at Vanguard (or $2.70 per $10k per year). Schwab pays virtually nothing on sweep funds (0.1%, I think?) -- which really annoys me. VANGUARD gets the nod, but both Vanguard and Fidelity are respectable. FEES: If you don't like Fidelity, they won't charge you to close your account. They will even reimburse fees charged by the other two. Both Vanguard and Schwab charge fees to close accounts. INTERFACE: all are adequate IMO for basic stuff. I prefer the Fidelity web interface over the Vanguard mainly because I can see the running balance on the activity page and look at an individual account more easily.YMMV, but you will likely learn to deal with any. I think Vanguard doesn't suck as badly as it used to, but I still find myself going through multiple steps to do simple things. BANKING: This is where Fidelity and Schwab spank Vanguard IMO. Both F & Sh offer banking services. I like that I can pay bill out of Fidelity and it will use my interest-earning sweep funds to pay for them. I also have their debit card which allows you to set limits and control them from the website easily -- great for traveling as they have no foreign transaction or ATM fees. If I pull funds from a bank account, I can immediately use them for trades (credited immediately). Vanguard is slower push/pull IME. Again, with he interface, I wouldn't want to do banking with Vanguard anyways. The two places Schwab really shines is that they still offer Coverdell Ed IRAs (Vanguard is phasing out there's and Fidelity already has). The other is Schwab has an international form making it a favorite of ex-pat communities. In a taxable account, still to index efts instead of proprietary MFs. Efts also do not have minimum purchases (and with Fidelity can buy in dollar amounts; Vanguard only allows this for their efts). Vanguard charges 0.01% more for their MF version of their eft funds, so no reason to hold mutual funds.
Actually Vanguard is around 3.64 for VUSXX maybe VMFXX is between 3.59 and 3.66
The SWVXX pays around on the last day of every month for a slightly higher yield Vanguards 2 money market funds VUSXX or VMFXX probably closer to 3.70
That definitely would catch them up the other big brokers in US. I don't know if its only me , but I wonder really why they don't have settlement account automatically defaulting to money market fund. If I am not mistaken vanguard has VMFXX and Fidelity has SPAXX/FZFXX. At a min you would be getting 3.33 % yield. If I am not mistaken both schwab checking and brokerage account don't get anywhere close to that unless you buy their money market funds separately or buy something liike vbil or sgov., also don't think they are as liquid as if you had a default settlement account as far as I know. . I will admit it may user error with a lot of stuff so far as its been less than a month since I opened the account.
If funds are actually emergency funds, perhaps T bills which have no state or local taxes attached or VMFXX which is taxed like ordinary income is what you are looking for? T bills are sold with varying maturities of 4 weeks to approx 2 years so you could do a ladder or just set it to reinvest. The down side of t bills is that the interest does not compound automatically. Instead t bill interest is paid when t bill matures and is then deposited in your account.
No, just my overall account, has some VOO and some VMFXX. Not sure why its having this error though
TKeep an emergency fund of +/- 6mo salary in high yield money market like VMFXX. Buy and hold only stocks you are willing to hold at least 1 year. Active trade only what you can afford to lose. Put 80% of your investing funds in VOO and never touch it.
Thanks but it's a grand just for the stock market. I'm treating it as if it might vanish. Your assessments make perfect sense. Thanks. on another note: I think I have VMFXX in my Roth.
If one thousand dollars is all the savings you have, then I suggest keeping it in a money market fund for emergencies. The fund I recommend is VMFXX which you can buy at Vanguard. You don't even have to buy it, you can just designate VMFXX as your settlement fund after you open a Vanguard account. If you are starting an investing journey, and you plan to gradually build up a small portfolio, then I suggest the following simple asset allocation which you can set up in 15 minutes at Fidelity or Schwab: 34% SGOV - treasury bill (30-90 day government bonds) ETF 33% IAUM - physical gold ETF 33% VTI - broad US stock market ETF You can buy fractional shares to make the percentages work out. This portfolio returned 8% annually for the last 30 years, with limited drawdowns and volatility. Occasionally, when one of the asset classes goes significantly out of whack, you'd need to rebalance.
No, don't take it out of the account, move it into something earning even a little bit of interest, e.g., VMFXX or similar.
If you have a tv, ac, a roof over your head, car, and a job; roll with the punches. Accept the hand you’ve been dealt, and come up with the best possible solution. I’m not down 33m but the odds of me making it all back in short term are low. Long term outline and stick to it. Easier said than done: I know. With autonomy on the rise the future is very uncertain. Maybe hold what you have in VMFXX and then buy SpaceX at IPO. Or some other well researched growth potential stock. DKNG is a casino and buying the stock is like betting on the house. Casinos grow very fast. (nfa) Times like this can be opportunities for new investors. 33mil is gone, but what if you get back enough to start over? That’s just a thought though. Unless you have a job that pays 6-7 figures. BULL is another growth potential stock (imo.) The hourly SPX futures must be increasing profits significantly, plus all the other event futures. Look at RH last year. Options are rigged. And you’re playing against AI now. Who always makes the closest odds? Vegas. AI uses everything for its conclusions. Not to start a political conversation (I’m not making any preference here, admin)but RH event contracts had Trump the winner. Polls said no. Bet said yes. Gambling odds don’t play.
VMFXX is federal money market. VT is well diversified and easy. Personally I do VTI and VXUS. I want to have about 15% in diversified international etf which is why I don’t do straight VT. Just personal preference.
I just use a spreadsheet and the money is all in one fund (VMFXX in my case, but SGOV works too). Currently I have about a dozen categories in there. Alternatively you can make separate brokerage accounts for separate purposes if you want the the interest from particular funds to roll back into them (although you could track that in the spreadsheet too). I did this with my future house down payment, it's just in a separate brokerage account labeled "House".
VMFXX at Vanguard is one option. That said I'm just a guy on the internet, so by all means do some research.
SPAXX is Fidelity's HYSA Money Market account. I believe it is actually the Settlement Account and Fidelity just makes it so your money earns more than 1% like many other brokers do to you. Vanguard, Fidelity, or Schwab are all good brokerages or account holders. I use Vanguard and our Settlement Account is VMFXX and it pays 3.9% yield at this time, which is better than Schwab or Fidelity by a little.
For a 1-2 year timeframe with easy access and minimal risk, look at high-yield savings accounts (currently 4-5%) or Treasury bills (3-6 month durations). Both offer inflation-beating returns with virtually no principal risk. Money market funds are also solid options (VMFXX, SPAXX) with yields around 5%. If you're comfortable with a tiny bit more risk for potentially higher returns, short-term Treasury ETFs (SHV, BIL) or CDs with laddered maturities could work. Just avoid anything with stock market exposure or long-term bonds that could fluctuate in value. Remember that keeping house funds separate from investments helps maintain discipline with your timeline.
They do, but they don't lose value. VMFXX for example will give a nice 4% right now with no risk of the value going down. VBND has a similar yield but its price can go up or down with interest rates. Having a hard time deciding which will give better returns over the next year, but it seems things are starting to tilt towards VBND being a better value than VMFXX
Why? VMFXX is currently returning 3.88%. If the fear is a market downturn, just keep more in "cash" (VMFXX) and still win. I'm not spending cash I would otherwise pay the loan down with - I'm saving/investing it in one form or another. 26 years to go on a 30 year loan is long way to go, and I would expect many downs and ups in the market during that time. However, once you pay down extra money on a loan, you can never get that back. 3% loans are unlikely to happen again any time soon.
Why SGOV vs VMFXX? Just curious.
Vanguard's VMFXX is a little higher (same as SPAXX) or SGOV eft (ultrashort treasuries), 30-day yield is currently 3.97% (3.93% avg yield to maturity). All fo these have the advantage of being able to withdraw/sell without penalty or risk at any time, and treasuries are not taxable by states (but you do pay federal tax). If you don't mind locking the funds up, then you MAY be able to goose the rate up a little and be guaranteed with a bank CD. Shop around. Max is just slightly higher than treasuries (around 4%) and interest is taxable by state, so unless you find a good deal it's probably not worth it.
I have my cash in VMFXX that is yielding 4ish%. Why not something like that instead of TIPS ( or VTIP ETF)?
HYSA, Money market, CD's, and Tbills are all considered "cash" accounts because they have zero risk of loss. They all pay very close to the prevailing risk free interest rate which historically has averaged about 1% above inflation. VMFXX is at around 4% yield because of the period of higher inflation in 2021-22. You can expect it to go down as inflation drops and monetary policy eases.
SEP-IRA and Vanguard should not be important factors in your performance. What matters is what funds you are invested in. It sounds like you funded the IRA but never selected or allocated to an investment fund so it's just sitting in the default money market fund, VMFXX. Look at your investment options and transfer from "cash" (VMFXX) to a stock fund or a target date fund.
VMFXX is likely the "default" investment choice for your account You need to log in to your Vanguard account and change the investment fund for your existing $$ I don't know what your time horizon/age/risk tolerance is, so I can't advise you for *which* fund you should invest into. Perhaps something like VT or VTI. Or a balanced fund like VBIAX. https://www.reddit.com/r/Bogleheads/
HYSA are cash equivalent too. By your argument, you agree that VMFXX is a cash equivalent. Sidenote: it has a 4% yield *right now.* That has not always been the case, and it definitely won't always stay there.
The low return is due to the account not being invested. VMFXX (Vanguard Federal Money Market Fund) is the brokerage's settlement fund, a cash equivalent that acts as a temporary holding area for uninvested money. It preserves your money but is not a fund for long-term growth. To begin investing, you must initiate a trade within the SEP-IRA to purchase an asset like a stock or fund using the money currently held in VMFXX.
VMFXX is a money market fund, a cash equivalent. You did not invest your IRA contribution - *for five years* \- that's the problem.
I'll never cease to be amazed at questions like this... No, you should not leverage a HELOC to invest into a stock index. What you should do (and should have done) is treat your brokerage like your savings account with a mix of stocks, tax-advantaged intermediate bond funds, and short-term cash. Many people advocate percentages but I like to put the short-term reserves in terms of real dollars. So in your case, I'd be something like $20k into VMFXX, $60k into VTI, and $20k into VTEB. Adjust accordingly for your risk tolerance.
Yes, the cash is represented with VMFXX @ 21.7% of my portfolio. Currently earning 4% but it has been dropping consistently. You're right, it might be a little too aggressive to move nearly all of it to equities, it has just been stressful looking at the gain this year knowing I've missed out on $100k free money if I had that $400k invested. I guess maybe the play would be to look towards bonds for this money sitting in VMFXX if the yield keeps dropping? It's only barely keeping up with inflation at this point.
I've been sitting in 25% cash for a while now, waiting for opportunities that I never had the balls to capitalize on. Obviously I'm bummed to have missed this years gains, but it is what it is. With my current allocations in mind, where do you think I should deploy around $300,000 of the funds currently sitting in a money market fund? My world exposure is low, as is my total market compared to my SP500 exposure. I'm comfortable with my current crypto exposure and would not want to increase this (purchased this at $3000 so riding it out). Would you just split the funds between world and total market, or do you think there are better places to put some of this money considering my current allocations? VFIAX (SP500) - $1,091,000 - 54.5% VMFXX ($435,000) - 21.7% VTSAX ($246,847) - 12.3% Bitcoin ($120,000) - 6% VTWAX ($108.968) - 5.4% Some details that may be relevant. 36 years old, married, no kids, unstable job currently earning $600,000+ but could see a decent drop soon depending on how things go in my industry. 400k mortgage @ 2.4%. Spending roughly $150k this year, but about 50k of that is related to business expenses that wouldn't be there without our current job.
I have a corporate brokerage account with Vanguard that I keep cash reserves from our business in that are invested in VMFXX (money market fund). I also keep even more other cash reserves in my local commercial bank account that is also invested in their money market fund as well. Vanguard MMF pays more than my local bank MMF but I can move funds in my local bank MMF to my checking account same day. Vanguard takes 1+.
You can buy Vanguard VUSXX and VMFXX money market funds at eTrade. Would those be marginable? As MMFs with a constant share value of $1 they would also avoid tax filing cap gain/loss reporting. They accrue dividend daily for the amount held on each day - you don't lose yield if you don't hold until the dividend payment. VUSXX dividends are all or mostly all state tax exempt. VMFXX dividends are typically partially state tax exempt.
Why do people want to choose SPAXX with expense ratio of 0.42 over vanguard VMFXX with expense ratio of 0.11?
> I'd like to make 5% or more while remaining completely liquid I'd like 100%. But what I like and what's reality are different things. You can expect around 4%. I have a few hundred thousand spread amongst SWVXX, VMFXX, VUSXX and SGOV. They are all pretty much the same but why have everything in the same basket.
Vanguard’s settlement fund, VMFXX, is paying 4.05% currently. Not worth paying .3% for FDIC imo but that’s just me
SGOV = ultra-short Treasury ETF; cash-like, minimal duration, not FDIC. Yield follows Fed; monthly payouts; low fee; mostly state-tax free; tiny price drift. Fidelity T-bill auto-roll and Vanguard VMFXX work for me; also considered [gainbridge.io](http://gainbridge.io) for multi-year fixed rates. Good for parking cash if you accept small NAV wiggles.
For retirement, protect principal with a cash bucket and rules. I keep 2-3 years expenses in T-bill/CD ladders, rest in short-duration bonds and a broad index. I use Fidelity for T-bills, Vanguard VMFXX for cash; [gainbridge.io](http://gainbridge.io) for fixed annuities with multi-year guarantees. Guard principal, define your cash bucket.
VMFXX and Schwab money market
I actually thought VMFXX was the default place where your money would go. If you’re really unsure where your money is going, you should message vanguard.
Oh okay. I saw that my VMFXX dividends would get reinvested (in my transaction history) so I assumed that they would go back to my initial VMFXX balance but my reinvestment distribution was set to none. Would that be the reason why my VMFXX balance hasn't changed?
Each month I see two transactions right next to each other: * VMFXX Dividend $X * VMFXX Reinvestment -$X I have dividend reinvestment turned on.
Here's an easy thing you can do. No buying of anything required. Just open a vanguard brokerage account. Then, place cash in it and don't invest it. Any uninvested cash in a vanguard account is automatically placed in VMFXX - their money market fund. That rate will be better than a HYSA. This is what my wife does with her cash.
Could use a set of eyes on where I should trim Starting to feel this market is well overheated. I thought about moving 25% of all my holdings into more VMFXX or enough to get tome to 60% VMFXX . I made a pie chart with all the holdings. Thoughts? https://imgur.com/a/T3tUc8E
Could use a set of eyes on where I should trim Starting to feel this market is well overheated. I thought about moving 25% of all my holdings into more VMFXX or enough to get tome to 60% VMFXX . I made a pie chart with all the holdings. Thoughts? https://imgur.com/a/T3tUc8E
Could use a set of eyes on where I should trim Starting to feel this market is well overheated. I thought about moving 25% of all my holdings into more VMFXX or enough to get tome to 60% VMFXX . I made a pie chart with all the holdings. Thoughts? [https://imgur.com/a/T3tUc8E](https://imgur.com/a/T3tUc8E)
There's currently $7.5T in Money Market Funds. Interest is falling, dollar is weakening, and inflation is poised to increase all while equities and gold continue to hit ATHs. People can only keep money on the sidelines for so long before they capitulate. VMFXX was attractive at 4.5%+, but <4% feels pretty bad. Even people who are ignorant of forex are feeling the FOMO.
I looked at this first but it wasn't really helpful. In the account activity it just says: 3/31/25 VMFXX Vanguard Federal Money Market Fund (Settlement Fund) Dividend - $2.79 3/31/25 VMFXX Vanguard Federal Money Market Fund (Settlement Fund) Reinvestment - -$2.79 This was the during the month that I transferred the 2k into the account though and then purchased stock a week later when the hold was released. So I guess this was dividends on 2k I had in there for a week. Thanks again.
VMFXX is a money market fund. It pays income distributions. Income is calculated by how many days funds sit in it, and are paid out periodically. For VMFXX it pays monthly, which I believe is typical of money market funds.
Can someone help explain why my Vanguard Settlement fund which only has a couple bucks in it is creating taxable dividends? I have several accounts at Vanguard but my settlement fund VMFXX has $4.86 in it right now. I only transfer money into it when i am going to purchase other stocks and do not leave any substantial amount in it otherwise (beyond the mandatory waiting period). The small amount in it now was left over after my last purchase and it's just been sitting there. But somehow, its generated $2.79 in taxable dividends YTD. Its not a big deal to have a couple bucks more of taxable income but I would like to avoid it if possible and I do not understand what is causing it. Do I have to empty the settlement fund completely? It's got to be coming from somewhere else, right? Appreciate any insight you might have. Thanks.
I keep 2-3 years of expenses in cash (checking+VMFXX) and the rest of my portfolio is in VTSAX. Yes, it's really that simple. Read The Simple Path to Wealth by JL Collins and you can pretty much understand my investment philosophy since I stopped day trading in 2000. I really wish that book existed when I was a teenager. I had a paid off house that I built in my 20s and sold shortly after I hit my FI number because I hated home ownership. It was tough putting hundreds of thousands of dollars into VTSAX in 2019, but I'm really glad I did since the stock market crushed the returns that my house had over the past 6+ years. Time in the market.
Fund 7-Day SEC Yield Expense Ratio Tax Exemption (State) VMFXX 4.21% 0.11% Partial SPAXX 5.20% 0.42% Partial VUSXX 4.20% 0.07% Full FDLXX 5.00% 0.42% Partial
40% VOO 40% VTI 20% VMFXX. Have at it 🤷♂️ Is the irony of you resorting to ad hominem after complaining about the sub beig toxic lost on you? Lol
Keeping that $115k in equities like VDADX or VTSAX exposes you to market swings that could cut your down payment right when you need it. Moving the money into something like VUSXX or VMFXX is a much safer play, since those money market funds will preserve your capital and give you a modest yield while keeping it liquid. Your Roth IRA can stay invested in equities, since that’s for the long term and not tied to your house purchase. The key is to separate short-term money you’ll need soon from long-term money you won’t touch for decades. For a house in 2–3 years, safety beats chasing returns.
Here's the cheat code for a green portfolio: USA: VMFXX https://www.morningstar.com/funds/xnas/vmfxx/quote Europe: XEON https://www.morningstar.com/etfs/xetr/xeon/chart
Follow this general guide: [https://www.bogleheads.org/wiki/Prioritizing\_investments](https://www.bogleheads.org/wiki/Prioritizing_investments) Chase is 'probably' ok if you have the self-directed brokerage account and can resist their likely pitch to pay them to manage your money. Otherwise, the big three are good: Vanguard, Fidelity, or Schwab. Put funds that have to be safe and accessible in a few days in money market funds like VMFXX or if you are in a state with high taxes consider VUSXX for it's state tax exemption (if you report the dividends correctly). For long term investment, see the links on the sidebar over at r/Bogleheads for the reasons to use a low fee index fund that owns the 'whole market'. That would be VT or the equivalent 60/40 mix of VTI (US) and VXUS (international). These own 'everything' so other companies/sectors are redundant.
VMFXX - Just checked it's actually 4.22% so I over quote / remembered old rate. SGOV is 4.44%
Google AI : To directly purchase VMFXX as a separate mutual fund, a $3,000 minimum is needed. As the settlement fund within a Vanguard Brokerage Account, there's no minimum initial investment.
Google AI: To directly purchase VMFXX as a separate mutual fund, a $3,000 minimum is needed. As the settlement fund within a Vanguard Brokerage Account, there's no minimum initial investment.
I have vanguard but have not put any money in their cash plus acct, I keep all cash in their money market specifically VUSXX, you can also just put the cash in their brokerage acct settlement fund which is VMFXX. They both have a 7-day SEC yield of about 4.2% while the cash plus earns about 3.65%. Money markets are not FDIC insured but they are as safe as can be w/o FDIC especially VUSXX which is a US treasury money market fund. I have not used the cash plus acct so don’t know its nuances. Call vanguard.
VMFXX in the settlement account at Vanguard pays 4.2%.
I am 5% HYSA/ T Bills/ VMFXX, 5% short and intermediate bond ETF with remainder split between VTI and VXUS. I have a few individual stocks but that is more like gambling. I favor having 3-5 years of fixed expenses in fixed income. However I am not a fan of annuities as I want to keep up with COL
My bank's promo period for their "high yield" savings account has ended and I want to move the money somewhere it's earning more than 0.30%. I don't really want to open another bank account, so is there any reason I'd pick Vanguard's Cash+ over just having it in a settlement fund / VMFXX in my taxable account?
Is VMFXX effectively as safe as an FDIC savings account? Both are backed by the full faith and credit of the US government. The difference is that the FDIC account has a cap on it's insurance. Am I overthinking this?
Vanguard's default fund when you have money in your brokerage account, VMFXX is paying 4.22% rn. Easiest one to start using.
Holding cash for an expense in less than 1-2 years is best served in a HYSA or a Money Market Fund. You may like to check the MMF Yields tab of my [rebalance calculator](https://invest.mcawesome.org/). You can enter your tax rates at the top and it will calculate your after-tax yield. You will likely see a MMF that will beat your HYSA rate after taxes. How to do it? * Open a regular brokerage account at Fidelity, Vanguard, or Schwab * At Vanguard and Fidelity you can just transfer the money in and you're done if you like the default choice (VMFXX at Vanguard or SPAXX at Fidelity) * At Schwab, and if you want to use a non-default option at Vanguard or Fidelity, you buy into the fund; make sure you don't buy third-party mutual funds (i.e., any fund ending with XX should only be bought at the first-party brokerage) to avoid high transaction fees; the ETFs can be bought free at all of the brokerages * ETFs will not auto-liquidate at Fidelity (or anywhere else), so to use the cash you will need to sell and wait until it settles the next day before you can withdraw/transfer out My preference is Fidelity. When you use the default SPAXX money market fund for cash, or you buy into one of their other MMFs, they still auto-liquidate just like cash. You don't have to sell first. You can also enable cash features in the account to use it like a bank. Vanguard pays a little higher, but doesn't auto-liquidate except for the default VMFXX fund, doesn't have cash features, has worse customer service, and has a pretty terrible UI. Schwab has cash features and good customer service, but doesn't auto-liquidate MMFs and doesn't use one by default for cash (instead you get a very measley checking-like interest rate). If you are going to hold the cash for more than 1-2 years, but less than 5 years, you may be interested in target date bonds. These are listed in the Target Date Bonds tab of the same calculator listed above. These pay dividends every month or quarter (don't remember which), and they auto-liquidate back to cash at the end of the year for which the fund is named. For instance, if you wanted to use the cash in 2028, you would buy a 2027 target date fund, and at the end of 2027 it will auto-liquidate to cash. If you hold until maturity/liquidation, you will receive all of your principal back. If you sell before then, you could gain or lose principal, depending on the recent changes in the bond rates market. If you need the cash in over 5 years, especially if you're flexible on exactly when you want to use it, it's best to just invest it in broad market index funds like VT (or VTI+VXUS in a taxable account) to earn a long-term average of 10% per year.
If you're truly unsure of what to do, just keep it simple - open a vanguard brokerage account and transfer money to it. Then do nothing to that money. Vanguard puts all uninvested money into VMFXX, their money market fund and that is currently beating HYSA.
Holding cash for an expense in less than 1-2 years is best served in a HYSA or a Money Market Fund. You may like to check the MMF Yields tab of my [rebalance calculator](https://invest.mcawesome.org/). You can enter your tax rates at the top and it will calculate your after-tax yield. You will likely see a MMF that will beat your HYSA rate after taxes. How to do it? * Open a regular brokerage account at Fidelity, Vanguard, or Schwab * At Vanguard and Fidelity you can just transfer the money in and you're done if you like the default choice (VMFXX at Vanguard or SPAXX at Fidelity) * At Schwab, and if you want to use a non-default option at Vanguard or Schwab, you buy into the fund; make sure you don't buy third-party mutual funds (i.e., any fund ending with XX should only be bought at the first-party brokerage) to avoid high transaction fees; the ETFs can be bought free at all of the brokerages My preference is Fidelity. When you use the default SPAXX money market fund for cash, or you buy into one of their other MMFs, they still auto-liquidate just like cash. You don't have to sell first. You can also enable cash features in the account to use it like a bank. Vanguard pays a little higher, but doesn't auto-liquidate except for the default VMFXX fund, doesn't have cash features, has worse customer service, and has a pretty terrible UI. Schwab has cash features and good customer service, but doesn't auto-liquidate MMFs and doesn't use one by default for cash (instead you get a very measley checking-like interest rate). If you are going to hold the cash for more than 1-2 years, but less than 5 years, you may be interested in target date bonds. These are listed in the Target Date Bonds tab of the same calculator listed above. These pay dividends every month or quarter (don't remember which), and they auto-liquidate back to cash at the end of the year for which the fund is named. For instance, if you wanted to use the cash in 2028, you would buy a 2027 target date fund, and at the end of 2027 it will auto-liquidate to cash. If you hold until maturity/liquidation, you will receive all of your principal back. If you sell before then, you could gain or lose principal, depending on the recent changes in the bond rates market. If you need the cash in over 5 years, especially if you're flexible on exactly when you want to use it, it's best to just invest it in broad market index funds like VT (or VTI+VXUS in a taxable account) to earn a long-term average of 10% per year.
Hello, yes it's better yield than most HYSAs and the federal money market funds are payable by the same government that underwrites FDIC insurance, so it's just as safe. The default position at Vanguard is VMFXX, and the default position at Fidelity is SPAXX. These are used automatically by cash in the account and are both federal money market funds. Depending on your tax brackets, you may make more effectively after tax by investing specifically in different versions that have different tax treatments. See the MMF Yields tab of my [rebalance calculator](https://invest.mcawesome.org/). You can enter your tax brackets at the top and it will calculate the after tax yield for the most popular funds.
Why not SGOV or VMFXX instead and get 4.5% ??
VMFXX would be a better alternative. Nearly identical investments (government securities) but VMFXX earns a bit more because it charges lower fees. SPAXX is currently earning 3.95% with an expense ratio of 0.41%. VMFXX is earning 4.22% and only charging you 0.11%.
To answer your question, yes it really is that easy. I called the main line at Vanguard one morning with my laptop open in front of me. Calling early helps you get an associate who's bright and rested on the line, with no wait times. Vanguard is my platform of choice but you can do this with Schwab or Fidelity. Anyway I had the person help me go through the steps to open a brokerage and a Roth IRA. I held only as much as I needed for emergencies as liquid cash in the money market (VMFXX) and the rest went straight into low fee, no load index funds such as VTSAX. Nowhere to go but up from there! You are so fortunate to be discovering this at your current age!
Fidelity SPAXX 1 yr return = 4.31%, current 7 day return 3.99%, expenses 0.42% Vanguard VMFXX, 1 yr return = 4.68%, 7 day yield 4.21%, expenses 0.11% I say use Fidelity for investing in FNILX the Fidelity Zero Expense Fund All my money is at Vanguard. I have quite a bit in VMFXX
Did some quick math and you would need to invest $20k in SGOV to make $50 more per year than SPAXX. Another option is Vanguard cash account, you can set your core fund to be VUSXX or VMFXX which is a bit closer to SGOV. + pair with any credit card.
Why? VMFXX is bomb proof (or we have much bigger problems on our hands).
Make your sweep account VMFXX its yielding 4.22% right now. You add money it sits in there. You sell a stock it sits in there. Only downside is 2 days or so to get your money. Their high yield is a bit quicker.
Interesting, I'm currently holding a ton of money in VMFXX. Not sure if it is worth the risk of BOXX or not. Chance of audit, chance of the ETF issuer doing something incorrectly.
If you want that higher APY and also have money availability, look into money market funds on brokerages like Vanguard, Fidelity, and so forth. For example on Vanguard you can put money into VMFXX which has a 4.23% 7-day yield and can be available to you quickly. I think Vanguard even automatically has your settlement cash in VMFXX by default so it’s always earning. I use VUSXX for state tax purposes.
VTIVX = target retirement fund VTIAX = international stocks fund VMFXX = money market fund When the announcement first came out I sold all my target retirement fund, and put most of it in a money market fund and the rest in international stocks and bought the dip as best I could, buying back into my target retirement fund weekly ever since from the money market fund. I stand by that decision, if for no other reason than my mental health, but also international stocks have actually done amazing. That said, my target retirement account invests heavily in international stocks too and also did great and in hindsight rather than fuck around I should've just left my target retirement account alone. Which is to say (not surprisingly) just leave it alone. You don't know what this fucker is gonna do, and I probably cost myself $2k trying to make moves.
Only if you put it into SGOV or VMFXX .. they are equivalent of cash saving at 3.5% to 4.5% interest rates.
Hello, thank you for sharing your situation — first of all, I am sorry for the loss of your grandfather. It sounds like it left you on a very solid financial footing, and it's great that you're thinking long-term with money. Here are some ideas based on what you shared: ⸻ 🛡️ 1. Maintain flexibility (optionality) Since you plan to go back to school and might need that money to buy a house, you don't want to put it into something risky or something you can't easily withdraw. The simple fact that you are being cautious already puts you ahead of many people your age. ⸻ 🏡 2. If you need it in 3 to 5 years, the objective is to protect the capital, not to grow it too much Since you are thinking about using that money in the medium term, the most important thing is that it does not lose value. Some safe options: • High Yield Savings Account – super safe, and currently returns ~4–5% annually. • Treasury bonds or money market funds (for example VMFXX at Vanguard) – low risk, higher return than a bank. • Short-term bond ETFs – such as BIL or VGSH. They give a little more, but have some duration risk (interest). ⸻ 📊 3. Don't put everything in stocks with that money You already have good exposure to stocks (VOO, VUG, Nvidia, Apple), and that's great for the long term. But this inherited money should be treated differently, because if the market goes down just when you need that money, you could lose some of the value. ⸻ 🧾 4. Find out if that money has fiscal implications (taxes) It is worth confirming whether the inheritance is taxable. • If it comes from a regular investment account, you will probably receive what is called a “stepped-up basis,” which is very favorable. • If you are coming from an IRA or other tax-advantaged account, the rules change. It would be good to ask the executor or an accountant. It's worth it to stay calm. ⸻ 🎓 5. If you are going to study, save an emergency fund in cash If you're not going to work full time, it's a good idea to set aside 6 to 12 months of living expenses in a secure account (like a HYSA or money market). This gives you stability and prevents you from having to sell investments if there is volatility in the market. ⸻ ✅ Final thought: • You are in an excellent position: no debt, diversified portfolio and long-term mindset. • With that inherited money, the ideal is to prioritize security and flexibility. • Let your investments in VOO and VUG continue to grow in the long term, but protect short and medium term money from volatility.