VMSXX
Vanguard Municipal Bond Funds - Vanguard Municipal Money Market Fund
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VMSXX has now temporarily surpassed all MMFs for higher federal tax brackets.
Higher federal tax bracket? Tomorrow is probably the day to switch from VUSXX to VMSXX
Why is SEC 7-day yield so much different than VMSXX distribution yield?
Chasing the yield: Time to switch back from VMSXX (muni) to VUSXX (treasury)
Do I need to do anything on my end to get tax advantages of municipal money market funds like VMSXX?
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Curious on people's thoughts on VMSXX vs VUSXX
Its ok but I’d just do a tax exempt money market fund like VMSXX. The tax adjusted yields are much better than bills or regular money markets and there is no risk to the principal.
VMSXX. 7 day yield is 4.2% with a 9bps expense ratio. I have most of my cash in it.
>my concern is, I read that MUB is not liquid as HYSA, I don't understand why? can't I just sell it anytime? Exchange-traded brokerage products are pretty liquid in that you can sell them whenever you want, but intermediate-term bonds can have price volatility as market yields change. So MUB does not fully protect principal and cannot really be considered a "cash-like" instrument; you can take a loss if you need to sell in a high-rate environment after buying in a lower-rate environment. MUB is more analogous to something like BND than to an HYSA. Muni bonds *do* have less price volatility than other bonds thanks to their compressed yields, though. For example, the max drawdown on MUB total return in 2022 was only 11.6%, whereas BND had a 17.5% hit. And if you want a true "cash-like" muni investment, you could go with something like a muni money market fund, like FTEXX or VMSXX. >also is there are a relationship between Fed interest rates and MUB rates? meaning when the Fed lower the rates, does it mean MUB rates will also go lower? Sort of. Market bond yields are driven in part by expectations of what the Fed Funds Rate will be in the future. But this means that yield changes will only occur in reaction to *surprises*. And any existing bonds held by the fund aren't going to change their payouts just because prevailing yields change. Instead, their *price* on the market (and, consequently, the price of the fund) will change to reflect these yields. When people talk about "yields changing" on the secondary market, they're really just describing price changes in another way. Buying a bond for cheaper means that its yield is higher because it pays out more relative to what you spent. And similarly, "yields rose" is another way of saying that the market value of a bond (or bond fund) went up.
If your marginal tax rate is 26.5% (as your comment implies), then I don't think you'll be able to find a better option in the municipal bond market unless you take significantly more risk. Generally, muni bonds are beneficial for those in the highest tax brackets. Vanguard has VMSXX, a municipal bond money market fund, currently yielding 3.62% tax free. It isn't FDIC insured (as your HYSA presumably is), but it has all the benefits of a money market fund with deep liquidity and a very, very small risk of capital loss. But that doesn't hit your 3.85% target.
>XX is taxable both at the federal and state level. It's not a municipal money market fund (like VMSXX) that is taxed only at the state level. [https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx](https://investor.vanguard.com/investment-products/mutual-funds/profile/vusxx) its taxable at both levels
> at schwab, fidelity, and Vanguard that are paying over 5% and offer state tax free interest so unless you're paying 40+% fed taxes you'd be better off with one of these. VUSXX Also correct me if I'm wrong but VUSXX is taxable both at the federal and state level. It's not a municipal money market fund (like VMSXX) that is taxed only at the state level.
Vanguard muni fund VMSXX exempt federal taxes and is still yield 3.2% currently. Could be really close to 2.85% after state taxes but that’s also assuming the highest tax bracket in certain states. But also remember that mortgage interest is tax deductible as well if you’re doing itemized deductions.
VMSXX v VUSXX to park short term savings I make about $250k a year, 32% tax bracket, and need a place to park about $60k for the next 2 to 3 years. My question: Given my tax bracket, am I better off keeping this $ in munis? There’s now about a 3 percentage point difference in yield, so maybe not? I’m in vanguard so prefer their products, and not interested in a HYSA. I’m not really familiar with buying treasuries directly, so prefer to stay w Vanguards offerings.
SWAXX, snaxx,SWVXX,VMSXX, VUSXX, SNVXX some payout is lower but reduce state tax on interest.
No offense. Daughter used to work there and I respected what she did as a financial consultant. But I left on my own as she could not even match what I can get elsewhere fee and product wise. I can pay nothing, no commission, no expense getting 5.5% for 1 year US Treasury, or 5% for 10 year(dipped a bit) paying me every 6 months, state tax free. I also can pay 0.35% not 3% buying SWVXX getting 7 Day Yield 5.37%. Use it as a saving account. Want to cash out I sell 24 hour before. Depending on one's tax bracket some say VGSH, VMSXX, VUSXX, FDVV are all attractive.
Google high interest etfs. Want a list try: SWVXX, SPAXX, VMSXX, VUSXX etc.
US Treasury pays 5.25% for short term. Also high interest SWVXX, VMSXX, VUSXX paying over 4.5% . The rates can go up or down. Since they are all Treasury based. They are safe.
SWVXX, VMSXX, VUSXX, SPAXX compare 7-day interest rate. There is no place pay anyone weekly, or daily. Bank will be broke processing endless interests that frequently. You do get interest accrued in the middle of month. Some pay quarterly even.
Congrats on so much accumulated wealth! I was in a similar scenario a month ago with 400k GSU. Did not bother selling until I felt the need to diversity. Contacted a financial advisor from my bank (chase) and they wanted to sell their wealth management service to me charging about 1%. The financial advisor was not concerned about selling GOOG at all and he said he can sell for me to minimize taxes (highest cost first). I eventually went my own way, liquidated all my shares throughout a month, because they were sold at a loss (on average) anyway so there was no tax impact. I then invested the money the bogleheads way, with VFIAX, VMSXX, VWITX and VMLTX in a Chase self directed account. If he still has access, tell your husband to moma our internal group discussions for financial advice first. We have a lot of googlers having the same question over and over again, like wash sales, ETP, how to sell the shares etc. Also Googlers are free to consult a Morgan Stanley financial coach any time, especially about GSUs, so make good use of our internal resources where many people may be in similar shoes. My personal opinion about holding GSU instead of selling is that, it creates concentrated risks without getting the risk premium. Say I sell half of my GSU and invest Amazon/Microsoft, I’ll get a similar return, but with less risk because they are competitors of each other. They cancel out their the specific risks. However, holding GOOG only will expose you to Google-specific risks, say the CEO suddenly makes a bad decision. Btw, most Google employees probably have unvested refresher GSUs anyway, so that means concentration is even more. Don’t put all eggs in one basket. Anyway, if you decide to sell all shares, contact a CPA for tax advice, and a Morgan Stanley financial coach for free financial advice, and then decide how much you want to liquidate. Then invest according to your own timeline. If you don’t feel comfortable doing this yourselves, a fee-only financial advisor may be a good option. I would recommend go with Vanguard; your husband’s 401k is with them anyway so it’s super easy to create an account there.
asking on VMSXX. if the 7 day SEC is not the current yield, then what is it? thank you
On what investment? 7 day SEC is not the current yield. For VMSXX it is FAR from the current yield.
It was in the 4s in late May and will reach even higher in 1-2 weeks. Not sure you have a full understanding Check out FFTXX that os a similar product and check out the daily yields. VMSXX is fairly identical.
VMSXX has a pitiful 7-Day SEC Yield of 2.34%
VMSXX will be in the mid 4s in a couple of weeks based on cyclical history. That will equal 7% TEY for OP
Very little tax benefit for VMFXX. USFR is your best bet for a liquid option. 4 month T-Bills are the sweet spot. However, keep your eye on VMSXX. In about 1 week it will have close to a 6-7% tax equivalent yield for y ou
You need to be comparing after tax yield, not the SEC yield. SEC yields are fine when comparing similarly taxed investments. But once you get into tax advantaged, like VUSXX with no state taxes and VMFXX with no fed taxes, then you must calculate your after tax yield. This is unique to you so blanket SEC yield statements are not enough to compare what you will actually be left with after you pay taxes. If you are in a high Fed tax bracket the VMSXX can be better than VUSXX.
VMSXX makes sense for those in a high fed tax bracket. This isn’t a blanket answer using SEC yields. The key is looking at your specific after tax yield. For many in high tax brackets and lying NIIT, they find a 3.18% VMSXX results in a higher after tax yield than a 4.7% VUSXX. VMSXX is cyclical so some people on the cusp will swap between the two.
Vanguard does not. The link above gives you the daily yield and it essentially mirrors VMSXX. Just use that and you'll pretty much know when to jump on and off.
Last week was the time to switch. You can see the daily yield of a similar fund here https://www.federatedinvestors.com/products/mutual-funds/instl-tax-free-cash-trust/is.do If you follow the VMSXX 7day avg in vanguard, your're going to jump on and off late
VMSXX,VUSXX, DVSPF(canada) cd
https://investor.vanguard.com/investment-products/mutual-funds/profile/vmsxx The SEC yield for is lower for VMSXX at 2.5% as of 3/9/23 so I opted for VUSXX instead which is now 4.56% as of 3/9/23.
https://investor.vanguard.com/investment-products/mutual-funds/profile/vmsxx The SEC yield for is lower for VMSXX at 2.5% as of 3/9/23 so I opted for VUSXX instead which is now 4.56% as of 3/9/23.
What about VMSXX which is tax exempt at the federal level?
Why VUSXX and not VMSXX which is tax exempt at the federal level?
High yield etf SWVXX, VGSH. VMSXX etc
VMSXX is still over 3% (although on the decline). Still probably beats a 4.6% in this case
Both are vanguard and you have the wrong ticker. VMSXX is a muni fund and has been superior to VUSXX for higher tax brackets this past week or so.
Especially if compared with VMSXX.
Yes, thank. I edited the post-- I meant VMSXX and not VMFXX, which would be weird with the current SEC yields.
Why in the world would you lock it up for 6 months when multiple MMFs are already there and VMSXX is already flirting with 4% and is federal tax free!
OP is discussing a muni fund. You have to compare the tax equivalent yields. For example - if you don't use Vanguard but have a Fidelity account - the Fidelity muni is FTEXX. The tax equivalent yield is around 5.69% - [https://fundresearch.fidelity.com/mutual-funds/summary/316048107](https://fundresearch.fidelity.com/mutual-funds/summary/316048107) The Schwab equivalent is SWTXX which is a better comparison to VMSXX - [https://www.schwabassetmanagement.com/products/swtxx](https://www.schwabassetmanagement.com/products/swtxx) I don't think that Schwab provides the tax equivalent yield so you may have to manually do that with an online calculator. The tax equivalent yield will vary depending on investor's tax bracket. @ u/bluewave358 \- not sure that Vanguard's VMSXX is necessarily better than muni mmf from other investment managers. There are also AMT exempt funds. And there are also muni mmf that have a current tax equivalent yield around 5.8% with minimums.
3.6% yeild. swvxx -> 4.4811% yield. "short term king of MMFs" VMSXX isnt even remotely close. its pathetically behind.
But I meant if you sell VUSXX day 1, it would execute after closing and then you buy VMSXX on day 2 which would also execute after closing on day two. So I assume you do not earn anything on day2. If you have $1m you're working with and the tax equivalent yield on 1 is 4.75 and the other is 5%, you have a daily difference of $6.85. You would need fund 2 to be higher for at least 19 days to even out. And you would probably also miss out on 1 days yield when switching back.
So if you hold VUSXX, you switch over for just a few days or weeks while VMSXX is high and then switch back? It's probably easy enough to switch but the hard part is probably timing the switch and switch back to optimize and actually come out ahead.
Not following. The are entire bogle threads in VMSXX and how it goes up and down. Look at the yield charts. It’s a very predictable pattern of fluctuation.
I would really recommend VMSXX. Half the expense ratio roughly. But I get it if you don’t want to open a Vanguard account.
I'm on my Fidelity SE 401k online trading platform trying to invest in a money market fund. I have tried several funds including VMFXX, SPRXX, VMSXX, and a few others... and my Fidelity account says "This fund is closed to new investors." Any idea whats going on here? Thanks
>Vanguard Money Market Which one are you in? THere is so many and I don't know the pros/cons of each of these. I assume that the federal/municipal have some tax advantages? Vanguard Cash Reserves Federal Money Market Fund Admiral Shares (VMRXX) Vanguard Federal Money Market Fund (VMFXX) Vanguard Treasury Money Market Fund (VUSXX) Vanguard Municipal Money Market Fund (VMSXX) Vanguard State-Specific Money Market Funds