The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: Captain Cactus on January 10, 2018, 06:58:38 PM
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Vanguard has two money market funds:
1) VMMXX: 1.41% yield, 0.16% expense ratio.
2) VMFXX: 1.24% yield, 0.11 expense ratio (this is the default settlement fund).
I've got about $120K that I'm primarily earmarking for a real estate investment in less than 18-24 months.
Questions:
1) Any reason why I shouldn't put my dry powder into the higher yielding MM fund?
2) Are there better options out there that I'm missing?
Thank you MMM community!
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i'm in a similar situation and have cash parked in VMFXX. no particular reason. for the questions:
1) none i can think of
2) now that those money market funds actually generate a trickle of returns, i think they'd be easier to manage than CDs, for example. i don't care about missing out on a couple hundred dollars' worth of potential returns so simpler is better.
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Thanks for reply. I agree. If anybody else has input, please speak up!
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Where are you located?
If you have 18-24 months before you need the money, you should easily be able to get a guaranteed rate of 1.50% or more on a GIC/CD. That or do some HISA-Hopping: Find companies who offer high introductory savings account rates (i.e. 2.50%) for the first 3 months and when the period is up, hop to another firm offering a similar introductory rate!
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Can those MM Funds lose any capital? Capital One MM account is yielding 1.4% now ad FDIC insured. Not familiar with the tickers you names sorry. If FDIC insured, sounds good.