Vanguard -- best money market account?

[megan1104]

Given everything I've heard/read about Vanguard, I assume their money market accounts are the best around. Any others or should I just go with Vanguard? I'm looking for some place to intelligently stash our emergency cash funds. Speaking of which, how many months of expenses do MMM folks generally keep in case of problems? I've heard at least 3 months worth of expenses is smart, but wanted to see what the thoughts from the MMM community might be.

[Evgenia]

I'm in the very conservative VMMXX money market, and have been happy with it. It's a hold steady, preserve investment, pay small dividend money market fund.

Since we're FIRE, everything feels sort of like an emergency fund, but right now, I keep the equivalent of one year's worth of income there. We have a few hundred thousand in cash right now, but need to get around to moving more of it into this. We're "only" 14 months into FIRE and I've still got administrative stuff like this that I need to take care of. :)

Before I was FIRE, I kept six months worth of emergency money stashed (enough to cover all living expenses with a budget of $300/month for minimal groceries) and just added more over time. It grew over time: when I had almost no money to my name, it was $500... then $1,000... and so on.

[Spork]

I'm in the very conservative VMMXX money market, and have been happy with it. It's a hold steady, preserve investment, pay small dividend money market fund.

Since we're FIRE, everything feels sort of like an emergency fund, but right now, I keep the equivalent of one year's worth of income there. We have a few hundred thousand in cash right now, but need to get around to moving more of it into this. We're "only" 14 months into FIRE and I've still got administrative stuff like this that I need to take care of. :)

Before I was FIRE, I kept six months worth of emergency money stashed (enough to cover all living expenses with a budget of $300/month for minimal groceries) and just added more over time. It grew over time: when I had almost no money to my name, it was $500... then $1,000... and so on.

I am lazy.  The above paragraph is almost verbatim what I was going to say.  (Change 14 months to 12 months and ... done.)

[tonysemail]

I think we will 12 months living expense in money market accounts.

Some people keep no emergency fund and rely on credit cards.

[Another Reader]

Money market accounts at Vanguard, Fidelity, etc. earn almost no interest and are not FDIC insured.  You can earn 1.05 percent at Barclay Bank or Goldman Sachs Bank.  1.0 percent at Ally and a couple of others.  Insured up to $250k.  Look at the rates at www.depositaccounts.com.  Look at personal savings accounts and money market accounts.

A Vanguard money market account is needed as a core account if you buy stocks and/or ETF's.  I believe they, like the other major houses, have switched to some kind of treasury money market fund to meet new requirements.  Vanguard will select this for you.

[Evgenia]

Another Reader is right. Money market *deposit* accounts are not the same thing as money market *mutual fund* accounts.
https://www.fdic.gov/consumers/consumer/information/fdiciorn.html