Vanguard money market funds yield is up

[Captain Cactus]

Just noticed this AM that the Vanguard money market funds are yielding around 2.5%, which is up from just a few months ago.  About time!  Any reason why dropping a larger chunk (ie $200,000) into this is a bad idea vs a regular (ie not a specifically high yield savings account)?

[slackmax]

Just noticed this AM that the Vanguard money market funds are yielding around 2.5%, which is up from just a few months ago.  About time!  Any reason why dropping a larger chunk (ie $200,000) into this is a bad idea vs a regular (ie not a specifically high yield savings account)?

Hello, Captain. 

Seems like a good idea to me. I am thinking of moving a slightly smaller amount of cash there myself.

I can't find any clear info about fees and commissions at Vanguard, though, even after reading their fine print at the Vanguard website.   

So my only warning would be about fees and commissions. Oh, and there is some time lag for getting access to your money, once it is there. 

[MustacheAndaHalf]

I prefer money market funds over bonds right now.  But many professional investors prefer 2 year treasury bonds, which yield over 4%.  Because of an "inverted yield curve", those short term bonds actually have the highest yields.

[Captain Cactus]

Just noticed this AM that the Vanguard money market funds are yielding around 2.5%, which is up from just a few months ago.  About time!  Any reason why dropping a larger chunk (ie $200,000) into this is a bad idea vs a regular (ie not a specifically high yield savings account)?

Hello, Captain. 

Seems like a good idea to me. I am thinking of moving a slightly smaller amount of cash there myself.

I can't find any clear info about fees and commissions at Vanguard, though, even after reading their fine print at the Vanguard website.   

So my only warning would be about fees and commissions. Oh, and there is some time lag for getting access to your money, once it is there.

If you go into the fun description you'll get details on expense ratio and you'll also see there's no commission to pay on the MMFs.  There is a minimum purchase price though on the mutual fund MMFs, $3000.

[Captain Cactus]

I prefer money market funds over bonds right now.  But many professional investors prefer 2 year treasury bonds, which yield over 4%.  Because of an "inverted yield curve", those short term bonds actually have the highest yields.

While I like the higher yield, I don't understand how the "auction" thing works when buying bonds, so I stay away.  I want to be able to cash out my MMF at any time knowing I'll at least get my money back, plus whatever interest it gathers. 

In my case, I aim to take the interest and funnel it into VTSAX each month.