Why I'm Moving Cash To Vanguard's Money Market Fund (VMFXX)

In this video, we dive into the world of high-yield interest rates and explore the often overlooked realm of money market accounts and money market funds. But that's not all – we'll take a closer look at Vanguard's Federal Money Market Fund (VMFXX). This might change where you decide to park your cash. I've decided that VMFXX is better than an Ally Savings account in 2023.

Note: I call the ticker symbol VFMXX throughout this video. It's actually VMFXX.

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📌Timestamps:
0:00 Intro
0:27 Historical context
2:21 What is a money market account?
3:54 VMFXX
5:22 Ally vs Robinhood vs VMFXX
6:30 Where I'm Moving My Cash
7:56 Outro

#vanguard #moneymarket #interestrates

⚠️Disclaimer:
The content in this video is not financial advice. It is for informational and entertainment purposes only.

[JohnH]

I've been with Vanguard 30 yrs. No problems.

[ross]

Very informative video. I do the same right now; most of my cash is in Vanguard Money Market. In this period of higher interest rates, I'm keeping more than in cash and cash equivalents, a lttle less in highly (maybe too highly?) valued stock mutual funds. What I've discovered is that Vanguard's management fees stomp the competition, resulting in higher yield. I love Fidelity's online platform and ease of use, but if they're charging me .42% in management fees vs Vanguard's 1.1% then it's a no-brainer. I just moved almost my entire investment account to Vanguard from Fidelity for mainly that reason.

[patsyalt]

Wow, I’m in exactly your position trying to figure out whether to move my cash to my Vanguard money market account from my Ally savings account and your video came up in my search. You answered all of my questions about the money market account. Thank you!

[ronjr]

I am leaning toward doing the same thing. Since stocks are rallying somewhat, I’ll just let cash build up in my vanguard money market account. The yield is pretty good.

[penguinbriar]

That is my cash bucket while I wait to file for SS. The MM account kicks savings account butt!!!

[handsomestrangr]

Just a warning that in order to buy this fund through fidelity there will be commission fees. I was bummed cause I wanted to use this same. The expense ratio is significantly lower than SPAXX so the yield is like .3 higher. Not huge but figured for my stationary money it would work. But oh well.

[papasquat]

One beautiful thing at Vanguard is your money is automatically held in VMFXX.

[허바드제이콥]

Great video! Answered all my questions about mmfs. thanks :D

[pmcwbn]

You and I think alike! VMFXX is my emergency cash savings, with a good return and convenient access.

[roshunepp]

Thanks for this explanation! Maybe a lot has happened since this video was created but the hysa is running the same rates. It also seems like mmfs can go to 0 since it's a financial product. It didn't sound like it was insured so you don't lose your money.

[vidan]

each brokerage has their own MM fund, and they promote their own with lower hurdles. Been over 5% for 18 month now

[mccninja_]

going to use this for my emergency fund

[theendoffaith]

So much value in your content thanks for this video

[L.A.---]

Thanks for this helpful video. Love the screen shot at 2:17 (LOL)!

[brittanyw.]

Just got a subscribe and thumbs up from me! I also use Ally's savings account to save most of my money. I also just opened a Vanguard account using this settlement fund. I initially opened a Vanguard account to start putting money into Vanguard Growth ETF (VUG) but that's currently on a downswing (I'm not worried about it though since this is a long-term strategy) but I can;t help but want to keep my money in the settlement fund (VMFXX) seeing as how it's already growing, lol. Anyway, no question here, just talking out loud and open to discussion. I'll be sure to check out your other videos, perhaps you've made a video about VUG?

[tessjones]

Yep. Good information for this novice. Thank you.

[jeremyleonbarlow]

vanguard also offers a couple of state specific municipal bond money market funds which should be tax exempt state/local/fed and a non-state specific which should be fed tax exempt and if you live in a no income tax state it will be exempt fully. If you have a metric ton of cash you want to park, like say you won one of those billion dollar powerball or megamillions prizes the tax advantaged account will give you a better after tax yield, though only by a small margin in a no income tax state.

[chriscardv]

VMRXX also, Cash Reserves fund 5.3% & .10 exp. This serves as a good parking lot for cash between trades & investing. The 7 day yield will gradually tick down as the FED moves ST rates down this year.

[sanitycruz]

You nailed it! I was cracking up the whole time, listening to your plan, as it’s exactly the same plan, I have.👍

[ElijahMartin]

I watched about 4 vids on this account before watching yours. Yours was the first to make since. Thank you!!

BACKSTORY. I moved money to Vanguard from an expiration 401K x1 yr ago and just found out that I had this account. I had no idea what the account was or anything. THANK YOU again!!