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.
📌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….(read more)
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There are many reasons why an individual may decide to move their cash into Vanguard’s Money Market Fund (VMFXX). As a financial expert, I believe that there are several compelling reasons to consider this move, especially in light of the current economic and market conditions.
First and foremost, Vanguard’s Money Market Fund is known for its stability and consistent returns. This fund invests in short-term, high-quality securities that are designed to preserve capital and provide a steady stream of income. In times of market volatility and uncertainty, it can be reassuring to have your cash invested in a fund that prioritizes safety and liquidity.
Furthermore, VMFXX offers competitive yields compared to traditional savings accounts and other cash equivalents. While interest rates are currently low, Vanguard’s Money Market Fund typically outperforms most savings accounts, making it a more attractive option for individuals looking to earn a higher return on their cash holdings.
In addition to its competitive returns, VMFXX is also highly liquid, meaning that investors can easily access their cash when needed. This can be particularly important for individuals who may need to withdraw funds quickly in case of an emergency or unexpected expense.
Another key advantage of Vanguard’s Money Market Fund is its low expense ratio. With fees significantly lower than many other money market funds, VMFXX offers a cost-effective way to invest cash and maximize returns.
Lastly, by investing in VMFXX, individuals can benefit from Vanguard’s reputation as a trusted and well-established investment company. With a history of delivering strong performance and excellent customer service, Vanguard provides investors with peace of mind knowing that their cash is in good hands.
In conclusion, moving cash to Vanguard’s Money Market Fund can be a smart decision for individuals looking to preserve capital, earn competitive returns, and maintain liquidity. With its stability, attractive yields, low expenses, and reputable management, VMFXX offers a compelling option for those seeking a secure and profitable investment for their cash holdings.
Top 10 Accounts Yielding 5% Or More in 2024: https://youtu.be/TzkRsuUYrmw
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.
Vangaurd and BlackRock are social toxins!
Go all in brah
Does Ally give you a debit card
STAY AWAY FROM VANGuard!!!!!
Just use acorn 5%apy savings and 3%apy for checking plus they have all the stuff any of these brokerages work.
Becareful putting a lot
Of money into money market accounts they can shut down all your accounts whenever they want and for whatever reason they want.
Thank you.
Is Fidelity less woke than Vanguard? Is Schwab less woke than Fidelity? If so, I will stick with Schwab.
Vanguard is too woke for me. I can't stand that toxic ideology that hates me.
Moving mine to hard assets!
Bummer , Answered my Question, MM taxes inside Roth! Thanks
I use SGOV, simpler
Why not just buy T-bills and avoid paying federal taxes through Vanguard?
Great ideas Thank you.
Vanguard and Blackrock are the most corrupt companies in the world. You have zero morals.
So I have a vanguard Roth account. Would any dividends sweep to the VMXFF account?
nice! disagree with the presenter and your remarks are removed.
Thanks for this helpful video. Love the screen shot at 2:17 (LOL)!
There is a fee (.11%) for them to watch your money grow! Try no expense fee accounts….Fidelity has them at 4.95%…BTW the vanguard fund is closed to new investors…..
Vangard is a champion of esg. Screw them.
Go Fidelity. Also, you’re paying ridiculous taxes on that fund’s interest… do yourself a favor and go tax exempt muni money market fund
Forget money market, my bank savings account is already 4.5%.
So Stupid question here. I have a Vanguard account but not the VMFXX and they are at 5.26 today. My question is, can i put in 10k into my vanguard into the VMFXX and not have to worry about the yearly contribution limit? I like to max out every year and wondering if any funds put into vanguard(for VMFXX) goes towards my yearly limit?>?
What do you know about Raisin?
Can I use get the vmfxx at other brokerage houses like E*trade or Fidelity’s
Stocks experts are saying the following stocks are sleepy but will skyrocket by summer 2024. MRNA. UPST. PARA. TDIC. SQQQ. ROKU. DIS. BAC.❤
You and I think alike! VMFXX is my emergency cash savings, with a good return and convenient access.
Vanguard is a woke organization. I’d suggest staying away from it. Unless, of course, you lean that way.
Is this suppose to be a review or click bait
I freakin love Ally
Have you considered Fidelity's Cash Management Account? I'm thinking of opening one because as far as I can tell, you can use it like a checking account, but have all your money invested in a MMF. When you go make a payment/withdrawal/pay off your credit card, the Cash Management Account will auto liquidate the appropriate amount of your MMF position to cover the payment. Downside is that most Fidelity MMF have a higher 0.42% management fee, but for the ease of having an all in one platform, and not having to have idle cash sitting for an emergency fund, I feel like it might be worth it.
That is my cash bucket while I wait to file for SS. The MM account kicks savings account butt!!!
Vanguard is a terrorist organization, you are a traitor if yoi participate
I had to stop at about 1:00 in because it was clear you don’t know what you are talking about. You keep calling VFMXX a “money market account,” which it is not. VFMXX is a money market fund*—and yes, there is a difference. A money market account is a deposit account that banks and credit unions offer. Money market accounts are insured by the FDIC or NCUA. A money market fund, like VFMXX, is an investment instrument that you buy at a brokerage. They are not federally insured, and are far less liquid than money market accounts. Many banks and credit unions offer check writing privileges, debit cards, and instant transfers between money market accounts and other deposit accounts. To access cash in a money market fund, you first must sell the shares in the fund, which happens only once per day at the close of the stock market. Need money on a weekend, holiday, or other times when the market is closed? Too bad. You would then need to transfer the proceeds to your bank to withdraw them, and your brokerage may insist that the transaction settle before allowing you to move the money out of your brokerage account. The whole process can take a week or more. *Please do not throw around terms like this that you don’t fully understand. Thanks.
One beautiful thing at Vanguard is your money is automatically held in VMFXX.
As a 25 year old, I did heavy research and as laughable as boomers may read this. I concluded Bitcoin was the best option for me in 2020 to find myself out of the rat race and retire early. I now cannot fathom settling for 5%/year. At this point you are just staying with inflation. This is insane that people are okay with this. Even if you go to a 10 year graph Bitcoin would’ve done you better than the S&P 500. Im now at$150k and not selling as this new asset is officially becoming the new store of value against inflation.