ottendaveParticipantStatus: PhysicianPosts: 11Joined: 03/15/2018
I’d like to keep approx 1 month of expenses in my checking account but the remainder of my cash/emergency fund I’d like to put in the Vanguard Municipal Money Market Fund at Vanguard. My question is – where do I park this? In my taxable brokerage account? Or is there a better option?
Thanks!February 9, 2019 at 4:50 pm MST #189571DCdocParticipantStatus: PhysicianPosts: 485Joined: 06/14/2016
Taxable brokerage is fine. I’m not sure what better option would exist, by definition muni bonds/muni money market should be in taxable.February 9, 2019 at 4:56 pm MST #189575
Depending on your state of residence there are better options than the municipal money market.
For instance VUSXX in high tax states will easily beat VMSXXFebruary 9, 2019 at 8:44 pm MST #189595WorkforFIREParticipantStatus: PhysicianPosts: 45Joined: 11/22/2018
Can anyone explain why you would put money in a money market fund like VUSXC or VMMXX or VMSXX??
The yield is lower than letting your cash sit in a PurePoint savings at 2.35%.PedsParticipantStatus: PhysicianPosts: 3999Joined: 01/08/2016
Taxes…February 9, 2019 at 9:41 pm MST #189605
Peds is correct.
There are a handful of money market funds that are tax exempt (fed or state) and depending on your fed/state tax rate, pay out better than any online savings account.February 9, 2019 at 9:50 pm MST #189608February 9, 2019 at 9:52 pm MST #189609sebBo13ParticipantStatus: PhysicianPosts: 19Joined: 05/16/2019
In a state without state income tax does it make sense to put emergency fund money into money market funds or am I better off with a high yield savings account? I am in the 37% marginal tax rate bracket.
Add on questions – I just checked on my Fidelity taxable account, VMSXX is “closed to new investments”. Is this just Fidelity not wanting to sell my a Vanguard fund? Is there a Fidelity equivalent?
Thanks!June 28, 2019 at 3:48 am MST #226023