Money Market Funds: High Yield, Safe Cash Investments

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Information Money Market Funds: High Yield, Safe Cash Investments

Title	:	Money Market Funds: High Yield, Safe Cash Investments
Lasting	:	10.02
Date of publication	:
Views	:	83 rb

I use VMMXX for a competitive yield on my cash and am comfortable with the risks, but how do you invest the cash portion of your portfolio?brbrNavigation: br00:00 Introduction br00:20 How Warren Buffett invests his cash holdings br01:07 Vanguard Federal Money Market Fund (VMFXX) br01:58 Key differences between money market funds and bank accounts br03:09 How money market funds are invested br03:49 What are repurchase agreements? br04:46 Other notes on VMFXX br05:09 Vanguard Prime Money Market Fund (VMMXX) – where I park my investment cash br06:31 SEC money market reform – liquidity fees & gates br07:04 Liquidity fees – how much and when? br07:39 Gates and withdrawal suspension br08:27 Benefit of money market funds during rising rates br09:20 What are your thoughts?
Comment from : Michael Jay - Value Investing

You have the best explanation of money market funds
Comment from : Kearney

sofi and other bank a paying 420
Comment from : Ed B

I put 36k in a money market savings with a 35 yield yesterday Interested in seeing how it turns out
Comment from : calebdial

how long do they take to mature>
Comment from : Rob Ferrio

I know I am responding 3 years after the video but just came across this - something Im not sure I understand with money market funds is if that 2 or 3 is calculated monthly or is it 3 over the year so its fractional each month?brSaving a 1000 a month at 3 is attractive, at 002 not so much
Comment from : Nanpabasico 99

Yup yup
Comment from : JAI HD

Can you withdraw your money from a money market with no fee? (For example, you’re saving for a down payment for a home or new car, etc)?
Comment from : PidgeyPotion

Are regular Money Market account like with Ally FDIC insured? Ally’s HYS account and their MM account have the same rate currently, so to me it seems like a no brainer to go with the MM given that I’ll have more liquidity with checks and debit card with a maximum monthly transaction Do I understand this correctly?
Comment from : Justin C

I see that VMMXX is now closed to new investors, what happened?
Comment from : Cesar Moya

I think the money market funds would a good start for who are just starting out But one thing I'm feeling is that it may not be for those who are retiring I don't know
Comment from : Minister Mike

It’s not yielding 231 anymore It’s now yielding 001
Comment from : Freedom Works

I feel this is a good stop gap measure to park funds before an upcoming BIG crash
Comment from : J B

Is there something like a high yield/risk money market prime fund? One that only invests in risky companies comercial paper???
Comment from : Bruno Manco

How can I possibly invest in an FDIC insured account when I will get killed by inflation? but I didn’t see anything you presented as safe and liquid
Comment from : Jason Workman

Loved this video, but do you have a more current Vanguard suggestion for investing emergency funds? I do not see the yield rating (231) that mentioned and the prime account which is no longer available for new investors Thank you in advance
Comment from : Eric Whitwam

Why would Vanguard close the VMMXX fund? Are we in a crisis making MMFs risky now? I’m leaning towards FDIC in this bubble, not sure
Comment from : K Calise

Hi Michael, very helpful video on MM funds I will check if you have a video on Treasury Money Market Funds or ETFs for these volatile times & talks by many investment experts of market crash, gold & currency resets Have a great year
Comment from : Paul Rock

I took my whole 401k and put in that back in late Feb 2020 Rebought everything at the bottom I'll rinse and repeat now
Comment from : Daniel Gordon

A guest on The Wall Street Journal Report spoke sometime last week about making over $631,000 in 4months with a capital of $100,000, which made me realize that as a beginner i have alot to learn, so please assist me with any pointers or tips that would help me make this much profit
Comment from : Michael Harris

Is that return per year ?
Comment from : sumlife

Very good summary with product information Thank you
Comment from : Paul Rock

What is your opinion on moving a Roth IRA mutual fund to a money market fund like VMMXX during a down market time period?
Comment from : Jack Young

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Comment from : Matthew Scott

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Comment from : Manja Bing

Just curious, are you still enjoying VMMXX? now it's been changed name, strategy, distribution yield do you still hold it or you sold?
Comment from : Gold L

You didn't mention bank bail-in risk in the video But because of bail in risk, I think Federal $ market funds are safer
Comment from : Philip Bello

u are awesome sir !! thank you for this incredibly informative video :)
Comment from : sara m sam

I think this video is a bit dated for the times we are in right know I started to open a Vanguard and Fidelity account back in May and only got the Fidelity account becuase the Vanguard Treasury fund VUSXX was closed and they didn't have a FDIC insured money market fund I am mostly in FDIC money market funds and have bought new issue Treasuries notes but do not plan anymore of those at these low rates I'd rather have some flexibility for when it becomes safer to invest
Comment from : BJ

They’re yield are all now less than 1 but I guess it’s better than any bank
Comment from : Betzy

Michael - What do you think of holding money in the Vanguard CA Municipal money market fund like VCTXX as I'm a CA resident compared to either VFMXX or VMMXX?
Comment from : Mike Samyn

I got scammed and didn't believe in flips anymore Got to know Aprilzinobr on lG in April and the man has been wonderfulmade $30k so far in my brflipping journey with him
Comment from : Frank Matthew

Effectively
Comment from : Stockton Walbeck

Hi Michael, -can you purchase MMF through brokerage account? or it has to go through Vanguard for the two MMFs mentioned in video
Comment from : Joe Hu

I would love to hear your take on these funds during this pandemic
Comment from : Alice Rose

That's a great explanation! Not a single word is wasted!
Comment from : Wang Yi

hi, i have a question, Can i trade from Bangladesh & withdraw my profit ?
Comment from : Anwarul Mostafa

What's your thoughts on us treasury direct t bills & bonds vs high yield savings account Which is better in your opinion?
Comment from : Phone & Tech Reviews

I was wondering my $100 became $102 in a year Lol I didn't know it grows as well Totally new to this
Comment from : Eat N Play

I want to park some money in my TDAmeritrade brokerage account for dips but I hate to see cash not growing in the account If I put them in MMF or High Yield bank account it takes 2-3 days for funds to transfer into brokerage account and I miss the opportunity of buying stocks at a price I want What is your suggestion on where should I park the funds that I intend to use for such purposes and should also be relatively liquid Is cash my only option?
Comment from : VGM

Michael, I was told that one could buy treasury bills directly from treasurydirect(dot)com Can you please do a video on this including pros, cons and reliability? It seems this is zero risk even in comparison to vanguard money market fund where investors' funds can be restricted from withdrawing in times of financial troubles
Comment from : wglknr

Important info as, I was going to deposit money into a money market account tomorrow but, didn’t know all of this, including that it’s not FDIC insured
Comment from : Private Private

Treasure bonds were once the way eebr15 years out could do a fair money double risk free but not today ; I can’t understand why??
Comment from : John F

Greetings With a highly predicted unprecedented crash looming in 2020, what about taking all money out of any bank and keeping it at home in a fireproof safe? I've been reading that, at present, this suggestion might be best Your thoughts? Also, The term FDIC insured sounds as if nothing can happen to one's money However, I've heard that while this statement might be true, the fine print allows banks 100 years to give money back in times of "financial crisis" True? Somehow I believe that
Comment from : Lori

Bank of Uganda has high deposit rates lol
Comment from : BMK

What is the recovery process in an fdic insured account?
Comment from : Market Maker Buy Sell Models (by makuchaku)

Good Morning Michael,brbr I just wanted to thank you for your You Tube Video regarding money market funds It was highly informative I have some money that I would like to put into some money market funds Can you list 3 or 4 that are 99 safe You mentioned VMMXX and VMFXX Do you feel really good about these Thank you for your time and hope yo hear back from you soonbrbrTony
Comment from : Dafunkie Munkey

Government is in debts who going bail out government
Comment from : Brian Curran

Very Detailed Resaeach and Brilliant Content Michael
Comment from : Harshit Pandey

Can you explain to me how 2 or even 3 is considered high yield ?
Comment from : J K

Or, the Government andor Banks andor any one andor group is being sabotaged to limit the paper and other United States money in the United States, possibly to have "other Nation's (andor Private non-nation's (though theoretically, any "Private Group andor one" could, at least, theoretically be a "nation") Money" be "the most dominant" based on Sabotaged Academic Theories possibly furthering "World Political Strategy" andor "World Domination" And truthfully, merely because the paper money (if paper was not in supply) wasn't possible to be made/physically exist (other parts, possibly not paper), the Government andor others could still issue "lawful money", but one money is what is truly best (least volatile) for The United States and All other Nations (For each Nation to have their own, or, possibly one day, the whole world to have a money that is the same "exchange rate" for all Nations, 1:1) The "Money Dominance" "Conflict" is truly, an Inferior Conflict
Comment from : Alexander Arnold

Thanks for this video I was thinking of where I could run to in my 401K to get away from equities and Merrill and my company have this fund as an option My company matches 60 of up to 6 of your salary Would you recommend this fund for something like that for the time being?
Comment from : Gregg

Thanks for the review It's helping me to make an informed decision Subscribed!
Comment from : Rochelle

I want to get into the ttoxx fund
Comment from : Multi Meter

SPAXX
Comment from : Steve Miller

Alternative that I’d be interested in getting a take on: tax free municipal money market accounts Once you do the numbers, they tend to come out about the same—if not slightly ahead—as high-yield savings or regular money market accounts (This is assuming of course they are available to you—Vanguard, for instance, only has a handful of states/municipalities in which these are an option)
Comment from : thejackamo

Just a small note As the FED rate rises due to inflation, MM funds do not become more attractive Inverse relationship between price and a real interest rate implies investors dump the short - term instruments and reallocate money into LFM, or at least hold on investment in MM because cost of holding money in cash like investment rises
Comment from : Aldas Rutkauskas

Great content too many ads I am paying for all people who use ad blockers
Comment from : Alex Bright

Hey Michael, just wondering where you're from? Your accent on Berkshire
Comment from : Dan Mac

I get a measly 16 return
Comment from : begley09

Vanguard Pennsylvania Municipal Money Market Fund (VPTXX) is at 200 tax free So the tax equivalent yield would be 25, better than the other taxable Vanguard money market funds and CIT Bank High Yield Savings
Comment from : Medic311

Do money market accounts pay every month or year Thanks
Comment from : Milton yeah

I have two brokerage account at vanguard 1 is from my rollover 403b so it's pretax and can't touch it till age 60 and another one is from my post tax account I currently have less than 3k on my post tax brokerage account SInce i couldnt do the prime money market account, what type of etf do you recommend? My goal is to get my fuck you fund fully funded in 3 years
Comment from : smilinjoe23

What do you think of VUSXX? Theoretically this would be the best option and just as safe as FDIC insured savings right? Being state tax exempt this could also give a higher after tax yield than VMMXX
Comment from : Chrismax

231 cds pay 35
Comment from : XIV Words

What’s better cd mma mmf ?
Comment from : XIV Words

Is there any difference between vmfxx and Vanguard’s “federal money market” account where money naturally holds on brokerage accounts between trades? Thanks
Comment from : J strap

Well the issue I see with this is that during a huge crash or correction where things are extremely on sale of the company decides to keep the money and vanguard has to sell off the securities to make your money back said securities could be worth significantly less than before? How is this better than a FDIC secures bank acc with a high interest yield?
Comment from : rand723x

Superb information, thanks a lot! Quick question: what MMFs would you suggest in euros? I wouldn't like to take the currency risk if the holding period is just 3-6 months :)
Comment from : Mart Vainu

This is great info! Keep em coming
Comment from : GreatRustavo

Does this mean for money market fund, I cannot pull out my money to invest in discounted stocks when there is financial crisis?? Is it better just to put in high yield savings??
Comment from : Richard Rama

12K Emergency Fund in a Vanguard Brokerage Account- VMRXX or VMMXX or Other- Which would you choose?
Comment from : B USA

Best information Thank you Michael!
Comment from : Pratik Dharek

Very informative 👍
Comment from : Stuart K Tubis

I do not understand how it works, how do I get a 2 percent return? After all, the price is always about $ 1 per share
Comment from : Arie Koch

What's the best money market to use for Fidelity? Can you pay bills with it?
Comment from : Fresh Air Today

Right now, several online banks have rates that compete with these, with fdic insurance
Comment from : roberto R

Great video! You are always informative!
Comment from : luke ha

I’m 16 and put away $3000 for investing for long term 10-20yearsbrWhat should I do?
Comment from : LCR

If GameStop would just buy big chungus their stock would go up 10 up in one day
Comment from : Babobabko

Great information!brDo you have real estate investment? Do you plan to have?
Comment from : adamsmithfly

EUR money market funds at Degiro currently have a rate of -05 Yes, with a minus sign
Comment from : Ste

Only Americans can create a vanguard account right?
Comment from : MartimBela

Over time, common stocks have returned about 8-10 on average, including recessionary periods Byinvesting in a money market mutual fund, which may often yield just 2 or 3, the investor may be missing out on an opportunity for a better rate of returnMay 1, 2018brbrThe Pros and Cons of Money Market Funds - Investopedia
Comment from : Wael Faraj

Wonderful video Michael I too have been placing my money directly into short term US Treasury bonds Along with money markets in well trusted companies like Vanguard Banks are definitely outdated and don't preserve anything except for themselves
Comment from : Successor

Great video and advice MJ This is an area of investing that's rarely discussed, but very important Well done
Comment from : Scotts Critical Mass

Thank you Michael You are a natural born teacher I really appreciate the time you take to explain what terms mean and how things work You’re the best financial trainer on YouTube Priceless
Comment from : Iestyn Jones

Investing in a 225 APR Goldman Sachs Marcus savings account makes much more sense for me
Comment from : scott schmitt

Hey Michael, love your videos Have a question I can't find an answer to: if a 3x ETF perform 3x better than an index like the dow or the s&p500, why don't I hear anyone recommending investing in these long-term?
Comment from : Investing with Jeff

bThe liquidity those funds provide is often a very positive point in investors' eyes That's why I also like to use them as a cash stacking platform instead of letting my cash sit on a savings account The money is almost as available as in a savings account but you also get that dividend/bbrbrbGotta be careful with the ex-dates tho!/b
Comment from : Resource Talks

Great video! I've been looking into this recently Are you aware of any ETFs that mimic the VMMXX fund? Just easier to sell and etf when you need the funds
Comment from : Positive Investing

I called Vanguard and I was told my cash growing 23, even though I have cash secured sold puts on aapl and Tsla
Comment from : Chewie 13

Your channel is excellent! It's just a matter of time until you become extremely popular
Comment from : John Brown

CIT Bank if offering 245 APY and don't have any annoying ACH limitsNASB just announced 253 but I have never used them I've used CIT Bank on and off for years and they are fine I now have funds in mySavingsDirect at 240 but STAY AWAY from them They have a roach motel like transfer policy and only allow a maximum of two linked accounts which can ONLY be checking which guarantees several days of crappy interest when you want to get out To set up the second linked account they actually require a snail mail copy of a check be sent to them! To top if off, they will only do a wire transfer to a linked account! I jumped at the 24 a couple of months ago but I'll be out as soon as all my ducks are in a row to reduce my lost interest during the move
Comment from : Joe Smith