Dueling Money Market Funds

[Felix Mulier]

Just got a notice from my 401K holder that they will be changing from Vanguard Prime Money Market (VMMXX) to Vanguard Treasury Money Market (VUSXX). Any money I have in Prime will get moved to Treasury effective end of July.

If this were happening to you, would you have any concerns?

I didn't find much on this or the Bogleheads Forums to answer this. From Vanguard's site, the main differences I see are these:

Product Type: Treasury is Government, Prime is Retail
Expense Ratio: Treasury is .09%, Prime is .16%
Compound Yield: Treasury is .24%, Prime is .45%

Your thoughts welcome. Thanks in advance.

 

[audreyh1]

No. There has been a change in money market fund requirements. There was a long thread here about a month ago.
http://www.early-retirement.org/forums/f28/breaking-the-buck-and-mm-funds-82034.html

 

[pb4uski]

I could never understand why anyone would have 401k money in a MM fund.

 

[2017ish]

I could never understand why anyone would have 401k money in a MM fund.

One possibility: No stable value option; vast majority of assets in retirement accounts; retiring in less than 2 years at age 55 with no pension.

Not my situation. But I could see doing it there.

 

[RobbieB]

Yup, some people just like safety.

 

[Markola]

Paying income tax someday to pull out cash though. No comprende.