recommended money market fun?

[ut2sua]

I tried to park some fairly large amount of cash in VMMXX from a TdAmeritrade IRA account, and I have just learned that VMMXX will not take in "new" invested $. Anyone has any recommendation on a good money market fun that I could buy from my TdAmeritrade account? I need this monies to be a bit more liquid than a CD as I am in the process of picking an AA that will fit our situation going forward. Thanks in advance for all input.

 

[USGrant1962]

Why do you think Vanguard Prime Money Market is not taking new investors? It is not stated on the Vanguard site, and seems rather incredible to me. It still says the minimum investment $3,000, as opposed to say, PRIMECAP, which says "closed".

I'm guessing this is a TDA thing.

 

[ut2sua]

Why do you think Vanguard Prime Money Market is not taking new investors? It is not stated on the Vanguard site, and seems rather incredible to me. It still says the minimum investment $3,000, as opposed to say, PRIMECAP, which says "closed".

I'm guessing this is a TDA thing.

I actually place a "buy" order in my TdAmeritrade account and got rejected with the message that VMMXX is not taking in new investor $. I was wondering if I need to have a Vanguard account? Wonder if I did something wrong with the order(?)

 

[njhowie]

I just went in to my TDA account, pulled up a list of money market mutual funds they provide access to, and sorted by the current yields. At the top of the list is AJLXX at 1.65%, however it has a $1,000,000 minumum. Next on the list is PVSXX at 1.5% and only has a $1 minimum - I'd just go with that.

https://research.ameritrade.com/grid/wwws/research/mutualfunds/families?c_name=invest_VENDOR

I see on the last screen attempting to purchase VMMXX it does say closed to new investors, also that there is a transaction fee (which seemed odd, whereas all the MM funds on the MM screen have no transaction fees).

Information About This Fund

Initial Minimum Amount: 0.00
Subsequent Amounts: 0.00
Open for Investment: Closed to New
Transaction Fee: Yes
Cut Off Time: 4:00 PM EST
Settlement Date: T+1

I was wondering if I need to have a Vanguard account? Wonder if I did something wrong with the order(?)

Yes, based on this, you'd need to have funds in VMMXX from your TDA account already.

 

[Sunset]

I recall reading somewhere, that buying a Vanguard fund in Vanguard has no fee, but buy it from some other broker, there can be a fee.

 

[MRG]

I recall reading somewhere, that buying a Vanguard fund in Vanguard has no fee, but buy it from some other broker, there can be a fee.

That's true, not just with Vanguard most if not all fund companies charge for certain instruments.

 

[njhowie]

You might also consider ultra-short term ETFs, like GSY in particular (MINT is also a good one). As an ETF, there is no fee for purchasing/selling as it is no different than a stock trade, which is now free at TDA. These ultra-short term funds are not money market, but the average maturity is under 5 months and they are extremely stable, trading within a very narrow range year after year. Current yield is 2.00% for GSY.

 

[ut2sua]

You might also consider ultra-short term ETFs, like GSY in particular (MINT is also a good one). As an ETF, there is no fee for purchasing/selling as it is no different than a stock trade, which is now free at TDA. These ultra-short term funds are not money market, but the average maturity is under 5 months and they are extremely stable, trading within a very narrow range year after year. Current yield is 2.00% for GSY.

Thanks Njhowie and all for your pointers. I have never purchased MM funds from TdAmeritrade, and I thought I had done something wrong with my earlier order.