VMFXX safety since not FDIC insured

[SecondCor521]

If I did the math right, the difference is (4.23% - 4.03%) * $300000 = $600.

If I had $300K in cash, I don't think $600 over the next year would make any real difference in my life. So I'd do whatever I wanted to. If I were expressing concerns about safety, the logical thing I would want would be to pay the $600 for safety.

 

[Earl E Retyre]

Op here. Thanks for all the great replies. What I have decided to do is split the money between Vanguard, Fidelity and Synchrony. And then I will do a rolling 1-3 month treasury or CD ladder depending on which gives me better rates.

 

[jim584672]

I would rather have it in T-Bills directly and not a fund with repo agreements. You can buy T-Bills easily at these brokerages.

 

[imjustawarrior]

I wouldn't worry about VMFXX. I would also take a look at VUSXX if you have state taxes.

I think there are bigger things to be concerned about than putting $300k in VMFXX. I wouldn't give it a second thought.

 

[plank2505]

Don’t forget taxes. They really do matter if you’re trying to optimize money market yield. Consider setting up MM Optimizer (it’s easy and emails you the best post-tax option weekly or even daily)

https://www.bogleheads.org/forum/viewtopic.php?t=401821&sid=9809dd427e7f4a336a4a04ca00e881ad&start=700

 

[kilgore]

Why not VUSXX?

 

[explanade]

I have VMFXX, SWVXX and some in SPAXX, which is yielding .25 to .30 less than the o there two.

Yeah if there's a run on MM funds, we would be near a Mad Max scenario.

 

[Car-Guy]

I have VMFXX, SWVXX and some in SPAXX, which is yielding .25 to .30 less than the o there two.

Yeah if there's a run on MM funds, we would be near a Mad Max scenario.

I've got a lot in Schwab's equivilant MM funds (SNAXX and SWVXX). Almost forget it's there sometimes. No worries here.