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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • Current CDs are Compelling
    @Mona, both being "government" m-mkt funds are equally safe - but VG has to put boilerplate language about all m-mkt losing money. Neither has gates and/or redemption fee.
    VG doesn't link m-mkt funds (like Fido), so, if you are in VMRXX, you would have to manually shift money between it and core/settlement VMFXX.
    But if this headache is fine for you, go with VMRXX. 1 bps difference on $1 million is $100 difference over a year.
    yogibearbull yogibearbull in Fund Discussions
  • Current CDs are Compelling
    VMRXX is the old VG Prime M-Mkt. When 2014/16 m-mkt reforms happened, VG tried to get an exception because VMRXX was in retail-prime category. When exception wasn't allowed, its name was changed to VG Cash Reserves Federal & adjusted objectives. VG already had Federal VMFXX. These 2 funds could be merged but VG kept both - VMFXX as core/settlement & VMRXX with 1 bps lower.
    @yogibearbull as far back as I remember, the yield on VMRXX has been 1 basis point higher than VMFXX. Is one money market fund safer than the other?
    Mona in Fund Discussions
  • Current CDs are Compelling
    At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.

    SWVXX is not currently paying 5.27%--it resets every 7 days, and is currently paying 5.16%. Its rate has been dropping for about the past 2 months. SNAXX is the Institutional Class counterpart, that is currently paying 5.3%, but requires $1 million investment to purchase it. If you intend to buy any MMkt rate currently, it is highly unlikely it will stay that high for the next 12 months, given the recent performance trend of it going lower. Everyone has an opinion, that may or may not be accurate, but I think MMkt rates will drop around .5% over the course of the next 12 months.

    You may be right. How I handle this is while putting a good chunk of the income segment of my portfolio in money market funds, I have also put money into bond funds rather than CDs, so if money market yields go down from interest rates going down, bond funds (at least investment grade) will go up in value. I had been buying CDs starting a few years ago, once they matured I put them into money market funds and bond funds (some investment grade, some multisector or high yield). I now prefer the flexibility of money in money market funds and not locked into a CD, and my bond funds have exceeded what I would have received in CDs. If anything, a good substitute for a CD would be the ETF MINT (and not be locked in) or a good short term bond fund. I could turn out to be wrong, but that’s what I have been doing.
    I don't know how long I will emphasize CDs, but for now, I will take advantage of CDs in an 18 month ladder. If CD rates deteriorate, I have a sizeable number of CDs maturing throughout 2025, and will reserve the option of reinvesting those proceeds into something different--I will cross that bridge when I get to it. I like CD ladders, as I always have a CD maturing every few months, giving me ongoing cash availability for adjustments in my investing options. I have historically invested in bond oefs, since I retired--I can always return to that option if necessary, but I will ride the cd horse as long as rates stay high.
    dtconroe in Fund Discussions
  • Current CDs are Compelling
    VMRXX is the old VG Prime M-Mkt. When 2014/16 m-mkt reforms happened, VG tried to get an exception because VMRXX was in retail-prime category. When exception wasn't allowed, its name was changed to VG Cash Reserves Federal & it adjusted objectives. VG already had Federal VMFXX. These 2 funds could be merged but VG kept both - VMFXX as core/settlement & VMRXX with 1 bps lower.
    yogibearbull yogibearbull in Fund Discussions
  • Current CDs are Compelling
    At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.

    SWVXX is not currently paying 5.27%--it resets every 7 days, and is currently paying 5.16%. Its rate has been dropping for about the past 2 months. SNAXX is the Institutional Class counterpart, that is currently paying 5.3%, but requires $1 million investment to purchase it. If you intend to buy any MMkt rate currently, it is highly unlikely it will stay that high for the next 12 months, given the recent performance trend of it going lower. Everyone has an opinion, that may or may not be accurate, but I think MMkt rates will drop around .5% over the course of the next 12 months.
    You may be right. How I handle this is while putting a good chunk of the income segment of my portfolio in money market funds, I have also put money into bond funds rather than CDs, so if money market yields go down from interest rates going down, bond funds (at least investment grade) will go up in value. I had been buying CDs starting a few years ago, once they matured I put them into money market funds and bond funds (some investment grade, some multisector or high yield). I now prefer the flexibility of money in money market funds and not locked into a CD, and my bond funds have exceeded what I would have received in CDs. If anything, a good substitute for a CD would be the ETF MINT (and not be locked in) or a good short term bond fund. I could turn out to be wrong, but that’s what I have been doing.
    Chinfist in Fund Discussions
  • Current CDs are Compelling
    At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.
    SWVXX is not currently paying 5.27%--it resets every 7 days, and is currently paying 5.16%. Its rate has been dropping for about the past 2 months. SNAXX is the Institutional Class counterpart, that is currently paying 5.3%, but requires $1 million investment to purchase it. If you intend to buy any MMkt rate currently, it is highly unlikely it will stay that high for the next 12 months, given the recent performance trend of it going lower. Everyone has an opinion, that may or may not be accurate, but I think MMkt rates will drop around .5% over the course of the next 12 months.
    dtconroe in Fund Discussions
  • Current CDs are Compelling
    At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.
    Art in Fund Discussions
  • Current CDs are Compelling
    Any investor with $3,000 can BUY VMRXX paying 5.29%.
    Looks like a Vanguard Money Market Fund--I can't get it at Schwab, where all my brokerage assets are located. I can get a comparable fund, with that interest rate, at Schwab with a $1million cash investment. I don't know if it is available at other brokerages, or what comparable funds are available at other brokerages.
    dtconroe in Fund Discussions
  • Current CDs are Compelling
    What is the difference between VMFXX and VMRXX, except for the 1 or 2 basis points 7-day yield difference?
    VMRXX product summary from VG website: "The fund invests at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash (collectively, government securities). The fund invests more than 25% of its assets in securities issued by companies in the financial services industry, which includes securities issued by certain government-sponsored enterprises. The fund is considered one of the most conservative investment options offered by Vanguard. Although the fund invests in short-term U.S. government securities, the amount of income that a shareholder may receive will be largely dependent on the current interest rate environment. Investors who have a short-term savings goal and are interested in a fund that invests in securities issued by the U.S. government or its agencies may wish to consider this option." [Bold added]
    The sentence in Bold is not there in product summary for VMFXX, their default sweep fund. Is that the only difference between these two products?
    BaluBalu in Fund Discussions
  • Todays’s a good reason why it’s dangerous to short markets …
    FWIW, I tried earlier this year on this forum to stir others to participate in Semis and the MAG7, but with little success.

    Might be worth mentioning that many of us can read the tea leaves, but just don't chime in about it. Semis have been really kicking it all year. At least a couple of us prefer USD to SMH at times (heavy NVIDIA and Broadcom), but ymmv. As for the MAG7, I don't see how you could have avoided them? Anyway, I suspect there was a lot of preaching to the choir. Good calls either way.
    For clarity...The majority of posters who responded to my MAG7 thread and various posts on other threads at the time were
    (1) largely against MAG7 (read it slowly and try to understand it - I didn't),
    (2) had little-to-no MAG& exposure,
    (3) were intentionally trying to NOT invest in them, and
    (4) (the reason for me even re-visiting the whole thing now) were less than kind in their comments to me about my endorsement of them and AI.
    Like Linda Ronstadt, "I ain't naming names," but I'll link the MAG7 thread if needed.
    stillers stillers in Other Investing
  • Nvidia “Leapfrogs” Apple in Value
    Per Jesse Felder
    Over the past 32 trading days, NVDA has gained more than $1 trillion in market cap. To put that into some sort of perspective, the 6-week gain is greater than the total market cap of BRKA, which Warren Buffett has spent 6 decades in building.
    While it sells for PE of 70 it's 5 year average is 68.
    What happens when everyone who thinks they need NVDA chips has bought enough?
    sma3 in Other Investing
  • Reality check
    We have been on guided tips and almost suffered casualties. One was pure stupidity by an experienced woman.The other an almost drowning in a big whirlpool.
    On the trips we have taken with guides, they all have had Sat Phones and guns for emergencies, because they have a responsibility to their customers. We have been camping in wilderness national parks, self guided and had the people next to us admit the had guns. It was not a good feeling and we did not talk politics!
    Since 1983, my wife and I and then with son have done 19 trips to BWCA, Quetico or another canoe wilderness in Canada, Algonquin Park. There have no major incidents other tan on badly sprained ankle (mine, fortunately on next to last day) and a fish hook in an arm.
    Our last trip was in 2017, when I was 65. Now at 71 I am thinking of buying an Emergency Response Beacon just in case.
    That is still not a cell phone. I will use mine to take pictures
    sma3 in Other Investing
  • Reality check
    @sma3 & @Sven
    I have been fortunate in my life time to have made several trips into the BWCA (or BWCAW as it's labeled now). A handful of those trips were made well before cell phones or even SAT phones were in existence. To me the BWCA is called a 'wilderness area' for a reason and you accept that knowing that it's the price you pay for admission. I go there to escape all of societies(?) conveniences and to experience life by one's skills, wits and knowledge. It's glorious.
    I can see where it gives many pause however and just within the last month SAT phones were used to summon Search & Rescue assistance for two groups of canoeists HERE. The first ended tragically while the second fared better. My guess is that many more SAT phones will be rented out to canoeing parties in the coming years.
    As for cell and/or smart phones, I've always left mine in my vehicle upon entry. Cell service in the BWCA is very spotty at best and most definitely should not be relied upon. Smart phones are good for taking great photo's though and they tend to be small and light weight.
    Mark Mark in Other Investing
  • Vanguard Website
    @msf @sven
    Worth talking to Lynnbolin2021 who uses both Vanguard and Fido advisors I think.
    The Vanguard guy did not seem inexperienced on the phone, but clearly said they would not take any of our legacy positions into account when managing our money. Most is in Berkshire.So we would have had to sort do mental arithmetic to account for it
    Fido, as I mentioned, seemed to offer little for the fee
    Schwab farmed it out to a large independent firm ( Wealth Management Group) whose financial planning seemed comprehensive and pretty good. They reviewed our wills and caught significant typo our lawyer had missed, for example.
    The portfolio was individual stocks with bond mutual funds. They had a plan to slowly sell positions they felt were not useful.
    The portfolios resembled SCHD and SCHG, but hey had a tighter screen for a few parameters. It was unclear how flexible they were with their portfolios and if they changed dramatically. SCHD is a very cheap fund and only lost 3% in 202 but since has done little. My "Deep value" advisor is morevolitle but has beaten it by a mile.
    All in all I was impressed but since I am still Compos Mentus, decided I could wait to switch. For someone who needs help, unless you go "All Bernstein" it is not a bad choice.
    sma3 in Fund Discussions
  • Vanguard Website
    @sma3, thank you for sharing your experience with Schwab, Fidelity, and Vanguard brokerages. I think it is a crapshoot of which agents you deal with and that set the tone on whether that firm works for you or not. These days there are high turnovers in the financial business. Planners I talk with have less than 10 years of experience. We are working on Plan B so that my wife can handle the finance without advisors when I pass on.
    Like you I also subscribed to "No Load Fund Analyst" for a number of years until they retired that business. Rather than using an advisor early on, we spent time learning about asset allocation from William Bernstein's books. NLFA became the tool to implement the target allocation in our portfolio and the value of active management. This process has proven invaluable as we survived the severe drawdowns during the dotcom and GFC crisis, and we became more informed investors and asking the right questions.
    We have been DIY investors ever since. Until last year I explored using financial advisors to manage part of our portfolio. Vanguard is reasonable with 0.3% fee but the choices are limited to Vanguard products only. Think that is the same with most brokerages. This experiment ended as we moved on from Vanguard.
    Fidelity offers their advisory services and I will talk with them to better understand their capabilities now that I had experience with Vanguard.
    Sven in Fund Discussions
  • Reality check
    From this week’s Barron’s:
    ”the top three stocks in the S&P 500—Microsoft, Nvidia, and Apple—have accounted for 20% of the index for six days in the past two weeks. May 28 was the first time on record that the S&P 500’s top three stocks were worth more than 20% since at least 2000 …”
    ”Just 3 Stocks Rule the Market. Why You Should Be Worried.” - Teresa Rivas in Barron’s - June 10, 2024
    Wouldn’t ”Index investing” yield even better returns if these 3 accounted for 100% of the S&P?
    hank in Other Investing
  • Fido first impressions (vs Schwab)

    If you've got at least $10K in cash in your IRA, you can open up a position in FZDXX ($10K min for retirement accounts). It's currently paying 5.15%. Fidelity officially requires one to maintain at least $10K in the fund, but generally it is quite forgiving so long as you don't bring the balance down to zero.
    This is not a core fund, so any time you have cash in the IRA (e.g. non-reinvested divs), you'll have to move it to FDRXX yourself or the cash will sit in your "Cash, Held in Money Market" fund.
    To answer the original question: click on the cash link as described above. You may see a "Change Core Position" button if other options are available.

    Thanks for the tip on FZDXX...I've had retirement accounts at Fido for a very long time and never heard of a reduced minimum for such accounts, until now. Just made the switch!
    wxman123 in Other Investing
  • Rising Auto & Home Insurance Costs
    We can add property tax to this list of auto/home insurance costs. With home prices skyrocketing the last couple years assessments are also going up quite a bit. I might get a 10%+ property tax increase this year. Not looking forward to the coming tax bill.
    gman57 in Other Investing
  • Fido first impressions (vs Schwab)
    @FD1000 how did you get Schwab to waive the $49.95 fee on transaction fee funds?
    Mona in Other Investing
  • Fido first impressions (vs Schwab)
    Just a quick comment: If you were fortunate enough to have been on the ThinkorSwim platform originally, Schwab will honor the $15 trading fee TOS was charging. Presumably this is not new news to anyone who qualifies.
    racqueteer in Other Investing