money market distributions

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Topic Author
blobs
Posts: 56
Joined: Thu Jul 05, 2007 5:31 pm

money market distributions

Post by blobs »

if my vanguard prime money market had 30000 in it from january 1 to january 15, and then i took out 29000 to buy something else on the 16th, when the money market fund pays its distribution on january 31st, does the amount get calculated on 0.5*(rate)*(30000)+0.5*(rate)*(1000) or is it calculated as (rate)*(1000)?

I'm worried that I'll lose the half month worth of interest because i took out a large chunk of money in the middle of the money.
sport
Posts: 9649
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Post by sport »

MM fund interest is calculated daily, but paid monthly. You will not lose any interest by selling shares.

Best wishes,
Jeff
Topic Author
blobs
Posts: 56
Joined: Thu Jul 05, 2007 5:31 pm

Post by blobs »

thanks a ton, i thought that was the case too but i had this weird fear. its late at night over here.

:)
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