Federal MMF Settlement in IRA

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
Corgitodd
Posts: 53
Joined: Thu Mar 09, 2017 2:45 pm

Federal MMF Settlement in IRA

Post by Corgitodd »

Last fall, after constant upgrade reminders, I converted an inherited IRA to a VG Brokerage Account. Does it make sense to have a Federal MMF which has lots of treasuries, in an IRA? I think a Federal MMf is a mandatory Settlement Fund.
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 6:18 pm

Re: Federal MMF Settlement in IRA

Post by Phineas J. Whoopee »

Corgitodd wrote: Thu Jan 31, 2019 5:14 pm Last fall, after constant upgrade reminders, I converted an inherited IRA to a VG Brokerage Account. Does it make sense to have a Federal MMF which has lots of treasuries, in an IRA? I think a Federal MMf is a mandatory Settlement Fund.
I see no problem with it as a settlement fund, but I wouldn't, and in fact don't, keep very much in it the rest of the time. Vanguard is perfectly willing to sell tiny fractions of its mutual fund shares, so I've emptied the federal MMF out entirely. The fund isn't part of my strategy. It's part of my logistics.

PJW
delamer
Posts: 10519
Joined: Tue Feb 08, 2011 6:13 pm

Re: Federal MMF Settlement in IRA

Post by delamer »

You should have determined an asset allocation for the IRA.

If your allocation does not include any cash equivalent investments in your IRA, then you should move money out of the settlement fund into another fund/ETF to reach your preferred allocation.

If your allocation does include cash equivalent investments, then the settlement fund is an OK place to keep those dollars.
Post Reply