Rotate out of muni money market into VMFXX?

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Topic Author
60B4E24B
Posts: 25
Joined: Tue Jul 16, 2019 8:55 pm

Rotate out of muni money market into VMFXX?

Post by 60B4E24B » Thu Mar 12, 2020 7:37 pm

I have over $900k in Vanguard's NY Muni Money Market (VYFXX). I'm thinking it might make sense to rotate into VMFXX to avoid any liquidity issues/credit risk. I'm planning on using the cash to fund a downpayment this year.

Thoughts?

hudson
Posts: 2352
Joined: Fri Apr 06, 2007 9:15 am

Re: Rotate out of muni money market into VMFXX?

Post by hudson » Fri Mar 13, 2020 7:06 am

60B4E24B wrote:
Thu Mar 12, 2020 7:37 pm
I have over $900k in Vanguard's NY Muni Money Market (VYFXX). I'm thinking it might make sense to rotate into VMFXX to avoid any liquidity issues/credit risk. I'm planning on using the cash to fund a downpayment this year.

Thoughts?
I can't advise you whether to move your funds or not.
Here's what VWIUX...Vanguard Intermediate Muni in 2008, 2009, and 2020....This stuff has happened before and VWIUX recovered.
I got my data from Yahoo Finance. I don't know if VYFXX was around in 2008?

viewtopic.php?p=5090039#p5090039

Topic Author
60B4E24B
Posts: 25
Joined: Tue Jul 16, 2019 8:55 pm

Re: Rotate out of muni money market into VMFXX?

Post by 60B4E24B » Tue Mar 24, 2020 8:58 pm

Bumping this.

I did move everything into VMFXX, but now I'm second guessing myself.

The SEC yield is up to 3.5%, that's over 5% tax-equivalent for me. At the same time, 10% of the funds AUM has been redeemed since 3/12. Its assets are becoming less liquid, with the weekly liquid percent dropping from 76% to 69% since 3/10.

VMFXX is yielding less than 1% tax equivalent

Flyer24
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Re: Rotate out of muni money market into VMFXX?

Post by Flyer24 » Wed Mar 25, 2020 8:19 pm

Topic moved to Personal Investments.

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