How to move Vanguard money market fund to CD in IRA/401k

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ebeb
Posts: 216
Joined: Sat Dec 23, 2017 2:18 pm

How to move Vanguard money market fund to CD in IRA/401k

Post by ebeb »

Hello,

I was trying to move some Vanguard money market fund which pays about 1% to Vanguard CDs which pay about 2%. But when I try to "Exchange" it doesn't show any option to move the money market fund to CDs. What would be the procedure to move to CD while still having the money in the same IRA/401k account.
60% VOO | 35% BND | 5% CASH | | “If you feel you are in a blackhole, don’t give up. There’s a way out.” -Prof. Stephen Hawking
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Kevin M
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Re: How to move Vanguard money market fund to CD in IRA/401k

Post by Kevin M »

ebeb wrote: Wed Jun 22, 2022 7:27 pm Hello,

I was trying to move some Vanguard money market fund which pays about 1% to Vanguard CDs which pay about 2%. But when I try to "Exchange" it doesn't show any option to move the money market fund to CDs. What would be the procedure to move to CD while still having the money in the same IRA/401k account.
You can't exchange MM fund cash into broker products. A CD at Vanguard is brokered. So first, you must have a brokerage account (not an old-style mutual fund account). Next, make sure the money is in your settlement fund. Then, go to Buy bonds and CDs, and find the CD you want to buy.

Whether or not you can do this in a 401k depends on whether or not you have some sort of brokerage access.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
Topic Author
ebeb
Posts: 216
Joined: Sat Dec 23, 2017 2:18 pm

Re: How to move Vanguard money market fund to CD in IRA/401k

Post by ebeb »

Thanks this makes sense. My IRA/401k are still the old style mutual funds so I need to first upgrade them to brokerage type accounts. So that I can sell them into settlement fund and then buy CDs.
60% VOO | 35% BND | 5% CASH | | “If you feel you are in a blackhole, don’t give up. There’s a way out.” -Prof. Stephen Hawking
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