VMFXX Money Market [for cash reserve]

[gsawchuk]

I'm 70 years old and my family lives off our social security and investments (north of $1M) in Vanguard:

VTSAX - TOTAL STOCK MARKET INDEX (55%)
VBTLX - TOTAL BOND MARKET INDEX (25%)
VAIPX - INFLATION PROTECTED SECS (15%)

After tax cash account - (5%)

I've always thought my cash reserve was low and with the debt crisis approaching thought a change in strategy is applicable. I'm thinking of moving 10% in the Vanguard IRA account to their FEDERAL MONEY MARKET FUND (VMFXX).

Any thoughts/opinions on this are greatly appreciated.

Gerry

[Clarified title. Moderator Pops1860]

[pizzy]

Would you be taking from VBTLX or VAIPX only? Or are you planning to change your AA?

[gsawchuk]

VAIPX most likely.

[pizzy]

VAIPX most likely.

Then I don't see a problem with it. It most likely won't make a difference and if it did the difference would be minor.

[ehh]

Do what makes you feel comfortable.

A week ago I sold a bit of Vanguard Total Stock Market Index fund in my traditional IRA putting the funds into the IRA settlement account. Settlement account funds plus Q2 and Q3 dividends should cover 2023 RMD. Probably not necessary. But it made me feel like I was preparing without making a serious change to asset allocation. In fact, I was a bit domestic stock heavy, so it helped bring the asset allocation into better alignment with my target.

[gsawchuk]

I considered adjustment to my AA by selling TOTAL STOCK MARKET INDEX, but not sure that's a good idea at this time.

[ruralavalon]

I'm 70 years old and my family lives off our social security and investments (north of $1M) in Vanguard:

VTSAX - TOTAL STOCK MARKET INDEX (55%)
VBTLX - TOTAL BOND MARKET INDEX (25%)
VAIPX - INFLATION PROTECTED SECS (15%)

After tax cash account - (5%)

I've always thought my cash reserve was low and with the debt crisis approaching thought a change in strategy is applicable. I'm thinking of moving 10% in the Vanguard IRA account to their FEDERAL MONEY MARKET FUND (VMFXX).

Any thoughts/opinions on this are greatly appreciated.

Gerry

[Clarified title. Moderator Pops1860]

Would you be taking from VBTLX or VAIPX only? Or are you planning to change your AA?

VAIPX most likely.

Then I don't see a problem with it. It most likely won't make a difference and if it did the difference would be minor.

I agree.

Do what makes you feel more comfortable. That's just a switch from one type of fixed income to another type of fixed income.

Yesterday I moved extra cash from my bank checking account to my individual brokerage account at Vanguard, to go into Vanguard Federal Money Market Investor (VMFXX). I am 77 years old, retired, and live on Social Security benefits and Required Minimum Distributions (RMDs) from my rollover IRA.

I considered adjustment to my AA by selling TOTAL STOCK MARKET INDEX, but not sure that's a good idea at this time.

I do NOT suggest changing the stock/fixed income asset allocation.