Vanguard Money Market Account ?

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Topic Author
Pjm7171
Posts: 6
Joined: Mon Mar 18, 2019 12:18 pm

Vanguard Money Market Account ?

Post by Pjm7171 » Thu Aug 15, 2019 6:40 pm

Can I use money I put into the money market account to buy real estate?

Example: I am currently applying $1500.00 to the principal of my mortgage because I want to pay off my house in 7 years. However, my buddy (who invests in real estate multi units) wants to work with me and buy some rentals in my geographic area (he lives two hours away).

I want to shuttle this $1500 to a separate account so I don’t see this $ in my checking. Can I open a VG money market account and have this $1500 be transferred from my checking every month automatically so I can build a chunk of money strictly for real estate and have it get some interest while it sits there? Are there any other better options? Are there fees or penalties to take $ out of the MMA?

Thanks in advance.

crossbow
Posts: 158
Joined: Mon Nov 12, 2018 6:47 pm

Re: Vanguard Money Market Account ?

Post by crossbow » Thu Aug 15, 2019 6:44 pm

Pjm7171 wrote:
Thu Aug 15, 2019 6:40 pm
Can I use money I put into the money market account to buy real estate? Yes

Example: I am currently applying $1500.00 to the principal of my mortgage because I want to pay off my house in 7 years. However, my buddy (who invests in real estate multi units) wants to work with me and buy some rentals in my geographic area (he lives two hours away).

I want to shuttle this $1500 to a separate account so I don’t see this $ in my checking. Can I open a VG money market account and have this $1500 be transferred from my checking every month automatically so I can build a chunk of money strictly for real estate and have it get some interest while it sits there? Yes Are there any other better options? Define better. Higher returns? Yes. Lower risk? Yes. Are there fees or penalties to take $ out of the MMA? Not that I am aware of

Thanks in advance.
:happy

Topic Author
Pjm7171
Posts: 6
Joined: Mon Mar 18, 2019 12:18 pm

Re: Vanguard Money Market Account ?

Post by Pjm7171 » Thu Aug 15, 2019 6:49 pm

Thank you for the response. I appreciate it.

What are some of the other options where I could keep this money and be able to take it out for use towards RE?

anon_investor
Posts: 227
Joined: Mon Jun 03, 2019 1:43 pm

Re: Vanguard Money Market Account ?

Post by anon_investor » Thu Aug 15, 2019 7:08 pm

You could always put the money in a FDIC insured high yield online savings account. 100% safe and right now many have interest rates similar to Vanguard money market accounts.

Topic Author
Pjm7171
Posts: 6
Joined: Mon Mar 18, 2019 12:18 pm

Re: Vanguard Money Market Account ?

Post by Pjm7171 » Thu Aug 15, 2019 7:12 pm

anon_investor wrote:
Thu Aug 15, 2019 7:08 pm
You could always put the money in a FDIC insured high yield online savings account. 100% safe and right now many have interest rates similar to Vanguard money market accounts.
Awesome. Would you be able to list one or two recommendations? Thank you.

anon_investor
Posts: 227
Joined: Mon Jun 03, 2019 1:43 pm

Re: Vanguard Money Market Account ?

Post by anon_investor » Thu Aug 15, 2019 7:25 pm

Marcus by Goldman Sachs, and Synchrony Bank are both good and offer 2.15% right now. I currently have Ally Bank but only 1.9% right now. Discover Bank 2% and American Express Bank 2.1% are good too.

Others may offer better interest but may have high minimum balances or other weird restrictions (max monthly withdrawal amount, etc.). There are many other offerings but I have no personal experience with them.

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