Vanguard money market funds are a sound way for investors to stash some cash without the need to worry about the current market conditions. Sometimes all you want is some peace of mind for your investments. Vanguard money market funds offer the type of peace of mind that many investors are searching for.
If you’re in any doubt about what type of market conditions you’re facing, don’t think twice about putting your mind in a Vanguard money market fund.
You can rest assured that your investment is safe and sound as long as your retirement is in a Vanguard money market fund. Here are the top 5 best Vanguard money market funds that you should hold for the long-term.
5. Vanguard State-Specific Money Market Funds
If you’re going to put your nest egg in a Vanguard State-Specific Money Market Fund, then you’ll have to learn what options there are for people in your state. Not every state is the same, and the information that you gather will go a long way in determining if this is the best route for you.
The minimum amount you must invest is $3,000.
The yield on your investment depends on which state you’re in. The return on your investment should cover inflation and a little more. Though, it’s hard to say what the current conditions are when you’re reading this.
Take a look at what the return is for your state and make an educated decision as to if Vanguard State-Specific Money Market Funds is the right choice for you.
4. Vanguard Treasury Money Market Fund
A Vanguard Treasury Money Market Fund invests in short term treasury bills. You should be aware that the minimum investment here is $50,000. You should expect a 1.52% yield on your investment with a Vanguard Treasury Money Market Fund.
If you’re looking to make a consistent profit with large sums of money, then the Vanguard Treasury Money Market Fund is for you. The cost of entry is steep but other than that; it looks like a perfect fit for those who have deep pockets. The return on your investment is high, and the risk is almost zero.
You’re not going to get anything closer to perfection in the world of investing. Vanguard Treasury Money Market Fund is a solid choice for those who have a ton of money and want someplace to store it for a short period safely.
3. Vanguard Federal Money Market Fund
A Vanguard Federal Money Market Fund invests your money in government securities. The good news is that you only need to invest $3,000 to get started.
You should expect a yield of 1.51%. Vanguard Federal Money Market Fund is an excellent choice for those who either don’t have a large lump sum to invest or would instead invest that money elsewhere.
The cost of entry is low, and that means almost anyone can put money in a Vanguard Treasury Money Market Fund.
Anyone who does have a larger amount of money to invest would be advised to go with the Vanguard Treasury Money Market Fund. You would be much better served to go that route since the return is higher.
2. Vanguard Municipal Money Market Fund
If you’re in a high tax bracket Vanguard Municipal Money Market Fund is the right choice for you. You won’t get hammered with takes when setting aside your money in a Vanguard Municipal Money Market Fund.
The downside is, the yield isn’t as nice as some of the others. The yield is 1.1%, and you’ll have to decide if that is worthy of your time or not. You might determine that another fund is best for you.
After weighing out all the odds, you should decide which is better for your current day and the future. Remember, your retirement is right around the corner, and you’ll need money to live off of.
1. Vanguard Prime Money Market Fund
Almost everyone reading this will opt for the Vanguard Prime Money Market Fund. It is by far the most popular and stable of the funds. The fund invests in short term high-quality funds.
If you’re the type who doesn’t like a risk at all, then head straight to the Vanguard Prime Money Market Fund.
That’s the reason why it’s the most popular fund out there. You’ll receive a yield of 1.61%, and that’s nothing to sneeze at. You will also have the security and knowledge that your money is safe, and it’s growing over time.
You can’t get much better than that. Anyone who is thinking about investing in a Vanguard Fund should start here and work your way into the other funds.
Final Words
Vanguard Funds are the way to go for many.
Investing can be so scary that it makes you pull out your hair. You never know where your money is going with most investments. You don’t have to fear when investing in Vanguard Funds. Sometimes the stock market crashes, and you take a hard hit.
You won’t ever need to worry about a sudden crash when you’re investing in Vanguard Funds. Securities back your money, and that means you can sleep easy at night. Sometimes the best investment is the one that pays the least.
Why? Anything that has a high payout carries with it high risk.
Everyone who is just starting out investing should look into Vanguard Funds. Also, those with plenty of money sitting around should invest in Vanguard Funds as well. Sometimes you don’t know what to do with your money, but you do know that the bank is the wrong place to put it.
Don’t allow money to sit in the bank when you could invest it into Vanguard Funds. You’ll receive a modest yield on your investment, and your money is put to good use through government-backed securities. Your money is doing good things for people, and you’re earing a little bit in the process.
That’s what Vanguard Funds are all about, and hopefully, by now, you can see which one is the right investment for you. There’s always a risk when investing money, but you mitigate the risk by using something like Vanguard Funds while allowing time to work its magic.