TIMESTAMPS 00:00 - Intro 00:44 - Yield 02:21 - Expense Ratios 04:03 - Fund Type/Money Market Reform 04:54 - Liquidity Fees & Gates 08:06 - Fund Managers/Fund Providers 10:03 - Tax Advantages w/ Example 13:23 - Investment Minimums 14:33 - Transaction Fees 15:03 - Fund Availability 16:04 - Access/Liquidity 18:04 - Portfolio Assets/Composition 20:04 - Daily NAV 22:24 - Daily/Weekly Liquid Assets 25:41 - Average Maturity & Weighted Average Life 29:05 - Best Fund for You 32:43 - How to Best Use Money Market Funds

@matthewsalapo

Жыл бұрын

Hey man, i am just getting into the personal finance world and am tryingto get into money market funds as well. I was wondering if i have a vanguard account, which my assumption was that it was solely for my Roth IRA, do i just contribute money into the account and then into the money market fund, or do i need a separate account with vanguard alongside my retirement account? Appreciate all the info man, much love!

NO WAY! I never thought we’d see you again, glad to have you back!!

Wow. Glad to see you back in action 👍🏼😁

Hey Michael, I just wanted to say you are one of the best financial KZreadrs if not the best in my opinion. Do you think the KZread algorithm has stopped promoting you?

Good to have you back!

Welcome Back!! It is great to hear from you again

Glad you’re back! 👍

Glad to see you post up again.

Very thorough - thank you!

I was just looking at your channel today and saw that you haven't posted in almost a year. Glad your back!

Great advice!!

I keep subscribing this whole time just hoping you’d drop some knowledge like this

Love the content! Seriously the best investing KZreadr. Been following for years. Keep up the awesome work! 💪

You're back!!!

Welcome back! You were missed!

Damn…. This is good info. Thanks

❤ welcome back

Great video!

He back!

New Sub here. Thanks for for sharing.

Welcome back

eyyyy. Long time no see.

Welcome back MJ! Your content is next-level, and this was no different... don't feel pressure though, we're just happy to have you back in almost any capacity! Glad you seem well, I hope this is the case 🙂

@MichaelJayValueInvesting

Жыл бұрын

Thank you for your support! It really means a lot to hear that from subscribers from the early days :)

@nishiki393

Жыл бұрын

@@MichaelJayValueInvesting 👍🏻🙂 ... and so cool you remember me! 🙏🏻 -Alan

@dmoon9037

9 ай бұрын

Brand new subscriber here. Already hooked on the content and genuine delivery.

Thanks for the informative video! What do you think about the SGOV ETF with 3 month T-bills (with 1.5 month duration)?

@MichaelJayValueInvesting

Жыл бұрын

Glad you enjoyed it. SGOV is a short term bond ETF so not a money market fund. As such its price will fluctuate and there is a bit more interest rate risk in some cases. (Like you said, looks like roughly 45 day avg. duration). It certainly still could work if your primary focus was higher interest for long term savings goals, but if you are looking for maximum liquidity, money markets are likely a better choice. So in the end depends on your needs. Currently, the yield on SGOV isn't sufficiently high enough for me to use it over VUSXX.

@stephan7691

Жыл бұрын

@@MichaelJayValueInvesting Thank you for your detailed answer! I am a conservative and already old investor ;-) I am so old that I can remember that in 2008 a MMF broke the buck "On Sept. 16, 2008, the Reserve Primary Fund broke the buck when its net asset value (NAV) fell to $0.97 cents per share. It was one of the first times in the history of investing that a retail money market fund had failed to maintain a $1 per share NAV. The implications sent shockwaves through the industry." This is the reason I chose the SGOV ETF, just for safety - 45 days duration is very short and T-Bills are still very safe (in future we may have to move our money into Chinese bonds but this will still take a while :-)) Thanks Stephan

Is there any way to buy these in Europe? I am trying, but no way, location restriction etc. In Europe these type of funds are a joke.

Do we need to time the market when buying into a money market fund? Can the price of these funds fluctuate a lot, lowering the yield we get?

@MichaelJayValueInvesting

5 ай бұрын

Money market funds should be priced at $1 per share so there isn't any material price volatility. One can buy/sell without having to worry about price changes or capital gains/losses.

What do you think about short term treasurey ETF's?

@MichaelJayValueInvesting

2 ай бұрын

Those can potentially work as an alternative, but you just want to make sure that they are the shortest duration possible if you are using as a cash-equivalent replacement. I think BIL and SGOV are some short duration ones that could be worth looking into if you want an ETF over a money market mutual fund.

Hi Michael! You did a more recent video on AI stocks - and I don’t see it anywhere now. Did you remove it from your channel? What happened? Lmk why it’s not on KZread anymore. Thanks, enjoyed your channel for about 3-4 years! 👍🏻🏆

🙏

This doesn'r ring any SVB bells, at all!

Two problems with your tax analysis. Van treasury no longer holding 100% treasuries. They are holding about 40% swaps this year which are not state tax exempt. Also, in some states like Cal and NY, if fund holds less than 50% treasuries, none of the interest is state tax exempt. Presumably why Van Treas MM is holding more than 50% treasuries. Last years' tax exemption is not this years' tax exemption because of the use of swaps.

@MichaelJayValueInvesting

5 ай бұрын

That is an astute point. You are absolutely correct here. I just got my report of interest from Governement Securities and for 2023, Vangaurd's Treasury Money Market Fund (VUSXX) was 80% interest from gov't securities. So over 50% threshold for those states, but not 100% as in some previous years.

@TheFrugalLawProfessor-if6jr

5 ай бұрын

@MichaelJayValueInvesting Yea, but they are now back to higher treasury percentages. May have been a short term issue during 2003. I just posted my first video about the Fidelity Cash Management Account (under the "Frugal Law Professor" name. Fidelity's rate not as high as Vanguard's, but they have a great cash management system to replace a checking account.

been a minute

Why put your money in these funds if you're getting taxed?

@MichaelJayValueInvesting

2 ай бұрын

Mainly as an alternative to a bank account that pays no interest. Yes you pay tax on the yield, but better than nothing.

really weird 70k of us subscribe and you do 1 video every 6 months

Eeeehhhhh

By the end of this video you will be an expert? okay you are really watering down the term 'expert' here.

@MichaelJayValueInvesting

Жыл бұрын

Given how many "experts" running our country were wrong about inflation being transitory despite printing 40% of the currency supply, I agree that the term expert has already been watered down quite a bit.

@Johnnyjakebrake

11 ай бұрын

@@MichaelJayValueInvesting😂 atta boy