Comments on: Parking Your Safe Money http://stockherd.com/moosepond/2007/04/parking-your-safe-money/ Online Journal for the Moose Pond Investors Club Tue, 12 Feb 2008 02:58:15 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Gary Simms http://stockherd.com/moosepond/2007/04/parking-your-safe-money/comment-page-1/#comment-52 Gary Simms Tue, 12 Feb 2008 02:57:21 +0000 http://stockherd.com/moosepond/?p=135#comment-52 After the series of interest rate declines following September 11, 2001, the Vanguard Tax-Exempt Money Market actually paid a higher rate than the Vanguard Prime Money Market Account BEFORE you adjusted it to a PreTax rate. Always check the rate to be sure. Don't assume. For monies that you can spare to be without for a slightly longer time, consider Vanguard Short Term Federal Bond Fund. The fund pays a bit more than the VG Prime Money Market Account, a reward for the small fluctuations in Net Asset Value (Price per share). Although not invested in Treasury Bonds, the loans are to government acencies and thus, have the full guarantee of the US Federal Government. They also have significantly less risk than the Short Term Corporate Bond Fund from Vanguard. Over the long term the small added return adds up. In addition, this fund is available in Admiral Shares for those who qualify and reduces the annual expense ratio by 33%. Every little bit extra I can get is just free money! Gary After the series of interest rate declines following September 11, 2001, the Vanguard Tax-Exempt Money Market actually paid a higher rate than the Vanguard Prime Money Market Account BEFORE you adjusted it to a PreTax rate.

Always check the rate to be sure. Don’t assume.

For monies that you can spare to be without for a slightly longer time, consider Vanguard Short Term Federal Bond Fund.

The fund pays a bit more than the VG Prime Money Market Account, a reward for the small fluctuations in Net Asset Value (Price per share).

Although not invested in Treasury Bonds, the loans are to government acencies and thus, have the full guarantee of the US Federal Government.

They also have significantly less risk than the Short Term Corporate Bond Fund from Vanguard.

Over the long term the small added return adds up.

In addition, this fund is available in Admiral Shares for those who qualify and reduces the annual expense ratio by 33%.

Every little bit extra I can get is just free money!

Gary

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