Is this appropriate for my CASH holdings?

[fishdrzig]

1/2 VFISX  1/2 BIL

I would prefer to be all in Vanguard but the Admiral share Treasury Money Market account(VUSXX)count (is closed to new investors and right now I have all my CASH in VMMXX.  I would like to get a little yield anyway.  Any advice here?  Thanks

[buddtholomew]

Are CD's an option or are you only interested in short-term treasuries? Have you considered SHY or SHV?

[hoost]

VFISX is good. I use this for cash for all VG holdings and have for a few years.  You can get check-writing privileges out of that fund, so it works well for emergency funds, too.

[KevinW]

1/2 VFISX  1/2 BIL

Yes this seems fine.

I think 100% BIL and "scraps" of VMMXX would be better. IMO, keep it simple stupid (KISS), put practically all cash in T-bills as instructed, and move on.

In one of my accounts I have 100% of my cash in VMMXX, which is not ideal, but IMO is just barely acceptable. While not a pure T-bill fund, due to Vanguard's conservatism, it is about 40-50% US government bills and the remainder is high quality paper. I'll be switching this to Vanguard's T-bill fund as soon as it reopens.

[sophie]

Fidelity's treasury money market fund is open if you can put in the $25K minimum balance.  BTW I got a notice that this fund has now changed and is no longer treasury only, but they opened a new treasury only fund - so check your inbox if you're holding this.

I find T bill auto-roll to be lots easier.  Which T bill duration did you pick?  I debated between one and 3 months, and ended up with 3 months.  There's little advantage in going out to 1 year.

[MachineGhost]

VFISX has duration risk.  The maximum drawdown is around -7.21% since 1991, which is very steep for cash.  There are better ways to fry the cash management fish.

[hoost]

Average maturity is 2.4 yrs, average duration 2.3 years.  So 1% increase in interest rate will yield 2.3% loss.  I'd rather be in treasuries than corporate paper, I want check-writing privileges, and my money is at vanguard.  This seems to be the best option.

What happened in 1991? 

When the treasury money market reopens, I would suggest switching to that, but for now with rates where they are, I think VFISX is acceptable.  It's always important to understand the risks.

[fishdrzig]

1/2 VFISX  1/2 BIL

Yes this seems fine.

I think 100% BIL and "scraps" of VMMXX would be better. IMO, keep it simple stupid (KISS), put practically all cash in T-bills as instructed, and move on.

In one of my accounts I have 100% of my cash in VMMXX, which is not ideal, but IMO is just barely acceptable. While not a pure T-bill fund, due to Vanguard's conservatism, it is about 40-50% US government bills and the remainder is high quality paper. I'll be switching this to Vanguard's T-bill fund as soon as it reopens.

/can someone give me the ticker symbol for the above T-bill Vanguard fund?  Thanks

[KevinW]

VUSXX. It has been closed since the Fed lowered T-bill rates to practically zero.

[lordmetroid]

I hold my cash in normal debit accounts in various banks.
Thinking it might be wise to maybe open accounts in foreign banks as well but I do not like the currency exchange rate risks.