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Comment by fny | Hacker News Reader

The TL;DR is at the bottom. Just use VUSXX. It’s tax exempt-ish and more liquid than buying treasuries outright.

As far as I can tell the article doesn't specifically suggest VUSXX over the default Vanguard VMFXX (or a range of other acceptable money market funds).

The author does get into it more here: https://thefinancebuff.com/best-vanguard-money-market-fund-y... , but there isn't one clear best for everyone.

> The author does get into it more here: https://thefinancebuff.com/best-vanguard-money-market-fund-y...

Interesting, the linked article says this:

> Vanguard Federal Money Market Fund (VMFXX) is the settlement fund in a Vanguard brokerage account. You don’t have to do anything extra to buy or sell this fund. It requires no minimum investment. Any cash you transfer into your Vanguard brokerage account will automatically land in this fund.

I didn't know that. It definitely has better returns than most savings accounts. Instead of parking money in a savings account you could just leave it there until you decide whether to invest it or transfer it out to do something else with it.

Yes. By the way, this is an unusually good deal for uninvested cash at a brokerage (it's not generally a reasonable thing to do outside of Vanguard). E.g. Schwab makes most of their revenue from interest on your uninvested cash.

I think it's mostly tax exempt at only the state level, no?

For tax advantage, I've recently found out about BOXX. You get roughly the same growth as a typical HYSA, but the value is added as actual value to the stock rather than dividends. So if you hold for at least one year, you can get HYSA interest but only pay capital gains tax.

Note that BOXX had a capital gain distribution this week. It's unclear what portion of future growth will be distributed.