Comments on: Using the Vanguard Tax-Exempt Money Market Funds As A High Yield Checkings and Savings Account

By: Robin

Robin — Wed, 30 Jul 2008 19:52:31 +0000

My friend has saved money of about $10,000 which he still keeps in a typical bank account. Now, he understands that such places may be inclined to believe many people could be involved in some nefarious undertakings, which my friend is not.

I do not know a lot about money as such, but I am aware that there are far better ways to protect one’s hard earnings from financial institutions such as banks.

Will you be kind enough to suggest where he might place his savings where he can realize a good to very good yield.

Thanks.

RHD

By: Reader Question — Should You Save for Retirement or a House? — The Baglady

Wed, 31 Oct 2007 08:50:19 +0000

[...] both comfortable with. We’re keeping most of what we save outside of our 401ks in a Vanguard money market fund and a Vanguard index fund and we do intend to use the money to purchase a home sometime in the [...]

By: admin

admin — Tue, 25 Sep 2007 16:38:00 +0000

hi Linda,

1-0.28-0.093=0.627
X * 0.627 = 3.58
therefore X = 3.58/0.627 = 5.71

Since you live in NY your tax rate is different. I think your top bracket is 6% or so? So you do something like this:
X * (1-fedtaxrate-statetaxrate) = vanguard yield

By: linda

linda — Tue, 25 Sep 2007 14:47:24 +0000

I see your formula; but where did 0.627 come from in 3.58/0.627 = 5.71 ? I am looking into the Vanguard fund for NY.