cancel
Showing results for 
Search instead for 
Did you mean: 
     
16 Replies
Highlighted
Participant ○

Re: Some MMF Fees Waived

CREF money market is waiving fees in order to pay 0.00%, and starting in January they will be recouping lost fees by paying negative returns.

https://www.tiaa.org/public/land/moneymarketchanges?tc_mcid=em_MMarket_IAS_Assigned_0516&subscriberi...

John

0 Kudos
Highlighted
Participant ○○

Re: Some MMF Fees Waived

I will have to find a different drop box or fund to take my RMD's from beginning next year. Related to this I will have to change where my TPA's are sent (currently to the MMF). I will probably use a bond fund for both purposes.

0 Kudos
Highlighted
Participant ○

Re: Some MMF Fees Waived


@jjustice wrote:

CREF money market is waiving fees in order to pay 0.00%, and starting in January they will be recouping lost fees by paying negative returns.

https://www.tiaa.org/public/land/moneymarketchanges?tc_mcid=em_MMarket_IAS_Assigned_0516&subscriberi...

John


I read that link and CHUCKLED when I read the word "extinct" in place of the correct word "extent".

And I'm an engineering major, though I got A's in the native language here...

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived

There was a thread on this subject about a month ago. I can’t find it.

I see no point in holding cash. Might as well go out at least as far as BSV, which is my “cash”. Or further—leave your cash in BIV, BND, FXNAX, etc. If there’s too much risk of loss in those, then just reduce your equity by 1-2%, since those funds are somewhat negatively correlated with equity. My point being simply that cash is trash: ABC (Anything But Cash). Jiggle your AA if necessary to achieve your desired risk level using equity and bonds no shorter than BSV. JMO.

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived

Depending on your tax situation, Chang, take a look at VWALX. It's been worth the "risk" for years.

I don't own a MM fund any longer. I do keep cash in a cu account for odds and ends. Earns next to nothing and I don't care.

Bob

0 Kudos
Highlighted
Participant ○○○

Re: Some MMF Fees Waived


@GLI2019 wrote:

Depending on your tax situation, Chang, take a look at WWALX. It's been worth the "risk" for years.

I don't own a MM fund any longer. I do keep cash in a cu account for odds and ends. Earns next to nothing and I don't care.

Bob


Is the ticker symbol correct?  Should the first letter be V?

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

M-mkt funds not only have almost nil yields but have other traps of potential gates and redemption fees [except for government m-mkt funds]. And CREF M-Mkt VA may lose/erode money after 1/1/21; nothing has been said about T-C M-Mkt Fund.

Alternatives include ultra-short-term and short-term bond funds. There are threads that cover options at Fidelity, Schwab, Vanguard, etc.

T-C doesn't have any ultrashort-term bond mutual funds; CREF doesn't have any short-term bond VA. On the brokerage side, one can use ultra-short-term ETF ICSH, short-term ETF BSV, etc.

But T-C does have 3 short-term bond funds [only Premier and Retirement class tickers are mentioned below]:

   T-C Short Term Bond Index TPSHX/TESHX

   T-C Short-Term Bond TSTPX/TISRX

   T-C Short Duration Impact Bond TSDFX/TSDDX

YBB
0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived

Thanks, Learner.  Fat Finger. Corrected.

Bob

0 Kudos
Highlighted
Explorer ○

Re: Some MMF Fees Waived

Those of us with a T-C ATRA have access only to the CREF and TIAA VAs and to an illiquid TIAA Traditional. Unless stocks dive before the end of the year (or TREA starts moving up), which would give me an alternative to CREF MM that I'd find agreeable, I'll be at CREF's mercy.

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

@yogibearbull “M-mkt funds not only have almost nil yields but have other traps of potential gates and redemption fees [except for government m-mkt funds].”

Besides that, most MMs—perhaps all except Vanguard‘s—have ridiculously high expense ratios. Even Fidelity’s Cash Reserves charges 0.38% on $200 billion in assets. (TRP’s Cash Reserves charges 0.45%.) I’m not saying that these funds don’t have expenses, but is it any wonder that they’re yielding nothing ... but what cash cows for the brokers!

Meanwhile you can own FNSOX for 0.03% or FXNAX for 0.025% (if you prefer longer duration). Unless you really feel that you want to donate money to poor Abigail Johnson, why put money in a Fidelity MM?

0 Kudos
Highlighted
Participant ○

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

Perhaps they could start charging MMF holders a fee to hold a MMF.  Watch them all vamoose.

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]


@myob wrote:

Perhaps they could start charging MMF holders a fee to hold a MMF.  Watch them all vamoose.


Umm... they do.

Or do you mean perhaps they should not subsidize the ER, so that the effective yield is negative? That’s the case in Switzerland. The “core fund” for UBS brokerage accounts actually has a negative yield.

0 Kudos
Highlighted
Frequent Contributor

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

M-mkt ERs are high - look at those from Vanguard, Fido, Schwab, TIAA, etc. May be their short maturities and new complex rules require more hands-on management. Their ERs are much higher than those for ultra-ST & ST bond funds - those are the areas I have moved to now [not cash-like but I accept their small volatility for the trading freedom they offer].

YBB
0 Kudos
Highlighted
Participant ○

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

I'm not excited about VMMXX's current .1% 7-day yield, but I don't blame the .16% ER.  To me that is not a high ER.  Maybe I'm too old and influenced by the ERs of yore.

John

 

0 Kudos
Highlighted
Participant ○○○

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]

I do not want someone with less knowledge to get the wrong impression.  For taxable money (or even for an IRA outside a mutual fund company), in a money market account (not a money market fund), you can still get an APY of around 1% and the FDIC (or equivalent) insurance..

0 Kudos
Highlighted
Follower ○○○

Re: Some MMF Fees Waived [T-C Short Term Bond Funds]


@Learner wrote:

I do not want someone with less knowledge to get the wrong impression.  For taxable money (or even for an IRA outside a mutual fund company), in a money market account (not a money market fund), you can still get an APY of around 1% and the FDIC (or equivalent) insurance..


Thank you for the word of pause for those of us who are now learning. My brows were getting more and more furrowed the more I read.

-QNikki

0 Kudos
Announcements