Of course! Let's get you set up to sell your Vanguard Federal Money Market Fund (VMFXX). It's a straightforward process, and I'll walk you through it step-by-step. Let's begin!
Step 1: Get Ready to Redeem!
First and foremost, before we even touch your account, let's make sure you're in the right mindset. Selling a money market fund isn't like selling a stock that's volatile and you need to time the market. VMFXX is a money market fund, designed to be safe and liquid, with a stable Net Asset Value (NAV) of $1.00 per share. This means its value doesn't fluctuate like a stock or bond fund. So, you're not selling for a capital gain, but simply redeeming your shares to access your cash.
Ready to go? Let's log in!
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| How To Sell Vanguard Federal Money Market Fund |
Step 2: Access Your Vanguard Account
This is where the action begins. You'll need to log into your Vanguard account to start the redemption process.
Sub-step 2.1: Log in to the Vanguard Website
Tip: Don’t skim — absorb.
Go to the Vanguard website: Navigate to the official Vanguard website.
Enter your credentials: Log in using your username and password. If you have multiple accounts, be sure to select the one that holds your VMFXX shares from the "My Portfolio" dropdown menu.
Sub-step 2.2: Navigate to Your Holdings
Once you're logged in, you need to find your investments.
Find the 'Investments' section: Look for a menu or tab on the left-hand side of the page labeled "Investments."
View your holdings: In the Investments section, you'll see a "Holdings" tab. This will display all the funds and securities you hold in your account.
Step 3: Initiate the Sale (Redemption) of Your VMFXX
Now that you've located your VMFXX, it's time to sell.
Sub-step 3.1: Find the 'Sell' Option
Locate your fund: Find "Vanguard Federal Money Market Fund" or its ticker symbol, VMFXX, in your list of holdings.
Click on the 'Actions' menu: To the right of the fund, you'll see a menu or three dots under the "Actions" heading. Click on it.
Select 'Sell': A menu will pop up with options. Choose the "Sell" link.
Tip: Pause if your attention drifts.
Sub-step 3.2: Enter the Redemption Details
This is where you specify how much you want to sell.
Choose what to sell: You will be asked to choose the fund you want to sell. Select VMFXX.
Enter the amount: You can choose to sell a specific dollar amount or a specific number of shares. You can also sell your entire holding. Be mindful of any remaining minimum balance requirements in your account.
Decide on the proceeds: Vanguard will ask you what you want to do with the money from the sale. You have two main options:
Leave it as cash: The proceeds will be held in your settlement fund, which for many Vanguard brokerage accounts is VMFXX itself. This is often the default. If you are selling VMFXX to a settlement fund that is also VMFXX, it's essentially a wash.
Withdraw to your bank account: This is the most common reason for selling a money market fund. You will need to have a verified bank account linked to your Vanguard account. If you don't, you'll need to set that up first.
Buy other investments: You can also "switch" the funds to buy another investment within your Vanguard account. This is a great way to rebalance your portfolio.
Step 4: Review and Confirm the Transaction
You're almost there! This is the final step before the redemption is processed.
Sub-step 4.1: Review Your Order
Check the details: Carefully review all the details of your redemption order, including the fund, the amount, and where the proceeds are going.
Understand the settlement time: Remember that mutual fund transactions are processed at the end of the business day. If you place your order before the market closes (typically 4 p.m. ET), you'll get that day's closing price. If you submit it after, it will be processed on the next business day. The funds will then take 1-3 business days to reach your linked bank account after the sale settles. Keep in mind, a sale of a mutual fund can take 2 to 4 working days to complete.
Sub-step 4.2: Submit the Order
QuickTip: Let each idea sink in before moving on.
Click 'Submit': Once you are completely sure of the details, click the "Submit" or "Confirm" button to finalize the transaction. You may be asked for a security code sent to your mobile phone for verification.
Step 5: Track the Redemption and Await Funds
Now, the waiting game begins.
Sub-step 5.1: Monitor Your Account
Check your transaction history: You can usually see your pending withdrawal under the "Transactions" or "Cash statement" tab in your account.
Wait for the funds to clear: The funds will appear in your linked bank account after the settlement period. This process can take a few business days, so be patient.
10 Related FAQ Subheadings
How to verify a bank account with Vanguard? You can typically verify your bank account by logging into your Vanguard account, navigating to the "Payments" or "Account Services" section, and following the instructions to link an external bank account. This often involves providing your bank's routing and account number. Vanguard may require a small test deposit and withdrawal to confirm the account.
How to find the ticker symbol for Vanguard Federal Money Market Fund? The ticker symbol for the Vanguard Federal Money Market Fund is VMFXX. You can also find it on the Vanguard website under the fund's profile page.
QuickTip: Treat each section as a mini-guide.
How to check the daily yield of VMFXX? You can check the latest 7-day SEC yield for VMFXX directly on the Vanguard website's fund profile page for the Federal Money Market Fund.
How to set up automatic withdrawals from Vanguard? If you need to regularly access cash from your investments, you can often set up automatic withdrawals. Log in to your account, go to "Payments" or "Transfers," and set up a recurring electronic transfer to your linked bank account.
How to sell a Vanguard mutual fund by phone? You can sell your mutual fund shares by calling Vanguard directly at their customer service number (800-662-2739 in the US). A representative will assist you with the transaction.
How to avoid fees when selling VMFXX? Vanguard does not charge commissions to buy or sell Vanguard mutual funds, including VMFXX, online in a Vanguard brokerage account. However, you should always review the fund's prospectus for any potential fees or charges.
How to understand the settlement period for mutual funds? Mutual fund trades, including redemptions, are typically processed once a day after the market closes. The settlement period is the time it takes for the transaction to finalize and the money to become available. For mutual funds, this is usually one to three business days.
How to check if I have a linked bank account on Vanguard? Log in to your account and go to the "Account Services" or "Payments" section. You should see a list of your linked bank accounts. If none are listed, you will need to add and verify one before you can withdraw cash.
How to sell VMFXX if it's my settlement fund? In a Vanguard brokerage account, VMFXX is often the default settlement fund. When you sell another investment, the proceeds are placed in this fund. To access the money, you would need to initiate a cash withdrawal to your linked bank account from the settlement fund.
How to know if a redemption gate or liquidity fee is in effect for VMFXX? Vanguard's government money market funds, including VMFXX, have historically stated they will not voluntarily implement liquidity fees or redemption gates. However, you can always check the fund's prospectus or the Vanguard website for the latest information on these potential market stress measures.
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