Expert: Warren Boroson - 4/19/2004

Question
Thank you for responding to my recent questions. I have one final question for you: In the information you provided me with today you stated that you hope that my money market fund is a Vanguard money market fund. Is this of special importance? (My entire IRA portfolio, including the money market fund is with Schwab).
Thank you very much.

Answer
Dear Robert Watkins:

Vanguard Prime Money Market Fund is one of the consistently high payers among money market funds -- simply because of its low expenses.

Right now, with yields so low, it probably doesn't make much difference which money market fund you use.

But when rates go up, there will be a big difference between the yield of a fund like Vanguard's and those of other fund families. Especially if you are investing a lot of money.

Best,

Warren Boroson