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Find investments for your goal

To find the right investments, start by thinking about when you'll need the money.

Is your goal less than 1 year away?

If you need your money in 1 year or less, you're going to want to stick with low-risk investments that are easy to access, like money market funds.

Your fund choices

Vanguard Prime Money Market Fund is a great option if you're saving for a short-term goal. Like all our money market funds, it's a low-risk investment that offers a competitive yield and easy access.

Tax-exempt option

The interest you earn on your money market fund will be taxable, unless you live in a state that offers a tax-exempt money market fund. You can save even more if you're a resident of:

  • California
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania

It's important to note that yields on tax-exempt funds are usually lower, so they only make sense if you're in one of the highest tax brackets.

The money market settlement fund

In addition to the money market fund you select for your emergency cash, all new accounts will include Vanguard Federal Money Market Fund as the settlement fund.

This fund is used to pay for and receive proceeds from brokerage transactions, including when you buy or sell Vanguard ETFs®, and other account activity.

We'll set up this fund with a zero balance, and you'll need to put money into it to pay for any buy orders you place.

Is your goal more than 1 year away?

If you won't need the money for more than a year, you have additional investment options to consider. Some types of investments give you a greater chance to earn more toward your goal, but they also carry greater risk.

We make it easy to get an asset allocation recommendation online in just a few minutes. Simply answer some questions about your time frame, risk preferences, and financial situation.

Ready to get started?

Start saving for your goal today.

Open an account now

We're here to help

Talk with one of our investment specialists.

Call 800-891-5355

Monday through Friday
8 a.m. to 10 p.m., Eastern time

REFERENCE CONTENT

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Money market fund

A mutual fund that invests in very-short-term securities. Because they tend to have stable share prices and a relatively low rate of return, money market funds are often used for the cash portion of a portfolio or for holding money you'll need soon.

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Investment

An asset—like a mutual fund, ETF (exchange-traded fund), stock, bond, or CD (certificate of deposit)—purchased in the hope that it will increase in price or pay income.

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Risk

Usually refers to investment risk, which is a measure of how likely it is that you could lose money in an investment. However, there are other types of risk when it comes to investing.

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Asset mix

The way your account is divided among different asset classes, including stock, bond, and short-term or "cash" investments.

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Mutual fund

A type of investment that pools shareholder money and invests it in a variety of securities. Each investor owns shares of the fund and can buy or sell these shares at any time. Mutual funds are typically more diversified, low-cost, and convenient than investing in individual securities, and they're professionally managed.

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ETF (exchange-traded fund)

A type of investment with characteristics of both mutual funds and individual stocks. ETFs are professionally managed and typically diversified, like mutual funds, but they can be bought and sold at any point during the trading day using straightforward or sophisticated strategies.

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ETF (exchange-traded fund)

An ETF combines the diversification and professional management of a mutual fund with the trading flexibility and intraday pricing of an individual stock.

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Asset allocation

The way an investment portfolio is divided among various asset classes, such as cash investments, bonds, and stocks. Also known as "investment mix."