[lyrrad]

One issue I have with this article is that it doesn't discuss the distinction between Government money market funds that invest in US Treasury debt and repurchase agreements, and Prime money market funds, that also invest in riskier assets like corporate paper.

I'm comfortable with holding significant amounts in a Government MM fund, but less so with Prime MM funds.

[ryandrake]

Also, if you value the state tax exemption (for example, you live in California), you need to make sure the fund only invests in Treasuries and not in repurchase agreements. Treasuries are state tax exempt, but repos are not. If your fund holds a mix, you need to tease them apart at tax time.

Or just buy the Treasuries directly. Why pay a fund to do it for you?

[delfinom]

Yea, buying into a MMF only makes sense if you need the money to be semi liquid since it only takes a day or so to cash out.

Otherwise buying short term treasuries is quite easy on most brokers. The downsise being it may not be as quick to sell on the secondary market when you need to cash out unless you get competitive with the sell terms.