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should i move my money market funds into bonds?
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your only real alternative is something like t-bills via your broker or treasurydirect or short-term bond funds like the vanguard short-term investment-grade fund.  the problem with this strategy is that these options are different animals than a money market. you're either going to subject yourself to principal risk or lose the flexibility of withdrawing the money. a better strategy imo is to look at your overall portfolio and what you actually want. if you have $100k in a money market, and you are not going to need $100k in cash for the forseeable future -- you are "paying" (via the low yield) for flexibility that you don't need. if get your money into an appropriately diversified portfolio, you'll end up with a more optimal return. if the money involved is relatively small, doing nothing is a real option as well. $5,000 at 0.5% yields $25, and a 5% return yields only $250. if you need that money soon to pay tuition, use for living expenses, etc, it's not worth the trouble.
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