When are funds available after selling a Vanguard fund?

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When are funds available after selling a Vanguard fund?

Postby johnanglemen » Wed Dec 26, 2012 4:45 pm

If I sell a Vanguard mutual fund (via Vanguard), when I can expect my funds to actually appear in my linked checking account?
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Re: When are funds available after selling a Vanguard fund?

Postby livesoft » Wed Dec 26, 2012 4:48 pm

I think a minimum of 2 days later.

Suppose you placed an order to sell on Monday December 24th before the market closed and the order was accepted. Then you would see the shares were sold by looking at your account on Christmas morning December 25th, but the actual money would be no where. Then overnight on December 26, Vanguard would do an ACH transfer to your checking account. If your checking account was any good, then it would be there on the morning of December 27th if you looked.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: When are funds available after selling a Vanguard fund?

Postby johnanglemen » Wed Dec 26, 2012 4:51 pm

Hmm, but I was under the impression that mutual funds settle T+1. And my bank says funds are available as soon as they're posted via ACH. So why would they not be available the day after the sale?
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Re: When are funds available after selling a Vanguard fund?

Postby livesoft » Wed Dec 26, 2012 4:52 pm

Because they are stuck somewhere in Vanguard's computer system.

In other words, they are available to ACH transfer after the T+1 settlement somewhere on a Vanguard hard disk.

If you want it faster, then use WellsFargo.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: When are funds available after selling a Vanguard fund?

Postby JamesSFO » Wed Dec 26, 2012 5:01 pm

johnanglemen wrote:Hmm, but I was under the impression that mutual funds settle T+1. And my bank says funds are available as soon as they're posted via ACH. So why would they not be available the day after the sale?


T+1 = means the funds were available to you at Vanguard the next day, and if you had a MMkt account it would be there. The ACH time is separate.
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Re: When are funds available after selling a Vanguard fund?

Postby johnanglemen » Wed Dec 26, 2012 5:12 pm

Cool, Vanguard said they'll wire them out for free the next day so no need for Wells Fargo.
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Re: When are funds available after selling a Vanguard fund?

Postby livesoft » Wed Dec 26, 2012 5:18 pm

Let us know how that wire goes. Will you have your funds at 9 am or at 4 pm?
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: When are funds available after selling a Vanguard fund?

Postby johnanglemen » Wed Dec 26, 2012 5:19 pm

livesoft wrote:Let us know how that wire goes. Will you have your funds at 9 am or at 4 pm?


9am. Not that it matters. The day was my concern.
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Re: When are funds available after selling a Vanguard fund?

Postby dodonnell » Wed Dec 26, 2012 6:23 pm

FYI:

Many banks will charge an "incoming wire fee" of $20 or $25 or so.
... many do not charge for incoming ACHs.
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