Two cent check from Vanguard
- cheese_breath
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Two cent check from Vanguard
I received a 2 cent check from Vanguard yesterday. I had moved my remaining RMD amount into the money market while pondering which taxable account to invest it in. I decided last week and transferred the whole MM amount into the taxable investment. Apparently it had earned a whole two cents dividend while in the MM which hadn't been posted yet. So I got a 2 cent check yesterday. Any suggestions where to invest this windfall?
The surest way to know the future is when it becomes the past.
Re: Two cent check from Vanguard
Use it to give people advice.
Re: Two cent check from Vanguard
that's a good one.gatorking wrote:Use it to give people advice.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
- cheese_breath
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Re: Two cent check from Vanguard
I'm not sure my advice is worth 2 cents.gatorking wrote:Use it to give people advice.
The surest way to know the future is when it becomes the past.
Re: Two cent check from Vanguard
Did you do a dollar amount or 100%? When I have sold all of bond fund to buy something else, the accrued dividends are sent separately on the same day, but they are sent to the same fund that I bought with the rest of the money. In other words, your two cents should have bought you some more shares. Perhaps the two cents would have purchased less than 0.001 shares, the smallest amount that Vanguard seems to offer.
Re: Two cent check from Vanguard
I think sscritic deserves the two cents!sscritic wrote:Did you do a dollar amount or 100%? When I have sold all of bond fund to buy something else, the accrued dividends are sent separately on the same day, but they are sent to the same fund that I bought with the rest of the money. In other words, your two cents should have bought you some more shares. Perhaps the two cents would have purchased less than 0.001 shares, the smallest amount that Vanguard seems to offer.
[This is an actionable, financial post]
- cheese_breath
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Re: Two cent check from Vanguard
I used 100%. I sent it to my credit union savings account to draw a few cents more more interest than the Vanguard MM for another few days. After the TSM ex-dividend date it's going into my taxable TSM account.sscritic wrote:Did you do a dollar amount or 100%? When I have sold all of bond fund to buy something else, the accrued dividends are sent separately on the same day, but they are sent to the same fund that I bought with the rest of the money. In other words, your two cents should have bought you some more shares. Perhaps the two cents would have purchased less than 0.001 shares, the smallest amount that Vanguard seems to offer.
The surest way to know the future is when it becomes the past.
- cheese_breath
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Re: Two cent check from Vanguard
I'm keeping it for myself. He can watch Gerri Willis for two cents more.an_asker wrote:I think sscritic deserves the two cents!sscritic wrote:Did you do a dollar amount or 100%? When I have sold all of bond fund to buy something else, the accrued dividends are sent separately on the same day, but they are sent to the same fund that I bought with the rest of the money. In other words, your two cents should have bought you some more shares. Perhaps the two cents would have purchased less than 0.001 shares, the smallest amount that Vanguard seems to offer.
[This is an actionable, financial post]
The surest way to know the future is when it becomes the past.
Re: Two cent check from Vanguard
First time poster here, but long time reader--thanks to all.sscritic wrote:Did you do a dollar amount or 100%? When I have sold all of bond fund to buy something else, the accrued dividends are sent separately on the same day, but they are sent to the same fund that I bought with the rest of the money. In other words, your two cents should have bought you some more shares. Perhaps the two cents would have purchased less than 0.001 shares, the smallest amount that Vanguard seems to offer.
At the end of January I sold a few legacy holdings in my taxable to buy some more PenFed CDs. Once the money was sitting in VMMXX, I made my first push back to my bank. I was feeling lazy so I chose the 100% option. After the transaction, I noticed a $0.01 dividend, yet I didn't really know what happened to that penny! Low and behold I got a one cent check. I keep forgetting about it. I'm not sure if I'll make more work for Vanguard cashing it in vs. just forgetting about it forever.
Re: Two cent check from Vanguard
That explains it. I think based on my experience that if you had used the MM money to buy a Vanguard fund, they would not have sent you a check.cheese_breath wrote: I used 100%. I sent it to my credit union savings account to draw a few cents more more interest than the Vanguard MM for another few days. After the TSM ex-dividend date it's going into my taxable TSM account.
Thanks for increasing the ER of Prime Money Market (as if it needed any increasing).
Re: Two cent check from Vanguard
Let's see. If you earned two cents in Prime in 14 days and then moved the same money to your credit union for 14 days to earn extra before reinvesting it in TSM and if your credit union pays 10 times what Prime pays, you went through all of this for 20 cents. Is that about right?
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Re: Two cent check from Vanguard
I once received a .05 check from Vanguard. I called them and asked why considering postage was greater. The response was that no matter the amount involved they are obligated to mail it.
John C. Bogle: “Simplicity is the master key to financial success."
- cheese_breath
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Re: Two cent check from Vanguard
WOW! I never thought of it that way. I should have moved it sooner.sscritic wrote:Let's see. If you earned two cents in Prime in 14 days and then moved the same money to your credit union for 14 days to earn extra before reinvesting it in TSM and if your credit union pays 10 times what Prime pays, you went through all of this for 20 cents. Is that about right?
The surest way to know the future is when it becomes the past.
Re: Two cent check from Vanguard
Put it in equities and in 20 years you might have an extra nickel (adjusted for inflation of course). I'm sure many on this forum will suggest using the $0.02 towards paying down your mortgage so you can sleep better at night.
I’d trade it all for a little more |
-C Montgomery Burns
Re: Two cent check from Vanguard
"I'm sure many on this forum will suggest using the $0.02 towards paying down your mortgage so you can sleep better at night."
Lev
Lev
- cheese_breath
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Re: Two cent check from Vanguard
Mortgage is paid off. Cars are free and clear. Maybe I can put it towards my next Discover payment.Levett wrote:"I'm sure many on this forum will suggest using the $0.02 towards paying down your mortgage so you can sleep better at night."
Lev
The surest way to know the future is when it becomes the past.
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Re: Two cent check from Vanguard
Drop them in the penny dish at the local convenience store while palming a few more pennies. No need to wait 30 years for it to turn into a nickel.
Re: Two cent check from Vanguard
We don't condone illegal activity on this board, but practicing your palming technique might be good for you if you want to perform as an amateur magician. Last week, one of my current soaps showed someone passing his hand over a plate of red, black, and white beans, with one of each color appearing in his hand after the pass without a single remaining bean being disturbed. Fact or CGI?Mike Scott wrote:Drop them in the penny dish at the local convenience store while palming a few more pennies. No need to wait 30 years for it to turn into a nickel.
Re: Two cent check from Vanguard
cheese_breath--
The witticism belongs to JonnyDVM. I should have put quote marks around jonny's comment rather than just italics.
Jonny's comment is wonderful!
Lev
The witticism belongs to JonnyDVM. I should have put quote marks around jonny's comment rather than just italics.
Jonny's comment is wonderful!
Lev
Re: Two cent check from Vanguard
Or use the official quote function. That's what it is there for. See above, but not that far, for an example.Levett wrote:cheese_breath--
The witticism belongs to JonnyDVM. I should have put quote marks around jonny's comment rather than just italics.
Jonny's comment is wonderful!
Lev
- cheese_breath
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Re: Two cent check from Vanguard
Could I just endorse the check and drop it in, or do I have to cash it first?Mike Scott wrote:Drop them in the penny dish at the local convenience store while palming a few more pennies. No need to wait 30 years for it to turn into a nickel.
The surest way to know the future is when it becomes the past.
Re: Two cent check from Vanguard
Perhaps the best use would be to tear it up and discard. Vanguard's cost to pay the check might be more than 2 cents and will be paid by you, I, and all other shareholders.
Bob
- FrugalInvestor
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Re: Two cent check from Vanguard
+1Sheepdog wrote:that's a good one.gatorking wrote:Use it to give people advice.
Have a plan, stay the course and simplify. Then ignore the noise!
- Nestegg_User
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Re: Two cent check from Vanguard
Didn't we have a similar thread some time ago like this? Wasn't the consensus that if enough didn't cash those checks, some unfortunate individual in accounting will have to spend time to find the irregularity... thus costing some additional funds
Re: Two cent check from Vanguard
I did a similar thing as the OP and received a $0.01 check from Vanguard. Vanguard should review their policy on this. If I electronically moved the money from the Prime Money Market to my bank, why do they think I want a one cent check?
52% TSM, 23% TISM, 24.5% TBM, 0.5% cash
Re: Two cent check from Vanguard
When I worked in claims we had to call on any uncashed check if it was outstanding after a period of time. Ugh.Nearing_Destination wrote:Didn't we have a similar thread some time ago like this? Wasn't the consensus that if enough didn't cash those checks, some unfortunate individual in accounting will have to spend time to find the irregularity... thus costing some additional funds
Re: Two cent check from Vanguard
I got one for a penny many years ago. It might have been interest on a closed brokerage account. I laughed, and held on to the check for a while. Eventually, I got tired of it, and wondered if it was still any good, but decided to just throw it away. I never had anyone call me about it or heard any follow up. It was a waste of a first class stamp, not to mention paper, ink, and envelope, to mail a check for a penny. Would have been a waste of gas and time, and bank resources to go deposit the check at the time. Now it would be a waste of time to take a picture and photo deposit the check, but for a nickle or dime, I might do it.Shredder wrote:When I worked in claims we had to call on any uncashed check if it was outstanding after a period of time. Ugh.Nearing_Destination wrote:Didn't we have a similar thread some time ago like this? Wasn't the consensus that if enough didn't cash those checks, some unfortunate individual in accounting will have to spend time to find the irregularity... thus costing some additional funds
Years later, I was looking up some unclaimed funds. It's pretty funny what shows up.
https://ucpi.sco.ca.gov/UCP/Default.aspx
The state is holding some unclaimed funds from
Steven Jobs, Palo Alto
2101 WAVERLEY STREET
Including this $0.06 dividend.
https://ucpi.sco.ca.gov/ucp/PropertyDet ... D=25594606
And 1 share of IBM stock.
https://ucpi.sco.ca.gov/ucp/PropertyDet ... D=11302201
I wonder why he kept one share of IBM? I recall he once sold all his Apple stock, don't know why I think he kept 1 share, or I may be wrong about that. It might have been administrative, like keeping a $1 salary so he could technically be an employee and get healthcare benefit.
I guess his estate could technically claim these items if they wanted to, but I think they're doing alright.
http://allaboutstevejobs.com/pics/steve ... /yacht.php
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Re: Two cent check from Vanguard
Two years ago I did a rollover from an IRA to my 401k and had the tiny bit of interest thing happen too (like 4 cents) but fortunately I had dallied sending in the original rollover check so I was able to just include both with the same form when I sent it to the company.