Two cent check from Vanguard

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Two cent check from Vanguard

Post by cheese_breath »

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? :D
The surest way to know the future is when it becomes the past.
User avatar
gatorking
Posts: 1498
Joined: Tue Feb 20, 2007 5:15 pm
Location: MA

Re: Two cent check from Vanguard

Post by gatorking »

Use it to give people advice. :D
User avatar
Sheepdog
Posts: 5783
Joined: Tue Feb 27, 2007 2:05 pm
Location: Indiana, retired 1998 at age 65

Re: Two cent check from Vanguard

Post by Sheepdog »

gatorking wrote:Use it to give people advice. :D
8-) that's a good one. :thumbsup
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

gatorking wrote:Use it to give people advice. :D
I'm not sure my advice is worth 2 cents. :D
The surest way to know the future is when it becomes the past.
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: Two cent check from Vanguard

Post by sscritic »

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.
an_asker
Posts: 4903
Joined: Thu Jun 27, 2013 2:15 pm

Re: Two cent check from Vanguard

Post by an_asker »

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.
I think sscritic deserves the two cents! ;-)

[This is an actionable, financial post]
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

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.
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.
The surest way to know the future is when it becomes the past.
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

an_asker wrote:
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.
I think sscritic deserves the two cents! ;-)

[This is an actionable, financial post]
I'm keeping it for myself. He can watch Gerri Willis for two cents more. :D
The surest way to know the future is when it becomes the past.
JDDS
Posts: 1056
Joined: Sun Mar 16, 2014 2:24 pm

Re: Two cent check from Vanguard

Post by JDDS »

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.
First time poster here, but long time reader--thanks to all.

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.
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: Two cent check from Vanguard

Post by sscritic »

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.
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.

Thanks for increasing the ER of Prime Money Market (as if it needed any increasing). :)
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: Two cent check from Vanguard

Post by sscritic »

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?
User avatar
abuss368
Posts: 27850
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Two cent check from Vanguard

Post by abuss368 »

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."
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

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?
WOW! I never thought of it that way. I should have moved it sooner. :D
The surest way to know the future is when it becomes the past.
User avatar
JonnyDVM
Posts: 2999
Joined: Wed Feb 12, 2014 5:51 pm
Location: Atlanta, GA

Re: Two cent check from Vanguard

Post by JonnyDVM »

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
Levett
Posts: 4177
Joined: Fri Feb 23, 2007 1:10 pm
Location: upper Midwest

Re: Two cent check from Vanguard

Post by Levett »

"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."

:thumbsup ;-)

Lev
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

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."

:thumbsup ;-)

Lev
Mortgage is paid off. Cars are free and clear. Maybe I can put it towards my next Discover payment.
The surest way to know the future is when it becomes the past.
Mike Scott
Posts: 3579
Joined: Fri Jul 19, 2013 2:45 pm

Re: Two cent check from Vanguard

Post by Mike Scott »

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.
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: Two cent check from Vanguard

Post by sscritic »

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.
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?
Levett
Posts: 4177
Joined: Fri Feb 23, 2007 1:10 pm
Location: upper Midwest

Re: Two cent check from Vanguard

Post by Levett »

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! :thumbsup

Lev
sscritic
Posts: 21853
Joined: Thu Sep 06, 2007 8:36 am

Re: Two cent check from Vanguard

Post by sscritic »

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! :thumbsup

Lev
Or use the official quote function. That's what it is there for. See above, but not that far, for an example.
User avatar
Topic Author
cheese_breath
Posts: 11786
Joined: Wed Sep 14, 2011 7:08 pm

Re: Two cent check from Vanguard

Post by cheese_breath »

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.
Could I just endorse the check and drop it in, or do I have to cash it first?
The surest way to know the future is when it becomes the past.
User avatar
CABob
Posts: 5091
Joined: Sun Feb 25, 2007 7:55 pm
Location: Southern California

Re: Two cent check from Vanguard

Post by CABob »

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
User avatar
FrugalInvestor
Posts: 6214
Joined: Thu Nov 06, 2008 11:20 pm

Re: Two cent check from Vanguard

Post by FrugalInvestor »

Sheepdog wrote:
gatorking wrote:Use it to give people advice. :D
8-) that's a good one. :thumbsup
+1
Have a plan, stay the course and simplify. Then ignore the noise!
User avatar
Nestegg_User
Posts: 2112
Joined: Wed Aug 05, 2009 1:26 pm

Re: Two cent check from Vanguard

Post by Nestegg_User »

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
User avatar
mhc
Posts: 5257
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Two cent check from Vanguard

Post by mhc »

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
Shredder
Posts: 216
Joined: Sat Jan 11, 2014 12:00 am

Re: Two cent check from Vanguard

Post by Shredder »

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
When I worked in claims we had to call on any uncashed check if it was outstanding after a period of time. Ugh.
inbox788
Posts: 8372
Joined: Thu Mar 15, 2012 5:24 pm

Re: Two cent check from Vanguard

Post by inbox788 »

Shredder wrote:
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
When I worked in claims we had to call on any uncashed check if it was outstanding after a period of time. Ugh.
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.

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
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Two cent check from Vanguard

Post by placeholder »

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.
Post Reply