How to transfer money from bank to vanguard automatically?

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sai
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How to transfer money from bank to vanguard automatically?

Post by sai » Tue Nov 18, 2014 5:38 pm

Hi,

is there a way to tell the bank to move any money that is say above $10000 to vanguard automatically(ACH - using vanguard direct deposit numbers)

Reason: if someone has a variable kind of pay, regular scheduled deposits dont work, getting paycheck directly to vanguard also dont help as i have to get money from vanguard to bank so that i can use it for paying credit cards, utilities etc, most of them are automatic.

so if bank can move any money in excess of some set limit to vanguard and from there a automatic exchange(set for daily) from money market to say target 2050 (or 3 fund portfolio) will work.

we have a HSA, called healthequity.com works exactly like this. its awesome.
we can set some limit, any money above that will be invested automatically, if the cash balance fall below that limit again we can tell it to automatically sell or not. if told to sell, it will get us back to the set cash value by selling stocks, else it will just wait for more deposits to happen and once the deposits exceed the threshold then start investing the excess. its all automatic.

Just thought of getting similar thing for the regular accounts as well.

Thanks
Last edited by sai on Sun Oct 15, 2017 7:07 pm, edited 1 time in total.

abyan
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Re: How to transfer money from bank to vanguard automaticall

Post by abyan » Wed Nov 19, 2014 12:07 am

I'm in the same boat as I'm self-employed. I finally just set up a $500 per month auto transfer from my bank to Vanguard, as I know I can afford $500 regardless of how bad the month. But yes, it would be nice to do, say, 10% of each deposit or something. I haven't found a way.

sai
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Re: How to transfer money from bank to vanguard automaticall

Post by sai » Mon Nov 24, 2014 5:31 pm

Just found a bank that can provide this facility, not sure how much we can trust that bank?

http://www.wesbanco.com/Personal/OtherS ... mumBalance

Thanks.

The Wizard
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Re: How to transfer money from bank to vanguard automaticall

Post by The Wizard » Mon Nov 24, 2014 6:16 pm

I think "automatically" is overrated here.
It's incredibly simple to use the Vanguard app on my smartphone to transfer money from my linked checking account to either my Roth IRA or my personal (taxable) account while I'm watching the news or whatever.
It's not like the bad old days...
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Uncle Pennybags
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Re: How to transfer money from bank to vanguard automaticall

Post by Uncle Pennybags » Tue Nov 25, 2014 1:01 am

The Wizard wrote: It's not like the bad old days...
It's almost too easy, hit the wrong button and a life savings can go poof. I never see most of my money, it's all bits and bytes Bitcoin like.

Admiral
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Re: How to transfer money from bank to vanguard automaticall

Post by Admiral » Tue Nov 25, 2014 6:13 am

https://personal.vanguard.com/us/whatwe ... es/savings

Sorry, this is the correct link for Direct Deposit information at Vanguard:

https://personal.vanguard.com/us/conten ... ontent.jsp

I don't think you can do exactly what you want, but you can move money at will.
Last edited by Admiral on Wed Nov 26, 2014 10:27 am, edited 1 time in total.

2retire
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Re: How to transfer money from bank to vanguard automaticall

Post by 2retire » Tue Nov 25, 2014 9:05 am

I'd be very surprised for you to find something like this. It is never in a bank's interest to have you take money out of their accounts, so why would they willingly do it for you.

If you look at the link the other person posted, they simply transfer the money around within their bank to another account you own.

placeholder
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Re: How to transfer money from bank to vanguard automaticall

Post by placeholder » Tue Nov 25, 2014 11:55 am

2retire wrote:I'd be very surprised for you to find something like this. It is never in a bank's interest to have you take money out of their accounts, so why would they willingly do it for you.
Actually it's quite easy to set up recurring withdrawals from a bank account for many purposes for instance my loan payment is pulled out that way and I never set anything up at that bank only with PenFed to do the pull.

2retire
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Re: How to transfer money from bank to vanguard automaticall

Post by 2retire » Tue Nov 25, 2014 1:17 pm

placeholder wrote:
2retire wrote:I'd be very surprised for you to find something like this. It is never in a bank's interest to have you take money out of their accounts, so why would they willingly do it for you.
Actually it's quite easy to set up recurring withdrawals from a bank account for many purposes for instance my loan payment is pulled out that way and I never set anything up at that bank only with PenFed to do the pull.
That is my point. Everyone keeps telling this person it is easy to pull, that is not what they want. They want a push. I'm saying you are going to have a hard time finding a bank willing to do a push.

rkhusky
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Re: How to transfer money from bank to vanguard automaticall

Post by rkhusky » Tue Nov 25, 2014 2:06 pm

2retire wrote: That is my point. Everyone keeps telling this person it is easy to pull, that is not what they want. They want a push. I'm saying you are going to have a hard time finding a bank willing to do a push.
My bank does automatic bill pay, which is a push of a specific amount. They don't have more complex options like pushing everything over a given dollar amount, which is what the OP seems to want.

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Uncle Pennybags
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Re: How to transfer money from bank to vanguard automaticall

Post by Uncle Pennybags » Tue Nov 25, 2014 4:29 pm

rkhusky wrote:My bank does automatic bill pay, which is a push of a specific amount. They don't have more complex options like pushing everything over a given dollar amount, which is what the OP seems to want.
The bank still has to get an order from whomever you want to pay. The electric company sends them the bill and the bank pays it. What the OP wants it the bank to monitor his account and give up money over a certain amount. I doubt that will happen.

rkhusky
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Re: How to transfer money from bank to vanguard automaticall

Post by rkhusky » Tue Nov 25, 2014 4:49 pm

Uncle Pennybags wrote:
rkhusky wrote:My bank does automatic bill pay, which is a push of a specific amount. They don't have more complex options like pushing everything over a given dollar amount, which is what the OP seems to want.
The bank still has to get an order from whomever you want to pay. The electric company sends them the bill and the bank pays it. What the OP wants it the bank to monitor his account and give up money over a certain amount. I doubt that will happen.
No. I can push a set amount to whatever bill payer I have in my list on a regular basis. I don't do this since I prefer to manually do it, but I will occasionally get a notice like "We have noticed that you have sent the same amount to BillPayer1 for the last 12 months, do you want to set up an automatic rule?" This would apply to things like a mortgage or car payment, which has a fixed monthly amount.

placeholder
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Re: How to transfer money from bank to vanguard automaticall

Post by placeholder » Tue Nov 25, 2014 5:01 pm

Doing a push on any schedule is not likely to be a problem but the OP's specific desire for any over a specified limit probably can't happen so if desired Sayeesh should monitor the account and do the push manually.

placeholder
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Re: How to transfer money from bank to vanguard automaticall

Post by placeholder » Tue Nov 25, 2014 5:03 pm

2retire wrote:That is my point. Everyone keeps telling this person it is easy to pull, that is not what they want. They want a push. I'm saying you are going to have a hard time finding a bank willing to do a push.
The problem is that you keep making these general statements that aren't accurate rather than address the specifics of the OP's need as it is easy to set up automatic pushes or pulls but not the exact sort that Sayeesh wants.

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tfb
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Re: How to transfer money from bank to vanguard automaticall

Post by tfb » Tue Nov 25, 2014 5:06 pm

2retire wrote:That is my point. Everyone keeps telling this person it is easy to pull, that is not what they want. They want a push. I'm saying you are going to have a hard time finding a bank willing to do a push.
Vanguard doesn't know how much you have in your checking account. Other than a fixed amount on a pre-set schedule, there's no way for Vanguard to pull just enough leaving $10k in your checking account. The banks knows your balance. You can set alerts at many banks. You will get an email or text when your balance reaches above a set threshold. When you get the alert, you invest. That's as close as you can get to do this automatically. I agree the bank won't send your money elsewhere conditionally. You can do a push for a fixed amount on a pre-set schedule, but not whenever the balance reaches X for the extra above X.
Harry Sit, taking a break from the forums.

hudson4351
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Re: How to transfer money from bank to vanguard automaticall

Post by hudson4351 » Tue Nov 25, 2014 6:00 pm

This might be beyond the scope of the bogleheads forum, but for anyone who knows or is willing to learn a scripting language (I use perl, but there are others), it wouldn't be terribly difficult in theory to code up a script that does the following:

1. Login to bank account
2. Check balance (important to use "available balance" number, which reflects all pending withdrawals)
3. If balance > threshold, initiate transfer to Vanguard account (this may require logging into your Vanguard account and pulling money from the linked bank account)

Set up the script to run once per day and forget about it.

sai
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Re: How to transfer money from bank to vanguard automaticall

Post by sai » Wed Nov 26, 2014 2:31 am

Hi,

Thanks for taking time to read/reply tho this post. I like to share the findings.

-Vanguard has a option called Direct deposit, where it gives a routing number and account number and behaves like a bank account and accepts ACH.
- Also you can tell to vanguard, which mutual fund to invest with the money that it receives.(you can set 3 funds and % for each - thus 3 fund portfolio)
**This number can be given for payroll, for bank external transfer or IRS refund etc, where Vanguard will be on receiving side and accepts anyone who pushes/deposits money to that number.
**Thus, if a bank has a option to flush excess money in your account to another bank (which can be vanguard). one could use that wesbanco bank to flush excess money into vanguard automatically.
##Turns out our (employer)payroll system can accept multiple bank account numbers and % of paycheck to deposit in each, so we could set like say 10% of paycheck to get deposited to vanguard ACH number and vangaurd will buy mutual funds automatically.

I will try some scripting as a fun project.

Thanks.

Admiral
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Re: How to transfer money from bank to vanguard automaticall

Post by Admiral » Wed Nov 26, 2014 7:05 am

sayeesh wrote:Hi,

Thanks for taking time to read/reply tho this post. I like to share the findings.

-Vanguard has a option called Direct deposit, where it gives a routing number and account number and behaves like a bank account and accepts ACH.
- Also you can tell to vanguard, which mutual fund to invest with the money that it receives.(you can set 3 funds and % for each - thus 3 fund portfolio)
**This number can be given for payroll, for bank external transfer or IRS refund etc, where Vanguard will be on receiving side and accepts anyone who pushes/deposits money to that number.
**Thus, if a bank has a option to flush excess money in your account to another bank (which can be vanguard). one could use that wesbanco bank to flush excess money into vanguard automatically.
##Turns out our (employer)payroll system can accept multiple bank account numbers and % of paycheck to deposit in each, so we could set like say 10% of paycheck to get deposited to vanguard ACH number and vangaurd will buy mutual funds automatically.

I will try some scripting as a fun project.

Thanks.
Isn't this what I posted in the link above? I guess I don't understand why you require this "automatic withdrawal/xfer if dollar amount goes above x"? It seems needlessly complicated. If you are worried about being overdrawn, then check your bank account periodically, when when the money is there, tell Vanguard to pull it out. It takes literally seconds.

The Wizard
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Re: How to transfer money from bank to vanguard automaticall

Post by The Wizard » Wed Nov 26, 2014 8:08 am

Two reasons I would not use such an excess cash feature even if it was available:
1) I use anticipation in paying my bills and inevitably it happens that I'll have large travel expenses the same month my homeowner's insurance and a property tax bill are due. So I maintain a higher checking balance the month prior to deal with that.
2) I want control over where my excess funds go. Does it go into my Roth IRA or my taxable account? And does it go into my new vehicle purchase pile or my wealth accumulation pile? Etc, etc..
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sai
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Re: How to transfer money from bank to vanguard automaticall

Post by sai » Wed Nov 26, 2014 10:07 pm

Admiral wrote: Isn't this what I posted in the link above? I guess I don't understand why you require this "automatic withdrawal/xfer if dollar amount goes above x"? It seems needlessly complicated. If you are worried about being overdrawn, then check your bank account periodically, when when the money is there, tell Vanguard to pull it out. It takes literally seconds.
Hi Admiral, yes the direct deposit is one of the services shown in the link that you gave. Yeah, you are right that checking bank account and placing the order takes just a minute, i am just trying to get things done a bit automatically, inspired a bit from a post at behaviorgap.com

http://www.behaviorgap.com/avoid-rethin ... decisions/
That’s why you automate good behavior. In this case, you have the $100 automatically pulled out of your account every week and deposited in a separate account. By automating good, one-time decisions, you can avoid rethinking it.

P.S. This feature is not some thing that is absolutely needed, i am just trying to do few things a bit differently (say a fun project, learn scripting and this is providing some kind of direction).

The Wizard wrote:Two reasons I would not use such an excess cash feature even if it was available:
1) I use anticipation in paying my bills and inevitably it happens that I'll have large travel expenses the same month my homeowner's insurance and a property tax bill are due. So I maintain a higher checking balance the month prior to deal with that.
2) I want control over where my excess funds go. Does it go into my Roth IRA or my taxable account? And does it go into my new vehicle purchase pile or my wealth accumulation pile? Etc, etc..
Thanks Wizard for sharing few potential pitfalls that I could face i go this route.

sai
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Re: How to transfer money from bank to vanguard automatically?

Post by sai » Wed Mar 02, 2016 9:15 pm

looks like someone took my idea and implemented it.
https://www.betterment.com/resources/in ... t-smarter/

but i am not a betterment customer...

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