Vanguard Asset Mix Illustration [what is short term reserve?]

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3DTV
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Vanguard Asset Mix Illustration [what is short term reserve?]

Post by 3DTV » Fri Jun 10, 2016 6:07 pm

On my account overview it gives my breakdown on a pie chart along with the recommended. I am having a hard time figuring out what it is depicting. My current allocation is 75% Stock (60/10, US/INT) and 25% Bond. It shows me 51% Stock, 17.5% Bond & 31.5% Short term Reserve. What is short term reserve?

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grabiner
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Re: Vanguard Asset Mix Illustration [what is short term reserve?]

Post by grabiner » Fri Jun 10, 2016 8:54 pm

"Short-term reserves" are cash and cash-like investments, such as money-market funds. Many stock funds hold a small amount of cash (in Treasury bills, for example), for liquidity, but if you have this much in cash and don't have a large money-market balance, something is wrong with either one of your funds or Vanguard's data about that fund.
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buccimane
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Re: Vanguard Asset Mix Illustration [what is short term reserve?]

Post by buccimane » Wed Sep 13, 2017 1:09 pm

I am going to hi-jack this old thread for a moment..

I have just opened an account with Vanguard and it is showing that I have 45% stock 5% bond and 50% short term reserves. I am confused about the short term reserves. I opted to contribute to the Vanguard 2065 Target Retirement Fund 100%. Why is it saying I have so much invested in short term reserves??

Not sure if this makes a difference, but I did just contribute to the retirement fund 3 days ago- however it is showing up that I am fully invested in it, just not in the Asset Mix Illustration :confused
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livesoft
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Re: Vanguard Asset Mix Illustration [what is short term reserve?]

Post by livesoft » Wed Sep 13, 2017 1:13 pm

Vanguard is probably double-counting your money. You probably started by moving cash to Vanguard, so that's definitely short-term reserves. Then you used the cash in the past 72 hours to buy your Target fund. Or maybe you placed the order 3 days ago and it actually was executed overnight on Monday, so you are only 36 hours into owning the Target fund. Vanguard doesn't keep good track of your money when it comes to any analysis, so it thinks you have twice as much money as you do and half is still your cash from 3+ days ago.

Eventually, Vanguard will turn on more of its computers and the analysis will be updated ... only to be one or two days behind your transactions for the rest of your life.
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soccerrules
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Re: Vanguard Asset Mix Illustration [what is short term reserve?]

Post by soccerrules » Wed Sep 13, 2017 1:15 pm

bucci-.
Is there a settlement period before your trades/exchanges become final ?-- then your graph will update. (especially if you sold funds and then bought VG 2065, and had money in cash/settlement account)
Or
are you looking at the Target Allocation that might be a default that you would need to adjust for your AA.

if not wait 1-2 days and then call VG.
Don't let your outflow exceed your income or your upkeep will be your downfall.

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