Settlement Fund ... am I missing something?

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RRAAYY3
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Joined: Thu Jan 17, 2013 12:32 pm

Settlement Fund ... am I missing something?

Postby RRAAYY3 » Thu May 18, 2017 10:24 pm

I understand the "sweep in/out", funds available to trade/withdraw, etc. ... say I notice a dip and want to purchase more total us admiral shares, as long as I submit the transaction before 4PM EST - Does it matter [in terms of price/share] if I did this transaction from my bank (Chase/Ally) or my settlement fund?

Basically, is there any point in keeping funds in the settlement fund? Am I missing a significant perk/advantage? I've found moving funds there basically forces me to invest, but would I get the same price/ease from simply buying with my linked bank accts?

* taxable brokerage acct

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Kevin M
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Re: Settlement Fund ... am I missing something?

Postby Kevin M » Thu May 18, 2017 10:44 pm

No difference. There's not much reason to keep anything in the settlement fund if you're just buying mutual fund shares.

EDIT: In years past you could not do same-day Vanguard mutual fund transactions at Vanguard from a linked bank account, but a few years ago they changed that, and so now you can. That's when I stopped keeping anything in Vanguard money market funds in taxable accounts.

Kevin
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ray333
Posts: 153
Joined: Thu Mar 09, 2017 8:47 am

Re: Settlement Fund ... am I missing something?

Postby ray333 » Thu May 18, 2017 11:42 pm

Kevin M wrote:No difference. There's not much reason to keep anything in the settlement fund if you're just buying mutual fund shares.

EDIT: In years past you could not do same-day Vanguard mutual fund transactions at Vanguard from a linked bank account, but a few years ago they changed that, and so now you can. That's when I stopped keeping anything in Vanguard money market funds in taxable accounts.

Kevin


Thank you! Ally to Vanguard directly it is ...


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