Cash deposit to VMMXX / distribution timing

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MisterMister
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Cash deposit to VMMXX / distribution timing

Post by MisterMister » Fri Jan 11, 2019 3:48 pm

I am contemplating transferring a chunk of money from a bank money market to Vanguard prime or similar fund.

When I do these transfer from bank to bank, I've often used wire transfers because it was worth it to avoid the float time where I am not earning interest.

Since distributions on VMMX are paid monthly are there any related timing issues? Is it still to my advantage to get the funds in the account as quickly as possible? Not sure how the trade date effects the amount of the next VMMXX distribution or even if it does.

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welderwannabe
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Re: Cash deposit to VMMX / distribution timing

Post by welderwannabe » Fri Jan 11, 2019 3:50 pm

They are paid monthly but accrued daily. The sooner the money is there the sooner you start earning. :moneybag
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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welderwannabe
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Re: Cash deposit to VMMXX / distribution timing

Post by welderwannabe » Fri Jan 11, 2019 3:52 pm

Also, don't know what your plans are or how much this is, but when you do a 'buy' from Vanguard and pick one of your linked bank accounts as a source the fund is bought when they settle up that night. You start earning the next day even if VG hasn't gotten the funds yet.

Im not sure a wire xfer would speed any of that up.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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MisterMister
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Re: Cash deposit to VMMXX / distribution timing

Post by MisterMister » Fri Jan 11, 2019 3:54 pm

Thanks, didn't realize I'd get credit the same day I started the transfer if I do it from Vanguard. It doesn't sound like the wire would help.

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welderwannabe
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Re: Cash deposit to VMMXX / distribution timing

Post by welderwannabe » Fri Jan 11, 2019 3:56 pm

MisterMister wrote:
Fri Jan 11, 2019 3:54 pm
Thanks, didn't realize I'd get credit the same day I started the transfer if I do it from Vanguard. It doesn't sound like the wire would help.
The ACH is pretty fast anyways. Yesterday I did a buy of a Vanguard Federal MM using my Ally account as the source. Ally had posted the ACH pull from vanguard by the time I got up this morning.

Important to note that all of this assumes you get the buy in while the market is still opened, or it counts for the next day.
Last edited by welderwannabe on Fri Jan 11, 2019 3:59 pm, edited 1 time in total.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

Topic Author
MisterMister
Posts: 129
Joined: Thu Nov 01, 2018 9:50 pm

Re: Cash deposit to VMMXX / distribution timing

Post by MisterMister » Fri Jan 11, 2019 3:57 pm

That's exactly the combo I have, Ally to VG. Unfortunately Ally is not a linked account just yet, but their MM rate is pretty good so I suppose I can wait until I do that.

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