Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

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randydimera
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Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by randydimera » Sat Jan 20, 2018 8:48 am

I just transfered a stock over and it will only let me reinvest my dividends and capital gains even though where I came from I could get dividends sent to my bank account. This kind of is unfortunate because I saw that as just a little extra spending money every 3 months. Why do they do this?

jebmke
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by jebmke » Sat Jan 20, 2018 9:00 am

You need to look around a little more. I have my dividends swept to a money market fund and I transfer this to my bank account whenever I want them.
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randydimera
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by randydimera » Sat Jan 20, 2018 9:06 am

jebmke wrote:
Sat Jan 20, 2018 9:00 am
You need to look around a little more. I have my dividends swept to a money market fund and I transfer this to my bank account whenever I want them.
Can you have the money market fund automatically put any money in it in your bank account? Or do you have to manually do it?

jebmke
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by jebmke » Sat Jan 20, 2018 9:14 am

randydimera wrote:
Sat Jan 20, 2018 9:06 am
jebmke wrote:
Sat Jan 20, 2018 9:00 am
You need to look around a little more. I have my dividends swept to a money market fund and I transfer this to my bank account whenever I want them.
Can you have the money market fund automatically put any money in it in your bank account? Or do you have to manually do it?
I don't know. I go into my VG account at least monthly to monitor for fraudulent transactions so doing a bank transfer manually only takes an extra 10-15 seconds.
When you discover that you are riding a dead horse, the best strategy is to dismount.

dbr
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by dbr » Sat Jan 20, 2018 9:19 am

Just as a comparison, all the dividends paid at any of my brokers (there are three) just go into sweep accounts and I manually move the money where I want or need it at any point in time. I really haven't bothered to investigate setting up anything else. Among all the possible places cash can reside in my life about 2% of the portfolio just sloshes around in one or another of them.

livesoft
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by livesoft » Sat Jan 20, 2018 9:32 am

randydimera wrote: Can you have the money market fund automatically put any money in it in your bank account? Or do you have to manually do it?
That's a good question which I don't know the answer to.

It would be funny though if any money in the money market fund was swept to your external checking account. So you transfer from checking to MMF to buy something at Vanguard, but before you have a chance to do that, the money reappears in your checking.

At Fidelity one can have distributions for a given ticker symbol go to external checking.
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Doc
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by Doc » Sat Jan 20, 2018 10:03 am

You can set up an automatic withdrawal from your sweep account at monthly, quarterly, six months or annual intervals and after you set it up you can enter a "skip" for times you don't want. But I would just use dbr's plan.
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tibbitts
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by tibbitts » Sat Jan 20, 2018 10:10 am

jebmke wrote:
Sat Jan 20, 2018 9:14 am
randydimera wrote:
Sat Jan 20, 2018 9:06 am
jebmke wrote:
Sat Jan 20, 2018 9:00 am
You need to look around a little more. I have my dividends swept to a money market fund and I transfer this to my bank account whenever I want them.
Can you have the money market fund automatically put any money in it in your bank account? Or do you have to manually do it?
I don't know. I go into my VG account at least monthly to monitor for fraudulent transactions so doing a bank transfer manually only takes an extra 10-15 seconds.
Unless I had very trusted alerts set up I try to log on almost every day that I have access (which sometimes I don't for a week at a time.) I use VG to view my other accounts (Fidelity, etc.) so if you use a different aggregation service then just log onto that of course.

Bradiator
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Re: Why can you only send dividends/capital gains from vanguard funds to your bank account at vanguard?

Post by Bradiator » Sat Jan 20, 2018 11:52 am

I have been able to have my dividends from certain Vanguard funds sent to my checking account at B of A. This was very easy to set up in the Account Maintenance section. Perhaps it doesn't work for individual stocks? I wouldn't know.

I also stopped thinking about it as "extra spending money" myself because I am an accumulator and, of course, cash is fungible.

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