Settlement date - move between accounts

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michaeljc70
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Joined: Thu Oct 15, 2015 3:53 pm

Settlement date - move between accounts

Post by michaeljc70 » Wed Jul 29, 2020 12:53 pm

I sold VTI in my IRA to transfer cash to my taxable margin account to buy SPTM (only because I already have SPTM in that account). I bought the SPTM the same day to avoid being out of the market. I now realize I should have transferred the VTI and left it or sold it and bought the SPTM in the taxable. I believe I will be hit with at least one day of margin interest in waiting to transfer the IRA cash to the taxable account. Not the end of the world money wise, but I could have done it better. Do I have this right (in terms of the settling)? All accounts are at TDA.

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michaeljc70
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Re: Settlement date - move between accounts

Post by michaeljc70 » Fri Jul 31, 2020 10:29 am

Since I didn't get any responses, I called TDA. There is conflicting information on their website on transfers/distributions (some referring you to go to menus that don't exist). Anyway, I cannot transfer from my IRA to my taxable account which I think is crazy. I have to transfer to my bank account and then move it from there to TDA. So that is going to add on a bunch of extra days.

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jeffyscott
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Re: Settlement date - move between accounts

Post by jeffyscott » Fri Jul 31, 2020 11:18 am

Is that only for cash, so you can still do in-kind transfers to take distributions? If so, is it maybe because one account has margin and the other does not (just trying to wildly guess at some reason)?

I have no experience with what you were doing and no TDA account, but for transferring the cash in from a bank account you should be able to invest that immediately. At least it works that way at other brokerages, I can set up cash transfer to my brokerage account and immediately invest the money and that is with no margin.
Time is your friend; impulse is your enemy. - John C. Bogle

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michaeljc70
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Re: Settlement date - move between accounts

Post by michaeljc70 » Fri Jul 31, 2020 12:01 pm

jeffyscott wrote:
Fri Jul 31, 2020 11:18 am
Is that only for cash, so you can still do in-kind transfers to take distributions? If so, is it maybe because one account has margin and the other does not (just trying to wildly guess at some reason)?

I have no experience with what you were doing and no TDA account, but for transferring the cash in from a bank account you should be able to invest that immediately. At least it works that way at other brokerages, I can set up cash transfer to my brokerage account and immediately invest the money and that is with no margin.
You would think a brokerage would want to keep the money there rather than forcing you to transfer it elsewhere. I'm not impressed by TDA and will be moving somewhere else. I was going to wait for the Schwab transition but who knows when that will finish.

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