How Do You Transfer Your Money?

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Investapreneuer
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How Do You Transfer Your Money?

Post by Investapreneuer » Fri Jun 06, 2014 1:00 pm

Some questions about the practical transfers of cash:

How do you move your money between bank account to investment account?

Does it happen automatically?

Do you deposit directly into a fund, or is there a "staging account" -- perhaps a money market -- from which you then move the money into funds to maintain your allocations in balance?

I'm thinking checking --> a savings account "staging area" used only for cash to be moved to my investment accounts, to be deposited into weekly, automatically, and from there ---> invest directly into mutual funds monthly, manually. Thoughts on this? Too complicated? How do you do it?

I'm a huge believer in automatically depositing a certain amount or percentage regularly into a savings account. Now, I'm transitioning the same practice investment accounts, and look forward to your experiences.

The Wizard
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Re: How Do You Transfer Your Money?

Post by The Wizard » Fri Jun 06, 2014 1:10 pm

I use my Credit Union checking account as the hub for transactions to/from a half dozen other financial institutions.
It's simple and works fine.

Back when I was in the Working Class, yes, I had a certain amount deducted from my paycheck each week and sent by my employer directly to my tax-sheltered investment accounts...
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Re: How Do You Transfer Your Money?

Post by placeholder » Fri Jun 06, 2014 1:37 pm

Most brokerages allow you to link bank accounts and move money at least into the brokerage or even frequently back and forth and the entire process can often be done completely online by using a "micro deposit" system where you give the custodian the banking information and they deposit a couple of amounts of a few cents each then you report back what those were.

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pjstack
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Re: How Do You Transfer Your Money?

Post by pjstack » Fri Jun 06, 2014 3:05 pm

I have a set amount deposited every month directly from my checking account to a mutual fund of my choice.

It's my regular checking account, not a separate (or "special") checking account.
pjstack

Bmac
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Re: How Do You Transfer Your Money?

Post by Bmac » Fri Jun 06, 2014 4:29 pm

Our taxable Vanguard money market fund account has our Wells Fargo checking account number and routing number stored. I can initiate a cash transfer in either direction with just a couple of clicks from within our Vanguard online site. So far cash always from Wells to Vanguard, but presumably the other direction in retirement. Super easy and convenient. I don't have automatic monthly deposits set up. Just do a transfer when enough cash has built up.

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Investapreneuer
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Re: How Do You Transfer Your Money?

Post by Investapreneuer » Fri Jun 06, 2014 6:48 pm

And from the Vanguard money market fund do you then move funds to equity / bond investments, or does the money live in the money market?

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BL
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Re: How Do You Transfer Your Money?

Post by BL » Fri Jun 06, 2014 7:00 pm

We transfer directly from checking account to the fund we wish to purchase at Vanguard. No need for mm anymore with their mutual funds. Just a few clicks online will do it.

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Re: How Do You Transfer Your Money?

Post by Jack FFR1846 » Fri Jun 06, 2014 7:12 pm

BL wrote:We transfer directly from checking account to the fund we wish to purchase at Vanguard. No need for mm anymore with their mutual funds. Just a few clicks online will do it.


I do exactly this with fidelity
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cfs
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Re: How Do You Transfer Your Money?

Post by cfs » Fri Jun 06, 2014 7:16 pm

NFCU Checking

On my side of the house, we use Navy Federal Credit Union's checking account for the automatic investment plan. We have one set amount automatically invested every other Friday (market timing is forbidden) to our taxable account.

Thanks for reading.
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AAA
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Re: How Do You Transfer Your Money?

Post by AAA » Fri Jun 06, 2014 7:59 pm

If I may add a question to this thread -

I have linked my Vanguard account with my credit union checking account and can, from Vanguard, initiate a transfer from a Vanguard money market fund to the CU or vice versa, based on information about my CU that I originally gave to Vanguard. I never actually told my CU to allow transfers out of my account to Vanguard. I'm wondering in general how this works. Could some other entity initiate a transfer from my CU account without my knowledge or permission?

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Re: How Do You Transfer Your Money?

Post by Steelersfan » Fri Jun 06, 2014 8:43 pm

Bmac wrote:Our taxable Vanguard money market fund account has our Wells Fargo checking account number and routing number stored. I can initiate a cash transfer in either direction with just a couple of clicks from within our Vanguard online site. So far cash always from Wells to Vanguard, but presumably the other direction in retirement. Super easy and convenient. I don't have automatic monthly deposits set up. Just do a transfer when enough cash has built up.
+1, except I'm in the retirement phase so my occasional transfers are usually from Vanguard to my bank checking account to pay for large purchases.

If my checking account got too large I'd transfer the other way, then exchange out of my Vanguard MM fund to whichever investment fund I wanted the money to go.

It's super easy.

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Re: How Do You Transfer Your Money?

Post by The Wizard » Fri Jun 06, 2014 9:09 pm

If MM funds were paying 8% or 10% I would change my approach.
But in 2014 that's not the case...
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Re: How Do You Transfer Your Money?

Post by LadyGeek » Fri Jun 06, 2014 9:43 pm

This thread is now in the Personal Finance (Not Investing) forum (fund transfer strategies).
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Re: How Do You Transfer Your Money?

Post by placeholder » Fri Jun 06, 2014 11:50 pm

AAA wrote:I have linked my Vanguard account with my credit union checking account and can, from Vanguard, initiate a transfer from a Vanguard money market fund to the CU or vice versa, based on information about my CU that I originally gave to Vanguard. I never actually told my CU to allow transfers out of my account to Vanguard. I'm wondering in general how this works. Could some other entity initiate a transfer from my CU account without my knowledge or permission?
I have linked a number of bank accounts with various custodians and never had to tell the banks about it but all the brokerages used the micro deposit system to verify that I was the owner or at least could log into the bank accounts.

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Re: How Do You Transfer Your Money?

Post by Bmac » Sat Jun 07, 2014 12:14 am

Investapreneuer wrote:And from the Vanguard money market fund do you then move funds to equity / bond investments, or does the money live in the money market?
Yes. I guess it might be possible to transfer directly from our checking account to a specific mutual fund as alluded to by another poster, but I generally let our mm fund cash amount build up for 3-6 months with bank transfers and interest/dividends (from our taxable mutual funds which do not have automatic reinvestment of dividends) before choosing where to invest based on our asset allocation. I guess we have the good problem that our various mutual funds have become large enough that it takes a pretty good size chunk of cash to move our allocation a percent or two one way or the other. :happy

acegolfer
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Re: How Do You Transfer Your Money?

Post by acegolfer » Sat Jun 07, 2014 1:52 am

Try Vanguard automatic investing.

https://personal.vanguard.com/us/whatwe ... es/savings
Automatic investing
Create a set schedule to move money from a bank, savings and loan, or credit union into your Vanguard funds on a monthly, bimonthly, quarterly, semiannual, or annual basis.

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Re: How Do You Transfer Your Money?

Post by IlliniDave » Sat Jun 07, 2014 4:57 am

Paycheck is direct deposited to bank. The day after each payday I sign on to Vanguard and "buy" some number of shares of money market using money from my linked bank account. Occasionally some of the money stays in MM, but usually once the money is actually there I exchange it for other mutual funds. I've tried automatic investing that buys shares on non-MM mutual funds directly from my bank account at regular intervals, but it isn't the best solution for me. It just seems like there's always some deviation from the plan (pay is not uniform each period is the most common offender) that it's easier to do the investment transactions manually. It takes me about 2 minutes each pay period. The only downside is that sometimes I'll forget the second step and the money will sit in the MM a week or two before I get it invested in its long-term destination.
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Re: How Do You Transfer Your Money?

Post by Dandy » Sat Jun 07, 2014 7:35 am

I run every thing through my main checking account. e.g If I want to move money from Ally bank to Vanguard. I move money from Ally to Main Checking and then to Vanguard. So all vendors, e.g. VG, Ally, Treasury Direct, IRS, Social Security, Pension etc just has my main checking account number and my main checking account has a record of all my ins and outs.

It probably takes 2 or 3 days longer to do this. If I were moving large amounts of money I would consider eliminating the middle man.

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Re: How Do You Transfer Your Money?

Post by The Wizard » Sat Jun 07, 2014 7:58 am

Dandy wrote:I run every thing through my main checking account. e.g If I want to move money from Ally bank to Vanguard. I move money from Ally to Main Checking and then to Vanguard. So all vendors, e.g. VG, Ally, Treasury Direct, IRS, Social Security, Pension etc just has my main checking account number and my main checking account has a record of all my ins and outs.

It probably takes 2 or 3 days longer to do this. If I were moving large amounts of money I would consider eliminating the middle man.
My setup is very similar, including links to Ally and Vanguard. But I never expect money in Ally to be destined for Vanguard. I just manage my Ally funds to be used for excess expenses in a given month, up to a new vehicle purchase.
Once I have a larger taxable account at VG, I'll probably fund most of the new vehicle purchase from that, but either way, the checking acct hub concept works fine...
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Re: How Do You Transfer Your Money?

Post by Longtimelurker » Sat Jun 07, 2014 8:43 am

Money Flow In:

- Lands in checking, either my wife or mine. Both checking's are backed by savings accounts with a few $k so that we don't need to "balance the checkbook"
- Both checking accounts are linked to: Vanguard Brokerage, Treasury Direct, Vanguard IRA's
- Money flows from checking to investment accounts

Money Flow Out:

- With the exception of Rent, Cable, and Electric, absolutely everything is paid for by our credit cards (~$10k limit). We do this to put a buffer between ourselves and potential theft of our payment credentials
- Both of our checking accounts are linked to both of our Credit Cards (another layer of defense)
- I pay off credit card balances every saturday morning through my iPad App, and review any odd expenses with my wife. On occasion I also need to log into my banking app to instantly move money from savings to checking (because we don't "balance the checkbook"). We also have auto pay full balance set up as a backstop, incase I get busy and forget to do weekly payments/reviews. This takes less than 2 minutes and is part of my ~15 minute weekly review of finances, asset allocation, and goals
- When we eventually want to draw down on our investment accounts, we will simply move from those accounts to checking, and potentially do an instant transfer to savings as a holding area
Last edited by Longtimelurker on Sat Jun 07, 2014 8:46 am, edited 1 time in total.
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Re: How Do You Transfer Your Money?

Post by midareff » Sat Jun 07, 2014 8:44 am

Retired two years so my withdrawals are all automatic recurring and date scheduled. All credit cards and all monthly bills (including mortgage and condo maintenance) are on auto pay in full on due date. Pension and SS pay to the bank directly. Car insurance every six months and property tax years are pays I manually key into the computer. Any funding out of the ordinary I need to move is by electronic funds transfer. If I need cash I use my Ally ATM Card. If I need a cashier's or certified check I transfer from VG to my local credit union and pick the check up. That need is years between occurrences. VG and Fido are tied into my Ally accounts... everything is electronic funds transfer.

Only times I write a check these days might be for a magazine subscription.. LOL.. and only if they supplied a postage p[aid envelope.

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Re: How Do You Transfer Your Money?

Post by amitb00 » Sat Jun 07, 2014 5:19 pm

I have set up automatic monthly buying of few funds. They are linked to my checking account. All my mutual fund accounts and brokerage accounts are linked to checking account. This way if I want to make a specific order, it gets money from checking account.

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Re: How Do You Transfer Your Money?

Post by scrabbler1 » Sun Jun 08, 2014 3:25 am

Jack FFR1846 wrote:
BL wrote:We transfer directly from checking account to the fund we wish to purchase at Vanguard. No need for mm anymore with their mutual funds. Just a few clicks online will do it.


I do exactly this with fidelity
Same here. I also have Fidelity automatically transfer monthly dividends from one bond fund into my bank's checking account so it can cover my expenses (I am an early retiree). That takes 2 business days.

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Re: How Do You Transfer Your Money?

Post by bonaire27 » Sun Jun 08, 2014 5:55 am

Currently we are in Switzerland so we do the following every quarter:

our Swiss Bank 1 + our Swiss Bank 2 --> Forex Bank in London --> Forex Bank in NY --> our Chase Bank --> our Brokerage money market account. (where Forex is the exchange company we use to transfer swiss banks to US banks).

Amazingly we can do this in under a week. But I am envious of the simpler approach. :beer

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Re: How Do You Transfer Your Money?

Post by HIinvestor » Sun Jun 08, 2014 3:47 pm

We like running everything through our primary checking account that has branches nearby and a 24/7 answer line. We put all deposits and checks through that so we can keep a running ledger of our cashflow. Pension and TSP and IRA RMDs are all deposited there. I then write checks or make pay by phone payments from the checking accounts to pay for our bills, It works well for us without forcing us to use anything more complicated than our checkbook register. We also have auto billpay, to pay for utilities from the checking account, which we record each month when the bank statement arrives,

When the balance in the checking account gets to be 5 figures, we write a check or call to transfer a portion to savings. Periodically, we will move funds from savings back to checking and write a check to one of our brokerage accounts for investment. So far, the system has been working OK for us==not elegant but very workable.

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