automatic sweep out of brokerage settlement fund

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RustyShackleford
Posts: 1279
Joined: Thu Sep 13, 2007 12:32 pm
Location: NC

automatic sweep out of brokerage settlement fund

Post by RustyShackleford » Mon Feb 12, 2018 7:18 pm

One of the several mostly relatively minor pains in the buttocks of the supposedly seamless switch from Vanguard mutual fund accounts to a brokerage account is the "settlement fund". When my holdings, specifically VTSAX, pay dividends, they go into this account. This settlement fund, evidently due to some regulation, is the Federal Money Mkt account - not the Prime MM acc't where I prefer to keep my spare cash.

I was annoyed by this when I switched in mid-2017, but then it appeared than automatic sweeps from the settlement fund to my Prime MMkt were taking place, as exactly this thing happened with my Sep2017 VTSAX dividend: it went into the settlement account, and several days later was swept out of the settlement fund and into the Prime MMkt, without my doing anything.

However, this automatic sweep from the Federal MMkt settlement fund into Prime MMkt has not occurred since, specifically with my Dec2017 VTSAX dividend. I don't understand why. A well-meaning gentlemen at the Vanguard call center tried to help, first directing me to the "change distribution election" page, and then the "account maintenance" page. Neither allowed me to specify automatic sweeps.

Please help.

RustyShackleford
Posts: 1279
Joined: Thu Sep 13, 2007 12:32 pm
Location: NC

Re: automatic sweep out of brokerage settlement fund

Post by RustyShackleford » Tue Feb 13, 2018 1:38 pm

Really, nothing ?

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weltschmerz
Posts: 344
Joined: Thu Jul 30, 2009 9:17 pm
Location: San Diego, CA

Re: automatic sweep out of brokerage settlement fund

Post by weltschmerz » Tue Feb 13, 2018 1:58 pm

Why not just embrace the new Federal Money Market fund? The yield is only slightly lower than Prime Money market (-0.17%). Do a manual sweep over to Prime once or twice a year, and you probably didn't lose much.

RustyShackleford
Posts: 1279
Joined: Thu Sep 13, 2007 12:32 pm
Location: NC

Re: automatic sweep out of brokerage settlement fund

Post by RustyShackleford » Tue Feb 13, 2018 2:03 pm

weltschmerz wrote:
Tue Feb 13, 2018 1:58 pm
Why not just embrace the new Federal Money Market fund? The yield is only slightly lower than Prime Money market (-0.17%). Do a manual sweep over to Prime once or twice a year, and you probably didn't lose much.
Yeah, I guess so. I just thought it'd happened automagically before, but a conversation with a less clueless Vgd CSR convinced me that maybe I did it manually as you suggest.

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