Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

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Rager1
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Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Rager1 » Wed Jul 29, 2020 4:05 pm

I searched for information on this topic but didn’t find anything more recent than July, 2019 when Vanguard eliminated the Vanguard Advantage Account.

Several years ago, we set up a separate brokerage account with Vanguard to cover our eventual funeral costs. We added a relative to the account so that when we were both gone, we’d have someone authorized to write checks to pay our final costs. We were issued checks on that account and a few months ago, I called Vanguard to see if the checks were still valid. I was advised that the check writing privileges on that account had been canceled since there was no activity on the account. I don’t recall receiving notification from Vanguard about that cancelation.

In June, 2020 we completed new paperwork to re-establish check writing privileges on that account, and Vanguard received that paperwork in early July. I was promised several times that checks were “on the way” to me. As of today, I still don’t have the checks.

Today, I called again and found that out there was a “glitch” somewhere in the Vanguard system that resulted in several accounts being flagged “for signature verification” in error. I asked if Vanguard had solved that problem now, but was told “Vanguard is still working on it”.

I was promised a phone call “in days, not weeks”, once our account had been cleared to write checks. After that, Vanguard promised to Fedex checks since we’ve been dealing with this a very long time.

So, to make sure your account check writing privileges stay active, you must occasionally write a check to keep the account open. The estimates I’ve been given of that time period from Vanguard are between 6 months to three years. I've yet to get an actual time period nailed down on this.

Ed
Last edited by Rager1 on Wed Jul 29, 2020 5:05 pm, edited 1 time in total.

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Re: Do You Have Check Writing Privileges on your Brokerage Account?—You’d better check again

Post by Nate79 » Wed Jul 29, 2020 4:45 pm

Rager1 wrote:
Wed Jul 29, 2020 4:05 pm
I searched for information on this topic but didn’t find anything more recent than July, 2019 when Vanguard eliminated the Vanguard Advantage Account.

Several years ago, we set up a separate brokerage account with Vanguard to cover our eventual funeral costs. We added a relative to the account so that when we were both gone, we’d have someone authorized to write checks to pay our final costs. We were issued checks on that account and a few months ago, I called Vanguard to see if the checks were still valid. I was advised that the check writing privileges on that account had been canceled since there was no activity on the account. I don’t recall receiving notification from Vanguard about that cancelation.

In June, 2020 we completed new paperwork to re-establish check writing privileges on that account, and Vanguard received that paperwork in early July. I was promised several times that checks were “on the way” to me. As of today, I still don’t have the checks.

Today, I called again and found that out there was a “glitch” somewhere in the Vanguard system that resulted in several accounts being flagged “for signature verification” in error. I asked if Vanguard had solved that problem now, but was told “Vanguard is still working on it”.

I was promised a phone call “in days, not weeks”, once our account had been cleared to write checks. After that, Vanguard promised to Fedex checks since we’ve been dealing with this a very long time.

So, to make sure your account check writing privileges stay active, you must occasionally write a check to keep the account open. The estimates I’ve been given of that time period from Vanguard are between 6 months to three years. I've yet to get an actual time period nailed down on this.

Ed
I suggest you add Vanguard to the title of your thread. Not everyone uses Vanguard around here.

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Re: Do You Have Check Writing Privileges on your Brokerage Account?—You’d better check again

Post by lakpr » Wed Jul 29, 2020 4:57 pm

Nate79 wrote:
Wed Jul 29, 2020 4:45 pm
I suggest you add Vanguard to the title of your thread. Not everyone uses Vanguard around here.
Although the OP has an account at Vanguard, I believe the thread title is a suggestion for everyone to check again, at their respective brokerage firm.

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Re: Do You Have Check Writing Privileges on your Brokerage Account?—You’d better check again

Post by Rager1 » Wed Jul 29, 2020 5:07 pm

I suggest you add Vanguard to the title of your thread. Not everyone uses Vanguard around here.


Fixed. Thanks

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by abuss368 » Wed Jul 29, 2020 5:09 pm

Interesting. Thank you for sharing.
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by TheDDC » Wed Jul 29, 2020 5:13 pm

I was under the impression that Vanguard no longer offers checkwriting on an account anymore. Is it still possible to set this up?

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Rager1 » Wed Jul 29, 2020 5:19 pm

TheDDC wrote:
Wed Jul 29, 2020 5:13 pm
I was under the impression that Vanguard no longer offers checkwriting on an account anymore. Is it still possible to set this up?

-TheDDC
Yes. It's still possible but based on my experience so far, you need to be diligent to make sure it gets done correctly. And, they no longer print not vaild for less than $250 on the checks.

Ed

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Broken Man 1999 » Thu Jul 30, 2020 10:52 am

Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.

Like my credit union checking account, I write very few checks on my Vanguard account, only seven since mid-2018 when the account was set up. Last one written was in October, 2019. Still, it is a useful tool.

You can set up, or check to see if the checkwriting is active by clicking on the tabs My accounts, then Account maintenance, then select Checkwriting
from the group of options under Banking and money movement.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Big Dog » Thu Jul 30, 2020 10:57 am

I was advised that the check writing privileges on that account had been canceled since there was no activity on the account. I don’t recall receiving notification from Vanguard about that cancelation.
In the past few weeks, I have received a couple of e-mails from Vanguard saying that my check-writing priveleges will be revoked for non-use. That's ok with me as I haven't written a Vanguard check for years. (We keep a free checking account at a local bank and auto-transfer money from Vanguard by ACH every month to pay bills.)

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by CABob » Thu Jul 30, 2020 11:52 am

Rager1 wrote:
Wed Jul 29, 2020 5:19 pm
Yes. It's still possible but based on my experience so far, you need to be diligent to make sure it gets done correctly. And, they no longer print not vaild for less than $250 on the checks.

Ed
Does this mean that the $250 minimum no longer applies?
Bob

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Rager1 » Thu Jul 30, 2020 11:55 am

Big Dog wrote:
Thu Jul 30, 2020 10:57 am
I was advised that the check writing privileges on that account had been canceled since there was no activity on the account. I don’t recall receiving notification from Vanguard about that cancelation.
In the past few weeks, I have received a couple of e-mails from Vanguard saying that my check-writing priveleges will be revoked for non-use. That's ok with me as I haven't written a Vanguard check for years. (We keep a free checking account at a local bank and auto-transfer money from Vanguard by ACH every month to pay bills.)
Thats a step in the right direction. We didn't receive notification when ours was revoked. To be fair, it happened a few years ago .

Ed

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by abuss368 » Thu Jul 30, 2020 11:56 am

I have not had check writing on our money market account for over 20 years. I simply transfer to our bank if needed and write a check form there. Only one check book to track.

Keep life simple!
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by sport » Thu Jul 30, 2020 11:57 am

CABob wrote:
Thu Jul 30, 2020 11:52 am
Rager1 wrote:
Wed Jul 29, 2020 5:19 pm
Yes. It's still possible but based on my experience so far, you need to be diligent to make sure it gets done correctly. And, they no longer print not vaild for less than $250 on the checks.

Ed
Does this mean that the $250 minimum no longer applies?
From what I have been told, the $250 minimum is still printed on the checks in the old-style mutual fund accounts, but is not printed on the checks in the brokerage accounts. I was also told V would honor the checks market with the $250 even if the amount is less than $250. I cannot understand why they still insist on printing the minimum amount on some checks and not others, yet claim they will honor them in any case. It makes no sense. :?: :?: :?: :annoyed

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Rager1 » Thu Jul 30, 2020 11:58 am

CABob wrote:
Thu Jul 30, 2020 11:52 am
Rager1 wrote:
Wed Jul 29, 2020 5:19 pm
Yes. It's still possible but based on my experience so far, you need to be diligent to make sure it gets done correctly. And, they no longer print not vaild for less than $250 on the checks.

Ed
Does this mean that the $250 minimum no longer applies?
Yes. We processed $5 checks from our other brokerage accounts in July, 2020 to keep them active. I'm still trying to find out if we have to do this every six months or three years. As I stated above, we've received conflicting information from Vanguard on this issue.

Ed

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Rager1 » Thu Jul 30, 2020 12:02 pm

abuss368 wrote:
Thu Jul 30, 2020 11:56 am
I have not had check writing on our money market account for over 20 years. I simply transfer to our bank if needed and write a check form there. Only one check book to track.

Keep life simple!
I agree in general with this. However, in our case, we're talking about an account for someone else to write checks to cover our funeral costs.

Ed

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Thu Jul 30, 2020 12:12 pm

Broken Man 1999 wrote:
Thu Jul 30, 2020 10:52 am
Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.
I recently converted to a brokerage account which Vanguard required in order to hold our joint taxable account in the name of our trust. In converting our checking privileges I found that the checking defaults to the settlement fund which is the Vanguard Federal Money Market Fund. I also learned that I could have the checks draw on an alternate fund in the event that there were no funds in the settlement fund. So I've specified a 'backup' fund for checks to draw from and have my dividends and any cap gains automatically transfer to another account instead of the settlement fund. The result is that there is never a balance in my settlement fund and my checks draw on the alternate fund of my choice.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Toons » Thu Jul 30, 2020 1:14 pm

I don't know
I don't write checks
:happy
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Broken Man 1999 » Thu Jul 30, 2020 5:38 pm

FrugalInvestor wrote:
Thu Jul 30, 2020 12:12 pm
Broken Man 1999 wrote:
Thu Jul 30, 2020 10:52 am
Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.
I recently converted to a brokerage account which Vanguard required in order to hold our joint taxable account in the name of our trust. In converting our checking privileges I found that the checking defaults to the settlement fund which is the Vanguard Federal Money Market Fund. I also learned that I could have the checks draw on an alternate fund in the event that there were no funds in the settlement fund. So I've specified a 'backup' fund for checks to draw from and have my dividends and any cap gains automatically transfer to another account instead of the settlement fund. The result is that there is never a balance in my settlement fund and my checks draw on the alternate fund of my choice.
I just use the settlement fund as a portal to and from my credit union checking account. Sometimes I send my dividends to the settlement fund, then transfer to credit union, sometimes I sell something then send the proceeds from the settlement fund to the credit union to use for expenses. So, I have $$ in the settlement fund only for a couple of days. If I somehow end up with more in the settlement fund than I need, I just buy TSM to clear out the settlement fund.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Thu Jul 30, 2020 5:45 pm

Broken Man 1999 wrote:
Thu Jul 30, 2020 5:38 pm
FrugalInvestor wrote:
Thu Jul 30, 2020 12:12 pm
Broken Man 1999 wrote:
Thu Jul 30, 2020 10:52 am
Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.
I recently converted to a brokerage account which Vanguard required in order to hold our joint taxable account in the name of our trust. In converting our checking privileges I found that the checking defaults to the settlement fund which is the Vanguard Federal Money Market Fund. I also learned that I could have the checks draw on an alternate fund in the event that there were no funds in the settlement fund. So I've specified a 'backup' fund for checks to draw from and have my dividends and any cap gains automatically transfer to another account instead of the settlement fund. The result is that there is never a balance in my settlement fund and my checks draw on the alternate fund of my choice.
I just use the settlement fund as a portal to and from my credit union checking account. Sometimes I send my dividends to the settlement fund, then transfer to credit union, sometimes I sell something then send the proceeds from the settlement fund to the credit union to use for expenses. So, I have $$ in the settlement fund only for a couple of days. If I somehow end up with more in the settlement fund than I need, I just buy TSM to clear out the settlement fund.

Broken Man 1999
I just decided to keep $0 in my settlement account to make sure that checks clear on the secondary account which will actually have $$ available at all times. It was easier for me when the check writing was just on that account but apparently is better for Vanguard this way.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Cheez-It Guy » Thu Jul 30, 2020 5:54 pm

sport wrote:
Thu Jul 30, 2020 11:57 am
CABob wrote:
Thu Jul 30, 2020 11:52 am
Rager1 wrote:
Wed Jul 29, 2020 5:19 pm
Yes. It's still possible but based on my experience so far, you need to be diligent to make sure it gets done correctly. And, they no longer print not vaild for less than $250 on the checks.

Ed
Does this mean that the $250 minimum no longer applies?
From what I have been told, the $250 minimum is still printed on the checks in the old-style mutual fund accounts, but is not printed on the checks in the brokerage accounts. I was also told V would honor the checks market with the $250 even if the amount is less than $250. I cannot understand why they still insist on printing the minimum amount on some checks and not others, yet claim they will honor them in any case. It makes no sense. :?: :?: :?: :annoyed
I have checkwriting set up on a new-format brokerage account with Vanguard. This was established after the elimination of the VanguardAdvantage account, so relatively recently. The new checks still state the $250 minimum. From conversations with Vanguard reps, it's more that they want to discourage writing checks for less than $250 as a cost-control measure, but if you do write one, they will still process it. Perhaps the newest new checks do not have this verbiage, but mine do. Hope this helps.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Thu Jul 30, 2020 9:13 pm

Our new checks that we just received within the last month for our brokerage account say nothing about a minimum amount. Our old ones that they replaced did state the $250 minimum.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by RudyS » Thu Jul 30, 2020 9:23 pm

Some have questioned the need or desirability of having a VG checking account. I find it to be the most convenient way for me to make QCDs from my IRA.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by brainstem » Thu Jul 30, 2020 9:55 pm

If you use VG accounts for a trust fund, it is important to be able to write checks on the trust assets to pay expenses like an accountant

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Hiker-Biker » Thu Jul 30, 2020 10:43 pm

FrugalInvestor wrote:
Thu Jul 30, 2020 12:12 pm
Broken Man 1999 wrote:
Thu Jul 30, 2020 10:52 am
Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.
I recently converted to a brokerage account which Vanguard required in order to hold our joint taxable account in the name of our trust. In converting our checking privileges I found that the checking defaults to the settlement fund which is the Vanguard Federal Money Market Fund. I also learned that I could have the checks draw on an alternate fund in the event that there were no funds in the settlement fund. So I've specified a 'backup' fund for checks to draw from and have my dividends and any cap gains automatically transfer to another account instead of the settlement fund. The result is that there is never a balance in my settlement fund and my checks draw on the alternate fund of my choice.
Same scenario as Frugal Investor, except we had checks drawing from Prime Money Market until VG switched to Federal MM as the settlement account. New checks were issued by VG and we received ample notification of the change.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by whodidntante » Thu Jul 30, 2020 10:48 pm

Toons wrote:
Thu Jul 30, 2020 1:14 pm
I don't know
I don't write checks
:happy
What can I say? When you're right, you're right! :happy

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Thu Jul 30, 2020 10:56 pm

Hiker-Biker wrote:
Thu Jul 30, 2020 10:43 pm
FrugalInvestor wrote:
Thu Jul 30, 2020 12:12 pm
Broken Man 1999 wrote:
Thu Jul 30, 2020 10:52 am
Yes, I have checkwriting privileges on my Vanguard Brokerage Account. Specifically I have checkwriting on my TIRA settlement fund.

However, since I seldom have funds in my settlement fund, I have added an alternative redemption fund, my Short-term Treasury Index fund. Close enough to cash for me.
I recently converted to a brokerage account which Vanguard required in order to hold our joint taxable account in the name of our trust. In converting our checking privileges I found that the checking defaults to the settlement fund which is the Vanguard Federal Money Market Fund. I also learned that I could have the checks draw on an alternate fund in the event that there were no funds in the settlement fund. So I've specified a 'backup' fund for checks to draw from and have my dividends and any cap gains automatically transfer to another account instead of the settlement fund. The result is that there is never a balance in my settlement fund and my checks draw on the alternate fund of my choice.
Same scenario as Frugal Investor, except we had checks drawing from Prime Money Market until VG switched to Federal MM as the settlement account. New checks were issued by VG and we received ample notification of the change.
Our old checks were also on Prime MM Fund. We have now designated Prime MM Fund as the alternate (my terminology, probably not Vanguard's) to Federal MM. We will not keep any funds in Federal MM so the checks will pull $$ from our Prime MM fund as they did did previously.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by beyou » Thu Jul 30, 2020 11:54 pm

Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Cheez-It Guy » Fri Jul 31, 2020 7:59 am

beyou wrote:
Thu Jul 30, 2020 11:54 pm
Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.
You don't have to do it manually. New brokerage account format at Vanguard allows automatic disbursement of dividends and capital gains to an external bank account. It appears this external automatic transfer may not be available for individual stocks, but this shouldn't matter to you if you only have Vanguard mutual funds.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Toons » Fri Jul 31, 2020 9:14 am

whodidntante wrote:
Thu Jul 30, 2020 10:48 pm
Toons wrote:
Thu Jul 30, 2020 1:14 pm
I don't know
I don't write checks
:happy
What can I say? When you're right, you're right! :happy

Lol :sharebeer
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by KingRiggs » Fri Jul 31, 2020 10:32 am

Have brokerage account with settlement fund (balance always zero) and Municipal Money Market Fund. This is where I park money waiting to be sent to IRS/state department of revenue for quarterly tax payments. I write checks from that fund for taxes and the occasional purchase larger than my checking account balance - saves the step of transferring funds.
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by beyou » Fri Jul 31, 2020 11:30 am

Cheez-It Guy wrote:
Fri Jul 31, 2020 7:59 am
beyou wrote:
Thu Jul 30, 2020 11:54 pm
Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.
You don't have to do it manually. New brokerage account format at Vanguard allows automatic disbursement of dividends and capital gains to an external bank account. It appears this external automatic transfer may not be available for individual stocks, but this shouldn't matter to you if you only have Vanguard mutual funds.
Thank you Cheez-It Guy
Unfortunately that is not true for ETFs.
If/when I move or forced to move, the only benefit to me would be to convert some existing funds to the ETF equivalent as a tax free exchange.
If I did that (for lower ER and portability) or buy new (to me) ETFs, ETFs can only push dividends to the settlement fund.
I assume when you sell an ETF or Mutual Fund, either way the proceeds go to the settlement fund, not a bank.
Wouldn't stop me, minor issue moving cash from settlement fund to bank.

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Marmot » Fri Jul 31, 2020 1:14 pm

Toons wrote:
Thu Jul 30, 2020 1:14 pm
I don't know
I don't write checks
:happy
What do you do for your real estate taxes? Credit card at 3% fee?

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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Cheez-It Guy » Fri Jul 31, 2020 1:44 pm

beyou wrote:
Fri Jul 31, 2020 11:30 am
Cheez-It Guy wrote:
Fri Jul 31, 2020 7:59 am
beyou wrote:
Thu Jul 30, 2020 11:54 pm
Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.
You don't have to do it manually. New brokerage account format at Vanguard allows automatic disbursement of dividends and capital gains to an external bank account. It appears this external automatic transfer may not be available for individual stocks, but this shouldn't matter to you if you only have Vanguard mutual funds.
Thank you Cheez-It Guy
Unfortunately that is not true for ETFs.
If/when I move or forced to move, the only benefit to me would be to convert some existing funds to the ETF equivalent as a tax free exchange.
If I did that (for lower ER and portability) or buy new (to me) ETFs, ETFs can only push dividends to the settlement fund.
I assume when you sell an ETF or Mutual Fund, either way the proceeds go to the settlement fund, not a bank.
Wouldn't stop me, minor issue moving cash from settlement fund to bank.
OK. I'm curious why you would switch to ETFs when the account format change is eventually forced. You could do that now if the reasons are compelling for you. If not, no reason you can't stick with mutual funds on the new platform. I have.

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beyou
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by beyou » Fri Jul 31, 2020 2:17 pm

Cheez-It Guy wrote:
Fri Jul 31, 2020 1:44 pm
beyou wrote:
Fri Jul 31, 2020 11:30 am
Cheez-It Guy wrote:
Fri Jul 31, 2020 7:59 am
beyou wrote:
Thu Jul 30, 2020 11:54 pm
Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.
You don't have to do it manually. New brokerage account format at Vanguard allows automatic disbursement of dividends and capital gains to an external bank account. It appears this external automatic transfer may not be available for individual stocks, but this shouldn't matter to you if you only have Vanguard mutual funds.
Thank you Cheez-It Guy
Unfortunately that is not true for ETFs.
If/when I move or forced to move, the only benefit to me would be to convert some existing funds to the ETF equivalent as a tax free exchange.
If I did that (for lower ER and portability) or buy new (to me) ETFs, ETFs can only push dividends to the settlement fund.
I assume when you sell an ETF or Mutual Fund, either way the proceeds go to the settlement fund, not a bank.
Wouldn't stop me, minor issue moving cash from settlement fund to bank.
OK. I'm curious why you would switch to ETFs when the account format change is eventually forced. You could do that now if the reasons are compelling for you. If not, no reason you can't stick with mutual funds on the new platform. I have.
No matter how many times I and many others say so on this forum, many have missed it or don't want to believe it.
I am RESTRICTED from using Vanguard as my broker as of today, due to the fact I work in the securities industry where employers
monitor and require pre-approval of all "securities" trades. One exception is that I can hold open end funds directly with the
fund manager in a fund-only account. If I want to hold anything in a brokerage account I need to open an acct at a pre-approved broker.
Most firms in this industry only approve a handful of brokers who then agree to report all our trades to our employer electronically.
I don't want my employer seeing my assets nor trades nor do I want to ask for approval, so I and many exploit the allowance to hold
open end funds at the fund manager. Vanguard staff are aware of this and hence are not only not making me convert, they even
let me open NEW fund-only accounts in the last few months. The old platform is not going away until either Vanguard decides they can
live without many of us in the industry as clients, or if they convince our employers to add their brokerage to the list of approved brokers.
My firm allows only some high cost brokers and a couple of discount brokers (not Vanguard nor Fido). Even if my firm allowed Vanguard brokerage accounts, not sure I'd want one due to the need to then report my trades and holdings to my employer at that point.

But when I leave this industry (likely at retirement) I am free to invest where and in whatever types of instruments I choose
including ETFs and Vanguard as my broker if I choose. Why would I change to ETF when that time comes ?
Sometimes they have marginally lower ER. I can easily pick up and move to another broker with ETFs, my Admiral funds are often
not portable to any other broker than Vanguard. Of the brokers with the greatest coverage for Vanguard open end funds (Etrade) they have mostly
Investor class funds except for a few popular Admiral funds that replaced Investor class funds. Even where they have Admiral, ETF can be a bit cheaper still.

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Cheez-It Guy
Posts: 948
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Cheez-It Guy » Fri Jul 31, 2020 3:58 pm

beyou wrote:
Fri Jul 31, 2020 2:17 pm
Cheez-It Guy wrote:
Fri Jul 31, 2020 1:44 pm
beyou wrote:
Fri Jul 31, 2020 11:30 am
Cheez-It Guy wrote:
Fri Jul 31, 2020 7:59 am
beyou wrote:
Thu Jul 30, 2020 11:54 pm
Still have fund only acct, dividends go to my bank.

If i had brokerage, would manually move cash from the settlement fund to my bank. Vanguard is not a bank.
You don't have to do it manually. New brokerage account format at Vanguard allows automatic disbursement of dividends and capital gains to an external bank account. It appears this external automatic transfer may not be available for individual stocks, but this shouldn't matter to you if you only have Vanguard mutual funds.
Thank you Cheez-It Guy
Unfortunately that is not true for ETFs.
If/when I move or forced to move, the only benefit to me would be to convert some existing funds to the ETF equivalent as a tax free exchange.
If I did that (for lower ER and portability) or buy new (to me) ETFs, ETFs can only push dividends to the settlement fund.
I assume when you sell an ETF or Mutual Fund, either way the proceeds go to the settlement fund, not a bank.
Wouldn't stop me, minor issue moving cash from settlement fund to bank.
OK. I'm curious why you would switch to ETFs when the account format change is eventually forced. You could do that now if the reasons are compelling for you. If not, no reason you can't stick with mutual funds on the new platform. I have.
No matter how many times I and many others say so on this forum, many have missed it or don't want to believe it.
I am RESTRICTED from using Vanguard as my broker as of today, due to the fact I work in the securities industry where employers
monitor and require pre-approval of all "securities" trades. One exception is that I can hold open end funds directly with the
fund manager in a fund-only account. If I want to hold anything in a brokerage account I need to open an acct at a pre-approved broker.
Most firms in this industry only approve a handful of brokers who then agree to report all our trades to our employer electronically.
I don't want my employer seeing my assets nor trades nor do I want to ask for approval, so I and many exploit the allowance to hold
open end funds at the fund manager. Vanguard staff are aware of this and hence are not only not making me convert, they even
let me open NEW fund-only accounts in the last few months. The old platform is not going away until either Vanguard decides they can
live without many of us in the industry as clients, or if they convince our employers to add their brokerage to the list of approved brokers.
My firm allows only some high cost brokers and a couple of discount brokers (not Vanguard nor Fido). Even if my firm allowed Vanguard brokerage accounts, not sure I'd want one due to the need to then report my trades and holdings to my employer at that point.

But when I leave this industry (likely at retirement) I am free to invest where and in whatever types of instruments I choose
including ETFs and Vanguard as my broker if I choose. Why would I change to ETF when that time comes ?
Sometimes they have marginally lower ER. I can easily pick up and move to another broker with ETFs, my Admiral funds are often
not portable to any other broker than Vanguard. Of the brokers with the greatest coverage for Vanguard open end funds (Etrade) they have mostly
Investor class funds except for a few popular Admiral funds that replaced Investor class funds. Even where they have Admiral, ETF can be a bit cheaper still.
Oops! Well, now that you mention it, I'm sure I've read something similar posted by you (and several others) on this forum before, so indeed I'm aware of this restriction for industry folks. What I failed to do is make the permanent association with your username. I think I'll remember it from now. You'd think it would be so simple what with your lovable Boston Terrier avatar. . .

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beyou
Posts: 3151
Joined: Sat Feb 27, 2010 3:57 pm
Location: Northeastern US

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by beyou » Fri Jul 31, 2020 4:49 pm

Sorry, can’t believe how many times people reacted as if this is some stubborn refusal to get with the times. Nothing personal and glad you like the dog.

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Toons
Posts: 13706
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Toons » Sat Aug 01, 2020 1:58 pm

Marmot wrote:
Fri Jul 31, 2020 1:14 pm
Toons wrote:
Thu Jul 30, 2020 1:14 pm
I don't know
I don't write checks
:happy
What do you do for your real estate taxes? Credit card at 3% fee?
Hand them 770.00
In cash
:mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

quantAndHold
Posts: 4819
Joined: Thu Sep 17, 2015 10:39 pm

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by quantAndHold » Sat Aug 01, 2020 2:13 pm

I wrote a check on my Vanguard account. In 2005. Early 2005.

I finally shredded the checkbook earlier this year.
Yes, I’m really that pedantic.

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FrugalInvestor
Posts: 5577
Joined: Fri Nov 07, 2008 12:20 am

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Sat Aug 01, 2020 2:56 pm

quantAndHold wrote:
Sat Aug 01, 2020 2:13 pm
I wrote a check on my Vanguard account. In 2005. Early 2005.

I finally shredded the checkbook earlier this year.
You'll need to write another one tomorrow.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

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grabiner
Advisory Board
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Location: Columbia, MD

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by grabiner » Sun Aug 02, 2020 9:55 am

Vanguard warned me that they would be discontinuing check-writing, and I will let them do that. The first time, I wanted to keep it active because I intended to write one very large check to pay off my mortgage. Instead, I transferred the cash to my checking account and wrote a check from the checking account for the mortgage payoff.
Wiki David Grabiner

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FrugalInvestor
Posts: 5577
Joined: Fri Nov 07, 2008 12:20 am

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by FrugalInvestor » Sun Aug 02, 2020 10:22 am

grabiner wrote:
Sun Aug 02, 2020 9:55 am
Vanguard warned me that they would be discontinuing check-writing, and I will let them do that. The first time, I wanted to keep it active because I intended to write one very large check to pay off my mortgage. Instead, I transferred the cash to my checking account and wrote a check from the checking account for the mortgage payoff.
Interesting. I just recently re-established check writing after converting my taxable account to the brokerage platform. I spoke with Vanguard reps a couple of times about it and there was never a mention of it being discontinued. However, if that happens I can certainly deal with it.

I prefer to have Vanguard checkwriting so if I need to write a larger check on short notice I have the funds immediately available. We keep a little extra in our checking but primarily use that account as a pass through for our monthly bills and for very short-term cash needs.
Have a plan, stay the course and simplify but most importantly....Ignore the Noise!

sport
Posts: 9393
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Location: Cleveland, OH

Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by sport » Sun Aug 02, 2020 11:27 am

Years ago, I had check writing on my taxable MM fund. This was in the days before computer access. When computer access became available, I was able to easily transfer money to my bank checking account. So, I stopped writing Vanguard checks. After a long period of not using them, Vanguard notified me that they would discontinue the service for me unless I wanted to continue it. So, I let it lapse and just write bank checks. However, I eventually became old enough for QCDs. So, now I have checks on my IRA MM fund. The only use I have for it is for QCDs.

I find it is better to write my own QCD checks rather than have Vanguard write them for me. When I write the check, I can see the money leave my account when the charity cashes the check. So, I know it was received. When Vanguard writes the check, the money leaves my account immediately. So, I do not know whether or not the charity received it until the charity sends a letter of acknowledgement. Sometimes, the charities are not so good about sending a timely letter.

Broken Man 1999
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by Broken Man 1999 » Sun Aug 02, 2020 12:27 pm

FrugalInvestor wrote:
Sun Aug 02, 2020 10:22 am
grabiner wrote:
Sun Aug 02, 2020 9:55 am
Vanguard warned me that they would be discontinuing check-writing, and I will let them do that. The first time, I wanted to keep it active because I intended to write one very large check to pay off my mortgage. Instead, I transferred the cash to my checking account and wrote a check from the checking account for the mortgage payoff.
Interesting. I just recently re-established check writing after converting my taxable account to the brokerage platform. I spoke with Vanguard reps a couple of times about it and there was never a mention of it being discontinued. However, if that happens I can certainly deal with it.

I prefer to have Vanguard checkwriting so if I need to write a larger check on short notice I have the funds immediately available. We keep a little extra in our checking but primarily use that account as a pass through for our monthly bills and for very short-term cash needs.
I think the "discontinuing checkwriting" some are mentioning was because they had no transactions, so the checkwriting was discontinued.

The CMA once offered by Vanguard had checkwriting also, but that service was discontinued due to low take rates by clients.

I just set up a tickler file so I would have a couple of transactions each year to keep my account open. I'll just write a small check and deposit it in my credit union account.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go. " -Mark Twain

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heartwood
Posts: 1559
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by heartwood » Sun Aug 02, 2020 1:26 pm

sport wrote:
Sun Aug 02, 2020 11:27 am
Years ago, I had check writing on my taxable MM fund. This was in the days before computer access. When computer access became available, I was able to easily transfer money to my bank checking account. So, I stopped writing Vanguard checks. After a long period of not using them, Vanguard notified me that they would discontinue the service for me unless I wanted to continue it. So, I let it lapse and just write bank checks. However, I eventually became old enough for QCDs. So, now I have checks on my IRA MM fund. The only use I have for it is for QCDs.

I find it is better to write my own QCD checks rather than have Vanguard write them for me. When I write the check, I can see the money leave my account when the charity cashes the check. So, I know it was received. When Vanguard writes the check, the money leaves my account immediately. So, I do not know whether or not the charity received it until the charity sends a letter of acknowledgement. Sometimes, the charities are not so good about sending a timely letter.
My experience differs from what you describe but is similar. First, I have never had check writing on my IRA. When I do my QCD Vanguard sends me a check drawn to the "college, c/o me at my address". I send that check to the college. When it clears I can see it in my account transactions. You're correct that the money leaves my account when Vanguard draws the check, not when it is cashed. I recall there was no coding of the QCD in my 1099-R for my RMD, only showing the total RMD. It became a note in my tax return as advised by my CPA and Vanguard.
It seems to work either way. Since I rarely write checks on my IRA, I see no reason to have check writing on that account, and another checkbook.

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CABob
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Re: Do You Have Check Writing Privileges on your Vanguard Brokerage Account?—You’d better check again

Post by CABob » Sun Aug 02, 2020 2:40 pm

I have check writing available on my money market fund in my taxable mutual fund account. I just checked and I have not written a check since June of 2019. I am wondering if I might hear soon from VG advising me that they want to close the checking account.
Bob

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