With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

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alexcr
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Joined: Wed Jun 21, 2017 5:50 pm

With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

Post by alexcr »

I'd like to set things up so that any money, e.g. dividends, deposited to my settlement account gets automatically/immediately transferred to my Vanguard Municipal Money Market Fund holdings.

Is there any way to set this up so that I don't have to do this manually all the time?

Thanks!
UpperNwGuy
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Joined: Sun Oct 08, 2017 7:16 pm

Re: With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

Post by UpperNwGuy »

Do you have a brokerage account or a mutual fund account with Vanguard? It makes a difference as to how we answer your question.
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alexcr
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Joined: Wed Jun 21, 2017 5:50 pm

Re: With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

Post by alexcr »

UpperNwGuy wrote: Wed Apr 07, 2021 10:40 pm Do you have a brokerage account or a mutual fund account with Vanguard? It makes a difference as to how we answer your question.
Sorry for not specifying! I'm pretty sure it's a brokerage account, and the specific account in question is a trust, to the extent that makes any difference.
UpperNwGuy
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Re: With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

Post by UpperNwGuy »

With a Vanguard brokerage account you can automatically reinvest dividends in the same fund from which they came, or you can manually invest them in a different fund, or you can let them sit in the settlement fund. You can't, however, take the dividends from one fund and auto reinvest them in a different fund. (You could do that in the old mutual fund accounts that are no longer available as new accounts.)
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Cheez-It Guy
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Re: With Vanguard, is there any way to automate the transfer of deposits from the settlement fund to another fund?

Post by Cheez-It Guy »

Full disclosure, I haven't tried this, but you could either inquire about or attempt to set up a weekly automatic investment plan with the settlement fund as the source and the desired municipal money market fund as the destination where the dollar amount is somewhat greater than anything you would ever expect to have sitting in the settlement fund as a dividend disbursement. That MIGHT be a way to sweep the funds to your desired location as they appear. However, I don't know how the system would handle this when fewer funds than the target are available. Does it just move the funds that are there? Does it break and disable the automatic transaction for future use? The ideal would be that it simply moves whatever funds ARE there (if any) up to the maximum specified in the automatic transaction. I think I read about someone doing this with withdrawals to a bank account recently with the goal of keeping the settlement fund essentially cleared out. If you choose to investigate this, please post the result / your findings.
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