Vanguard Cash Plus Account

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macserialcable
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Joined: Thu Jul 21, 2022 12:13 pm

Re: Vanguard Cash Plus Account

Post by macserialcable »

Hello, my apologies in advance for not traversing the entire forum in the Cash Plus Account context. I took a look at a few pages and was unable to find the answer I was looking for, so here goes.

I am trying to setup the Vanguard Cash Plus account in such a way that the dividends and capital gains from the Vanguard brokerage account get deposited here. Instead of the brokerage account dividends and capital gains getting reinvested into existing mutual funds and ETFs, I would like to use the dividends and capital gains for some bill payments. Is this possible to do? I am not able to find a way to do this online and am wondering if I need to call Vanguard customer service to set this up?

Appreciate any pointers or help on this front. Thank you!
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RickBoglehead
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Re: Vanguard Cash Plus Account

Post by RickBoglehead »

macserialcable wrote: Mon Jun 10, 2024 9:56 pm Hello, my apologies in advance for not traversing the entire forum in the Cash Plus Account context. I took a look at a few pages and was unable to find the answer I was looking for, so here goes.

I am trying to setup the Vanguard Cash Plus account in such a way that the dividends and capital gains from the Vanguard brokerage account get deposited here. Instead of the brokerage account dividends and capital gains getting reinvested into existing mutual funds and ETFs, I would like to use the dividends and capital gains for some bill payments. Is this possible to do? I am not able to find a way to do this online and am wondering if I need to call Vanguard customer service to set this up?

Appreciate any pointers or help on this front. Thank you!
Nope.
Avid user of forums on variety of interests-financial, home brewing, EVs (1005 EV), etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
macserialcable
Posts: 3
Joined: Thu Jul 21, 2022 12:13 pm

Re: Vanguard Cash Plus Account

Post by macserialcable »

So there is absolutely no way to fund the Cash Plus account from Vanguard other than from outside via an external checking account?

RickBoglehead wrote: Mon Jun 10, 2024 10:30 pm
macserialcable wrote: Mon Jun 10, 2024 9:56 pm Hello, my apologies in advance for not traversing the entire forum in the Cash Plus Account context. I took a look at a few pages and was unable to find the answer I was looking for, so here goes.

I am trying to setup the Vanguard Cash Plus account in such a way that the dividends and capital gains from the Vanguard brokerage account get deposited here. Instead of the brokerage account dividends and capital gains getting reinvested into existing mutual funds and ETFs, I would like to use the dividends and capital gains for some bill payments. Is this possible to do? I am not able to find a way to do this online and am wondering if I need to call Vanguard customer service to set this up?

Appreciate any pointers or help on this front. Thank you!
Nope.
xmorphicx
Posts: 44
Joined: Fri Jan 12, 2024 6:17 am

Re: Vanguard Cash Plus Account

Post by xmorphicx »

macserialcable wrote: Mon Jun 10, 2024 10:54 pm So there is absolutely no way to fund the Cash Plus account from Vanguard other than from outside via an external checking account?

RickBoglehead wrote: Mon Jun 10, 2024 10:30 pm
macserialcable wrote: Mon Jun 10, 2024 9:56 pm Hello, my apologies in advance for not traversing the entire forum in the Cash Plus Account context. I took a look at a few pages and was unable to find the answer I was looking for, so here goes.

I am trying to setup the Vanguard Cash Plus account in such a way that the dividends and capital gains from the Vanguard brokerage account get deposited here. Instead of the brokerage account dividends and capital gains getting reinvested into existing mutual funds and ETFs, I would like to use the dividends and capital gains for some bill payments. Is this possible to do? I am not able to find a way to do this online and am wondering if I need to call Vanguard customer service to set this up?

Appreciate any pointers or help on this front. Thank you!
Nope.
You can transfer money from your Vanguard brokerage account settlement fund into Vanguard CP no problem. One solution for what you are trying to do would be to set those specific funds in the brokerage account to not reinvest dividends and capital gains, then manually transfer the accumulation in the settlement fund into CP once a month.
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RickBoglehead
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Re: Vanguard Cash Plus Account

Post by RickBoglehead »

macserialcable wrote: Mon Jun 10, 2024 10:54 pm So there is absolutely no way to fund the Cash Plus account from Vanguard other than from outside via an external checking account?
Not what you asked.
Avid user of forums on variety of interests-financial, home brewing, EVs (1005 EV), etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
UpperNwGuy
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Joined: Sun Oct 08, 2017 7:16 pm

Re: Vanguard Cash Plus Account

Post by UpperNwGuy »

slondr wrote: Sat Jun 08, 2024 8:37 am
Clarky wrote: Fri Jun 07, 2024 6:43 pm Wow. This is an amazing thread.

Maybe I’m too poor to see the need for all this.

My setup:

Bank: Checking, savings, CDs.
Brokerage: Investing, investment management, etc. Link to main checking account to send funds to invest, receive funds from brokerage.

Done.

All this complexity is just asking for trouble.
I calculated that I would earn between $100 and $300 per year by using Cash Plus instead of a checking account. In my mind, it isn't worth spending $100 on using a checking account instead of Cash Plus.
I did the same calculation as slondr and reached the opposite conclusion. My setup is the same as Clarky's, except I use a credit union instead of a bank.
zero_coupon
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Re: Vanguard Cash Plus Account

Post by zero_coupon »

UpperNwGuy wrote: Tue Jun 11, 2024 6:38 am
slondr wrote: Sat Jun 08, 2024 8:37 am
Clarky wrote: Fri Jun 07, 2024 6:43 pm Wow. This is an amazing thread.

Maybe I’m too poor to see the need for all this.

My setup:

Bank: Checking, savings, CDs.
Brokerage: Investing, investment management, etc. Link to main checking account to send funds to invest, receive funds from brokerage.

Done.

All this complexity is just asking for trouble.
I calculated that I would earn between $100 and $300 per year by using Cash Plus instead of a checking account. In my mind, it isn't worth spending $100 on using a checking account instead of Cash Plus.
I did the same calculation as slondr and reached the opposite conclusion. My setup is the same as Clarky's, except I use a credit union instead of a bank.
Your checking account is more profitable than Cash Plus?
UpperNwGuy
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Joined: Sun Oct 08, 2017 7:16 pm

Re: Vanguard Cash Plus Account

Post by UpperNwGuy »

zero_coupon wrote: Tue Jun 11, 2024 12:40 pm
UpperNwGuy wrote: Tue Jun 11, 2024 6:38 am
slondr wrote: Sat Jun 08, 2024 8:37 am
Clarky wrote: Fri Jun 07, 2024 6:43 pm Wow. This is an amazing thread.

Maybe I’m too poor to see the need for all this.

My setup:

Bank: Checking, savings, CDs.
Brokerage: Investing, investment management, etc. Link to main checking account to send funds to invest, receive funds from brokerage.

Done.

All this complexity is just asking for trouble.
I calculated that I would earn between $100 and $300 per year by using Cash Plus instead of a checking account. In my mind, it isn't worth spending $100 on using a checking account instead of Cash Plus.
I did the same calculation as slondr and reached the opposite conclusion. My setup is the same as Clarky's, except I use a credit union instead of a bank.
Your checking account is more profitable than Cash Plus?
It is definitely not! However, I keep so little money in checking that the dollar amount of the difference in interest is not great enough to motivate me to move to Cash Plus. All my significant cash reserves are in my high yield savings account or VUSXX.
xmorphicx
Posts: 44
Joined: Fri Jan 12, 2024 6:17 am

Re: Vanguard Cash Plus Account

Post by xmorphicx »

slondr wrote: Sat Jun 08, 2024 1:15 pm I don't view spending $100 and failing to earn $100 when the opportunity arose as very different. That's what I meant by that.
This is the issue for me. Missing out on 100ish bucks isn't that much in the grand scheme of things. But remember, it's ~$100 this year, and next year, and the year after... compounding with interest.

I also think of it this way - missing out on that interest because I'm using a checking account instead of Cash Plus is not functionally different than paying a fee to use that "free" checking account. I, and many others I've seen on this forum, recoil at the thought of paying BoA or Chase $12 a month to use their checking account... but functionally there is a fee when you're using that free checking account. The fee is that the bank is making interest on your cash "float" instead of you.
Lastrun
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Joined: Wed May 03, 2017 6:46 pm

Re: Vanguard Cash Plus Account

Post by Lastrun »

xmorphicx wrote: Tue Jun 11, 2024 3:26 pm …..
I also think of it this way - missing out on that interest because I'm using a checking account instead of Cash Plus is not functionally different than paying a fee to use that "free" checking account…..
Yeah, but you can keep moving this to the extreme——meaning you are paying a “fee” under this logic to use Cash Plus versus Fidelity, which (currently) pays higher yields on core MMFs (with better features than CP), and those CMA MMF folks are paying a “fee” not to roll Tbills.

But I do get your point and agree with it. One needs to determine the best approach, and leaving idle cash in a low-interest checking account for prolonged periods is not a good option.
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