Author Topic: Vanguard ACH Transfers  (Read 5458 times)

wienerdog

  • Bristles
  • ***
  • Posts: 464
Vanguard ACH Transfers
« on: July 09, 2015, 04:38:22 PM »
Just wondering why Vanguard makes you wait so long before you can invest money on an ACH transfer.  If I do a transfer from my bank on 7/5 the funds hit Vanguard on 7/7.  Then I can't purchase anything until 7/13.  Is this normal?

BarkyardBQ

  • Pencil Stache
  • ****
  • Posts: 667
Re: Vanguard ACH Transfers
« Reply #1 on: July 09, 2015, 05:33:58 PM »
Typical ACH transfers takes 2-3 business days.

If you already hold investments/assets with Vanguard. Instead of sending the money to Vanguard first... Go directly to the BUY option. Pick your investment, the amount and then when you chose "Were is the money coming from" you pick the account. Vanguard will buy your investment, front you the money and give you that days price, pull the money out with the ACH transfer and your good to go.

If your funds fail, they sell the shares you bought and anything else they need to recover the costs.

GGNoob

  • Pencil Stache
  • ****
  • Posts: 725
  • Age: 32
  • Location: Colorado
Re: Vanguard ACH Transfers
« Reply #2 on: July 09, 2015, 05:39:00 PM »
I invest with ETFs at Vanguard. It's great for my taxable account. If I see some ETFs are on sale, I can buy a few shares. When I'm done, it will show that I'm negative that amount and I can transfer the exact dollar amount to make it even. My transfer settles before the ETF purchases do, so it makes it very easy.

johnny847

  • Magnum Stache
  • ******
  • Posts: 3196
    • My Blog
Re: Vanguard ACH Transfers
« Reply #3 on: July 09, 2015, 05:55:47 PM »
Huh?

When I buy mutual funds, the money hits Vanguard BEFORE it gets pulled from my account. If I place an order before market close on say a Wednesday, they credit my account by Thursday morning. The ACH transaction doesn't even show up in my bank account until Friday.

wienerdog

  • Bristles
  • ***
  • Posts: 464
Re: Vanguard ACH Transfers
« Reply #4 on: July 09, 2015, 06:00:55 PM »
Go directly to the BUY option. Pick your investment, the amount and then when you chose "Were is the money coming from" you pick the account.

Thanks zdravé.  I am new to Vanguard and wasn't going that route.  I saw that option but at the time it didn't make sense to me.  I'll go that route for now on as you have cleared it up.

wienerdog

  • Bristles
  • ***
  • Posts: 464
Re: Vanguard ACH Transfers
« Reply #5 on: July 15, 2015, 07:14:11 PM »
Well tried to put the last $1500 in the Roth yesterday via EFT transfer.  I wanted to buy an Int. ETF.  I went through the motions but then it said my account was underfunded for that transaction and it had a pop up dialog saying that if the funds weren't in there by the settlement date it would sell off other funds to cover the fees and any loses to sell the newly purchased items.  Is this what you were talking about?  The problem is they don't tell me when the settlement date is.

I backed out and just transferred the money to the money market account and the funds are locked again for 7 days.  I setup the transfer yesterday and it looks like it will go out tonight of my bank account but Vanguard says they aren't available until 7/21/2015.

forummm

  • Walrus Stache
  • *******
  • Posts: 7396
  • Senior Mustachian
Re: Vanguard ACH Transfers
« Reply #6 on: July 15, 2015, 07:36:35 PM »
It's a lot easier just to buy the Vanguard mutual funds instead of ETFs. You can just tell it how many dollars of which fund to buy and pulls the money over via ACH and sends you a confirmation when it's done. It's even easier to setup an auto-invest. Every payday it pulls over the exact dollar amount into the two funds I want to buy from my checking. I never have to do anything and the money just piles up, with no cash sitting around uninvested.

wienerdog

  • Bristles
  • ***
  • Posts: 464
Re: Vanguard ACH Transfers
« Reply #7 on: July 15, 2015, 08:02:55 PM »
It's a lot easier just to buy the Vanguard mutual funds instead of ETFs.

Okay I figured it was the ETFs.  Oh well not as easy as Betterment but it will do.  What is the settlement date on purchasing ETFs?