Purchasing ETF same day funding vanguard?
Purchasing ETF same day funding vanguard?
I anticipated placing a small amount bi-weekly in a regular taxable brokerage account with vanguard and then purchasing etf's (NTSX in this case). I requested the money from chase through vanguard on thursday and have been unable to purchase still. It appears I have to wait 7 days??? I'm not sure how this never became an issue in my vanguard IRA's thus far. Is there a workaround I am missing here or would i be better off completing such a process with TD ameritrade where I also have an old account that I could use?
Re: Purchasing ETF same day funding vanguard?
Was this an account that you already had linked to your Vanguard account?dalbright wrote: ↑Tue Sep 21, 2021 8:52 am I anticipated placing a small amount bi-weekly in a regular taxable brokerage account with vanguard and then purchasing etf's (NTSX in this case). I requested the money from chase through vanguard on thursday and have been unable to purchase still. It appears I have to wait 7 days??? I'm not sure how this never became an issue in my vanguard IRA's thus far. Is there a workaround I am missing here or would i be better off completing such a process with TD ameritrade where I also have an old account that I could use?
I only ever buy Vanguard MFs and ETFs through Vanguard. I am able to purchase immediately with the funds I transfer into my settlement fund. I don't know whether this float is a courtesy Vanguard offers when you're buying their products or if it applies in general. ACH transfers do take a 24-48 hours to settle. In that period of time, Vanguard is basically offering you a 0% interest loan. (Though one could make the argument that with the T+2 settlement for ETFs, it's not really.)
My steps are
1) Decide what I'm buying and roughly how much I need.
2) Transfer funds from my bank to my brokerage settlement account.
3) Buy the ETFs.
4) Put the left over money (usually ~$1-$20) into VTSAX.
Re: Purchasing ETF same day funding vanguard?
Could definitely be the issue for a non-vanguard product as I believe in the past that is what i purchased. I know I could direct invest into a mutual fund but that is not the goal with the taxable account. It has existed and been linked to the same bank for a while now. Not a fan of the delay.
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Re: Purchasing ETF same day funding vanguard?
I think things would go faster if the money was already in your settlement account.dalbright wrote: ↑Tue Sep 21, 2021 9:52 am Could definitely be the issue for a non-vanguard product as I believe in the past that is what i purchased. I know I could direct invest into a mutual fund but that is not the goal with the taxable account. It has existed and been linked to the same bank for a while now. Not a fan of the delay.
When you say you'll purchase from a linked bank, Vanguard doesn't really know if the money is there (in the linked bank), they're sort of taking your word for it, and I believe that's at least part of the issue.
Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Re: Purchasing ETF same day funding vanguard?
I just did this:dalbright wrote: ↑Tue Sep 21, 2021 9:52 am Could definitely be the issue for a non-vanguard product as I believe in the past that is what i purchased. I know I could direct invest into a mutual fund but that is not the goal with the taxable account. It has existed and been linked to the same bank for a while now. Not a fan of the delay.
My Accounts | Buy & Sell -> Transfer money -> "From your bank" "To Vanguard" -> confirm
My Accounts | Buy & Sell -> Trade ETFs or stocks -> Select Account -> Brokerage account
"Funds available to trade" includes the deposit I just finished 30 seconds earlier.
It doesn't even wait for me to choose to buy or enter the ticker.
I don't have a large account with them. I have been on the platform for just over 2 years. How long have you had that account associated with your brokerage account? There is definitely a many-day lag when you first add a new account.
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Re: Purchasing ETF same day funding vanguard?
Ditto for me.
When I enter a buy order, I just select which fund(s) I want to buy and identify where the money is coming from (options include a couple linked bank accounts or my settlement fund).
I did this yesterday. "Funds available to trade" immediately included the transfers from my linked bank account.
Re: Purchasing ETF same day funding vanguard?
I've had the account for 4 years but I have never tried to purchase something that wasn't a vanguard etf/mutual fund. It shows as available to trade but then gives a warning pop up and the account notes the 7 day warning. I preferred using Vanguard so I wouldn't get swayed into other more leveraged products variations beyond NTSX but maybe I will just have to use will power with TD haha.
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Re: Purchasing ETF same day funding vanguard?
Why not just buy the Vanguard equivalent of whatever ETF you are trying to buy? Vanguard has all the ETFs a long-term boglehead investor would ever need.dalbright wrote: ↑Tue Sep 21, 2021 1:25 pm I've had the account for 4 years but I have never tried to purchase something that wasn't a vanguard etf/mutual fund. It shows as available to trade but then gives a warning pop up and the account notes the 7 day warning. I preferred using Vanguard so I wouldn't get swayed into other more leveraged products variations beyond NTSX but maybe I will just have to use will power with TD haha.