Automatic Reinvestment to Brokerage Acct from IRA

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Topic Author
inprov
Posts: 2
Joined: Sun Aug 07, 2022 6:32 am

Automatic Reinvestment to Brokerage Acct from IRA

Post by inprov »

I found this forum, so I thought I would ask for advice.
At Vanguard, is there any way to have your automatic RMD taken from your IRA be automatically re-invested in a Vanguard fund in your brokerage account the next day? I love the fact that Vanguard will automatically take your RMD out, but the only option I could find was that it puts it in your settlement account in your brokerage account (other than sending it to your bank). Is there any way to have those funds automatically deposited in your settlement account go into a fund when they are available? This would make it so much easier for a remaining spouse who is not versed in dealing with finances. Thank you very much for your thoughts.
Topic Author
inprov
Posts: 2
Joined: Sun Aug 07, 2022 6:32 am

Re: Automatic Reinvestment to Brokerage Acct from IRA

Post by inprov »

If I need to give more details for people to respond to, please let me know.
Thanks in advance.
Mike Scott
Posts: 3579
Joined: Fri Jul 19, 2013 2:45 pm

Re: Automatic Reinvestment to Brokerage Acct from IRA

Post by Mike Scott »

You can set up a schedule of automatic investments either from your bank account or the settlement account but like all such things they need monitoring for when they go wrong for whatever reason.
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asset_chaos
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Joined: Tue Feb 27, 2007 5:13 pm
Location: Melbourne

Re: Automatic Reinvestment to Brokerage Acct from IRA

Post by asset_chaos »

the only option I could find was that it puts [the RMD] in your settlement account in your brokerage account (other than sending it to your bank)
If that's true, it's yet another downgrade annoyance with the new style brokerage only accounts. My taxable account is still an old style mutual fund account, and for 15 years or so Vanguard's RMD service has taken the RMD out of the IRA and the money appears overnight in the taxable account mutual fund that I've designated; no intervening settlement fund required. But I think requiring all transactions to go through the settlement account is supposed to be a feature, not a bug, with the brokerage only accounts. Fund to fund exchanges are no longer supported; everything must be redeem from one fund to settlement account then buy from settlement account to other fund: two separate transaction that cannot be coordinated/automated.

About the only thing to do is complain to Vanguard that exchanges ought not to take two separate transactions, a variation of a complaint I raise every time they nudge me to convert to brokerage only. The complaint will fall on deaf ears, but you might make it anyway.
Regards, | | Guy
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