Personal Investments • Architecting Auto-Investments.

I currently have automatic investments set up to pull funds from my bank account directly into the settlement account on Vanguard. However, I’d like to optimize my strategy by using a higher-yielding triple tax-exempt money market fund (MMF) as the initial holding. My goal is to automate a dollar cost averaging strategy by moving funds from the MMF to the settlement account only as needed for mutual fund purchases.

Here’s the setup I’m trying to automate:

1.Automatically transfer funds from my bank account into the MMF (instead of the settlement account).
2.Regularly move a fixed amount from the MMF to the settlement account.
3.Schedule mutual fund purchases from the settlement account.

I’ve reviewed several forum posts, but I haven’t found a clear answer on whether Vanguard’s platform can fully support each of these steps as an automated process. Specifically:

•Does Vanguard allow automated transfers directly from a bank account into an MMF?
•Can I set up automatic, recurring transfers from the MMF to the settlement account?
•Are there any limitations or manual steps required in this process?

Any guidance on setting up this approach or understanding potential restrictions would be greatly appreciated. Thank you!

Statistics: Posted by StrawmanInTheField — Tue Nov 05, 2024 4:26 pm — Replies 2 — Views 218

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