Not a Tale of Woe, but a Tale of Riches!
My spouse has a Vanguard Roth IRA that is invested ONLY in Vanguard mutual funds. She has customized the view to hide the Settlement fund because she makes no contributions, no withdrawals, and has all distributions automatically reinvested. There should NEVER be any transactions that involve the Settlement fund, so why not customize the view to never ever display the Settlement fund?
Except ---> 2 years ago in January 2023 she converted the rest of her Vanguard traditional IRA to her Vanguard Roth IRA. A custom transaction report does not show the 3 cents going into the settlement fund. But poking around at Vanguard.com she found that the last transaction of her settlement fund was the 3 cent dividend. It was a miracle to even find this transaction.
Now what to do with 3 cents in an account like this? Withdraw it? Could do by having Vanguard mail a check. It is a Roth and a check would not affect taxes. But this 3 cents should have been in the mutual funds in the Roth all along instead of hidden away. The obvious choice is just to use 3 cents to buy more mutual fund shares, but the minimum amount for a purchase is $1.
So she submitted an order to sell 97 cents of a mutual fund and have the 97 cents added to the 3 cents. When that order is completed, she will have $1 that can be used buy a fractional share of a different mutual fund. It's like throwing a 97 cent lifeline out there to rescue 3 cents. And the settlement fund will be $0.00 and can be hidden away safely again.
Do you have any riches hidden away at Vanguard that you have to deal with?
My spouse has a Vanguard Roth IRA that is invested ONLY in Vanguard mutual funds. She has customized the view to hide the Settlement fund because she makes no contributions, no withdrawals, and has all distributions automatically reinvested. There should NEVER be any transactions that involve the Settlement fund, so why not customize the view to never ever display the Settlement fund?
Except ---> 2 years ago in January 2023 she converted the rest of her Vanguard traditional IRA to her Vanguard Roth IRA. A custom transaction report does not show the 3 cents going into the settlement fund. But poking around at Vanguard.com she found that the last transaction of her settlement fund was the 3 cent dividend. It was a miracle to even find this transaction.
Now what to do with 3 cents in an account like this? Withdraw it? Could do by having Vanguard mail a check. It is a Roth and a check would not affect taxes. But this 3 cents should have been in the mutual funds in the Roth all along instead of hidden away. The obvious choice is just to use 3 cents to buy more mutual fund shares, but the minimum amount for a purchase is $1.
So she submitted an order to sell 97 cents of a mutual fund and have the 97 cents added to the 3 cents. When that order is completed, she will have $1 that can be used buy a fractional share of a different mutual fund. It's like throwing a 97 cent lifeline out there to rescue 3 cents. And the settlement fund will be $0.00 and can be hidden away safely again.
Do you have any riches hidden away at Vanguard that you have to deal with?
Statistics: Posted by livesoft — Thu Jan 02, 2025 12:16 pm — Replies 2 — Views 242