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Attorney and Vanguard

July 8th, 2019 at 06:23 pm

Praise God, my attorney filed the motion to dismiss the case. She then sent a letter to my brother’s attorney, basically putting him on notice that she hoped that he did his due diligence and that she was pulling the bank records in its entirety. I’m curious to know what my brother, his kids, and my mother is going to say when they realize my dad made these changes well before his death. I’m very please and confident with her. The letter she sent after filing the motion was straight to the point and kind of snarky too.

Other news we have a family friend who isn’t doing too well, I think he’s homeless. I called him today and gave him the $20 out of my fun envelope, that was what I had left. It’s not much but it’s something.

I called Vanguard regarding the swipe, the rep had no clue. He told me that was how the showed a transaction from an institution. I explained that a negative plus a positive in the same amount canceled each other out, and he was like um 😐.

I sent an email and got this,

“On your account statements, you'll see several transactions that are
labeled, "Sweep in" under the "Transaction type" column under your account

Your Roth IRA Vanguard Brokerage Account has a Vanguard Federal Money
Market Fund, which is your brokerage settlement account. Your money market
settlement fund is also known as a "sweep" account.

Vanguard Federal Money Market Fund (VMFXX) is the settlement ("sweep") fund
in all Vanguard Brokerage Accounts. Each Vanguard Brokerage Account has its
own settlement fund.”

The main function of the settlement fund in a brokerage account is to
facilitate trading brokerage securities such as stocks, ETFs, and
non-Vanguard mutual funds. If you want to purchase brokerage securities,
you should have the funds available to trade in the settlement fund. When
you sell these types of securities, the proceeds will transfer to the
settlement fund and begin accruing dividends on the settlement date of your

5 Responses to “Attorney and Vanguard ”

  1. AnotherReader Says:

    OK, sweep is something familiar to me and is exactly what the explanation says. Phew!

  2. Amber Says:

    Thanks Another Reader, I was absolutely confuse, and still somewhat is. It’s a learning curve, I’m glad I got you guys to keep me on the straight and narrow.

  3. creditcardfree Says:

    I don't have a brokerage account with Vanguard thus why I don't see those types of transactions. Our investments are in mutual funds directly, so there is no sweep needed.

  4. Lots of Ideas Says:

    Amber, ‘sweep’ is the term used for investing money via overnight loans. Financial institutions must always have enough money to pay their obligations, and sometimes if expected transactions don’t settle, they are left short at the end of the day. They ‘cover’ the shortage by short term, overnight borrowing. The lending bank looks at the cash they have on hand and ‘sweep’ it out of their clients’ accounts, and loans it overnight. You should have received a small amount of interest, but if the amount swept was very small, it might be less than a penny. As your funds grow, you should get a small amount of interest for ‘swept funds.

    This is a way that those with money make money by doing nothing! When interest rates were higher, it was a better way to make money, but it is still better than having cash sitting earning nothing!

    I hope this makes sense. In general, the sweeping makes money for you and your bank!

  5. Jeremy AErts Says:

    Just a heads up - In regard to your Vanguard Account - You are not just keeping it in the money market fund correct? That fund is used to invest in mutual funds (or ETFs) that generate the income you will need for retirement. You need to choose what you would like to invest your contributions toward...... just by opening a ROTH or Traditional IRA will not automatically invest your contributions.

    I'm just saying this because I know a couple of people that just opened up the account, made contributions.... that would go into the money market fund and figured that was all they had to do. Wrong. Need to choose a product (such as a target date mutual fund) that you can invest in by using the cash in your money market fund. They missed out on a lot of money that could have been generated.

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