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Question about buying total stock market index today
Old 08-24-2015, 07:32 PM   #1
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Question about buying total stock market index today

I have what is probably a silly question . I've been sitting on cash from a home sale and just retired a few months ago. So overly heavy in cash. I decided to go ahead and purchase through Vanguard more total Stock market Index today.

I did this via computer about 3:30 PM today . It is still showing as processing and I was watching the news and a comment was made about people who bought mutual funds today - that they didn't even clear today, so they probably won't even get the price that the market ended on. Can someone explain it to me? I assumed that as long as I got it in by the end of the day that I would get whatever the price was at the bell. Thanks!



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Old 08-24-2015, 07:50 PM   #2
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Did you buy the ETF or the Mutual Fund?

If mutual fund, my guess is you get the fund price as of the close tomorrow. Funds usually close out at the end of day price. ETFs, on the other hand, can be traded quicker, but have other drawbacks such as higher fees (when compared to Admiral shares). Depends on the fund/ETF.
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Old 08-24-2015, 07:52 PM   #3
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Wait so I purchased the mutual fund (not etc) today at 3:30 but I'm going to get the price that it ends up at tomorrow Tuesday afternoon? That is frightening! Or did you mean the close pricing today. I hope it was the latter!

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Old 08-24-2015, 08:05 PM   #4
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A link to a bogle heads discussion on fund cutoff times.

https://www.bogleheads.org/forum/viewtopic.php?t=3750
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Old 08-24-2015, 08:10 PM   #5
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Wait so I purchased the mutual fund (not etc) today at 3:30 but I'm going to get the price that it ends up at tomorrow Tuesday afternoon? That is frightening! Or did you mean the close pricing today. I hope it was the latter!

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You did it at 3:30PM in what time zone?
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Old 08-24-2015, 08:19 PM   #6
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I did it via computer at 3:39 PM Eastern, so I'm assuming that I got it at today's closing price. My order status or confirmation online just ststed that it is processing and it lists "previous price", which was today's ending price. So it confused me. Not sure why didn't just say price. And the money was drawn directly out of my cash brokerage account there at Vanguard.

I didn't know whether to be panicked because the market might shoot up tomorrow and I would get tomorrow's price or excited that the market might go down even more and I would get an even better deal. LOL What a day!

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Old 08-24-2015, 08:20 PM   #7
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If you buy a Vanguard mutual fund AFTER market close, no soup for you until tomorrow's close. I already checked the other day when I had my wimpy panic attack. Lost interest on hitting the sell button after I read that. I am just going to find my big boy pants and put them on for a few weeks I guess.


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Old 08-24-2015, 08:28 PM   #8
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Since you submitted before 4 pm eastern time today, you got today's closing price.

You can see it in the morning or you can stay up all night checking your account every few minutes until you see it. Vanguard is the low-cost option, so they don't turn on all their computers until after 3 am for a few minutes to process mutual fund orders, then they turn them off. It helps them save on both electricity and keeps employee hours low.
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Old 08-24-2015, 08:29 PM   #9
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Haha, yeah it's definitely a different ballgame once you've retired . I've never been a great risk taker, and when you have no pension at all and no Social Security for a decade, a day like today is scary.

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Old 08-24-2015, 08:35 PM   #10
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Who knows, you may have gotten an even better price tomorrow !
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Old 08-24-2015, 08:39 PM   #11
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Haha, yeah it's definitely a different ballgame once you've retired . I've never been a great risk taker, and when you have no pension at all and no Social Security for a decade, a day like today is scary.

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I feel for all of you who are doing it that way. I know some are fine with it and battle scarred, but I would be a poor candidate for success in that manner. Im just a pensioner who lives off that entirely, but still likes to complain about my stock market losses even though Lord willing I will never have to spend a dime of it. Or a nickel of it if that is all that is left of it after this "correction".


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Old 08-24-2015, 08:48 PM   #12
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Who knows, you may have gotten an even better price tomorrow !
Not funny...
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Old 08-24-2015, 08:51 PM   #13
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[QUOTE=Mulligan;1627468]I feel for all of you who are doing it that way. I know some are fine with it and battle scarred, but I would be a poor candidate for success in that manner. Im just a pensioner who lives off that entirely, but still likes to complain about my stock market losses even though Lord willing I will never have to spend a dime of it. Or a nickel of it if that is all that is left of it after this "correction".


Yes, it is interesting. Since retiring, my DH and I have "pension envy".
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Question about buying total stock market index today
Old 08-24-2015, 08:59 PM   #14
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Question about buying total stock market index today

When I buy. MF on Fidelity I get the same day's closing price as long as my trade was made before 4 pm EST. after 4 pm trades buy at tomorrow's closing price.

But who knows, you might get a lower sale price tomorrow anyways?


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Old 08-24-2015, 09:02 PM   #15
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I'm assuming I will get today's closing price. Can't imagine why it would be otherwise.
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Old 08-24-2015, 09:06 PM   #16
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I'm assuming I will get today's closing price. Can't imagine why it would be otherwise.

Yes, you'll get today's closing price as long as you bought before the markets were closed. Based on my experience, it doesn't settle until after midnight, but I'm PST, so I'm guessing that might be around 3am for you. Check your account in morning and all should be good.
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Old 08-24-2015, 09:09 PM   #17
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+1 from what you described, you should get today's closing price.

If you don't and tomorrow's close is down, then great for you. If you don't and tomorrow's close is higher, then file a complaint and be sure to keep your documentation.
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Old 08-24-2015, 09:16 PM   #18
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You will get todays price, based on when you completed the purchase. Funds price at the close, later a batch process picks them up and processes the purchases and redemptions. It's different than how equities and ETf's trade real time.
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Old 08-24-2015, 09:31 PM   #19
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Thanks Everyone! I'm feeling less stressed now...
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Old 08-25-2015, 06:42 AM   #20
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I did the same yesterday ($100K of VG Total Stock). It was processed at yesterday's market close prices. All VG mutual fund transactions placed before the market close are processed at the end of day prices.
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