PaunchyPirate
Thinks s/he gets paid by the post
I'm a relatively new Schwab customer. I have a Vanguard ETF (VEU) in my account which did its quarterly distribution yesterday (3/23/23). The proceeds from this distribution appeared in my account overnight. I see it in my cash balance and I see an entry in my transaction history.
However, I have that investment set to re-invest -- The "Reinvest?" column on my positions page says "Yes". I set it that way after moving the investment over from Vanguard in early February. This is the first distribution since I have moved the investment.
I chatted Schwab this morning and the agent confirmed my setting was correct on their side. They said there is sometimes a delay in re-investing. Is that really how it works? My only Schwab investments (Money Market and a mutual fund) reinvested on the same day as it was distributed. It seems that if there is this much of a delay that people would do other things with that money while it sits in the cash balance for the account. Like transfer it to a money market fund that pays better interest.
Thoughts?
However, I have that investment set to re-invest -- The "Reinvest?" column on my positions page says "Yes". I set it that way after moving the investment over from Vanguard in early February. This is the first distribution since I have moved the investment.
I chatted Schwab this morning and the agent confirmed my setting was correct on their side. They said there is sometimes a delay in re-investing. Is that really how it works? My only Schwab investments (Money Market and a mutual fund) reinvested on the same day as it was distributed. It seems that if there is this much of a delay that people would do other things with that money while it sits in the cash balance for the account. Like transfer it to a money market fund that pays better interest.
Thoughts?
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