Questions about DTC transfers

[SecondCor521]

Hi all.

I usually give my kids money at Christmas. This year, I'm going to offer them money or mutual fund shares; the latter is more tax efficient and my kids are extraordinarily practical about gifts.

If I give them shares, it'll apparently be a DTC transfer from my Vanguard taxable to their Schwab taxable accounts. I already have the Schwab DTC number. I know I'll need to get their Schwab account numbers.

Questions:

1. How long do DTC transfers take?

2. If somehow we mess up the account numbers, what happens? Do the shares bounce back to me, or go into some random person's account? If they go to the wrong account, do I have recourse?

Any other advice / input / knowledge is appreciated.

 

[MRG]

Well billions go through their systems every day so it's pretty much guaranteed. I thought they were subject to the same deadline as trades so T+3(is it still 3?).

I don't know what the recovery process is like but I'm sure it exists. Try not to fat finger account #s just for fun.

 

[SecondCor521]

Well billions go through their systems every day so it's pretty much guaranteed. I thought they were subject to the same deadline as trades so T+3(is it still 3?).

I don't know what the recovery process is like but I'm sure it exists. Try not to fat finger account #s just for fun.

Thanks. I've just never done one before so it's new to me, and I figured this first time I'd ask my kids to make sure the shares showed up on their end.

And yeah, I'll be careful with the account numbers. I guess it's a bit like an ACH, where it's just the institution's number and then the account number. I suspect, but don't know, that the account numbers are not sequential and there is some checksum or something in them.

I think settlement is T+2, but I don't really know. Anyway, a few days is fine and something I can deal with.

Thanks for the reply, I appreciate it!

 

[MRG]

Thanks. I've just never done one before so it's new to me, and I figured this first time I'd ask my kids to make sure the shares showed up on their end.



And yeah, I'll be careful with the account numbers. I guess it's a bit like an ACH, where it's just the institution's number and then the account number. I suspect, but don't know, that the account numbers are not sequential and there is some checksum or something in them.



I think settlement is T+2, but I don't really know. Anyway, a few days is fine and something I can deal with.



Thanks for the reply, I appreciate it!

+1
Account numbers are not sequential you're correct theres a check digit on the end.

 

[RunningBum]

You could do a small transfer from your settlement holding to each account, and then do a larger transfer of shares after you've confirmed it worked. That's assuming VG lets you save the destination accounts rather than typing them in each time, otherwise there's no real point.

 

[Ncc1701]

Mutual Funds are not DTC eligible. Transfer the mutual funds to your account at Schwab (ACAT) and then journal to each of the kids.

 

[SecondCor521]

Mutual Funds are not DTC eligible. Transfer the mutual funds to your account at Schwab (ACAT) and then journal to each of the kids.

I don't have a Schwab account. I could set one up I suppose.

I'll check on eligibility too. I thought I spoke clearly with the Schwab person at the local office that I wanted to transfer mutual fund shares and she gave me the DTC number, so I trusted her on that.

I also went nearly all the way through the Vanguard transfer shares thing and it looked like it asked for a DTC number and was about to let me transfer MF shares. But maybe not; that was about a month ago.

Thanks.

 

[SecondCor521]

You could do a small transfer from your settlement holding to each account, and then do a larger transfer of shares after you've confirmed it worked. That's assuming VG lets you save the destination accounts rather than typing them in each time, otherwise there's no real point.

I don't think that Vanguard does save them, but good suggestion.

 

[OldShooter]

@SecondCor521, just call your broker with these questions. If you don't have a specific named broker, just call the customer service line. You are asking questions that have factual answers. SGOTI is much better at opinions than he is at being reliable about facts.

Then when it comes time to pull the trigger, call the broker again and have them walk you through their website procedure or have them just do the transfers for you.

 

[SecondCor521]

@SecondCor521, just call your broker with these questions. If you don't have a specific named broker, just call the customer service line. You are asking questions that have factual answers. SGOTI is much better at opinions than he is at being reliable about facts.

Then when it comes time to pull the trigger, call the broker again and have them walk you through their website procedure or have them just do the transfers for you.

Oh, I know. But that SGOTI guy answers quickly and sometimes points out things that a CSR wouldn't happen to.

But point taken.