Over the years we have grown to trust the linking of accounts, called Move Money, more than the postal system, especially around holidays or peak mail times i.e. Tax day, or Thanksgiving!
Linking of like titled or mutually owned account is the connection of accounts for easy movement of funds. These links stay in place for future use and if at least used every couple of years will stay connected. The recent SLOA (Standard Letter of Authorization) notice we mentioned here, was the annual notice of such links.
New Speed of Movement Has Caused (Good/Funny) Confusion
Due to new enhancements in the financial transactions systems ACH (Automated Clearing House) when a request is made to deposit funds from an outside account INTO your account here with our vendor, the funds show immediately in your account with our vendor before they are even drawn from the other account… until funds are actually drawn they will be visible in both places, seeming looking like you have double value (A Happy Feeling!)
Not to worry, within a day or two the ACH system will reach out and electronically grab the funds, easily moving from one account to the other.
Worth noting, due to this speed of deposit, if the ACH reaches out to grab the funds and they are not there, the deposit will be reversed in a couple of days. Prior to the immediate deposit, the ACH would try to grab again, but this is not longer the case.
Virtual Deposit
On a related note … talking of speed… several years back, we were enabled the ability to virtually deposit (via our scanner) an outside check directly into your account, making it visible in your account ….usually within 20 minutes or so!
Both of these transactions commence immediate interest draw on your funds – Cool!
Funds can reject up to five business days, so as a practice, it will be a business week before transactions are made in both cases above!
Have a Great “Understanding New Transaction Speed” Day!
John A. Kvale CFA, CFP
Why We don’t like to Move Money on Fridays – Break In – Inverted Yield Curve Update
Break In – On Friday the Yield Curve Inverted for about three hours – we have spoken at length on this subject, but want a little more time to see market participants reactions as well as Fed officials before making a current update.
As a reminder the Inversion of the Yield Curve has a strong recessionary signal some time in the future, frequently years in advance –
With a Newsletter already in print – coincidentally we had much talk about recessions, and even a definition. The two hour inversion did mess our Newsletter up a bit as until Friday it had not inverted – we will update you more with clarity soon!
Back to our regularly scheduled program/post…
Why we don’t like to Move Money on Fridays
As a weekend nears, specifically Friday … many’s favorite day of the week, we tend to dislike the movement of funds.
The reason is two fold:
There are of course times that money just HAS to move on a Friday, such as the closing of a home (in an abundance of caution, we frequently send funds on Thursday) or a last minute quick fill up of cash.
Regularly scheduled deposits are fine as the calendar determines this and being on such a regimented event, trouble is less likely.
Deposits or draws as we like to call them are a different story. When we are pulling funds from another account, we see the flow of funds from our end and can easily Shepard/see problems.
In a safe over sorry posture, look for us to recommend Thursday or our favorite day, Monday, for the movement of unscheduled funds.
Have a Great “No Friday Money Movement” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Clients/Clients Only, Economy, Education, FOMC, Interest Rates, Investing/Financial Planning, Market Comments, Why
Tagged FOMC, Interest Rates, Inverted Yield Curve, Move money, Wire