A reader writes:

We have been doing online transfers for a while now and feel pretty secure in the method. We are currently saving for the eventual purchase of a new or slightly used vehicle and have a money market mutual fund with Vanguard Investments. We regularly use electronic transfers to put money into this mutual fund.

Vanguard takes great care to have a secure web site (look for the gold lock box in the bottom of the right hand corner of your computer screen) and to have secure electronic transfers. There are three ways to purchase additional shares or to sell shares (it works both ways). You can write a check and mail it in. You can do a wire transfer which takes less time but usually you are charged by your bank. Lastly, you can do an electronic transfer which is what we usually opt for.

Here are the steps I take to transfer our money into the Vanguard money market:

1. Go online to Vanguard.com and log in. Make sure that the lock symbol shows in the bottom right corner of the screen.

2. Click on the Buy/Sell tab.

3. Click on buy more shares using electronic transfer. I am asked if they have the correct bank information. It lists our bank’s name, the routing number, and our account number. I always double check each of these to make sure it is correct. Then I click the ok button.

4. I put in the dollar amount I want to buy.

5. Then I click buy shares.

6. A confirmation screen comes up asking me to verify everything. I read and verify all the information. Then, I click ok.

7. Then I print out the confirmation page that shows the transaction confirmation number.

8. Done! The whole process takes less than 5 minutes.

It usually takes a day or two for the bank to release the funds and place them in our Vanguard Money Market Fund. I keep going back to both my bank account and my Vanguard Account to confirm the transaction was successful, just to be sure.