Allotment rejected

I try to follow David Bach’s suggestions as outlined in his book, The Automatic Millionaire. On December 23, I added two allotments to be deducted from my paycheck: $100/pay period to re-establish my $1,000 emergency fund in my USAA checking and savings accounts, and $100/pay period to re-start my contributions to my Roth IRA with Vanguard.

Because I use USAA banking on a frequent basis, I noticed that the $100 had been deposited as directed. Because another $100 was also debited from my paycheck, I assumed Vanguard received the contribution.

You know what they say about people who assume.

Received an e-mail yesterday from a payroll specialist informing me that the allotment has been rejected. The e-mail stated that my employer would submit the request again. If the second attempt was unsuccessful, the allotment would be terminated. I was also advised to review the information I entered to establish the allotment.

I decided to call the payroll specialist.

I inquired about the rejected allotment. She told me a general rejection code was sent. I explained that I’m trying to send money to a mutual fund company. I relayed how I spoke with a Vanguard representative and was given a routing number that Vanguard has with Wachovia Bank. The payroll specialist had no answers. I asked, have other employees attempted to set up allotments with mutual fund companies? The payroll specialist also could not answer this question. She opined maybe mutual fund companies don’t accept certain types of transfers. I ended the conversation by requesting the allotment be terminated.

Frustrated!

Will call Vanguard today. If Vanguard doesn’t allow electronic transfers from my checking account on ANY day of the month (my experience has been that mutual fund companies provide specific dates for such transactions), I will have to write a check every pay period.

So much for being an automatic millionaire.

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