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Post by ECE Prof on Aug 24, 2022 21:41:20 GMT
New Vanguard Account Fees Will Increase Costs for Some of Its Most Loyal Customers.
You may not be able to access this article, due to paywall restrictions.
"Expense shift. Vanguard is known for low fees. But now, the legacy platform will become expensive—the opposite of Vanguard’s entire ethos—for the non-millionaires on it. “On the legacy platform, each mutual fund you own is an account,” says Dan Wiener, co-editor of The Independent Adviser for Vanguard Investors newsletter. So, if an investor owns five Vanguard funds each with $20,000 in it, that’s five separate accounts, each paying $20 a year extra, or $100 in total, to be on the platform."
"To make matters worse, even after clients switch to the brokerage, they will be charged $20 annually if they have less than $1 million and refuse to go completely digital with their account statements."
I have posted an expansive post today (08-24-2022) in the Armchairinvesting forum.
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Post by habsui on Aug 24, 2022 22:57:16 GMT
I'm in favor of charging for mailed paper statements. Get a pdf and print it if you like.
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Post by bizman on Aug 24, 2022 23:14:19 GMT
As I posted on the other forum, there are edge cases where all online access can be problematic. I prefer paper statements, and my parents and I all get them that way.
Sadly, my mom passed away earlier this year, and there were uncomfortable delays and convoluted hoop jumping necessary in transitioning her Vanguard account. We lost online access to her account for 6-8 weeks between the time we notified Vanguard of her death and the time we were able to get the new EIN for her trust and complete the trustee certification, which was very complicated and required several long phone calls being passed around between people who couldn't help us or didn't know what they were doing until we finally found someone who could. Who needs such stress during a time of sadness and grief? If we had not continued to get the mailed statements during this time, it would have increased our anxiety and concern considerably more. As an aside, I'm sure glad we didn't have any funky trading positions that needed tending in the interim as we had no way to effect trades or monitor her account during this time.
If I need to pay $20 a year to get mailed statements, I'll pay it. If they take away the right to get them or make the cost prohibitive, we will close our accounts. Especially for older and less tech-savvy people, it seems more of a necessity than a luxury to get mailed statements.
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Post by ECE Prof on Aug 24, 2022 23:33:59 GMT
I'm in favor of charging for mailed paper statements. Get a pdf and print it if you like. That is what I have always done, once per year (year-end copy) - just in case. I also provide copies of all my brokerage accounts to my son. I have three accounts with Vanguard, and two with FIDO, and one with Firstrade. I have sent an e-mail asking them a few minutes ago, if they would charge us. Furthermore, I have also fired a warning shot that, if they charge me, I would move our accounts to Fidelity or Schwab.
Although we have a 7-figure balance, they would count only Vanguard ETFs/funds. So, Vanguard asked me to move my assets back from Fidelity. Since I did not do that, they downgraded my accounts to "Select" services. That is fine because I need not pay any brokerage commissions on my trades anyway. I do not call and ask for help anyway. Even, when I had a rep, I never used them, and they used to contact me. So, it did not matter. So, if Vanguard wants to charge, it should charge the people who need those services, not us.
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Post by yogibearbull on Sept 10, 2022 23:50:36 GMT
This is an interim report on mutual fund to brokerage transitions (4 IRAs, 1 Trust).
The IRAs transferred easily and automatically for my wife and I. Both T-IRA and R-IRA transitioned together. All personal info transferred except one secondary phone number that I added later. Beneficiaries also transferred, and so did the bank links (I was surprised by that).
As others have noted here or elsewhere, VG created a new VMFXX (settlement) although we already had VMFXX. To avoid possible confusion, I moved all of the old VMFXX onto the new VMFXX (settlement).
Trust a/c transition is still pending. It required more papers - upload of copies of some trust pages, more Trust related questions. I had to call an indicated number as the auto-process got stuck and was I surprised to get through quickly - it could be a special number for account processing. Apparently, some manual processing is also required at Vanguard's end, so this is still pending. I will follow up on it mid next week if not done by then.
I didn't sign up for electronic delivery - that option was offered but I skipped. I know I have to do that too by the month end.
I give B+ for the process.
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Post by anovice on Sept 11, 2022 13:12:09 GMT
This is an interim report on mutual fund to brokerage transitions (4 IRAs, 1 Trust). As others have noted here or elsewhere, VG created a new VMFXX (settlement) although we already had VMFXX. To avoid possible confusion, I moved all of the old VMFXX onto the new VMFXX (settlement). Very odd for them to have created two of VMFXX in the same account. |
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Post by chang on Sept 11, 2022 13:48:44 GMT
This is an interim report on mutual fund to brokerage transitions (4 IRAs, 1 Trust). As others have noted here or elsewhere, VG created a new VMFXX (settlement) although we already had VMFXX. To avoid possible confusion, I moved all of the old VMFXX onto the new VMFXX (settlement). Very odd for them to have created two of VMFXX in the same account. See this post (and others in the thread): big-bang-investors.proboards.com/post/21550/thread |
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