Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 08-21-2015, 08:25 AM   #21
Full time employment: Posting here.
 
Join Date: Feb 2014
Posts: 942
Quote:
Originally Posted by kevink View Post
Vanguard ETFs, uniquely among ETFs to the best of my knowledge, are actually a share class of the corresponding mutual funds. Same management - and same dim view of active trading of index funds. Personally I see it as an advantage, in that you're far less likely to see your Vanguard ETFs trading at a steep discount during times of market panic. Active traders have the entire rest of the ETF world open to them (which is of course one of the main reasons Vanguard founder John Bogle has such a negative view of ETFs).
Anything that restricts my ability to change a position is never an advantage. Also your point that Vanguard's restriction will result in less of a discount in down turns simply doesn't hold water. What percentage of the brokerage world does Vanguard hold? Minimal. Therefore the restriction will have no impact on premium/discounts. ETFs are great because they are liquid, Vanguard doesn't see this as a virtue, weird.
__________________

__________________
jim584672 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-21-2015, 10:12 PM   #22
Full time employment: Posting here.
Markola's Avatar
 
Join Date: Nov 2013
Posts: 515
When I moved my money from Schwab to Vanguard, I was surprised that Vanguard required two accounts for each IRA. All of those dual accounts were clunky. I received the same letter the OP received, gave Vanguard approval to combine the series of dual accounts to one, and it was a non-event. I'm glad for any pain-free opportunities to keep finances simple.


Sent from my iPad using Early Retirement Forum
__________________

__________________
Markola is offline   Reply With Quote
Old 08-22-2015, 09:12 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Mulligan's Avatar
 
Join Date: May 2009
Posts: 6,945
Quote:
Originally Posted by Markola View Post
When I moved my money from Schwab to Vanguard, I was surprised that Vanguard required two accounts for each IRA. All of those dual accounts were clunky. I received the same letter the OP received, gave Vanguard approval to combine the series of dual accounts to one, and it was a non-event. I'm glad for any pain-free opportunities to keep finances simple.


Sent from my iPad using Early Retirement Forum

+1.... I do not like change and do not particularly like to lift a finger in effort to assist in change. But even I did this. Easy to do, and like you said...simpler.


Sent from my iPad using Tapatalk
__________________
Mulligan is offline   Reply With Quote
Old 09-24-2016, 11:57 AM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 14,632
I logged onto Vanguard today and noticed for the first time an "Upgrade" option on each mutual fund account where I could upgrade from a mutual fund account to a brokerage fund account online.

Curious about the experience of people who have converted and any benefits or detriments.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 09-24-2016, 12:47 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Posts: 7,348
Many of us did that in the last year. Simplicity is a good thing.
__________________
braumeister is offline   Reply With Quote
Old 09-24-2016, 12:55 PM   #26
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,168
It has been reported and I have found true that the "upgrade" will mess up one's instructions on what to do with automatically reinvesting distributions.

I think the upgrade resets things to the "account default" whatever that was for you. If you had different funds to do different things from the "account default", then you may be in a for a surprise.

So double check after you upgrade what the settings are for each and every one of your investments in the new account structure. I certainly had to reset mine back to what I wanted and had previously.

For me, I had brokerage accounts at Vanguard for ETFs, but my default was not to reinvest any ETF distributions back into the ETFs. When my mutual funds got "upgraded" and placed in the existing brokerage accounts, they lost my choice to have distributions automatically reinvested, so I had to reset those. Perhaps this would not be a problem for folks with no previously existing brokerage account.
__________________
LOL! is offline   Reply With Quote
Old 09-24-2016, 04:14 PM   #27
Recycles dryer sheets
Cooked's Avatar
 
Join Date: Jul 2013
Posts: 67
A few of the differences that I have noticed. First, the settlement account (MMF) does not allow paper checks. Second, the settlement account is a sweep account. It can be a bit more difficult to figure out where the sweep came from. For example if you have dividends go into the sweep account they get aggregated quickly and it is difficult to figure out where it came from . And finally, transfers between old style and upgraded accounts if not allowed. I had opened up a new ROTH to do a rollover and found that I could not roll over until the Traditional IRA was upgraded first.
__________________
Don't sweat the petty stuff.
Cooked is offline   Reply With Quote
Old 09-24-2016, 04:38 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 14,632
All good intelligence... thank you !
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
pb4uski is offline   Reply With Quote
Old 09-24-2016, 08:07 PM   #29
Recycles dryer sheets
 
Join Date: Apr 2010
Posts: 398
Quote:
Originally Posted by braumeister View Post
Many of us did that in the last year. Simplicity is a good thing.
Does anyone know how/if it affects Quicken downloads/links ?
__________________
Insanity: doing the same thing over and over again and expecting different results.
(Albert Einstein)
wanaberetiree is offline   Reply With Quote
Old 09-25-2016, 06:48 AM   #30
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,462
I feel left out. Have no upgrade button. I remember seeing something in the past, but did not proceed. Our accounts are very simple , buy and hold variety. Now, if they offered a toaster...
__________________
target2019 is offline   Reply With Quote
Old 09-25-2016, 07:13 AM   #31
Dryer sheet aficionado
 
Join Date: Dec 2012
Posts: 25
One thing I experienced when I upgraded last year is it resulted in an additional 1099 tax statement that I was not anticipating. In the spring, I went through my usual checklist of documents and when I had everything (I thought), I filed the return.

Didn't know there would be separate 1099's for before & after the upgrade. A new one was released a week or two later and I had to file amended federal and state returns. That was annoying and I wished, if they had to be separate statements, that they were released together so this could have been avoided.
__________________
SecretlyFI is offline   Reply With Quote
Old 09-25-2016, 07:16 AM   #32
Thinks s/he gets paid by the post
 
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 1,875
Quote:
Originally Posted by target2019 View Post
I feel left out. Have no upgrade button. I remember seeing something in the past, but did not proceed. Our accounts are very simple , buy and hold variety. Now, if they offered a toaster...
Didn't banks stop doing that in the middle of the last century?
__________________
Hermit is offline   Reply With Quote
Old 09-25-2016, 07:26 AM   #33
Recycles dryer sheets
prototype's Avatar
 
Join Date: Mar 2011
Posts: 166
Quote:
Originally Posted by target2019 View Post
I feel left out. Have no upgrade button. I remember seeing something in the past, but did not proceed. Our accounts are very simple , buy and hold variety. Now, if they offered a toaster...

Same here, I just logged into Vanguard now and don't see any "upgrade button" anywhere, anyplace for any of my funds in either of my T-IRA account or Regular. Account. All my funds are at admiral level and most are index funds with Vanguard ETF equivalents (e.g. VFIAX and VOO).

I'm so very confused.
__________________
prototype is offline   Reply With Quote
Old 09-25-2016, 07:31 AM   #34
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 1,603
Since you can't go back, I would instead consider opening a new brokerage account separate from the mutual fund account. I would try to title the new account so that it is not identical to the MF account to avoid an involuntary "upgrade" in the process.

This way, if you really like the brokerage account you can keep it and move the old assets to it and close the MF account.

If on the other hand, the brokerage account is not all that it was cracked up to be, you haven't forever lost your MF account.

I have a VG brokerage account from about a decade ago but it has been inactive and empty for some time.

BTW - I just noticed that I have been presented the Upgrade link too on vanguard.com. Thanks for the heads up on this!

-gauss
__________________
gauss is online now   Reply With Quote
Old 09-25-2016, 07:33 AM   #35
Full time employment: Posting here.
Markola's Avatar
 
Join Date: Nov 2013
Posts: 515
Quote:
Originally Posted by prototype View Post
Same here, I just logged into Vanguard now and don't see any "upgrade button" anywhere, anyplace for any of my funds in either of my T-IRA account or Regular. Account. All my funds are at admiral level and most are index funds with Vanguard ETF equivalents (e.g. VFIAX and VOO).

I'm so very confused.

For your T-IRA, do you have one account or two, i.e. a brokerage account and a second one? If one, then you are already upgraded, as Another Reader above said would happen automatically soon.
__________________
Markola is offline   Reply With Quote
Old 09-25-2016, 07:35 AM   #36
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,462
Quote:
Originally Posted by Hermit View Post
Didn't banks stop doing that in the middle of the last century?
Wouldn't know what to with toaster, now that you mention it.
Maybe a pair of suspenders?
__________________
target2019 is offline   Reply With Quote
Old 09-25-2016, 07:53 AM   #37
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,462
Quote:
Originally Posted by prototype View Post
Same here, I just logged into Vanguard now and don't see any "upgrade button" anywhere, anyplace for any of my funds in either of my T-IRA account or Regular. Account. All my funds are at admiral level and most are index funds with Vanguard ETF equivalents (e.g. VFIAX and VOO).

I'm so very confused.
This Vanguard page explains things, and it may lead to the option for you to upgrade.
https://investor.vanguard.com/info/account-upgrade
__________________
target2019 is offline   Reply With Quote
Old 09-25-2016, 08:11 AM   #38
Recycles dryer sheets
prototype's Avatar
 
Join Date: Mar 2011
Posts: 166
Quote:
Originally Posted by target2019 View Post
This Vanguard page explains things, and it may lead to the option for you to upgrade.
https://investor.vanguard.com/info/account-upgrade
Thank you for the link, I just went there and saw the START button. Got some reading to do before I select it (if I decide to select it). It looks like they are looking for "my permission" before they start messing around with things.

Quote:
Originally Posted by Markola View Post
For your T-IRA, do you have one account or two, i.e. a brokerage account and a second one? If one, then you are already upgraded, as Another Reader above said would happen automatically soon.
Just the same old Investor Side Account (and acct#) I've had for a bunch of years before they even started the "two sides of the house".

I don't understand how they can start moving people's money around without permission.
__________________
prototype is offline   Reply With Quote
Old 09-25-2016, 08:50 AM   #39
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 3,462
Quote:
Originally Posted by prototype View Post
I don't understand how they can start moving people's money around without permission.
They can't move things without your permission.
__________________
target2019 is offline   Reply With Quote
Old 09-25-2016, 08:51 AM   #40
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 3,604
We did it last year.
I like having everything in 1 place, it does break out the different accounts by the type for me.
Regular Account, 401k Roth, 401K IRA, etc. but now I just log in 1 place and see it all.
It adds the amounts from each together to show 1 final Total.
__________________

__________________
Sunset is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tracking basis with spreadsheet, how to structure the spreadsheet? bamsphd FIRE and Money 13 08-03-2009 09:31 AM
how to structure my 401k and IRA cdrwok Young Dreamers 8 03-12-2009 04:55 PM
job opportunity - best structure? WM FIRE and Money 8 05-02-2008 11:37 AM
Natural gas system structure uncledrz FIRE and Money 4 10-04-2005 05:47 AM
Investment Structure Question frayne FIRE and Money 7 07-20-2005 08:05 AM

 

 
All times are GMT -6. The time now is 01:53 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.