A poster asked why I'm dissing Vanguard:
Originally Posted by Nords
AFI may be like Vanguard-- great rates until you actually need some service-- but if you don't file claims then it may be fine.
First, it's because Vanguard is the low-price leader. Absolutely rock-bottom rates. You pay for what you get.
Second, it's because they seem to have a higher error rate on answering questions (higher than Fidelity & Schwab, anyway), a higher error rate on paperwork and they can't handle rapid growth. They were having so much trouble during 2003-2005 (IIRC on the dates) that a Vanguard employee actually filed a whistleblower lawsuit. But then, unlike Fidelity, I don't think Vanguard's name has ever been linked with "midget bowling" or "prostitutes".
Don't get me wrong-- Vanguard is a great company for those who know what they want and don't need much help getting it. But I think their policies are excessively strict and their abilities are limited. I also think that they're far better than other brokerages like Edward Jones and Ameriprise... but that's not saying much.