Transition VG accounts

[explanade]

Got an email urging me to do it by Jan 6 to their new brokerage platform.

Advantages for me are suppose to be:

By transitioning your account, you'll:
• Help us provide you with a more streamlined service experience.
• Gain fast, commission-free transactions for all your Vanguard investments.*
• Increase your investment choices to include not only Vanguard mutual funds but also ETFs (exchange-traded funds), stocks, bonds, CDs (certificates of deposit), and mutual funds and ETFs from other companies.

Take advantage of this offer by January 6 to enhance your investing experience at Vanguard!

Anyone else biting?

I don't anticipate buying non-VG funds, just keeping my Admiral shares in my Flagship account.

 

[easysurfer]

I've procrastinated for about 2 years and still procrastinating.

Happy with just funds so don't need to make more work for myself.

 

[walkinwood]

I did the transition earlier this month and it was painless. Took one business day.

But if you don't have a brokerage account already, I don't see the need till they force you to do it.

 

[explanade]

Do you need a brokerage account even just to buy VG ETFs?

 

[Scuba]

I did this for my MIL. Easy & painless.

 

[RunningBum]

You'll get two sets of tax forms in the year you convert. Somewhat confusing unless they've improved the process.

 

[VanWinkle]

You can say "I am going to call my Broker" after you have it converted to a brokerage account. That sounds much more sophisticated than I am calling Vanguard.

I started with a brokerage account so I don't know the difference.

VW

 

[racy]

Just did it last week. Painless. I figure I'll do my share to keep costs down (as VG claims it will do).

 

[MRG]

I'm already there. My w*rk was in this industry and you don't want to be last to convert.

IIRC Vanguard has two systems that do basically the same thing for most investors. The old system is being retired(we can all appreciate that!) due to technology obsolescence. At some point in time the conversion won't be voluntary it will be mandated.

It's better to be in the voluntary group! When it's mandated you have no ability to complain.

Along the way you(technology providers) start to enhance the new system first, stopping enhancements to legacy systems. In the industry, one big costly event is tax reporting. Happens every year and it's required, even if nothing changed in regulations, something changed. At some point the IT resources will have their priorities adjusted to support the new system first. You don't want to be there.

 

[Sunset]

Did it a year or 2 ago.
I like that everything is in one place, just like other brokerages.

Just don't do it within days of needing to rebalance/sell/buy something as I think for me it took 2 days.

 

[UpAnchor]

I've procrastinated for about 2 years and still procrastinating.

Happy with just funds so don't need to make more work for myself.

Yep. Don't need no stinkin' streamlined user experience. Heck, the Luddite in me even complains that my Vanguard app now opens with "My Feed" rather than just going straight to my accounts overview. Don't need no stinkin'......

 

[target2019]

I don't need a brokerage with VG, since there is one at Schwab already. So, I've been waiting to be forced into it. We don't need 4 additional funds for sweep.

When we consolidate after next year, VG might get a smaller piece of our investing pie. I must be a Luddite.

 

[DEC-1982]

I've procrastinated for about 2 years and still procrastinating.

Happy with just funds so don't need to make more work for myself.

+1

 

[walkinwood]

The downside of waiting to be forced into it, is that there is a chance that the system will be overwhelmed and you'll have issues and long waits for technical help.

..but you know that.

 

[RE2Boys]

We (me, wife, two sons) have a total of six Vanguard accounts. Three are full brokerage, other three or mutual funds only. Five of the six are retirement accounts with very few changes taking place.

At this time, I don't see any advantage to us to make the change so have been in no hurry. We did convert one of the accounts (son's Roth IRA) as it simplified the statements and record-keeping. Painless.

 

[explanade]

Would converting affect the various tiered status you get for having a certain amount with them?

Also I just switched my DRIP to transfer (by ACH) to my checking account. Would transfers to external institutions be affected?

 

[Alan]

Would converting affect the various tiered status you get for having a certain amount with them?

I don’t believe so. I even removed my name from our joint account with them so that it was just in my wife’s name. Neither of us would have had Flagship status but the combined accounts meant we both retained our individual Flagship status.

Also I just switched my DRIP to transfer (by ACH) to my checking account. Would transfers to external institutions be affected?

When I transitioned over to the Brokerage accounts the ACH bank details I use to transfer money in and out remained exactly the same.

 

[shasta]

Hmm I too only hold 4 different vanguard admiral funds and dont see why I would need to do this.

I will talk to my guy next week when I do the annual rebalance.

 

[RetiredAt55.5]

Transaction History Retained After Conversion?

For those that have already converted to the combined account, do you still have all the transaction history information for the old account/accounts?

 

[Alan]

For those that have already converted to the combined account, do you still have all the transaction history information for the old account/accounts?

Yes.

 

[W2R]

At Vanguard I only hold 5 Vanguard index funds, and I am a "buy, hold, and rebalance" investor.

If/when they force me to do it, then I will. But doing it now would not present any advantage to me that I can discern.

 

[RunningBum]

My advice to convert is to do it either after all distributions are paid in December, or early in January, so that all of your tax info shows up in one account. You will get separate forms for the two accounts, though they don't tell you this and they don't come at the same time.


That comment they make about "taking advantage of the offer to enhance your investment experience" is BS for the majority of people who just hold VG mutual funds. If you want to trade between that funds, ETF, and individual stocks, there probably is some advantage.

 

[MBAustin]

My advice to convert is to do it either after all distributions are paid in December, or early in January, so that all of your tax info shows up in one account. You will get separate forms for the two accounts, though they don't tell you this and they don't come at the same time.

+1

I talked with them yesterday and they confirmed that doing it in this time frame would reduce/eliminate the additional tax forms that the switch generates, and that eventually all accounts would be moved to the brokerage platform. So I'll plan to do it on New Year's day in between football games and hoping' john

 

[explanade]

Hmm, they should extend the deadline past Jan 8 then.

 

[Ologist]

I did the conversion which resulted in one minor hitch. With mutual fund account I had a prime mm account which I wrote checks on. Now with the brokerage acccount the clearing account is a Federal mm account.

So when I make transactions I need to be careful where the money comes from the Prime account or Federal account. Added pain in the ass