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Vanguard for Everything?
Old 01-07-2010, 03:39 PM   #1
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Vanguard for Everything?

My wife and I will be working for a few more years. We currently have several 401K's, 403B's with prior companies where we worked. We are considering rolling these over to Vanguard IRA's. We also have mutual funds with several different compnaies that we may move to Vanguard.

How do folks feel about investing all financial assets with one company?
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Old 01-07-2010, 03:49 PM   #2
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If you are only going to hold Vanguard mutual funds, I have no problem with putting all of your investment accounts with Vanguard. If you want other mutual funds you may be better off putting some of them into a broker like Schwab or Fidelity which has a lot of no-load mutual funds in their "supermarket."

And also, I would tend to look elsewhere if I were going to be trading individual stocks, since Vanguard's commissions on brokerage are on the high side.
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Old 01-07-2010, 03:50 PM   #3
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DH and I have our money split between Vanguard and T. Rowe Price, primarily because we were a little nervous having everything with one company. It's hard to imagine ever having a problem, though.

When we helped DH's mom sort out her finances a few years ago, we put everything in Vanguard for simplicity and she's very pleased with that. I still help her with her finances and I have to say, it's nice having it all in one place from a management perspective.
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Old 01-07-2010, 03:52 PM   #4
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I have no problem doing that with one of the larger discount brokerages or low-fee mutual fund companies.

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Old 01-07-2010, 03:57 PM   #5
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I have no problem with Vanguard as I expect Vanguard to be around much longer than I will.

Now, if Vanguard had a major shift in philosophy towards their clients, I would have to reconsider.
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Old 01-07-2010, 04:32 PM   #6
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We have most of our assets in Vanguard. I feel pretty safe with them. I guess it's OK to split them between VG and Fidelity if you need the diversification to feel secure. I think 3 is the maximum number of places I can keep track mentally, so I am limiting it to 3.
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Old 01-07-2010, 04:54 PM   #7
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I'm comfortable with having it all at VG. No complaints other than the new look of their online statements.
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Old 01-07-2010, 05:27 PM   #8
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Other than my 401k (Schwab by Megacorp choice, but not bad), everything we have is with Vanguard. All our holdings are Vanguard funds as well, except one. I sleep like a baby still (may be due to comparable intelligence)...
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Old 01-07-2010, 06:03 PM   #9
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I have things split up. I imagine Vangard will always be just fine, but lets say something really crazy and unlikley happens. Like a computer hacker gets into their mainframe or a plane crashes into their headquarters. Yeah, it's probably OK with just one. But it's really no big hassle to go with two.
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Old 01-07-2010, 07:22 PM   #10
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Vanguard is a great reputable company, but I would not want to put all my assets in one basket. I have an accounts with several low- or no-cost outfits. I like the idea that if the internet is cut into Valley Forge or my account is hacked, that I can use another one of my accounts. You probably wouldn't travel overseas with a single credit card, so you don't want a single vendor for your investments either.

Another thing is that Vanguard has trading restrictions which can be easily overcome by transactions at another vendor. For example, sell Vanguard Total Market on Monday, but buy it back on Thursday at WellsFargo (both transactions are no commission).

It's also basically about redundancy and backups. Since it costs me nothing to use the other accounts (WellsFargo is actually less expensive than Vanguard) and costs nothing in convenience (all accounts look connected because of the internet), I see no reason to go to a single vendor.

If I had to go to a single vendor, it would be WellsFargo. Sorry Vanguard, but you have been out-Vanguarded by WF.
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Old 01-07-2010, 08:52 PM   #11
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I think it is worthwhile to consolidate accounts (and Vanguard is fine arguable the best choice) until you hit the million dollar in asset levels. Schwab, Vanguard, Fidelity and maybe even WellsFargo provide superior service, reduced fees for clients with million in assets or more.

The reduced fees and such are very nice, but what is even better is being able to get somebody on the phone is a couple minutes that has 5,10 and even 20 years of experience instead of recent college grad is even more valuable.
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Old 01-07-2010, 09:28 PM   #12
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The reduced fees and such are very nice, but what is even better is being able to get somebody on the phone is a couple minutes that has 5,10 and even 20 years of experience instead of recent college grad is even more valuable.
I have accounts split between Fido and Vanguard--premium level for both. For quality of rep I have to put Fido well ahead of Vanguard. The Vanguard folks are always very pleasant but have little ability to be problem solvers. They quote VG policy and that is about it.
Earlier comments about trading costs are right on, not to mention differences in quality of execution. Fido has much better research features available and a broader list of funds and VG. Tried to get a Morningstar rating on a VG fund from the VG site--lots of luck. At least I have not figured out how. In contrast, I can compare 5 different funds from any family and get M* results plus 1, 3, 5 and 10 yr perfomrance results in one table.
Unless you are a passive investor and are only good use VG funds, I would recommend you look at other options first.
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Old 01-08-2010, 05:34 AM   #13
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Everything is under Vanguard's roof as of Nov 09. Less paperw*rk and account tracking is ideal for this kid. I had created quite a mess in the past.
I have a few non-VG mutual funds and a single stock holding in my VG brokerage account. The rest of my holdings are VG funds.
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Old 01-08-2010, 06:38 AM   #14
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Schwab, Vanguard, Fidelity and maybe even WellsFargo provide superior service, reduced fees for clients with million in assets or more.
Vanguard's Voyager Select service kicks in when one has 500,000 in assets there. I am satisfied with the service and quality of people I've dealt with on the phone, it's as good as I'd hoped it would be.

90%+ of my assets are at Vanguard because my investment philosophy is asset allocation via market segment index funds. I have some money at USAA because I was already a member and I like their gold mining fund.
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Old 01-08-2010, 10:52 PM   #15
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Originally Posted by freebird5825 View Post
Everything is under Vanguard's roof as of Nov 09. Less paperw*rk and account tracking is ideal for this kid. I had created quite a mess in the past.
I have a few non-VG mutual funds and a single stock holding in my VG brokerage account. The rest of my holdings are VG funds.
WOW! That is exactly my situation!

There is no risk in moving everything into Vanguard. I agree with ziggy about their brokerage costs, but it is so nice to have it all under the same roof and I do not trade much at all.
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Old 01-08-2010, 11:38 PM   #16
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Right now our assets are split between Fidelity (401K) and Vanguard (everything else). I am satisfied with the Fidelity funds we own (very low cost Spartan index funds) but, when the time comes, I will probably rollover the 401K to Vanguard. I am not worried about Vanguard per se, because of the way Vanguard is structured. Vanguard is owned by its funds, and the funds are themselves owned by the people who invest in them. So, each Vanguard fund is a separate entity and even if one were to get in trouble, the other funds should be fine (although funds of funds could still be impacted).
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Old 01-09-2010, 10:08 AM   #17
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Right now our assets are split between Fidelity (401K) and Vanguard (everything else). I am satisfied with the Fidelity funds we own (very low cost Spartan index funds) but, when the time comes, I will probably rollover the 401K to Vanguard. I am not worried about Vanguard per se, because of the way Vanguard is structured. Vanguard is owned by its funds, and the funds are themselves owned by the people who invest in them. So, each Vanguard fund is a separate entity and even if one were to get in trouble, the other funds should be fine (although funds of funds could still be impacted).
I'm mostly in Vanguard funds as well. I agree that Vanguard should be very very safe given its ownership structure (the shareholders) Any attempts by any future management to tweak the structure would I'm sure result in mass exodus. All the more reason to read all that fine print when we get the proxies info.
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Old 01-09-2010, 11:36 AM   #18
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There is no additional risk by grouping all of your investments with low cost companies like Vanguard, USAA, TRP or Fido. Your risk exposure is with the securities included in the funds, not the fund family.
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Old 01-09-2010, 11:36 AM   #19
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I have no problem with Vanguard as I expect Vanguard to be around much longer than I will.

My thoughts exactly. I'm ready for my annual plan review on Monday. Thats where VG tells me what to do. Then I do something else.
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Old 01-17-2010, 05:10 PM   #20
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VG all the way! The day I told my broker at Morgan-Stanley to stick his high fees and ER was a great day and that I was moving it all to VG, haven't looked back since, very pleased with VG!
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