Vanguard lowers Admiral req's

[teejayevans]

Quote:

Originally Posted by mickeyd I converted 3 accounts from investor to Admiral on Friday. saved about $800 annually by doing 5 minutes of "work." The VG website had already identified which "investor" funds of mine were convertible to Admiral shares. It could not have been an easier effort.

Not to complain , but they could have just had 1 button to convert all accounts, instead of having to do each 1. I tried selecting multiple accounts and it wouldn't let me do that either.
TJ

[hogtied]

Called Scottrade today to ask what was going to happen to my Vanguard index funds that held over $10,000. I was surprised to hear their response; that Scottrade does not have a dealers license to broker the Admiral funds. Guess I'll have to liquidate and buy the ETF.

[tgotch]

Quote:

Originally Posted by hogtied Called Scottrade today to ask what was going to happen to my Vanguard index funds that held over $10,000. I was surprised to hear their response; that Scottrade does not have a dealers license to broker the Admiral funds. Guess I'll have to liquidate and buy the ETF.

Same thing with Schwab...My Schwab rep told me this is only available through Vanguard.

[mickeyd]

Quote:

Originally Posted by teejayevans Not to complain , but they could have just had 1 button to convert all accounts, instead of having to do each 1. I tried selecting multiple accounts and it wouldn't let me do that either. TJ

Aww, the extra work was good for me.

[Lusitan]

Quote:

Originally Posted by mickeyd Aww, the extra work was good for me.

Yeah, it made me feel like I was saving MORE money ...

Thanks for the tip!

[easysurfer]

I only had two accounts to convert over (total bond index, total stock index) so doing them one at a time was easy

[Telly]

We have been getting letters from Vanguard telling us that they are going to automatically convert any qualifying fund from Investor Shares to Admiral Shares, unless we call them by October 27 to opt-out.

A few of ours are just above the threshold, we were not going to convert those, as a drop in the market would kick them back to Investor Shares. Didn't think it made sense for them to bounce around. But it seems they want to go ahead and do it. So if they convert them, then the market drops, and those funds accounts stay below long enough for whatever their overhang time is, then get converted back to Investor, then market goes up, and the funds qualify for Admiral again, I wonder if they stay at Investor till we request a upgrade, or if they automatically do it again.

It seems they could spend $$ bouncing them back and forth, and sending notifications each time. I would expect that someone at Vanguard has thought this all through. They must have some kind of algorithm to limit their costs.

[Onward]

Quote:

Originally Posted by Telly we were not going to convert those, as a drop in the market would kick them back to Investor Shares

As far as I know, VG won't demote you from Admiral to Investor shares if the drop in acct value is due to a drop in share price. They will demote you if the drop in acct value is due to withdrawals.

Check with them to be sure, though.

[Texas Proud]

Quote:

Originally Posted by Onward As far as I know, VG won't demote you from Admiral to Investor shares if the drop in acct value is due to a drop in share price. They will demote you if the drop in acct value is due to withdrawals. Check with them to be sure, though.

Just to add to this... it is true... I converted one account that just made it when it was $100,000... just before the crash... it drop 50%... but they never did anything to move it back... it is still under $100K... but now the threshold is lower so it doesn't matter....

[Telly]

OK thanks. I had just assumed that VG would demote back to Investor Shares if the account value dropped low enough due to market conditions. Now that that's cleared up, I'll just let them convert the just above the threshold accounts.