Another Vanguard problem

[Phroig]

If the funds are available as ETFs it's easy to convert and move. If you want to keep funds you can easily convert to a Vanguard brokerage account, move them there, and just pay one fee.
Folks are saying that you can have one mutual fund account (not brokerage) holding multiple funds. I looked at my old time Vanguard consolidated statement from 2003 and see that I had different account numbers for each fund.
In any case, Vanguard effectively treats funds in mutual fund accounts as separate accounts charging the $25 fee per fund.

Fidelity will frequently reimburse these charges. Call them and ask.

 

[easysurfer]

If the funds are available as ETFs it's easy to convert and move. If you want to keep funds you can easily convert to a Vanguard brokerage account, move them there, and just pay one fee.

Folks are saying that you can have one mutual fund account (not brokerage) holding multiple funds. I looked at my old time Vanguard consolidated statement from 2003 and see that I had different account numbers for each fund.

In any case, Vanguard effectively treats funds in mutual fund accounts as separate accounts charging the $25 fee per fund.

Looked, all I have are VG index funds and Money Markets. From what I read Total Bond Index is not convertible to ETF.

 

[RetiredAt55.5]

Folks are saying that you can have one mutual fund account (not brokerage) holding multiple funds. I looked at my old time Vanguard consolidated statement from 2003 and see that I had different account numbers for each fund.

In any case, Vanguard effectively treats funds in mutual fund accounts as separate accounts charging the $25 fee per fund.

If you look at old statements, each fund you own is identified by a 4 digit number (the fund id), followed by a dash, followed by the account number. All the funds sharing the same account number will be contained in the same account.

What you're saying is only true if you happened to open some account, like a Roth IRA, and only bought one fund, like the Index 500, within that Roth IRA. If you were to buy a second fund, like the Total Stock Market, for that Roth IRA it would be added to the same account. The $25 fee will be assessed for the Roth IRA account, not for each fund.

 

[RetMD21]

If you look at old statements, each fund you own is identified by a 4 digit number (the fund id), followed by a dash, followed by the account number. All the funds sharing the same account number will be contained in the same account.

What you're saying is only true if you happened to open some account, like a Roth IRA, and only bought one fund, like the Index 500, within that Roth IRA. If you were to buy a second fund, like the Total Stock Market, for that Roth IRA it would be added to the same account. The $25 fee will be assessed for the Roth IRA account, not for each fund.

Are you talking about brokerage accounts?

My consolidated statement showed 4 digit fund codes followed by an 11 digit account number with 12 different mutual fund accounts and one brokerage. Which I did look at. Maybe it has changed in the last couple of decades. I would consider them separate accounts.

 

[RetiredAt55.5]

Are you talking about brokerage accounts?

My consolidated statement showed 4 digit fund codes followed by an 11 digit account number with 12 different mutual fund accounts and one brokerage. Which I did look at. Maybe it has changed in the last couple of decades. I would consider them separate accounts.

I'm not talking about brokerage accounts.

In Vanguard terminology for non-brokerage accounts, each fund you own has a fund account number - four digits, a dash, and then the account number. All funds you own with the same account number will be in the same account.

Each account has a specific account type, such as Roth IRA, Traditional IRA, Individual, Joint, etc. When you purchase a fund, it is placed either into an existing account or a new one, depending on the purpose of the fund (how it will be treated from a tax perspective).

The $25 charge will be assessed for each account. It doesn't matter how many funds you own within these accounts.

 

[Koolau]

I'm not talking about brokerage accounts.

In Vanguard terminology for non-brokerage accounts, each fund you own has a fund account number - four digits, a dash, and then the account number. All funds you own with the same account number will be in the same account.

Each account has a specific account type, such as Roth IRA, Traditional IRA, Individual, Joint, etc. When you purchase a fund, it is placed either into an existing account or a new one, depending on the purpose of the fund (how it will be treated from a tax perspective).

The $25 charge will be assessed for each account. It doesn't matter how many funds you own within these accounts.

I haven't looked closely, but my "dunning" letter for $25/each just caught up with me today. EVERY single FUND got a letter. No wonder they have to charge $25. THEY don't know how to manage paper! There is a stack of paper 2 inches high!

I'm putting together my whine for when I call them. I'm determined to COST them $25/fund in dealing with my phone calls on this! I'm thinking of just continuing to say "I want to talk to YOUR supervisor" until I get to the CEO!

 

[VanWinkle]

You can still have a brokerage account with electronic correspondence and statements that has zero fees. It seems like a simple cure to the problem of fees. What am I missing?

VW

 

[Koolau]

You can still have a brokerage account with electronic correspondence and statements that has zero fees. It seems like a simple cure to the problem of fees. What am I missing?

VW

The fact that I LIKE hard copy reports - just not all the boiler plate repeated each time. Send me to the V site for that stuff.

 

[easysurfer]

I haven't looked closely, but my "dunning" letter for $25/each just caught up with me today. EVERY single FUND got a letter. No wonder they have to charge $25. THEY don't know how to manage paper! There is a stack of paper 2 inches high!

I'm putting together my whine for when I call them. I'm determined to COST them $25/fund in dealing with my phone calls on this! I'm thinking of just continuing to say "I want to talk to YOUR supervisor" until I get to the CEO!

Does the letter say when VG will hit fund holders with the fee? End of year? Sooner? I'm asking to plan when to make my move to Fidelity .

 

[Koolau]

Does the letter say when VG will hit fund holders with the fee? End of year? Sooner? I'm asking to plan when to make my move to Fidelity .

That's gonna be my FIRST question when I call.

 

[Koolau]

Forgot to mention: If it's already started, I'll make 'em send me every last paper mailing until the end of the time I paid for (before switching to electronic.)!

 

[easysurfer]

That's gonna be my FIRST question when I call.

Ok. You read my mind.

Figure $25 per fund this year, could be $50 or $100 next year .

My mind has changed from peeved and VG to excitement about changing uniforms .

 

[Koolau]

Ok. You read my mind.

Figure $25 per fund this year, could be $50 or $100 next year .

My mind has changed from peeved and VG to excitement about changing uniforms .

Yeah, as I think I said before, I'm not ready to cut off my nose to spite my face BUT, I'll gladly extract my pound of flesh from V. They've PO'd me.

This time, they've gone too far!

 

[easysurfer]

Yeah, as I think I said before, I'm not ready to cut off my nose to spite my face BUT, I'll gladly extract my pound of flesh from V. They've PO'd me.

This time, they've gone too far!

I'm not planning my move totally for spite (though must admit, there is some of that). For me, more like I've always thought of my relationship with VG as a lifetime thing.

But after their "We need to talk" letter, I got to thinking, maybe they are right after all. Better to part ways .

 

[Koolau]

I'm not planning my move totally for spite (though must admit, there is some of that). For me, more like I've always thought of my relationship with VG as a lifetime thing.

But after their "We need to talk" letter, I got to thinking, maybe they are right after all. Better to part ways .

I guess I'm just not up to the hassle right now - and who knows? Could be frying pan to fire. If one house decides to bully their multi-millions of customers, who's to say the others won't as well. IF V's customers don't whine in unison!

 

[easysurfer]

I guess I'm just not up to the hassle right now - and who knows? Could be frying pan to fire. If one house decides to bully their multi-millions of customers, who's to say the others won't as well. IF V's customers don't whine in unison!

My take on the situation with VG is similar to back in the w*rk days with megacorp. Always better to find an environment where I feel welcome. The VG that I knew surely doesn't feel like the same place anymore. Bu that's okay as they aren't the only game in town and good to find a place that welcomes you with open arms. My 2 cents .

 

[jazz4cash]

Does Vanguard use any social media to communicate with members? Fidelity has a presence on Redit. Not sure how effective it is but it has a lot of official responses. Might be a good way to gauge customer sentiment. There is also a fan run channel.

 

[gauss]

My take on the situation with VG is similar to back in the w*rk days with megacorp. Always better to find an environment where I feel welcome. The VG that I knew surely doesn't feel like the same place anymore. Bu that's okay as they aren't the only game in town and good to find a place that welcomes you with open arms. My 2 cents .

Well John Bogle did die in 2019 so this is not totally unexpected by me.

Wondering how Berskshire-Hathaway will change after Warren and Charlie's future passing.

When the cat's away, the mice will play...

-gauss

 

[jazz4cash]

Well John Bogle did die in 2019 so this is not totally unexpected by me.

When the cat's away, the mice will play...

-gauss

Good point but I think they started going awry well before he passed. He left the company in ‘99 and I think he was being eased out much earlier.

 

[Texas Proud]

I know that there are people who keep talking that it is easy for us to do what VG wants us to do... and that they have had a 20 or so relationship with VG...



Well, I have been with them probably 40 years... (I keep forgetting how old I am now).... and the huge benefits that were there to use VG when I stated are no longer there... I can get zero cost trades at a lot of places... I can get zero or low cost ETFs or mutual funds at a lot of places... they do not have anything special anymore...


BTW, I was thrilled when I got a million bucks and got an assigned rep... but I really did not use them much but when I needed them it was good to have... then one mill was not enough... At Schwab I have a free financial advisor... assigned to me... at Fidelity I have a free financial advisor assigned to me (and I have very little there)...


If you REALLY took a look at the benefits of VG vs Schwab vs Fidelity (vs whomever else you want to add) VG would not be the best like it was even 10 to 20 years ago... time has passed them by... and they have made the experience worse over the years and now want to charge me for something that is expected I think not..

 

[jazz4cash]

Does Vanguard use any social media to communicate with members? Fidelity has a presence on Redit. Not sure how effective it is but it has a lot of official responses. Might be a good way to gauge customer sentiment. There is also a fan run channel.

Thinking about this a bit more and wondering if there are any official posts from VG at the Bogleheads site?

 

[JoeWras]

Does Vanguard use any social media to communicate with members? Fidelity has a presence on Redit. Not sure how effective it is but it has a lot of official responses. Might be a good way to gauge customer sentiment. There is also a fan run channel.

The Fidelity Reddit is very good, with most responses being public, although some are necessarily private. I haven't seen a lot of blow back from customers, mostly a lot of thank yous.

It is pretty unique that they are using that social media vehicle, considering how much of a sewer Reddit can be. (F-bombs every other post, etc.)

Thinking about this a bit more and wondering if there are any official posts from VG at the Bogleheads site?

No.

The moderators there have to constantly remind and chide people who think so. People come on all the time and try to "talk to Vanguard" through the site and they get smacked. There was recently one guy who constantly kept saying "The Moderators should fix this <Vanguard issue>" and they think they finally had to shut him up because he literally didn't get it.

 

[jazz4cash]

Thanks JoeWras. I was thinking the same wrt Redit being a sewer potentially but I don’t use it so wasn’t sure.

 

[VanWinkle]

The fact that I LIKE hard copy reports - just not all the boiler plate repeated each time. Send me to the V site for that stuff.

Fair enough Koolau, I get your point.

VW

 

[mwilson]

Received email from VG today stating the fees would be over $300 and applied in September.

This transition and other changes lately have been tone-deaf. So, time to go somewhere else with better client orientation. I would go FIDO but worried about concentrating a large percentage of assets with one firm. Not impressed with Schwab 529 web interface but maybe the regular one is better? Suggestions?