Another Vanguard problem

[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 .

I haven't found it, but since I'm gonna call them to find out how many $25's I'll owe (if I don't switch) I'll ask them.

 

[Koolau]

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?

Where ever you go, be sure V knows why you're leaving.

 

[MarieIG]

I called Vanguard today with a query about the pay date on one of the mutual funds. The automated recording had options, such as:

if you are calling about the communication to change from a legacy account press 1;

If you are calling about the letter with regard to the change in fees - press 2.

I suspect they have been getting a lot of calls.

 

[Badger]

I have been with Vanguard for a couple of decades with Admiral Funds and MM accounts etc. and was even assigned a personal rep before that was discontinued. I like receiving the paper from them to keep track of my investments. I want hard copies sent from them to prove my balances in case questions arise about the balances in the future.
I only have 3 places where I have money - CU, Vanguard, and Schwab.
I don't think moving my investments to Fidelity would be much different and could result in the same thing happening in the future with them.
Since Schwab in in town and I have an assigned personal rep that I have worked with since the Scottrade days I am considering moving all Vanguard monies to Schwab even though I would prefer keeping IRAs in a separate company from the individual stocks.
Could anyone chime in to address the disadvantages of keeping all your investments eggs in one basket with Schwab?

Cheers!

 

[swakyaby]

Could anyone chime in to address the disadvantages of keeping all your investments eggs in one basket with Schwab?

My main concern would be if something triggered the investment firm’s fraud dept, your account could be locked down from your access for an indeterminate length of time. It happened to me at a smaller investment company, for reasons unknown to me, and it was very frustrating. Spent 3 months trying to work with them and prove my identity, but was met with silence. Requested another larger investment firm to transfer the funds to them, and it took another 3 months of letters and threats before the smaller firm transferred the funds. So at least 6 months of no access to my IRA. That was my experience, so I have at least 2 investment firms.

 

[MRG]

I have been with Vanguard for a couple of decades with Admiral Funds and MM accounts etc. and was even assigned a personal rep before that was discontinued. I like receiving the paper from them to keep track of my investments. I want hard copies sent from them to prove my balances in case questions arise about the balances in the future.
I only have 3 places where I have money - CU, Vanguard, and Schwab.
I don't think moving my investments to Fidelity would be much different and could result in the same thing happening in the future with them.
Since Schwab in in town and I have an assigned personal rep that I have worked with since the Scottrade days I am considering moving all Vanguard monies to Schwab even though I would prefer keeping IRAs in a separate company from the individual stocks.
Could anyone chime in to address the disadvantages of keeping all your investments eggs in one basket with Schwab?

Cheers!

Outages while rarer today still happen. I made a career out of helping companies deal with them. Other types of account level issues do happen. When my DF passed his estate had a TOD into my brokerage account that held 3x the assets transferred to me. Along comes the Commonwealth of Pennsylvania, who prompted locked the account until the 10% inheritance tax was paid. I was allowed to trade but not access any of the funds in the account because of 12k in taxes due. As others mentioned, fraud is a great way to keep your assets away from you.

 

[Koolau]

Could anyone chime in to address the disadvantages of keeping all your investments eggs in one basket with Schwab?

Cheers!

Well, so far, they don't charge to send you hard copy statements. So there's that.

 

[Badger]

My main concern would be if something triggered the investment firm’s fraud dept, your account could be locked down from your access for an indeterminate length of time. It happened to me at a smaller investment company, for reasons unknown to me, and it was very frustrating. Spent 3 months trying to work with them and prove my identity, but was met with silence. Requested another larger investment firm to transfer the funds to them, and it took another 3 months of letters and threats before the smaller firm transferred the funds. So at least 6 months of no access to my IRA. That was my experience, so I have at least 2 investment firms.

Thanks, I had the very same experience multiple times with ML years ago when trying to move money from a 403b MM account to Vanguard. I would hope than accessing the money from Vanguard or Schwab would not be an issue but you never know.
I have become less trusting lately. Maybe all the negative news lately with scams, ID theft, bank shenanigans, etc. has something to do with it and losing my nest egg is my biggest concern for having money with only one company. Any other concerns with having all my investments with Schwab?

Cheers!

 

[MarieIG]

Thanks, I had the very same experience multiple times with ML years ago when trying to move money from a 403b MM account to Vanguard. I would hope than accessing the money from Vanguard or Schwab would not be an issue but you never know.
I have become less trusting lately. Maybe all the negative news lately with scams, ID theft, bank shenanigans, etc. has something to do with it and losing my nest egg is my biggest concern for having money with only one company. Any other concerns with having all my investments with Schwab?

Cheers!

It may not apply to you. The only issue I have is the negligible interest rate for their sweep account.

 

[Rianne]

Voice confirmation of identity will be a thing of the past. Or already is. Thanks to AI. I have not called in a while. I don't know how they identify you anymore. We have a weird verbal passcode. Can they track who you are by the computer you're using? I use the same device every time I log in.

 

[Koolau]

Voice confirmation of identity will be a thing of the past. Or already is. Thanks to AI. I have not called in a while. I don't know how they identify you anymore. We have a weird verbal passcode. Can they track who you are by the computer you're using? I use the same device every time I log in.

I recall having issues if I used another computer when I want to log into something. SO, apparently they do at least "know" your computer. YMMV

 

[Graybeard]

Voice confirmation of identity will be a thing of the past. Or already is. Thanks to AI. I have not called in a while. I don't know how they identify you anymore. We have a weird verbal passcode. Can they track who you are by the computer you're using? I use the same device every time I log in.

I had voice recognition for my 401k, Fido was the custodian. The nonsense of not being able to aggregate my RMD between the 401k and rollover IRA at Vanguard just motivated me to roll the 401k into the IRA. With AI, I don't think I would feel comfortable using the voice recognition at Fidelity but now that isn't an issue.

 

[SecondCor521]

The nonsense of not being able to aggregate my RMD between the 401k and rollover IRA at Vanguard

That's due to federal tax law, not Vanguard.

RMDs for IRAs are aggregated but RMDs for 401(k)s are not.

 

[jazz4cash]

Voice confirmation of identity will be a thing of the past. Or already is. Thanks to AI. I have not called in a while. I don't know how they identify you anymore. We have a weird verbal passcode. Can they track who you are by the computer you're using? I use the same device every time I log in.

Not sure how AI will make voice recognition obsolete. VR seems to work pretty well at Fido for phone calls. My credit union has a secret word or something when I call or visit a branch. I don’t see how they could track who is using which computer unless the device has some type of bio metric detection. If I log in from a different device I get the prompt to remember the device or not.

 

[Texas Proud]

Not sure how AI will make voice recognition obsolete. VR seems to work pretty well at Fido for phone calls. My credit union has a secret word or something when I call or visit a branch. I don’t see how they could track who is using which computer unless the device has some type of bio metric detection. If I log in from a different device I get the prompt to remember the device or not.

It is a cookie they put on the computer... nothing special going on...

 

[Graybeard]

That's due to federal tax law, not Vanguard.

RMDs for IRAs are aggregated but RMDs for 401(k)s are not.

Agree and understand, it was simpler to have all the tax deferred money in 1 place now that RMDs are a thing.

 

[Koolau]

Agree and understand, it was simpler to have all the tax deferred money in 1 place now that RMDs are a thing.

Yeah, my IRAs are all Roth, so no issue and only ever had one 401(k) so that's where RMDs are generated and taken. One and done! Lovely!

 

[ER2B]

I wanted Vanguard to withhold taxes for federal and Virginia on my first IRA distribution. I was told that Vanguard can only withhold for federal. Fidelity and T Rowe Price can withhold for both. Has anyone encountered this issue with VG? My wife and I were intending to rollover our remaining 401K wo VG but I guess not.

 

[Gumby]

I made a distribution from my Vanguard tIRA last December specifically to pay taxes. At my instruction, they withheld both state (in my case CT) and federal taxes. I did have to take 1% for myself. I think they won't withhold state taxes unless they are asked to withhold federal tax.

 

[MarieIG]

I made a distribution from my Vanguard tIRA last December specifically to pay taxes. At my instruction, they withheld both state (in my case CT) and federal taxes. I did have to take 1% for myself. I think they won't withhold state taxes unless they are asked to withhold federal tax.

. . .

I did this as well. In my case, I had Federal and NY State tax withheld from my tradition IRA. If I recall correctly, the Federal tax withholding showed the end of business day, and the withholding of the NY State tax was reflected the following day.

I did telephone before I did it, as it was the first time for me - and I was nervous that I would make a mistake, but it went through smoothly. (I received the 1% deposit in my checking account.)

And finished off the process by completing a 60 day rollover at Fidelity since I could walk in a check and received a 60-day rollover receipt for my records.

 

[jazz4cash]

It is a cookie they put on the computer... nothing special going on...

Not sure what this response means. A cookie identifies the computer, not the user?

Edit: I understood the question to be about identifying the user.

 

[Koolau]

I wanted Vanguard to withhold taxes for federal and Virginia on my first IRA distribution. I was told that Vanguard can only withhold for federal. Fidelity and T Rowe Price can withhold for both. Has anyone encountered this issue with VG? My wife and I were intending to rollover our remaining 401K wo VG but I guess not.

Yeah, V apparently doesn't withhold state tax. They don't for me. I don't find it to be a major issue. I'm much more honked about the new fees. There are many ways to deal with state taxes and they don't cost me anything but what I owe in taxes.

 

[MarieIG]

Yeah, V apparently doesn't withhold state tax. They don't for me. I don't find it to be a major issue. I'm much more honked about the new fees. There are many ways to deal with state taxes and they don't cost me anything but what I owe in taxes.

Koolau - didn't you mention in a prior thread that your IRAs were all (non-taxable) Roths?

 

[MissMolly]

Vanguard will only withhold state taxes on states in this list.

 

[music-and-ski]

I have no interest in paper-less. I don't have a functioning printer for hard copy.

You may be surprised to find that printer technology has improved, if you buy a new one for a coupla hunderd you might be happy with it.