Vanguard Advisor Rant

[NW-Bound]

I think FiveDriver is talking about earned income from customers that is reported on a 1099, not divs/CGs from investment accounts shown on a 1099-(INT?).
FiveDriver--you really can't predict within a few K how much the 1099 will be? I suppose one problem would be a big payment that might occur 31 Dec or 2 Jan.

OK. It can be tough, although I would think the payor would let you know.

One time, I did work for a close friend, and he could not pay me. A couple of years later, I received a surprise deposit in my bank of a sum around $50K. I guess he wanted to surprise me. I thought his business was going under, but he apparently got some good contracts and thrived.

At the same time, I was doing great that year with other works. So, I was faced with, you guess it, AMT for that year! No IRA allowed, no Roth, not even a stingy $500 after-tax money into my children Coverdell accounts. And I am not even rich. The year earlier, I was living off my savings, and now I was paying mucho tax.

 

[Texas Proud]

Again, then why does the statement below appear on their website? Vanguard can't provide something like I-ORP? I well understand the uncertainties, so I wouldn't expect Vanguard to guarantee anything. They already have plenty of disclaimers like 'past performance is no guarantee of future results' and I'd be happy to sign a waiver if needed. They recommend funds, how is developing a straightforward distribution plan more risky for them?


https://investor.vanguard.com/financial-advisor/financial-planning

I will bite....

Because you failed to highlight the important part of that sentence.... put in the extra words and it has a different meaning...

when the time comes to withdraw money, such as for retirement, by developing a tax-smart distribution plan.

​

They are not saying when the time comes to start converting tIRA money to ROTH.... that is a huge leap from a withdrawal plan for retirement....

 

[GrayHare]

You can do a 2016 Roth Conversion (must do before year end) and you can 1) wait and see what happens to policy and/or 2) collect your 1099's and do your taxes. Then you can Recharacterize (undo) all or part of the 2016 Conversion before Oct 2017.

Provided the recharacterization policy does not change as well, of course. I have not heard any plans to change it during 2017.

 

[krldrummerboy]

I didn't read all of the posts in this thread, but, there is a division at Vanguard that handles these questions.

Call the Retail Retirement/Complex IRA Questions team at 800 205 6189.

They were helpful when I had questions about doing TIRA to ROTH conversions (when and why type stuff).

Good Luck

 

[Midpack]

That's how I see it also - not part of the free service.

On the Vanguard site the link Midpack gave:

https://investor.vanguard.com/financial-advisor/financial-planning

and that page has a line/link:

Find out how you can benefit from low-cost advice

https://investor.vanguard.com/financial-advisor/financial-planning


that shows:



Seems like a misunderstanding - maybe time to undo the rant?

I was also in the camp with others - how could they give a detailed tax plan for free, w/o a LOT of time and info understanding the entire situation. It is complex, and I bet with the PAS, you sign contracts to clarify all the limits.

-ERD50

Please show where I ever said I was looking for free.

 

[target2019]

Again, then why does the statement below appear on their website? Vanguard can't provide something like I-ORP? I well understand the uncertainties, so I wouldn't expect Vanguard to guarantee anything. They already have plenty of disclaimers like 'past performance is no guarantee of future results' and I'd be happy to sign a waiver if needed. They recommend funds, how is developing a straightforward distribution plan more risky for them?


https://investor.vanguard.com/financial-advisor/financial-planning

Suggest this to Vanguard? Maybe they have such software? Just holding it for high-networth clients?

The link you supplied is part of this suite of pages. It is about the paid vanguard advisor service, I believe.
https://investor.vanguard.com/financial-advisor/financial-planner

 

[ERD50]

Please show where I ever said I was looking for free.

Well, the word 'free' was scattered in your post, you made one parenthetical comment about previous free reviews that "(I would have paid a small fee for the exercise)"

And even though you are complaining about the service, you never said anything about not getting your money's worth or anything like that. So I was led to believe this was part of the free services from Vanguard.

Was I incorrect to think that? Are you signed up for the PAS, or other fee-based service from Vanguard? That would have been worth mentioning, I think.

I will bite....

Because you failed to highlight the important part of that sentence.... put in the extra words and it has a different meaning...

when the time comes to withdraw money, such as for retirement, by developing a tax-smart distribution plan.

​

They are not saying when the time comes to start converting tIRA money to ROTH.... that is a huge leap from a withdrawal plan for retirement....

Good point - planning a distribution for the year is different from planning for future withdrawals across an entire remaining lifetime. Maybe that is all they meant?

-ERD50

 

[Texas Proud]

Well.... I logged on Vanguard today and guess what... they have a link to a page talking about ROTH conversion...


https://investor.vanguard.com/ira/r...T:DP:RIG:TaxTime:1216:RIG:GetReady:Roth:SO:XX


Has a link for calculation even though I did not take a look at it....


SOOOO, seems they do 'do' it...

 

[MRG]

Well.... I logged on Vanguard today and guess what... they have a link to a page talking about ROTH conversion...


https://investor.vanguard.com/ira/r...T:DP:RIG:TaxTime:1216:RIG:GetReady:Roth:SO:XX


Has a link for calculation even though I did not take a look at it....


SOOOO, seems they do 'do' it...

Any other links? This one won't resolve for me.

 

[orplanner]

That's how I see it also - not part of the free service.

On the Vanguard site the link Midpack gave:

https://investor.vanguard.com/financial-advisor/financial-planning

and that page has a line/link:

Find out how you can benefit from low-cost advice

https://investor.vanguard.com/financial-advisor/financial-planning

-ERD50

Does Vanguard offers any decumulation services? Mutual fund companies and their reps make there money selling funds, not cashing them in.

 

[Midpack]

Does Vanguard offers any decumulation services? Mutual fund companies and their reps make there money selling funds, not cashing them in.

Not that I've found. I've gone in circles with my VG rep, and told him 'never mind' yesterday. With boomers swelling the ranks of retirees, I would have thought there would be lots of demand for such a service. If you find an i-ORP equivalent from Vanguard, I'd be most interested.

 

[RetireAge50]

There must not be much demand for this type of thing. Maybe most people have no money or think it is so complicated they pay an accountant or someone to do it for them.

For me I don't think I would trust someone to tell me what to do. Likely a coin toss anyway with all the unknowns.

My thinking is to plan on about equal taxable income throughout life regardless of whether I spend it or not. However this might be flawed with the ACA wrinkle.

 

[Midpack]

My thinking is to plan on about equal taxable income throughout life regardless of whether I spend it or not. However this might be flawed with the ACA wrinkle.

+1, that's the conclusion I've come to each time I've considered Roth conversions over the past few years. But I'd pay a pro for his/her assessment to be more sure, before it's too late (turning 70).