Anyone ever leave Vanguard?

[trixs]

Personally I used to use Vanguard but changed back in 2006. I forget the exact reason but remember that I was totally fed up with their lack of customer service. I swapped to Fidelity and have not looked back.

 

[bingybear]

If you want vanguard funds, rather than ETFs, keeping an account there is IMO a very easy choice, as you will have difficulties/costs in adding to funds elsewhere--assuming you can. No need to have everything at one place. A bit more work in keeping track of things, but not much. And if you run into password/website issues at one place, you have access to your money through the other.

I can buy/sell non-admiral shares without fees at Schwab without issue unless the fund is closed and I don't own any shares. Really not an issue for me.

I use to have a fair part of my assets at Vanguard. None now. I do use some of their investments... mostly ETFs. But I'm finding Schwab and Fidelity are pushing low cost ETFs and funds as well. I can also talk to a CFP at either place.... not just one from the bullpen, but ones that know my situation. Both Schwab and Fidelity have offices in my town which makes it easy to get to.

So yes, some people do leave Vanguard just like with other brokers. Really it is not surprising. Many brokerages have a following that doesn't easily change... but it is not all the customers. I just like my current set of brokers in this phase of my life. It may change again.. or not.

 

[foxfirev5]

While I still have accounts at VG I strongly refer FIDO. Customer service is only important when you need it. VG fell flat on their face with a rollover and some estate dealings. Over six months of BS.
Meanwhile, real people at a FIDO office handled equally complex transactions on the spot . Plus they are cheaper.

 

[braumeister]

We only have one account left at Vanguard, a Trad IRA. Everything else is at Fidelity and Schwab. Seriously considering moving that last account, probably to split it between F and S. Vanguard's edge just isn't what it used to be, and three different brokerages are probably one too many.

 

[Mo Money]

I have several Vanguard index ETFs custodied at Schwab. Love Schwab's platform and service. Schwab's bank was a bit of a PITA when they started up, but now even that works smoothly.

 

[bingybear]

We only have one account left at Vanguard, a Trad IRA. Everything else is at Fidelity and Schwab. Seriously considering moving that last account, probably to split it between F and S. Vanguard's edge just isn't what it used to be, and three different brokerages are probably one too many.

+1

 

[MRG]

We only have one account left at Vanguard, a Trad IRA. Everything else is at Fidelity and Schwab. Seriously considering moving that last account, probably to split it between F and S. Vanguard's edge just isn't what it used to be, and three different brokerages are probably one too many.

Not one too many for my taste. Competition is great for many reasons. Have you considered DR when making that statement? There's a good thing in multiple vendors, physical locations.

Perhaps my observations of a long time visiting the same place(s).

 

[braumeister]

DR?

 

[MRG]

DR?

Disaster recovery. What happens if companies X systems go batty?

Bug, hacked by who ever, physical datacenter is gone or facilities evacuated, earthquake, flood, fire, hazmat hazard, overworked systems guy who is making meth at night?

You know a disaster.

There's an advantage to some duplicity in systems.

 

[braumeister]

If I wanted duplicity I would have invested with Bernie Madoff.

 

[aja8888]

I've only used electronic bank transfers. Generally I'll make the transaction on a Monday and the money is at the bank on Wednesday. Why bother with paper checks?

1. I was not sure what bank or credit union account I was going to put the funds in.

2. I really don't think VG should have the option to not send me a paper check if I wish to receive one for MY money.

 

[EastWest Gal]

For those with Schwab how is the security? I had them for stock and options from a former employer and the security was pathetic. Not that long ago passwords were limited to 8 characters with no symbols and were case insensitive! This got "fixed" but I was unsure of how well. I've also heard that the their 2 factor authentication is badly implemented.

For reasons other than their security I've been considering them but the security issue has kept me at bay.

Their passwords are very robust. They use a token for two step authentication, changing second passcode every 60 seconds-just like my old hospital. Very robust. They also have a local office. When I dealt with my dad's estate, I made an appointment and talked with them about the process--no losing the deaths certificate, since I brought it in person.

 

[youbet]

I've never had any problems with either Vanguard or Fidelity but in moving back to the U.K. Vanguard are easier to deal with for overseas residents from my research on expat sites. Their ETFs also report into the UK tax authority so their equity dividends get the appropriate UK tax treatment. (Currently first £5k is free of tax then taxed @ 7.5%, as opposed to non qualified dividends being treated as regular income, for us taxed at 20%) The cap gains on the sale of shares of VG ETFs is also treated like the sales of individual securities so the first £11.5k is free of tax then, for our situation taxed at 10%.

Alan, are you saying Vanguard the brokerage house is easier for overseas residents or Vanguard ETF's are easier? Two very different things. For example, I hold VTI in my Schwab brokerage account. Would that work or would I have to hold it at Vanguard?

 

[youbet]

Their passwords are very robust. They use a token for two step authentication, changing second passcode every 60 seconds-just like my old hospital. Very robust. They also have a local office. When I dealt with my dad's estate, I made an appointment and talked with them about the process--no losing the deaths certificate, since I brought it in person.

I too am very comfortable with their two step password authentication on-line.

I also like their use of voice recognition when I call in.

Agree on the local brick and mortar office. Most of our trips over there are for seminars or similar educational sessions. But once in a while, it's really nice to be able to sit with your rep to be walked through a process (like setting up POA for a family member on your accounts) and leave with it done. Nothing in the mail, no calling to check why nothing has happened, no waiting. Done on the spot.

 

[Lsbcal]

1. I was not sure what bank or credit union account I was going to put the funds in.

2. I really don't think VG should have the option to not send me a paper check if I wish to receive one for MY money.

I agree that you should be able to get a check option.

Maybe a workaround is to have VG electronically transfer the money to one of your checking accounts and then cut your own check if you want it to go to another institution. Would take a lot of time for the funds to clear and more effort on your part.

I'm always trying to design my money transfers for the day when not receiving interest on the money will mean some real lost dollars. At today's interest rates, some delay is not that much of an issue. But someday we will see the return of 4% savings rates (I hope) and then 2 weeks of lost interest on $10k is about $15 dollars ... good beer money.

 

[Mulligan]

I add my new monies to two other brokerages, but have kept my money with them. In the past they have been my go to place to find my hard to snag illiquids. As others have mentioned, they have had to ramp up new help for inflows. Well yesterday, I must have unfortunately got one of the newbees. Totally useless and incompetent. Basically dumb....Might have came straight from the McDonalds grill the week before. Next time I will be smarter and ask if my "specialist" has been around a while or is one of the new dumb hires.

 

[GrayHare]

Much of your VG (or any brokerage) experience is colored by your regular representative. A good rep will correct problems quickly and make things smooth for you. Let it slip you have "millions" more at another brokerage and you'll be assigned a good rep.

 

[2017ish]

Much of your VG (or any brokerage) experience is colored by your regular representative. A good rep will correct problems quickly and make things smooth for you. Let it slip you have "millions" more at another brokerage and you'll be assigned a good rep.

To my knowledge, I don't have a regular rep at Vanguard, or elsewhere, despite having 7 figures at three different places ....

I shouldn't have a need for one; why would I want to deal with a person, rather than having everything via the online interfaces?

 

[Fedup]

I actually avoid my flagship representative. I just want basic things to get done correctly. Is that too much to ask for a brokerage firm? I don't think so.

 

[mountainsoft]

I moved my traditional IRA from my local bank to Vanguard about a year ago. I haven't looked at the other places, but compared to my local bank Vanguard has been amazing. They were very prompt and helpful when I was going through the transfer. Granted, I have a single VBIAX fund and it's mostly on auto-pilot, but I have had no issues with their web site.

My local bank was terrible. Something as simple as increasing my automatic contribution required a phone call, waiting a week for them to send me paperwork, signing it, another week to send it back, and then another week or two before it took effect. With Vanguard I can do it all online in a matter of minutes, and can check balances at any time rather waiting a month for the next statement to be mailed.

Things may change in several years when I start taking withdrawals, but for now I'm quite happy with Vanguard.

 

[Alan]

Alan, are you saying Vanguard the brokerage house is easier for overseas residents or Vanguard ETF's are easier? Two very different things. For example, I hold VTI in my Schwab brokerage account. Would that work or would I have to hold it at Vanguard?

I heard that Vanguard the brokerage house is easier to deal with for overseas residents, and they certainly didn't bat an eyelid when I updated our addresses to an overseas address (and told our rep).

Vanguard ETF's are "HMRC Reporting" regardless of where they are held.

ETA
One thing I did do before we moved was set up a Skype US phone number for about $40/year and changed this in Vanguard, and our US bank and credit cards for the 2nd level verification. (it works great)

 

[panacea]

I had about 50% of our money at Vanguard and 50% at Fidelity and decided Fido was much easier to work with. Moved everything over to Fidelity about 5 years ago and very happy with the decision. Still held onto to some of my favorite Vanguard funds and don't trade them (to avoid the transaction fees). There are lots of low (or lower) cost options at Fidelity including free ETFs and Fidelity index funds and if I really want a Vanguard fund (like Wellington) I'll pay the fee for it.

 

[target2019]

We have about 40% of assets at Vanguard.
Another 52% is in employee plans, so subject to moving in the future via rollover.

8.0% is at Schwab in a taxable account.

At this time Schwab is first choice when it is time to rollover. Customer services and features are preferred by us.

 

[almost there]

Opened 2 Schwab accounts this morning.
Hopefully the transition will go smoothly..........
In addition to a nice site, nice bonus to make the move as well.
Should have done this yrs. ago...........
Rather than mumbling all the time under my breath about it.

 

[Mulligan]

Opened 2 Schwab accounts this morning.
Hopefully the transition will go smoothly..........
In addition to a nice site, nice bonus to make the move as well.
Should have done this yrs. ago...........
Rather than mumbling all the time under my breath about it.

You got me looking. Yes some easy money to be made. But I worry because all my illiquid securities are with Vanguard and I am afraid they will screw it up somehow trying to transfer.