Leaving Vanguard ASAP

[FinanceDude]

You should not get this issue with other fund companies.... but they don't try and protect existing shareholders like Vanguard does... as they say, if you don't like it... move...

If by protect, you mean bully, harass, or generally make life difficult, then ok.........

VG is like a soup Nazi on their funds. Redemptions should not be a big deal, but they seem to be at VG........

 

[REWahoo]

I called and they tracked down the transaction. It was the destination MM that had the restriction of 10K. It was the MM they rolled my 401K into last year and it still has about $30K in it.

So it had nothing to do with limiting what you could sell from your bond fund. The problem appears to be you were attempting to transfer the proceeds from that sale to one of their two "closed to new investors and deposits from existing investors limited to $10K" money market funds - Admiral Treasury Money Market (VUSXX) and Federal Money Market (VMFXX) - and you were not aware of the limit.

No bond panic, no restrictions on selling shares, no soup Nazis...

 

[veremchuka]

well i'm glad to read that. i moved a lot of my 401k when i retired to vg and put it into the pmm then moved it to gnma but that was a few years ago. i'm not going to move any gnma funds but i'm glad to see there is no restriction if i did want to. i have a nav that may force me to bail but where would you put the money? i can't put it into equity mutual funds as that'd really change my aa so if i did i'd then have to move all my 401k equity funds to my stable value fund but there are restrictions on that (exchanging out of the equity funds) and they are severe! sitting tight for now.

 

[Texas Proud]

If by protect, you mean bully, harass, or generally make life difficult, then ok.........

VG is like a soup Nazi on their funds. Redemptions should not be a big deal, but they seem to be at VG........

Actually, I have never had a problem with VG... there are funds that have investment limits (Primecap is $25K IIRC)... they state it upfront from waht I can tell..

They also do have restrictions on trading in and out of a fund... I took money out of a fund and before I click the final button they said that IF I did this I could not invest for 90 days... OK, good to know... but they did not prevent me from taking more money out the next week... still 90 days, but who cares... I can live with that...

I just don't want someone to be moving around big money to try and clip a few bps for them, but increase the trading cost to everybody else...

If this makes them soup nazis... so be it... I am OK with that...

As I said, I have never had a problem as I know upfront what I can and can not do...


NOW... if you do have a problem... but ETFs.... you can buy and sell every minute if you want... no restrictions... and still be in a VG fund...

 

[teejayevans]

If by protect, you mean bully, harass, or generally make life difficult, then ok.........

VG is like a soup Nazi on their funds. Redemptions should not be a big deal, but they seem to be at VG........

You could use ETFs and not worry about it
TJ

 

[LOL!]

You could use ETFs and not worry about it
TJ

What is the ETF equivalent for the GNMA fund?

 

[fritz]

So it had nothing to do with limiting what you could sell from your bond fund. The problem appears to be you were attempting to transfer the proceeds from that sale to one of their two "closed to new investors and deposits from existing investors limited to $10K" money market funds - Admiral Treasury Money Market (VUSXX) and Federal Money Market (VMFXX) - and you were not aware of the limit.

No bond panic, no restrictions on selling shares, no soup Nazis...

The entire amount could have been transferred to their Prime Money Market account - which is not closed to new investors or restricted to 10K/day purchases. Pretty sure Vanguard would have informed the OP when he called and inquired as to his situation.

 

[REWahoo]

The entire amount could have been transferred to their Prime Money Market account - which is not closed to new investors or restricted to 10K/day purchases. Pretty sure Vanguard would have informed the OP when he called and inquired as to his situation.

Agreed. I believe that's exactly what they did:

I called and they tracked down the transaction.

....Their short answer was pick another fund.

Several posters voiced concerns about limits placed on the sale of bond funds. My post was to make it clear that wasn't the case.

 

[donheff]

If by protect, you mean bully, harass, or generally make life difficult, then ok.........

VG is like a soup Nazi on their funds. Redemptions should not be a big deal, but they seem to be at VG........

I don't see it. I pulled out large amounts to pay off mortgages online, overnight, with no problem whatsoever. I did get warnings about reinvesting in the same funds but I didn't see that as a problem.

 

[Gumby]

What is the ETF equivalent for the GNMA fund?

Perhaps MBB would do the trick.

 

[LOL!]

Perhaps MBB would do the trick.

Perhaps. MBB has mortgage-backed securities alright, but not much in the way of GNMAs. One could look at VBMS as well, but the same problem along with a problem of liquidity.

 

[Keim]

I don't see it. I pulled out large amounts to pay off mortgages online, overnight, with no problem whatsoever. I did get warnings about reinvesting in the same funds but I didn't see that as a problem.

Ditto here. Was very pleased with their service.

 

[travelover]

I bet people don't have these hassles at Ameriprise!

 

[FinanceDude]

I don't see it. I pulled out large amounts to pay off mortgages online, overnight, with no problem whatsoever. I did get warnings about reinvesting in the same funds but I didn't see that as a problem.

Why should it matter if people pull funds and reinvest, its up to them? Almost all fund families, I think Fido is included, let you do it without restrictions.

 

[LOL!]

There can be early redemption fees. Fido has them and they will wrist-slap you if you buy back into a fund within a short time period.

 

[TromboneAl]

I just tried doing the same thing, moving $25K from VFIIX to my MMkt account. I went all the way through the process, stopping at the last "review and confirm" step and got no $10K limit message.

Thanks for risking a mistaken transaction for the sake of truth and the forum. I would have worried that I'd sneeze and hit the "Confirm" button by mistake.

 

[Gone4Good]

No bond panic, no restrictions on selling shares, no soup Nazis...

A.K.A. "User Error"

 

[Katsmeow]

Why should it matter if people pull funds and reinvest, its up to them? Almost all fund families, I think Fido is included, let you do it without restrictions.

No, they don't. My 401k is at Fidelity and they have such restrictions. I know this from personal experience. In fact even buying a fund and then selling it within a certain period of time gets them up in arms.

 

[donheff]

VG is like a soup Nazi on their funds. Redemptions should not be a big deal, but they seem to be at VG........

I don't see it. I pulled out large amounts to pay off mortgages online, overnight, with no problem whatsoever. I did get warnings about reinvesting in the same funds but I didn't see that as a problem.

Why should it matter if people pull funds and reinvest, its up to them? Almost all fund families, I think Fido is included, let you do it without restrictions.

Uh, what? The above is the chain of calls and responses. You called VG soup nazis for not letting customers pull funds. I responded by explaining that I have pulled large sums with no such problems. You respond to that with... what, a non sequitur?

 

[FinanceDude]

Uh, what? The above is the chain of calls and responses. You called VG soup nazis for not letting customers pull funds. I responded by explaining that I have pulled large sums with no such problems. You respond to that with... what, a non sequitur?

The problem appears to NOT be PULLING the funds, but REINVESTING into the same fund within a time frame set by VG........

If folks want to pull out of a VG bond fund right now, and go back in within 90 days, it seems that is the restriction, and that restriction is one most fund families do not have.....

 

[Katsmeow]

The problem appears to NOT be PULLING the funds, but REINVESTING into the same fund within a time frame set by VG........

If folks want to pull out of a VG bond fund right now, and go back in within 90 days, it seems that is the restriction, and that restriction is one most fund families do not have.....

Umm...you did see my post didn't you that Fidelity has restrictions as well?

See:

https://401k.fidelity.com/public/content/401k/About401ks/ExcessiveTradingPol

In any event it appears that the issue from the OP wasn't a restriction on reinvesting but wanting to put the sales proceeds in a fund that has restrictions on putting money into it...

 

[kumquat]

The problem appears to NOT be PULLING the funds, but REINVESTING into the same fund within a time frame set by VG........

If folks want to pull out of a VG bond fund right now, and go back in within 90 days, it seems that is the restriction, and that restriction is one most fund families do not have.....

Just pay the 5% front end load?

 

[DblDoc]

Why should it matter if people pull funds and reinvest, its up to them? Almost all fund families, I think Fido is included, let you do it without restrictions.

Not true. Fidelity has the same 90 day lock out for Spartan funds in my 403b and 401a.

If this is what it takes to keep the ER low I'm fine with that. The day traders can take their business elsewhere.

DD

 

[travelover]

Not true. Fidelity has the same 90 day lock out for Spartan funds in my 403b and 401a.

If this is what it takes to keep the ER low I'm fine with that. The day traders can take their business elsewhere.

DD

+1. I appreciate that VG takes steps to keep our ERs low.

 

[MichaelB]

Not true. Fidelity has the same 90 day lock out for Spartan funds in my 403b and 401a.

If this is what it takes to keep the ER low I'm fine with that. The day traders can take their business elsewhere.

DD

+2