Please,please help with transition to Vanguard brokerage questions

[Graybeard]

We haven't received the email, but see https://investor.vanguard.com/client-benefits/account-fees. Vanguard has two types of accounts: brokerage and mutual fund. The brokerage account charges an annual fee of $20 for the account. The mutual fund account will charge a fee of $20 for each fund.

It seems like both account types will waive fees if your "qualifying" (not sure if this is different from what it used to be) Vanguard assets exceed $1M. Also, the brokerage account fee (but not the mutual fund account fee) is waived if you sign up for e-delivery.
If/when we get the email, I'm not sure what we'll do either. One aspect of the mutual fund account I like is getting an annual statement which lists all activity for the year.

Yes that is something I really really missed and was sorry I converted to brokerage. That December statement had a YTD summary and I could toss the other 11 months' statements. Other than that I didn't see any difference.

However, I have started to buy T bills and I'm pretty sure you can only do that with a brokerage account so now the brokerage account has an advantage. I still miss the YTD statement though, now I have 12 statements cuz 2 accounts hold fixed income and the dividend results in a statement every month.

 

[Graybeard]

I'm one of the holdouts .

After switching over, do you get new account numbers for the mutual funds or do they remain the same?

The taxable account did receive a new account number but I'm pretty sure the rollover IRA and Roth IRA kept the same account numbers but this was several years ago so I might be wrong on the IRAs.

 

[GTFan]

IMHO, Vanguard's lack of support for 2FA authenticator apps and restricting ACATS transfers is reason enough to look elsewhere.

?? Just did an ACATS transfer of three MFs from Vanguard to Schwab and there were no issues other than they haven't finished transferring the cost basis for noncovered (pre-2012) shares of VTIAX yet. The rest of the cost basis came over fine for all of them.

Took about a week for VG to transfer, we also moved some Fido MFs to Schwab and that took something like 3 biz days with all cost basis coming over correctly, going back to the 90's.

I agree that VG's 2FA is abysmal and use Symantec VIP for both Fido and Schwab. I'm thinking I might move the rest of our VG MFs over to one of them with this new fee.

 

[Golden Mean]

Vanguard just sent out an email letting me know that if I didn't have e-delivery, I would incur a fee. I have e-delivery and I still got the email.

I've one better than that.
I switched my 5? account(s) to brokerage last month. I got an email last week that said I'd be paying $200 a year in fees if I didn't make the switch (which, of course already I have). The $200 seems to be counting the old closed mutual fund accounts as well as my new brokerage accounts!?

 

[target2019]

Until the past week I've had little need for Vanguard other than a copy and paste once a month.

I transitioned about half a dozen simple accounts, and the experience leaves me disappointed. The web pages and help are poor. Sometimes I get a null:null error. Email directions to keep access to spouse accounts on my home page doesn't work. The link has expired? You just gave me the link?

Multiple problems and pages with no content point to a company that has lost its way.

 

[teej1985]

I converted last year and mine are new account numbers.

You'll only have one account for each type. (IRA, Roth, Brokerage) Your days of 1 account number per fund are in the past.

 

[Gumby]

I don't care how many account numbers I have or what they are. So long as I can sign on to my accounts (tIRA, Roth and taxable), contribute, distribute and change investments in them, I'm good.

 

[easysurfer]

I haven't gotten the email yet about fees for not switching.

I too like the year end summary fund statements. I may hold out until I get the email. I'm in no rush to switch .

 

[FLSUnFIRE]

They need to get people off the old system and I'm assuming there is some legal reason they can't force/just do it so fee it is... I'd rather be on the newer more modern system. Transition was easy for me as I recall however long ago it was when I did it when they first asked.


This seems like so much about nothing. I'm not a trader and got to FI with Vanguard. Opened an account with Fidelity for my HSA once I RE and not overly impressed with them... that required a phone call due them having a known issue but not fixing it or updating the website to direct people to call. I liked the old Vanguard interface better (I think mostly due to familiarity) but the Fidelity one is even worse and less intuitive IMO. At the end of the day I think they are both decent but I like the mutual ownership of Vanguard better than anyone using a loss leader to lure me in... I'm fine to play the game but it does take some effort/diligence to not be lead to the slaughter by a company with ultimate loyalty to their shareholders and not their customers.

 

[trumpeting_angel]

Poor Vanguard. They were so terrific for so long, that everybody wanted in. Now they have to move these non-brokerage accounts to get them off an antiquated computer system.


I like Vanguard. I've never had a problem.

 

[steelyman]

I don't care how many account numbers I have or what they are. So long as I can sign on to my accounts (tIRA, Roth and taxable), contribute, distribute and change investments in them, I'm good.

Sounds reasonable. Anyone who is willing to jump on I bonds and navigate Treasury Direct should be able to handle Vanguard.

 

[MRG]

Poor Vanguard. They were so terrific for so long, that everybody wanted in. Now they have to move these non-brokerage accounts to get them off an antiquated computer system.


I like Vanguard. I've never had a problem.

+1
That system is older than some members here and people fight to stay on it. The vendor is telling you they can't/don't want the liability of supporting it anymore. "But I'll be darned if I leave it, except for leaving the company."

 

[tulak]

+1
That system is older than some members here and people fight to stay on it. The vendor is telling you they can't/don't want the liability of supporting it anymore. "But I'll be darned if I leave it, except for leaving the company."

The irony is they open a brokerage account elsewhere. How is that easier than transitioning to a brokerage account at Vanguard?

I get the other reasons for leaving Vanguard, but this isn’t it.

 

[easysurfer]

I'm in the camps of "If it ain't broken, don't fix it" and "I don't like be told (to clarify, in this case by Vanguard, not folks here) what to do".

Be "told" to switch is kinda like being told to have a streaming service or cable when I'm happy just cutting the cord and going over the air. Don't call me, I'll call them.

 

[jollystomper]

Vanguard just sent out an email letting me know that if I didn't have e-delivery, I would incur a fee. I have e-delivery and I still got the email.

I have e-delivery, and received an email today, but this is what it has:

Changes coming to the annual account service fee

We're writing to let you know we're making changes to the Vanguard Brokerage Services® annual account service fee. Since you've opted in to our e-delivery service for statements, account notifications, and other Vanguard communications, you won't be charged.
View the full commission and fee services online.
Thank you for belonging to the Vanguard community of investors.

 

[John Galt III]

What is the problem with 2FA (two factor authentication) people are talking about? I have an old flip phone . Can't I just have them text me a code to enter when I log on?

 

[Gumby]

What is the problem with 2FA (two factor authentication) people are talking about? I have an old flip phone . Can't I just have them text me a code to enter when I log on?

That's exactly how I do it.

 

[John Galt III]

That's exactly how I do it.

Great, thanks, Gumby.

 

[jollystomper]

What is the problem with 2FA (two factor authentication) people are talking about? I have an old flip phone . Can't I just have them text me a code to enter when I log on?

Some desire a 2FA process that is more secure than using SMS. Things such as hardware keys (like Yubikey) or authentication apps (like Microsoft Authenticator). Vanguard supports hardware keys but not authentication apps.

 

[Turtle]

I think this is the fee update that is being discussed here;

https://investor.vanguard.com/client-benefits/account-fees


The page doesn't have a date I can find but I believe it's pretty recent.


Internet archive has this from May 2022

https://web.archive.org/web/2022051...tor.vanguard.com/client-benefits/account-fees


I just read about today with a hat tip to bogleheads.org brain trust.



I have yet to call and review my accounts. I need too.

I got an email saying I need to transition to brokerage or I will incur fees. I have a mutual fund and a small inherited ira. I called them and I am more confused than ever, even after being transffered to an account specialist.

My questions after I transition are:
1. Will there be any fees going forward yearly or otherwise
2. Will there be a charge to take money out(I live on this money)
3. Will there be a charge for receiving my quarterly dividends(I live on this money)
4. Any charges on the inherited ira
5. Are there any charges period within the brokeage account.
6. Are there any tax implications when I transition to this brokage account
7. Can I keep my mutual fund

What else should I be aware of.

 

[statsman]

Poor Vanguard. They were so terrific for so long, that everybody wanted in. Now they have to move these non-brokerage accounts to get them off an antiquated computer system.

That system is older than some members here and people fight to stay on it. The vendor is telling you they can't/don't want the liability of supporting it anymore.

"But I'll be darned if I leave it, except for leaving the company."

The irony is they open a brokerage account elsewhere. How is that easier than transitioning to a brokerage account at Vanguard?

I get the other reasons for leaving Vanguard, but this isn’t it.

That chain of comments helps explain the situation. The background as to why this happening wasn't clear to me. Thanks.

 

[John Galt III]

Just made the transition.

The worst part was the * mandatory * revealing of your annual income and your 'liquid net worth'. They said regulations require that info. Disappointing.

Took me 5 minutes. I had to 'sign', agreeing I had read umpteen documents and agreed with them all.

The Vanguard screens are very pretty, clearly laid out and worded and user-friendly. One of the positive aspects of the experience, lol.

Now saving $20 a year! (annual fee avoidance)

 

[TheWizard]

Just made the transition.

The worst part was the * mandatory * revealing of your annual income and your 'liquid net worth'. They said regulations require that info. Disappointing.

Took me 5 minutes. I had to 'sign', agreeing I had read umpteen documents and agreed with them all.

The Vanguard screens are very pretty, clearly laid out and worded and user-friendly. One of the positive aspects of the experience, lol.

Now saving $20 a year! (annual fee avoidance)

Oh c'mon John, we're all zillionaires here.
I have no trouble revealing that...

 

[target2019]

Vanguard website parties like it's 1999

Until the past week I've had little need for Vanguard other than a copy and paste once a month.

I transitioned about half a dozen simple accounts, and the experience leaves me disappointed. The web pages and help are poor. Sometimes I get a null:null error. Email directions to keep access to spouse accounts on my home page doesn't work. The link has expired? You just gave me the link?

Multiple problems and pages with no content point to a company that has lost its way.

I've re-tried the link so that I can e-sign to gain access again to her accounts. Today I have an email from Vanguard telling me I should use the link to e-sign. Same error message.

So I sent a support email telling of the problem. Lol, "Your sent message should appear in your Sent messages in an hour."

I also get an error message on my home page, where it tells me my retirement amount details are now missing, but don't worry, we'll fix that.

We decided yesterday to rollover her IRA to Schwab. We'll get that form and proceed after we open up the receiving account at Schwab. Then we'll visit the local office and speak with them about any concessions they'll offer for the transfers.

 

[tulak]

Vanguard should work on making their website work smoothly for these transitions. In most cases it probably doesn’t matter, but it doesn’t instill consumer confidence.

I recently transitioned one remaining account to a brokerage account. The transition went smoothly and now all my accounts are brokerage. Yet I’m still prompted by Vanguard to transition my accounts. I went through the transition link and after a couple of pages they tell me there are no accounts to transition. But on the home page, I’m still prompted to transition accounts. Why?

Minor stuff, but it feels lazy on Vanguard’s part.