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Old 05-26-2020, 05:20 PM   #21
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Waiting will give me time to decide if I really want 4 Vanguard brokerage accounts...with 4 additional money funds. Maybe I'm wrong about that?
I've opened up a two extra accounts for 1) Separate marital property (inheritance); and 2) annual spending/new home funds. Having a bunch of accounts helps me manage $, taxes, and distributions on different ages of account investments (LTCGs). I't a bit annoying, but I find it necessary as I plan for the transition to ER. I have the following accounts:
  • 1 ROTH
  • 1 Rollover IRA
  • 1 Inherited IRA
  • 1 Brokerage (inheritance, not tax-deferred)
  • 1 Brokerage (majority of taxable accounts)
  • 1 Brokerage (annual expenses and new house fund where sales of equities with LTCGs resulting in 0% taxes go)

When I roll over my 401(k), I'll open another IRA account so that I can separately track the basis of the employer match for those funds.

The transition was easy and is really not a big deal. The only issue is that you get separate statements for each account.
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Old 05-26-2020, 06:06 PM   #22
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Nope. I want pitchers to bat.

Back to the Vanguard thing. IMO, asking me to switch to the new method I compare to as if I'm a left-handed hitter asked to be a switched hitter. Why should I switch if I'm totally content batting on one side. Sure, there may be some advantages for some folks, but I'm happy just being who I am.
Um, no, it's nothing like that. I don't fault you for not wanting to switch. There were a couple annoyances the year I did, but it's nothing like what you compare it to.
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Old 05-26-2020, 07:02 PM   #23
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I just got another email from Vanguard asking to make the transition away from Mutual Funds only to the "new and improved" investment platform.

At least now there is a year of 2022 or sooner to retire the old platform.

I'm still loitering and lingering until the deadline comes closer as funds area all I need. Index investing and rebalance once a year. Don't need the fancy stuff .
hmmm. either we've never received these emails, never saw these emails or somehow it doesn't affect us. just what is this new platform? and what is considered the old platform? nearly 100% of our VG investments are in mutual funds except for a small amount in their money market.
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Old 05-26-2020, 08:27 PM   #24
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hmmm. either we've never received these emails, never saw these emails or somehow it doesn't affect us. just what is this new platform? and what is considered the old platform? nearly 100% of our VG investments are in mutual funds except for a small amount in their money market.
Look at your account titles, does it say "Brokerage" in the name? Like

(Your Name) -- Brokerage Account -- (acct #)

It may be that you opened your account when all new accounts were done as brokerage accounts. Or maybe you converted a few years ago and it was so uneventful you don't recall.
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Old 05-26-2020, 08:47 PM   #25
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yes, our living trust is titled as a brokerage. we created it about 2-yrs ago.
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Old 05-27-2020, 06:03 PM   #26
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I made the switch mid-year in 2019. No big deal, except I got two sets of 1099s to file. It was a bit confusing but my PAS advisor cleared it up for me.
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Old 05-27-2020, 09:48 PM   #27
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It's interesting to me seeing people wanting to stay on a code base that's being deprecated! I want to be on the latest, greatest, code set where the development and support staff have the best tools and security features to keep the bad guys out and solve any issues. As software ages there's less and less subject matter experts over time. I want to be where they are too.
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Old 05-28-2020, 02:25 AM   #28
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I find it amusing that DW and I were prodded into submission and made the switch last year. However my 90 year old DM has received nothing regarding this issue. I log onto her account and receive all her mail so I'm sure she has not gotten an offer.
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Old 05-28-2020, 08:39 AM   #29
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Obviously they don't obliterate Prime MM when you make the big transition. So lucky me, every time any money goes into or out of my VMFXX ("Federal MM Fund", = settlement MM) account, I have to log into Vanguard and manually transfer that money to or from Prime MM if I want the slightly better interest rate it provides. It's just so annoying.
I asked them (VG) point blank about that settlement account - and they sent me gobbledy-gook. I have gone over to Bogleheads to ask why I should/should not do this. There is quite the argument over there as well about the transition.

I've realized it is a lot easier to put money into VG than it is to take out, at least when you go to their site. That's a good thing for the most part, but if you have too jiggle the handle all the time to get what you want (as above, move $$ around to what you want), it merely introduces a higher risk of mistakes.

I'm sitting tight right now - mutual funds/etc and brokerage accounts (both types). I just don't see the benefit to me to transferring it all over to brokerage accounts (unless I already have). I'm not interested in day-trading with them.

Lastly, I'm interested to see how VG changes due to Jack Bogle's death. It sure seems they are sliding on a few of his ideas/principles in some areas.
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Old 05-28-2020, 10:54 AM   #30
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I'm interested to see how VG changes due to Jack Bogle's death. It sure seems they are sliding on a few of his ideas/principles in some areas.
Sadly, that's been happening for years.
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Old 05-28-2020, 02:55 PM   #31
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We are also clinging to the past, and will transition on the 5th of never. Okay, I get it, they will force it on us at some time.
Nope, they can't automatically force you onto the new platform, since you HAVE to accept their brokerage agreements, a legal requirement. I lost track, but it's been at least 6 years since they rolled out the new system.

I think they're hoping that at some point there won't be many left in the old system, at which point they might give you an ultimatum to convert or have your accounts closed. I'm not sure though, if they can legally do that either. That could have all sorts of tax ramifications.

This is a dilemma for them. I think they were expecting everyone would willingly convert in a timely manner.
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Old 05-28-2020, 03:45 PM   #32
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All I want from them is a straight answer to this question - Why do you, Vanguard, want me to do this? I've seen their stuff about how much more convenient, better etc this will be for me. But I am enough of a cynical SOB to know that there is no such thing as a free lunch in the investing business. If they want it, there must be something in it for them. That's what I want to know. I may not mind and probably will do it anyway, but not until they tell it to me straight.
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Old 05-28-2020, 04:11 PM   #33
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Nope, they can't automatically force you onto the new platform, since you HAVE to accept their brokerage agreements, a legal requirement. I lost track, but it's been at least 6 years since they rolled out the new system.

I think they're hoping that at some point there won't be many left in the old system, at which point they might give you an ultimatum to convert or have your accounts closed. I'm not sure though, if they can legally do that either. That could have all sorts of tax ramifications.

This is a dilemma for them. I think they were expecting everyone would willingly convert in a timely manner.
They may need you to sign the new TOS but at a point they will stop supporting the old. Happens all the time and they don't need your permission. They simply don't or can't support the old system past X date.

Vanguard and many other investment firms stop support of systems all the time. My career saw two large systems of record quicesed. When Vanguard moved from a third party system in the late 1980s did they ask you for permission? No, they took the funds in house to the 1980s era system you want to stay on.
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Old 05-28-2020, 04:17 PM   #34
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Waiting will give me time to decide if I really want 4 Vanguard brokerage accounts...with 4 additional money funds. Maybe I'm wrong about that?
We have a mix of old and new. The settlement accounts have $0.00 in them, so we set the interface to not show accounts with $0.00 in them and thus don't see them.
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Old 05-28-2020, 07:15 PM   #35
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Why do you, Vanguard, want me to do this?
If you could get a straight answer from them, I believe they would say, "Mutual funds as a product are slowly dying. Investors are showing a growing preference for exchange-traded products, especially outside of company retirement plans. A mutual-fund-only account is becoming archaic, and will be much more archaic ten years from now. We're just keeping up with the times. The change from mutual-fund to brokerage account only expands the range of securities available to you, with no added costs."
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Old 05-28-2020, 08:07 PM   #36
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All I want from them is a straight answer to this question - Why do you, Vanguard, want me to do this? I've seen their stuff about how much more convenient, better etc this will be for me. But I am enough of a cynical SOB to know that there is no such thing as a free lunch in the investing business. If they want it, there must be something in it for them. That's what I want to know. I may not mind and probably will do it anyway, but not until they tell it to me straight.

Once upon a time vanguard outsourced their brokerage business to another partner (pershing llc) a number of years ago vanguard brought the business inhouse and in the year of the transition you got 2 1099s for the brokerage account. Start with you must have a brokerage account to buy anyones etfs, including vanguards. from vanguard.

The change in the settlement account from prime to federal is a result of the post 2008 rules where a prime money fund is not regarded as safe enough for a settlement account, since it invests in more than treasury and possibly agency securities.
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Old 05-29-2020, 04:34 AM   #37
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All I want from them is a straight answer to this question - Why do you, Vanguard, want me to do this? I've seen their stuff about how much more convenient, better etc this will be for me. But I am enough of a cynical SOB to know that there is no such thing as a free lunch in the investing business. If they want it, there must be something in it for them. That's what I want to know. I may not mind and probably will do it anyway, but not until they tell it to me straight.
+1000x - exactly - just tell me straight up - don't try to sell it to me. That makes me nervous as I then need to go find out what it is you aren't telling me. It's like your parents telling you the medicine is good for you even though it tastes like crap. I don't need the sugar coating.....
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Old 05-29-2020, 05:21 AM   #38
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Old 05-29-2020, 05:52 AM   #39
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Old 05-29-2020, 07:13 AM   #40
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All I want from them is a straight answer to this question - Why do you, Vanguard, want me to do this? I've seen their stuff about how much more convenient, better etc this will be for me. But I am enough of a cynical SOB to know that there is no such thing as a free lunch in the investing business. If they want it, there must be something in it for them. That's what I want to know. I may not mind and probably will do it anyway, but not until they tell it to me straight.
I voluntarily chose to hold my Vanguard funds (and some funds from other fund companies) in my Schwab brokerage accounts. For example, I've had a postion in VTSAX for many years. I could have held it at Vanguard (the fund company, not the brokerage house) but I preferred to consolidate at Schwab brokerage and only deal with one company and one web site.

That's really all you'll be doing when you move to the Vanguard brokerage account. You can hold your Vanguard funds there. You can hold other companies funds there. If you want to own an individual stock, CEF, ETF, bond or whatever, you can hold those there too. If you continue to only want to own Vanguard MF's, no problem.

The motivator for Vanguard no one seems to be mentioning is that they were losing some customers when the customers discovered that there were some products other than Vanguard MF's they might want to own and they want their holdings consolidated at one place.
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