Vanguard Perk Levels

[BUM]

This is all very interesting. On one level, I've bought in to all the VG corporate culture; but I also can be a sucker for valuable perks. I would switch to Fido, Schwab, or Fred's Funds if there was enough butter on the biscuit. In my experience, there never is.

All these so called perks benefit the seller in the long run. The tickets, dinners, chintzy gifts all have fishhooks inside. These perks are designed with "your mind in mind". They are ego stroking scraps thrown to the strays because the dummies marketeers don't know how else to compete. The IRS is clamping down, so freebies are getting even chintzier. Ultimately you're paying for this crap AND you have to listen to the jerk tell you what great opportunities are in store for you in addition to all this grand largess.

I do keep listening and reading stuff like the above. I don't want stuff. THEY want me to want stuff. I want somebody to answer the phone, speak my language, answer my questions to my satisfaction, maybe take my side if we find ourselves in a gray area. Thats it. Stick the golf balls. Answer the damn phone.

 

[walkinwood]

You can see vanguard perk levels here

https://flagship.vanguard.com/VGApp/hnw/accounttypes/services

They also give discounts on use of the online turbo-tax that came as a nice surprise for me.

 

[brewer12345]

I do keep listening and reading stuff like the above. I don't want stuff. THEY want me to want stuff. I want somebody to answer the phone, speak my language, answer my questions to my satisfaction, maybe take my side if we find ourselves in a gray area. Thats it. Stick the golf balls. Answer the damn phone.

That is exactly what I want, and I have always gotten it from Schwab.

 

[clifp]

At the Platinum level, Schwab will answer the phone quickly, 90% of the time with people who know what they are talking about and get you on the phone with experts when aren't sure. They'll also waive fees, bend rules about security closing dates, track you down in the office when the cops are at your house (long story), giving you golf passes, and invite you to countless seminars.

Personally, I don't care about the golf, and the free ski passes were a lot more valuable to me living in the SF Bay Area,than Hawaii. However, answering phone with people who can explain the like pricing moves of TIPs bonds is pretty valuable.

As for the "educational" seminars, now of course reality is they are fairly low key sales pitches. I find them moderately valuable, along with the occassional free financial plans. I am not quite at the Voyager level with Vanguard, and the service has been fine but not exceptional.

 

[Olav23]

The closest to a list I could find is from way back in 1999, but still interesting:

http://www.businessweek.com/1999/99_18/b3627164.htm

 

[Alan]

If you have $1M or more in Vanguard they will do a financial plan for you for free. I decided to try this out. You fill out a form online and set up an appointment to speak with a financial advisor for about 45 minutes. One week before the appointment they will send me the financial plan. Vanguard uses fee-only advisors, no commisions, so hopefully he won't try to sell me anything.

This financial plan costs $1,000 if you have a low balance.

Until I see plan and have my meeting with the financial advisor, it is hard to know how much this is worth.

I got this free plan done a few months back. I have less than a million in VG but more than $500K so I think it was a probably a special they had on. Anyway, it worked exactly as advertised, was worth doing for free and the advisor only suggested a minor change in my AA, which I decided to do. I made my changes in my 401(k) which is still with the company I work for so no tax implications.

I try to "be" the market and he was right that I was out of balance in one or 2 areas such as large cap growth. I could see this myself using VGs portfolio analyzer so could really have come to same conclusion myself. For free, I found it well worth my time.

 

[Nords]

I was out of balance in one or 2 areas such as large cap growth.

From what I've read on the Diehards, according to Vanguard most of the world's population needs to hold more of their large-cap growth index.

 

[LEX]

Being a cheapster, I prefer Vanguard. I do not want the sales pitch and thats about all you really get from Schwab, FIDO or Merril LYNCH. If one was smart enough to earn and manage their account to get to the Admiral level they can find the advice they want when they need it outside of the brokerage service they use. Listening to a broker for advice is like asking your kids for budget guidance for their allowance. All I want from a brokerage house (as well as banks, insurance firms and the Federal and State Government) is keeping the costs low and leaving me alone. Don't call me, I'll call you. 8)

 

[chinaco]

I do not think vanguard has many perks other than cheaper than the cheapest rates ( plus free financial planning). And this is the way I want it. Companies that offer those perks are doing so because of the windfall they are making from you!

I would rather keep the money in the first place. That is my perk!

 

[cute fuzzy bunny]

Lets look at this a different way. Perks such as reduced fees are hard to argue with. Perks like free tickets, golf clubs and other such stuff has to be bought.

Guess who bought them...

 

[bosco]

I do not think vanguard has many perks other than cheaper than the cheapest rates ( plus free financial planning). And this is the way I want it. Companies that offer those perks are doing so because of the windfall they are making from you!

this seems to be a common opinion, but whenever I check rates, Vanguard ends up more expensive than most. Their mutual funds have low expense ratios, but if you need a brokerage service (like, say, you want to buy ETFs) and have less than 1 mil$, you will get hosed. If you want to buy someone else's mutual funds, you will also get hosed. If all you want is index mutual funds, they are fine but if you want more options, forget it.

Wellstrade seems to be about the cheapest, and Fido is cheaper than Vanguard, including their index mutual funds. I know this is heresy to the religion of Vanguard, but do a little research.

Being a cheapster, I prefer Vanguard. I do not want the sales pitch and thats about all you really get from Schwab, FIDO or Merril LYNCH.

This is a silly statement. I've used Fido for years and not been given sales pitches of any kind unless I called and specifically asked about a product.

I think I'm going to roll some money into Wellstrade. Then I can buy Vanguard mutual funds for free, and still buy ETFs, stocks, and other mutual funds without high commissions. All the advantages of Vanguard with much more flexibility. Plus, I don't need a million, only $25,000.

 

[chinaco]

... but if you need a brokerage service (like, say, you want to buy ETFs) and have less than 1 mil$, you will get hosed. If you want to buy someone else's mutual funds, you will also get hosed. If all you want is index mutual funds, they are fine but if you want more options, forget it.

I have used VGBS. There probably is a cheaper solution.... it is not their main service, rather they have partnered with another company. If you trade often... you are probably better off somewhere else. Most full service houses will do pass through management of open-ended mutual fund trades now days... so you can still have a one stop place to manage the assets.

For open ended funds VG is just about the cheapest solution in town. I did see a FIDO index that is fairly low cost, but on average FIDO is more expensive... however, they are a quality MF company.

 

[brewer12345]

Heh, I got a letter in the mail from Scwab yesterday. It was my "personal financial consultant" writing to introduce himself, giving us his direct line number, and indicating he would be calling soon to introduce himself. All this despite the fact we are short of the $1MM mark.

Can't help wondering if they would have put my name on the list marked "do not call" if I had the letters "CFA" after my name on the account.

 

[73ss454]

Heh, I got a letter in the mail from Scwab yesterday. It was my "personal financial consultant" writing to introduce himself, giving us his direct line number, and indicating he would be calling soon to introduce himself. All this despite the fact we are short of the $1MM mark.

Can't help wondering if they would have put my name on the list marked "do not call" if I had the letters "CFA" after my name on the account.

Hey, maybe he knows and want's you to give him some advise.