Vanguard Transition is too much trouble

[pb4uski]

Quote:

Originally Posted by nwsteve Personally from my experience, I would not bet against Vanguard taking independent action. The experience is from some time ago when they converted all accounts from POD to TOD. They unilaterally converted all her positions to TOD and in the process fundamentally changed the beneficiaries in the process. One of the main reason we left Vanguard was their repeated and unpredictable ineptness in executing administrative processes.

Not sure that your post/objection make sense.... POD applies to bank accounts and TOD applies to brokerage accounts.

Quote:

A POD account is very similar to a transfer-on-death (TOD) arrangement but deals with a person's bank assets instead of their stocks, bonds, mutual funds, or other investment assets. Both POD and TOD agreements offer quick means of dispersing assets, as both avoid the probate process, which can take several months.

[jollystomper]

Funny, I just transitioned DW's Vanguard account with no problem. She got the email notification, we signed on, there was a link on the page asking to start the transition, answered 6 questions, it was done. signed onto my account (as we are authorized for each others), had a message about responding to questions to authorize again for her account, answered 3 questions, it was done. Perhaps because she only has an IRA in her account made it simple.

[nwsteve]

Quote:

Originally Posted by pb4uski Not sure that your post/objection make sense.... POD applies to bank accounts and TOD applies to brokerage accounts.

Sorry, my objection wasn't clearer. It was simply that because Vanguard made the changes without my mom's request or approval and Vanguard's action unilaterally modified beneficiaries.
Apparently she was getting notices from Vanguard and chose to keep her POD in place. She never shared the communications from Vanguard. It was not until some time afterwards that noticed the changes in beneficiaries and shift to TODs. This event dates way back before Vanguard started its march to all brokerage accounts.
Mom only had mutual funds so no bank accounts were involved except maybe the MM. The related issue was Vanguard not even making the transition competently. In some accounts, beneficiaries were completely dropped IIRC.

[teejayevans]

When I did it years ago it was painless until I got my tax forms, separate statements for old and new accounts.

[stephenson]

I have accounts with both Vanguard and Fidelity.

Of the two, Fidelity is fast, follows up and is more professional.

It is, IMO, the way best looking.

[gauss]

Quote:

Originally Posted by pb4uski Ignorant comment... there are no "new" accounts a la Wells Fargo. They wouldn't be opening a new account... but rather just changing its form (mutual fund to brokerage holding the same mutual funds).. no substantive change. You would have one brokerage account after for each mutual fund account that you had before... in some cases where you had both a mutual fund and a brokerage account of the same type (for example, taxable or tIRA or Roth IRA) you would have fewer accounts. While I concede that today's Vanguard isn't the same Vanguard that we know and love, it is still the best looking horse in the glue factory.

Ignorant - maybe as I have never worked in the financial industry.

Lets try to make clear some hidden assumptions to see where our differences in option originate.

Are you suggesting that if Vanguard unilaterally transitions to a brokerage account that there would be restrictions on the account so that no "trading" could occur?

If that is the case, then I could see a path to unilateral transistion.

If, on the other hand, the new account allows brokerage trading, I cannot see this happening without having all the paperwork in place to legally allow/cover them.

-gauss

[foxfirev5]

After continued prodding from VG that our mutual fund platform is ending DW and I transitioned our accounts. Meanwhile i mentioned this to my 90 year old DM. She was not aware of this at all. Just to be sure i logged into her account and there was nothing at all about "upgrade" or transition for either her IRA or mutual fund account. It looks like a big bluff that Vanguard is using to get these accounts changed over.

[pb4uski]

Quote:

Originally Posted by gauss Ignorant - maybe as I have never worked in the financial industry. Lets try to make clear some hidden assumptions to see where our differences in option originate. Are you suggesting that if Vanguard unilaterally transitions to a brokerage account that there would be restrictions on the account so that no "trading" could occur? If that is the case, then I could see a path to unilateral transistion. If, on the other hand, the new account allows brokerage trading, I cannot see this happening without having all the paperwork in place to legally allow/cover them. -gauss

In my experience, with respect to legal issues Vanguard is conservative to a fault... IF after a certain amount of time they transition mutual fund accounts to brokerage accounts (and I only have a faint recollection that is what they would do) then I am confident that they will have their legal ducks in a row before doing it.

Most likely, it might be in the form of notice to the residual mutual fund account holders notifying them that Vanguard will do the transition and that if they do nothing that they are deemed to have agreed to the change... or something like that.

I'm not sure if trading has anything to do with anything as customers currently have the ability to buy, sell and exchange shares in their mutual fund accounts and would be able to do the same in a brokerage account.

[easysurfer]

Quote:

Originally Posted by foxfirev5 After continued prodding from VG that our mutual fund platform is ending DW and I transitioned our accounts. Meanwhile i mentioned this to my 90 year old DM. She was not aware of this at all. Just to be sure i logged into her account and there was nothing at all about "upgrade" or transition for either her IRA or mutual fund account. It looks like a big bluff that Vanguard is using to get these accounts changed over.

Until there's an actual cut off date given by VG, I've been putting the transition request aside.

I'm happy with just my mutual funds and don't need no brokerage account to complicate things .

[steelyman]

Quote:

Originally Posted by easysurfer Until there's an actual cut off date given by VG, I've been putting the transition request aside. I'm happy with just my mutual funds and don't need no brokerage account to complicate things .

I haven’t gotten anything from Vanguard about a transition. If I hadn’t read about it here I’d continue to be blissfully ignorant.

I have a taxable fund account and a Roth IRA at Vanguard. I’ve started the process of draining the taxable account and leaving only Prime Money Market in there. The Roth stays as is (it was my first Roth, opened when Roths first came into existence).

[Hyper]

After never ending pia with VG and Fidelity we only have a small VG account now. We moved 7 figures out of VG and it was absolutely ridiculous getting it done. I truly believe they set it up that way in an attempt to keep you from leaving. It was bad enough that VG would have to SERIOUSLY make it worth our while for us to ever move large amounts back to them. Only reason for the small account still there is that it is earmarked and I don't want the hassle of setting up another short term account elsewhere.

[Hopeful]

A while back I was getting the nag screen to transition, but haven't seen anything for almost a year now. I have been giving serious thoughts about transitioning everything to Fidelity, but am afraid of losing my 20 years of cost basis information that is with VG. Anyone know if the cost basis info would transfer over to Fidelity if I moved?

[pb4uski]

Haven't done it but I'm sure it would since all brokerages are required to report tax basis on sales and I'm not sure how they would do it otherwise. You could always ask Fidelity.

[harllee]

Quote:

Originally Posted by jollystomper Funny, I just transitioned DW's Vanguard account with no problem. She got the email notification, we signed on, there was a link on the page asking to start the transition, answered 6 questions, it was done. signed onto my account (as we are authorized for each others), had a message about responding to questions to authorize again for her account, answered 3 questions, it was done. Perhaps because she only has an IRA in her account made it simple.

OP here, this is what I had expected to find when I logged into my account but after diligently search all over I can not find any link about the transition. My account rep said he also sent me a link but I cannot find that link either. I only have one account --a traditional IRA account with mutual funds.

I do have popups blocked, maybe that is preventing me from seeing the transition link. I will allow popups and see if that helps.

[steelyman]

Quote:

Originally Posted by Hopeful A while back I was getting the nag screen to transition, but haven't seen anything for almost a year now. I have been giving serious thoughts about transitioning everything to Fidelity, but am afraid of losing my 20 years of cost basis information that is with VG. Anyone know if the cost basis info would transfer over to Fidelity if I moved?

I can’t say for sure but I had a similar question about transferring shares “in kind”. I was advised to initiate the transfer from the receiving side (in your case, Fidelity) and be clear you want the cost basis preserved. That may be the default but it wouldn’t hurt to be careful and clear.

[RetireAge50]

They can call the account whatever they want I don’t care. Just hit the transition button and agree to several things and done.

[Qs Laptop]

Quote:

Originally Posted by harllee OP here, no, when I log in to my own account and click on Holdings I do not see anything about transition. I got a message from my Account Rep today who said the transition info with a completed form would appear under "New Accounts" but when I click on New Accounts do not see any Transition form. It seems that the ability to transition is hiding from me so I will just stay where I am until they kick me out.

I would flee, FLEE Vanguard if they were this inept. Why isn't your account rep walking you through the process over the telephone? If this were Fidelity it would have been handled within 5 minutes of you calling their help line. (Actually, if it were Fidelity they wouldn't have constructed these hoops of fire for you to jump through.)

[brokrken]

IMHO.....There is no doubt that Vanguard was a pioneer in low cost index investing. But, as time passed they have severely lagged Fidelity and Schwab in their customer service, and more importantly, their IT platform. This is just another example of both. Considering you can now get those same low cost funds at other places, there is really no reason to stay.

[Gumby]

When I log on, I see links to "upgrade" my accounts. I'm sure they have their reasons for making the change, but what I really want to know is "what's in it for me?" If there is a benefit to making the change, they should tell me clearly what it is. If there is no benefit, they should clearly say that. I might make the change anyway, but I'd like to know just why they want me to and whether there is a drawback to acquiescing.

[pb4uski]

Quote:

Originally Posted by Qs Laptop I would flee, FLEE Vanguard if they were this inept. Why isn't your account rep walking you through the process over the telephone? If this were Fidelity it would have been handled within 5 minutes of you calling their help line. (Actually, if it were Fidelity they wouldn't have constructed these hoops of fire for you to jump through.)

Quote:

Originally Posted by brokrken IMHO.....There is no doubt that Vanguard was a pioneer in low cost index investing. But, as time passed they have severely lagged Fidelity and Schwab in their customer service, and more importantly, their IT platform. This is just another example of both. Considering you can now get those same low cost funds at other places, there is really no reason to stay.

I have both Vanguard and Fidelity... I don't notice one being demonstrably better than the other in my experience.... everyone seems to be gaga over Fidelity's website and tools and I've used them and just haven't been very impressed... they're ok but nothing to get excited about.