VG The Next Generation TRUSTS. Anyone take the bait?

[BUM]

VG has been advertising trusts more and more. They’ve set up and staffed an entire group, calling it a “legacy platform” or some such.

Anyone jumping on this bandwagon?

 

[pjigar]

Following

 

[OldShooter]

Actually, IMO that is A Very Good Thing. For Vanguard, it allows them to keep money that might otherwise be transferred to bank trust departments. For customers, it keeps money out of the hands of bank trust departments, which are historically very expensive and historically poor investors.

Schwab is doing the same thing and I got a copy of their rates from my guy yesterday. They are hugely cheaper than banks and I am sure that Vanguard will be competitive with Schwab.

Many here, including us, have estate plans that include testamentary trusts. We have sent the Schwab info to our attorney and will explore further what is involved in working with Schwab. Most trustees have certain requirements for trust documents, so we have to see if theirs are compatible with our needs. Looking at cost only, Schwab and Vanguard will probably be no-brainers. We'lllook at Vanguard too, but Schwab is convenient because we already have a fairly large relationship.

 

[kgtest]

Been needing a reason to call VG.

Will be discussing this service with them tonight.

Surprisingly usually the first person I talk with at VG is usually quite knowledgeable about new offerings and strategy. Makes me wonder if they know my # and trasnfer me right to tier 2?

 

[powerplay]

Interested and hope any one who checks out what Vanguard has to offer reports back.

 

[wompo]

From what I read it is 0.55% annual fee on your first $5 million. That would cover most people. There are decreasing rates for more than $5 million.

https://personal.vanguard.com/pdf/s341.pdf?2210071322

 

[BUM]

Thank you all. I’m at the age where this is starting to make sense. I’ll share my info as time goes on.

I don’t have a relationship Schwab.

 

[OldShooter]

From what I read it is 0.55% annual fee on your first $5 million. That would cover most people. There are decreasing rates for more than $5 million. ...

Yeah. I expected that they would be competitive with Schwab. Schwab is 50 basis points for the first $5M and 25 basis points for the next 5. So 38bps on $10M. Minimum fee is $5K.

Schwab also households the fee, so as my guy explains: "For example, if there are three trusts in the relationship, each $500k, we would not charge $5k [minimum fee] per trust (total $15k). But rather, we’d charge 0.50% on $1.5mm which equates $7,500."

Re phone numbers and supports, I don't keep track but in the past I have been on some kind of heavy hitter program at Schwab and am given different phone numbers for support than the public ones. Certainly they could use caller id to sort customers as well. I'd expect most brokerage houses have something similar.

 

[mathjak107]

what a surprise , vanguard is promoting trusts more.

perhaps that is why they did away with beneficiaries on joint accounts and tell you to look in to a trust .