I think Vanguard Just Called Me Difficult and Expensive

[Koolau]

<SNIP>

I actually thought I'd switched everything, but maybe not. I need to go in and see what account they're talking about.

Oh, regarding the note I received saying I needed to switch: I called today and the nice lady told me "Nope. You're all switched - including your DW. BUT your minor daughter is not."

Heh, heh, my minor daughter is in her mid 30s! I've begged and cajoled the little one to call them and get everything straightened out but she has not. SO, I texted her and told her it was gonna cost her money if she didn't call them. She promised to do it and get everything in her name and transitioned.

By the way, from first ring to final goodbye was less than 10 minutes (including the robot routine at the beginning.) YMMV

 

[jblack]

When I converted my 3 accounts, each was assigned a new account number. That was probably a decade or longer but I suspect that is still the case.

Thanks. This is what I suspected and as I’m too lazy to make updates on my automatic paycheck deposits I’m going to stick with the older platform for a bit longer. Hopefully that won’t be a factor too much longer

 

[marinauser]

If a broker/investment company like Vanguard is going to make any recommendations as to investments that may be made, they are legally required to determine the "Suitability" of that investment for the customer. FINRA—the Financial Industry Regulatory Authority rules on Suitability are discussed at https://www.finra.org/rules-guidance/key-topics/suitability

Because Vanguard hopes/tries to sell you investment advice they ask these questions regarding assets, income and goals to fulfill their obligation on suitability in advance.

 

[Sconie]

Well, sadly, it's no longer "your Father's" Vanguard----or, for that matter, Jack Bogle's Vanguard.

Then too, I laugh every time I see one of their advertisements, which usually end with the caption of, "Vanguard-----where you are the owner." Yeah, sure----but don't dare ask how much the Vanguard Executives are being paid.....because you're not entitled to know that.

 

[hpnutty]

I wonder if this is the time to move everything to FIDO. There might be a pony in there.

 

[mickeyd]

I held out in changing platforms until a few months ago. I still prefer the old platform but I have adapted to the brokerage system.

Move on.

 

[easysurfer]

I wonder if this is the time to move everything to FIDO. There might be a pony in there.

I haven't had time to take a closer look, but been wondering too.

VG was a place I was totally loyal to. So what that they only have a building in Valley Forge, PA. Was about fighting for the DIY investor, plus I'm just happy to invest in those index funds.

But looking at FIDO, maybe better online experience, real office not far away from where I'm located. Plus, there's a rumor that FIDO still gives Turbotax as a freebie.

Also, I'd think moving shouldn't be that complicated too since all I really have are funds.

Ironic as when I left megacorp and had the 401K dollars moved to my IRA. I specifically wanted to moved from the Fidelity 401K to VG due to loyalty.

To be continued ...

 

[hpnutty]

I'm sorry, I didn't intent to take from the op's initial premise. But for me, I have funds in both companies and prefer FIDO. This could be the push I've needed for the past 2 years to finally say good-bye to an old friend.

 

[easysurfer]

I'm sorry, I didn't intent to take from the op's initial premise. But for me, I have funds in both companies and prefer FIDO. This could be the push I've needed for the past 2 years to finally say good-bye to an old friend.

No need to apologize at all. I can empathize. One day realizing the old familiar surroundings just don't feel the same.

 

[schellem]

Are you still driving a model T?

 

[Act2]

I switched over to V brokerage from their mutual fund platform maybe 18 months ago. I wasn’t in a big hurry to do it but I was doing a number of transactions relating to an estate and since they had me on the phone they said ‘let’s do it now’ and it was fast, easy, and did not change much of my experience that I can see. From another person who didn’t see the point and wasn’t excited about making the change, really it’s painless. You’ll very possibly wonder why you hesitated. I did.

 

[cranberryjoe]

At my former megacorp, we had a very successful but very old software product, now over 30 years old and still being used by thousands of companies worldwide. That software platform was built on now-ancient proprietary technologies. As the developers aged out, it was literally impossible to hire workers who knew those dated technologies. Nobody wanted to work on them when they could work on the latest modern sexy platforms at other companies. Spending the time to learn the old tech would not help them further their career. So the only people that could maintain the old software were the existing highly paid older employees nearing retirement age (who also didn't want to work on the old tech, but for some it was a way to keep a job in a field with rampant age discrimination). It was very expensive to keep that platform going due to the human labor costs, yet we were unsuccessful at moving all our customers to newer platforms.

I'm sure Vanguard is in a similar situation. They just can't find enough people with the skills or interest to fix bugs and add features to the old platform that uses old technologies irrelevant to today's software platforms. You may think that's Vanguard's problem, but it translates to ever-higher costs that affects all of Vanguard's customers.

Just go ahead and switch to the new platform. When I did it a few years ago it was quick and easy.

 

[Graybeard]

Vanguard should charge a fee for using the old platform, a fee so painful you will convert. Or just say on 1/1/202X all accounts not on the brokerage platform will be automatically converted or you can transfer out of Vanguard. The cost to maintain 2 parallel systems is unnecessary and in the end we all pay for that. If the fee is too expensive and they move to a different brokerage then that's one less account or accounts to deal with. Wherever they go, it won't be like the older platform at Vanguard so it seems forcing them into a brokerage account is a win win.

 

[Koolau]

Vanguard should charge a fee for using the old platform, a fee so painful you will convert. Or just say on 1/1/202X all accounts not on the brokerage platform will be automatically converted or you can transfer out of Vanguard. The cost to maintain 2 parallel systems is unnecessary and in the end we all pay for that. If the fee is too expensive and they move to a different brokerage then that's one less account or accounts to deal with. Wherever they go, it won't be like the older platform at Vanguard so it seems forcing them into a brokerage account is a win win.

I assume V is taking an approach designed to keep its customer base in tact. $20 per account is an irritant - enough of one that I finally called them and changed over to the new system. But it wasn't enough to make me start looking for another company. YMMV

 

[Chuckanut]

I converted years ago and haven't had any problems.

 

[easysurfer]

Vanguard should charge a fee for using the old platform, a fee so painful you will convert. Or just say on 1/1/202X all accounts not on the brokerage platform will be automatically converted or you can transfer out of Vanguard. The cost to maintain 2 parallel systems is unnecessary and in the end we all pay for that. If the fee is too expensive and they move to a different brokerage then that's one less account or accounts to deal with. Wherever they go, it won't be like the older platform at Vanguard so it seems forcing them into a brokerage account is a win win.

Funny thing is if VG would put the carrot in front of the horse like switch over and get $10 Amazon gift card, I might be first in line. But now I'm contemplating switching to FIDO. Strange how the mind works.

But thing is, switching or not is not highest on my to do list at the moment. I'll [-]diddle daddle[/-] look more into this later in the year.

 

[Scout]

I remember a time long long ago when we had an actual flagship representative who would meet with us on the regular and take care of stuff like this.
The good old days of Vanguard….

 

[Whisper66]

Like some others, I had no issues moving multiple personal accounts a couple years ago. And in the last year or so I moved multiple additonal accounts of my parents. The only challenge I had with one parent's account was easily resolved with a phone call and instructions for Vanguard to handle the details of the move for us. It was easy enough that I don't remember the details other than it had to do with the account being a Trust account.

BUT I honestly agree that if you are unhappy with Vanguard, moving to Fidelity is a great idea. That means changing accounts like VG is asking you to do but Fidelity is known to provide generally good service so I expect they'd handle the details for you.

If I were to switch to Fidelity, I would review the BBB info on Fidelity Investments. they have an A+ rating which is great. I would then specically browse the 956 complaints closed in the last 3 yrs and ensure those didn't bother me as much as issues I've run into at Vanguard. Link provided....
https://www.bbb.org/us/ma/boston/profile/mutual-funds/fidelity-investments-0021-4138


Might also review complaints in ConsumerAffairs.com where Fidelity got a 3.8 out of 5 rating with 718 reviews. Link provided
https://www.consumeraffairs.com/finance/fidelity.html

Best of luck whatever you decide to do.

 

[Koolau]

I remember a time long long ago when we had an actual flagship representative who would meet with us on the regular and take care of stuff like this.
The good old days of Vanguard….

Yeah, it's really bad now. Now you either have to call them or go on line. I called and changed all my (and DW's) accounts in 10 minutes. It was really terrible.

Of course, it was probably even worse than I thought since I had never had the flagship representative relationship. I bet I'd really be upset if I'd once experienced that level of luxury. The good old days of Vanguard indeed. RIP

 

[jazz4cash]

Funny thing is if VG would put the carrot in front of the horse like switch over and get $10 Amazon gift card, I might be first in line. But now I'm contemplating switching to FIDO. Strange how the mind works.



But thing is, switching or not is not highest on my to do list at the moment. I'll [-]diddle daddle[/-] look more into this later in the year.

I guess fairness does not matter much these days, but I’d be peeved if VG offered a carrot such as this after having switched over early on when VG claimed it was in the best interest of all shareholders. That is why I favor the stick approach instead of everyone paying to support both platforms.

 

[easysurfer]

I got my "Move to new system or pay fees" by 9/1 email form VG today. The total damage for me would be $250. Guess they only charge fees for non-retirement accounts as I have five mutual funds outside of retirement accounts. Unless that's still coming.

Mental note ... move to Fidelity before 9/1 .

 

[teej1985]

I got my "Move to new system or pay fees" by 9/1 email form VG today. The total damage for me would be $250. Guess they only charge fees for non-retirement accounts as I have five mutual funds outside of retirement accounts. Unless that's still coming.

Mental note ... move to Fidelity before 9/1 .

Why move to Fidelity? Fidelity isn't going to give you a mutual fund only account. Are they giving you a cash incentive to move?

 

[easysurfer]

I got my "Move to new system or pay fees" by 9/1 email form VG today. The total damage for me would be $250. Guess they only charge fees for non-retirement accounts as I have five mutual funds outside of retirement accounts. Unless that's still coming.

Mental note ... move to Fidelity before 9/1 .

I miscalculated. I was thinking $50 per fund. I have ten so 10 x $25 = 250. Of course.

 

[easysurfer]

Why move to Fidelity? Fidelity isn't going to give you a mutual fund only account. Are they giving you a cash incentive to move?

I like Fidelity more .

Plus, not just being stubborn, they do have something I'm considering in the future that VG does not.

 

[Koolau]

I got my "Move to new system or pay fees" by 9/1 email form VG today. The total damage for me would be $250. Guess they only charge fees for non-retirement accounts as I have five mutual funds outside of retirement accounts. Unless that's still coming.

Mental note ... move to Fidelity before 9/1 .

Mental note: 8/30 send note to V telling them why you are moving. (heh, heh, do it for the rest of us might not have the courage to move.)