Vanguard Transaction Error?

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Vanguard Transaction Error?

Post by entraining » Thu Aug 02, 2012 7:36 pm

Hey all,

Has anyone encountered a Vanguard transaction error before?

Specifically, yesterday, I made two transactions within my IRA account at Vanguard during market hours. The first was an exchange between two Vanguard funds ("sell all" selected for both funds) to Vanguard TBM. The second transaction was also within my IRA account, and it was an exchange between one Vanguard fund (sell 70%) and place proceeds in Vanguard TBM.

However, I wake up this morning to find that Vanguard executed both transactions incorrectly. For the first transaction, Vanguard sold 100% of one fund and none of the other and placed proceeds in TBM. In the second transaction, they sold 100% of the one Vanguard fund and placed the proceeds in Vanguard TBM. At first, I thought I was seeing a non-refreshed view. However, upon finding that it was indeed the only transactions listed on my account and I thought they were incorrect, I called Vanguard.

The Vanguard associate told me that all he could see from his end was that the trades executed properly. At this point, I am thinking user error (I must of incorrectly filled in a trade request, even though I could of sworn I saw two confirmations). However, I insist that Vanguard check into this (maybe it's a bug) so the associate transfers me to a researcher. Upon him hearing my story, he tells me that he will log this and put it to the forensics team so that they can see the screen grabs of the actual trade request (could take 2-3 business days).

A few minutes after hanging up with him, he calls me back and tells me that upon further research by him, he sees that some type of error did occur (as in the Vanguard system rejected the trade even after confirmation), but that he can't find any details about the error....

A few hours later, he calls me back and tells me the forensics team did indeed find that I actually did do the trades correctly and it was a Vanguard error. They promised to execute the order as I originally intended. That's a relief. However, I am somewhat shaken that an error like this happened at all.

This seriously seems like such a rare thing. What do you veterans do when making exchanges/buys/sells in your account? Do you really take screen shots of everything? I wish Vanguard would send some type of trade confirmation to my e-mail or Vanguard secure message with the Trade number and exact request so there is some type of document trail. At least then I wouldn't be second guessing myself thinking that I am going crazy!


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Re: Vanguard Transaction Error?

Post by PB » Thu Aug 02, 2012 7:49 pm

I haven't had a transaction error, but... the new website has been a big problem, calculating many numbers incorrectly.

If they're actually messing with database(s) as part of their platform development for web & mobile, then yes, I'm nervous and it's not just me -- there have been several threads running about the continued problems with the website. But again, my actual transactions have been OK.

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Re: Vanguard Transaction Error?

Post by jmg229 » Thu Aug 02, 2012 7:55 pm

I don't know that it will ever be worth much of anything, but yes, I do take screen shots of every major transaction at Vanguard (or any financial company, for that matter). I've gotten a couple "you didn't pay your bill" fees overturned with the data in the past.

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Re: Vanguard Transaction Error?

Post by maxim81 » Thu Aug 02, 2012 8:03 pm

Any chance this could be related to Knight Capital fiasco?

Vanguard also stops trading with KC - ... t-trading/

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Re: Vanguard Transaction Error?

Post by joe8d » Thu Aug 02, 2012 8:16 pm

After screwing up an online transaction and finding VG would not reverse it, I've done all my transactions on the phone. Recorded line, second party double check in voice with no problems since.
Last edited by joe8d on Thu Aug 02, 2012 8:40 pm, edited 1 time in total.
All the Best, | Joe

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Re: Vanguard Transaction Error?

Post by Sidney » Thu Aug 02, 2012 8:23 pm

Never had a transaction error. I print online confirmation to a PDF - reconcile statements to confirms; no different than a bank account, you need to keep a document that is your version of the truth. Don't count on statements or their later confirms.
I always wanted to be a procrastinator.

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Re: Vanguard Transaction Error?

Post by grabiner » Thu Aug 02, 2012 11:21 pm

I have had one non-transaction error. I converted a traditional IRA to a Roth, and Vanguard mistakenly withheld state tax. I reported the error and the transaction was re-done as of the original date with no taxes withheld.
Wiki David Grabiner

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Re: Vanguard Transaction Error?

Post by xerty24 » Fri Aug 03, 2012 2:13 am

Glad they did the right thing for you.
No excuses, no regrets.

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