Inaccurate Terminology or Description in Vanguard Statements

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General Disarray
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Inaccurate Terminology or Description in Vanguard Statements

Post by General Disarray » Wed Oct 08, 2014 5:20 pm

In August, I initiated a transfer of my Schwab Roth IRA to Vanguard Roth IRA. This is a personal account, not one tied to my employment. The transfer went through, but my activity confirmations typically include a statement of employee asset transfer. For instance, two days ago, I received a confirmation of a transfer, but the "transfer" actually represented dividends paid from the mutual fund.

When I called Vanguard, the representative was rather clueless. I told him this was not a rollover from any employee retirement account (for instance, a 401K). He ended up speaking to another rep, who told him that the confirmations typically have the "employee asset transfer" denotation on it, even though the Vanguard Roth IRA account is not related to the account holder's employment. I thought it was rather bizarre. It seems to me that Vanguard could easily correct this and would want to, to ensure accuracy.

Is anyone else experiencing the inaccurate terminologies used in Vanguard statements, confirmations, etc.?

kaneohe
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Re: Inaccurate Terminology or Description in Vanguard Statem

Post by kaneohe » Wed Oct 08, 2014 8:10 pm

Not this particular problem mixing company account terminology with personal account. However in a 401K account, when I take distributions, the quarterly statement does not show a line item even hinting at that since it is combined with a bunch of other stuff as a single line item. The first line reps cannot answer how much in distributions has been taken but the back office obviously knows and and can send a statement upon request that is exactly what you would want. Why they don't format the statement like that in the first place as seemingly any other company would do is beyond me.

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in_reality
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Re: Inaccurate Terminology or Description in Vanguard Statem

Post by in_reality » Thu Oct 09, 2014 4:49 am

General Disarray wrote:I thought it was rather bizarre. It seems to me that Vanguard could easily correct this and would want to, to ensure accuracy.

Is anyone else experiencing the inaccurate terminologies used in Vanguard statements, confirmations, etc.?
It's probably an artifact of their ultra low cost goal.

I had transactions confirmations containing the opposite value of what my statement showed. So $100 would show as -$100. I knew why it was and tried to get Vanguard to correct it so it wouldn't happen again. Finally, my Flagship rep. suggested I transfer out after they locked my account for being an expat which they seemed to have discovered investigating the issue.

Anyway, Vanguard does their best to keep costs low and is updating their system. I don't think it is actually so easy for them to change anything though.

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Cosmo
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Re: Inaccurate Terminology or Description in Vanguard Statem

Post by Cosmo » Thu Oct 09, 2014 4:55 am

General Disarray wrote:In August, I initiated a transfer of my Schwab Roth IRA to Vanguard Roth IRA. This is a personal account, not one tied to my employment. The transfer went through, but my activity confirmations typically include a statement of employee asset transfer. For instance, two days ago, I received a confirmation of a transfer, but the "transfer" actually represented dividends paid from the mutual fund.

When I called Vanguard, the representative was rather clueless. I told him this was not a rollover from any employee retirement account (for instance, a 401K). He ended up speaking to another rep, who told him that the confirmations typically have the "employee asset transfer" denotation on it, even though the Vanguard Roth IRA account is not related to the account holder's employment. I thought it was rather bizarre. It seems to me that Vanguard could easily correct this and would want to, to ensure accuracy.

Is anyone else experiencing the inaccurate terminologies used in Vanguard statements, confirmations, etc.?
Yes, I have seen this before when transferring Roths over to Vanguard but this has never created any issues with my account. My take is not to sweat the small stuff.

Cosmo

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