VG notice of transition

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Topic Author
meebers
Posts: 501
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

VG notice of transition

Post by meebers »

Wife and I have identical accounts with VG. She received this notice:

"In the next week or so, you'll receive an invitation to transition your Vanguard mutual fund account to a Vanguard Brokerage Account. You don't have to do anything now. We simply want to make you aware of what's coming."

Not quite sure what this is about, I did not get the same kind of notice. Anybody here get one of these or something new?
jebmke
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Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: VG notice of transition

Post by jebmke »

If you search the site for "Vanguard account upgrade" you will find a lot of threads on this subject. Opinions vary on the impact of this change. My rep has told me that it is not a mandatory change but my account is large and they may make exceptions for larger accounts.

I did change on of our brokerage accounts last year and have not had any bad experiences. But I don't do much with this account other than stare at it so I may not have hit any issues that other people report.
Stay hydrated; don't sweat the small stuff
dbr
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Joined: Sun Mar 04, 2007 8:50 am

Re: VG notice of transition

Post by dbr »

meebers wrote:Wife and I have identical accounts with VG. She received this notice:

"In the next week or so, you'll receive an invitation to transition your Vanguard mutual fund account to a Vanguard Brokerage Account. You don't have to do anything now. We simply want to make you aware of what's coming."

Not quite sure what this is about, I did not get the same kind of notice. Anybody here get one of these or something new?
See many threads about Vanguard "upgrading" your mutual fund account to a brokerage account: https://www.google.com/search?sitesearc ... ng+account
Topic Author
meebers
Posts: 501
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Re: VG notice of transition

Post by meebers »

dbr wrote:
meebers wrote:Wife and I have identical accounts with VG. She received this notice:

"In the next week or so, you'll receive an invitation to transition your Vanguard mutual fund account to a Vanguard Brokerage Account. You don't have to do anything now. We simply want to make you aware of what's coming."

Not quite sure what this is about, I did not get the same kind of notice. Anybody here get one of these or something new?
See many threads about Vanguard "upgrading" your mutual fund account to a brokerage account: https://www.google.com/search?sitesearc ... ng+account
Geez!, read most of the linked threads about this. Some were back in 2014. From the very beginning of my account set up, I often pondered at the reasoning for a MF account and a Brokerage account. Assumed that the brokerage account was to buy/sell funds outside of VG. Some time ago, I got notice to transition my PMM fund to the FMM fund. I did so and asked VG if the wife's account had to do the same, they said no. In looking at my accounts, the brokerage account has a balance that I believe is used as the sweep fund, that's the only entry there. Wife's account still with PMM fund has no entries in her brokerage account. In the email she received, it also said:

"How you'll benefit
With a Vanguard Brokerage Account, you'll gain the convenience to manage all your investments in the same account, from any device. You'll also have the flexibility to diversify your account beyond Vanguard mutual funds to include Vanguard ETFs® (exchange-traded funds), stocks, bonds, CDs (certificates of deposit), and ETFs and funds from other companies.

In addition, you'll enjoy new account options such as the ability to easily cancel transactions, gift Vanguard fund shares, and make same-day fund purchases with trade proceeds."

Looking forward to that VG Mail. Tx for your response.
FactualFran
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Re: VG notice of transition

Post by FactualFran »

meebers wrote: Geez!, read most of the linked threads about this. Some were back in 2014. From the very beginning of my account set up, I often pondered at the reasoning for a MF account and a Brokerage account. Assumed that the brokerage account was to buy/sell funds outside of VG. Some time ago, I got notice to transition my PMM fund to the FMM fund. I did so and asked VG if the wife's account had to do the same, they said no. In looking at my accounts, the brokerage account has a balance that I believe is used as the sweep fund, that's the only entry there. Wife's account still with PMM fund has no entries in her brokerage account. In the email she received, it also said:
It looks as if you had a Vanguard Brokerage Services (VBS) account. Because of a changes in government regulations, Vanguard automatically upgraded your, and others, older style VBS accounts to use as a sweep account a Vanguard Federal Money Market fund in the VBS account in place of a Vanguard money market fund account in an Vanguard mutual funds account.

It looks as if your wife has a Vanguard mutual funds account rather a VBS account. Such accounts have not been automatically upgraded to a newer style VBS account. Vanguard is likely encouraging owners of Vanguard Mutual Funds account to convert to a VBS account.

Near the top of page 7 of the Your Vanguard Brokerage Account brochure, the answer to the question "Why doesn’t Vanguard automatically switch my mutual fund accounts to the new account structure?" is "We must have your consent before moving your Vanguard mutual funds into brokerage accounts."
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triceratop
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Re: VG notice of transition

Post by triceratop »

This topic is now in the Help with Personal Investments forum.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
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retiredjg
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Re: VG notice of transition

Post by retiredjg »

I have not yet gotten the invitation, but I don't plan to change unless forced. I don't need a brokerage account and the transition has not been seamless for many, so why change?

I don't have a taxable account and I never intend to use ETFs or to buy individual stocks. My old fashioned mutual fund account works just fine for my needs. Ain't broke. Don't need a fix. For me anyway.
Topic Author
meebers
Posts: 501
Joined: Sat Apr 14, 2012 7:20 pm
Location: Florida

Re: VG notice of transition

Post by meebers »

FactualFran wrote:
meebers wrote: Geez!, read most of the linked threads about this. Some were back in 2014. From the very beginning of my account set up, I often pondered at the reasoning for a MF account and a Brokerage account. Assumed that the brokerage account was to buy/sell funds outside of VG. Some time ago, I got notice to transition my PMM fund to the FMM fund. I did so and asked VG if the wife's account had to do the same, they said no. In looking at my accounts, the brokerage account has a balance that I believe is used as the sweep fund, that's the only entry there. Wife's account still with PMM fund has no entries in her brokerage account. In the email she received, it also said:
It looks as if you had a Vanguard Brokerage Services (VBS) account. Because of a changes in government regulations, Vanguard automatically upgraded your, and others, older style VBS accounts to use as a sweep account a Vanguard Federal Money Market fund in the VBS account in place of a Vanguard money market fund account in an Vanguard mutual funds account.

It looks as if your wife has a Vanguard mutual funds account rather a VBS account. Such accounts have not been automatically upgraded to a newer style VBS account. Vanguard is likely encouraging owners of Vanguard Mutual Funds account to convert to a VBS account.

Near the top of page 7 of the Your Vanguard Brokerage Account brochure, the answer to the question "Why doesn’t Vanguard automatically switch my mutual fund accounts to the new account structure?" is "We must have your consent before moving your Vanguard mutual funds into brokerage accounts."
Tx for the link to the brochure, I saved it. I believe that the wife and I have the (before) account structure depicted on page 5. I have 2 accounts and she has 2 accounts from the very beginning. We both have been "exchanging" from our MF account, no action in the brokerage account with the exception I have a FMM fund there.
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