Below Admiral Shares Minimum

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czr
Posts: 180
Joined: Wed Dec 17, 2014 8:40 pm

Below Admiral Shares Minimum

Post by czr »

With stocks fluctuating heavily, just curious when Vanguard will reclass to Investor Shares if you just met the Admiral Shares minimum? Also thinking this could be an administrative nightmare for those who just put in funds at the admiral shares amount.
TwstdSista
Posts: 996
Joined: Thu Nov 16, 2017 4:03 am

Re: Below Admiral Shares Minimum

Post by TwstdSista »

A Fidelity rep recently mentioned that their system checks balances on the first of the month. If Vanguard is similar, then there's plenty of time left this month.

I think someone mentioned once that they send you a notice and give you a time frame to add enough to the fund to retain the Admiral class. But I'm not sure.
heyeaglefn
Posts: 17
Joined: Thu Feb 08, 2018 4:20 pm

Re: Below Admiral Shares Minimum

Post by heyeaglefn »

Yeah according to past threads they will notify you and give you time to add more to that fund.
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ResearchMed
Posts: 11408
Joined: Fri Dec 26, 2008 11:25 pm

Re: Below Admiral Shares Minimum

Post by ResearchMed »

czr wrote: Thu Feb 08, 2018 4:17 pm With stocks fluctuating heavily, just curious when Vanguard will reclass to Investor Shares if you just met the Admiral Shares minimum? Also thinking this could be an administrative nightmare for those who just put in funds at the admiral shares amount.
My understanding is that at least for some significant time (and perhaps indefinitely), IF the drop under "Admiral" amount is due only to market fluctuations, and not due to one taking out an amount that drops the balance too low, then it just sits there as Admiral.

We've had that happen a few times, for a long time.
And recently, when speaking with someone at Vanguard (upper echelons) who noticed an Admiral holding that was actually quite low due to selling, when I mentioned that policy, she checked, and replied "right", including that the amount, when lowered due to selling, could just sit there for some time until it was somehow noticed. [Er, like speaking with someone in "upper echelons"??]

RM
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cadk
Posts: 12
Joined: Wed Dec 20, 2017 5:43 pm

Re: Below Admiral Shares Minimum

Post by cadk »

I didn't check others, but the Total International Stock (VTIAX) prospectus says there is a $20 a year fee if you are below the 10k limit for certain funds.
https://personal.vanguard.com/pub/Pdf/p113.pdf

It's unclear if you need to be below the limit for an entire year or x% of the year.
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Epsilon Delta
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Re: Below Admiral Shares Minimum

Post by Epsilon Delta »

You can also avoid the $20 low balance service fee if you have electronic delivery of statements etc. or by reaching Voyager level or above ($50k or more in the right places).

It's worth emphasizing that even if you get demoted from Admiral it's not that bad. There's no desperate need to add to the balance or rearrange an otherwise sane investment plan to avoid the ignominy of Investor shares. In Total International Stock for example the expense ratios are .11% and .18%. So having $9,999 in Investor shares costs a whopping $7 more per year than having $10,000 in Admiral.
nura
Posts: 173
Joined: Mon Jun 27, 2016 11:24 am

Re: Below Admiral Shares Minimum

Post by nura »

I have two Funds well below $50k Admiral limits VWIAX, VMNFX; neither has been reclassified for past few months.
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