Vanguard: Transition to our new investment platform

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datamonkee
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Vanguard: Transition to our new investment platform

Post by datamonkee » Fri Mar 30, 2018 9:40 am

I received the following email from Vanguard. What is this about? I am happy with my current system. What are u guys choosing to do?

---------
Over the past few years, we've made some improvements to our investment platform. As a result of these improvements, we'll be retiring our old investment platform—which is what you're using today—and asking all our clients to transition to the new one.

We'd make the transition for you, but we can't unfortunately (regulatory reasons). Complete it today!

It's quick and easy
Just go to vanguard.com, log on, and then simply follow our quick, 3-step process to complete the transition. There are no additional fees or tax consequences to make the move. While you're there, you can also:
• Get more details on why we're asking you to do this.
• Explore the similarities and differences.
• Understand how it will affect you.
Get started now

A little more background
Having all our clients transition will help simplify things—for you and for us. It will enable us to lower our operating expenses and give us more money to invest in the new platform. And that translates to an even better investment experience for you.

Thank you for making the transition.

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Taylor Larimore
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Re: Vanguard: Transition to our new investment platform

Post by Taylor Larimore » Fri Mar 30, 2018 9:48 am

I received the following email from Vanguard. What is this about?
datamonkee:

I have not been contacted.

My guess is that Vanguard is contacting its largest shareholders first.

Congratulations and best wishes.

Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

sport
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Re: Vanguard: Transition to our new investment platform

Post by sport » Fri Mar 30, 2018 10:00 am

My IRA accounts have the "upgrade" button, but my taxable account does not. I believe this is because I have distributions from some of my taxable funds go directly into another fund. Since this feature is not available in the broker account format, there has been no invitation to "upgrade".

UpperNwGuy
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Re: Vanguard: Transition to our new investment platform

Post by UpperNwGuy » Fri Mar 30, 2018 10:25 am

Is this an upgrade from a mutual fund account to a brokerage account, or is it an upgrade from the current brokerage account to a new brokerage account?

Seems to be odd timing that such an email would be sent the day after the Wall Street Journal article reported troubles with Vanguard software and customer service....

dbr
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Re: Vanguard: Transition to our new investment platform

Post by dbr » Fri Mar 30, 2018 10:29 am

I bet you can do this without actually completing the process:

Just go to vanguard.com, log on, and then simply follow our quick, 3-step process to complete the transition. There are no additional fees or tax consequences to make the move. While you're there, you can also:
• Get more details on why we're asking you to do this.
• Explore the similarities and differences.
• Understand how it will affect you.

delamer
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Re: Vanguard: Transition to our new investment platform

Post by delamer » Fri Mar 30, 2018 10:33 am

UpperNwGuy wrote:
Fri Mar 30, 2018 10:25 am
Is this an upgrade from a mutual fund account to a brokerage account, or is it an upgrade from the current brokerage account to a new brokerage account?

Seems to be odd timing that such an email would be sent the day after the Wall Street Journal article reported troubles with Vanguard software and customer service....
The former — moved my IRA, all in mutual funds, to a brokerage account.

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Doom&Gloom
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Re: Vanguard: Transition to our new investment platform

Post by Doom&Gloom » Fri Mar 30, 2018 12:25 pm

delamer wrote:
Fri Mar 30, 2018 10:33 am
UpperNwGuy wrote:
Fri Mar 30, 2018 10:25 am
Is this an upgrade from a mutual fund account to a brokerage account, or is it an upgrade from the current brokerage account to a new brokerage account?

Seems to be odd timing that such an email would be sent the day after the Wall Street Journal article reported troubles with Vanguard software and customer service....
The former — moved my IRA, all in mutual funds, to a brokerage account.
I got the same e-mail as OP this week--IIRC the day before the glitch surfaced.

I have been stubbornly resisting the "upgrade," but this part concerned me as I don't recall seeing it previously:
We'd make the transition for you, but we can't unfortunately (regulatory reasons). Complete it today!

I now wonder if they wouldn't passive-aggressively intentionally make service worse for the old MF accounts to "encourage" customers to make the change. For the first time I am considering "upgrading," but I certainly won't do it during this tech turmoil Vanguard seems to be experiencing now. In addition, I would try to pick a "dead time" where I don't expect any transactions to be occurring in my account.

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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Fri Mar 30, 2018 11:20 pm

Is this a brokerage account? Will all accounts eventually be a brokerage account?
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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Fri Mar 30, 2018 11:21 pm

My understanding is that brokerage statements do not provide one simple account statement at year end with all year to date activity noted.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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datamonkee
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Re: Vanguard: Transition to our new investment platform

Post by datamonkee » Sat Mar 31, 2018 9:02 am

so, this is just to retire vanguard's mutual fund account platform and transition to brokerage platform? It seems like people on this site complain about the vanguard brokerage platform, right?

btw, does anyone have a link to the article saying that vanguard was having issues with its software? I didn't see this.

RudyS
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Re: Vanguard: Transition to our new investment platform

Post by RudyS » Sat Mar 31, 2018 9:30 am

abuss368 wrote:
Fri Mar 30, 2018 11:21 pm
My understanding is that brokerage statements do not provide one simple account statement at year end with all year to date activity noted.
My experience too.

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FrugalInvestor
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Re: Vanguard: Transition to our new investment platform

Post by FrugalInvestor » Sat Mar 31, 2018 9:43 am

datamonkee wrote:
Sat Mar 31, 2018 9:02 am
btw, does anyone have a link to the article saying that vanguard was having issues with its software? I didn't see this.
The following two links (in the order posted) will take you to the full article.....

http://online.wsj.com/public/resources/ ... 180330.pdf
http://online.wsj.com/public/resources/ ... 180330.pdf
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: Vanguard: Transition to our new investment platform

Post by JiggyWillis » Sat Mar 31, 2018 10:01 am

I just opened a joint account this week. I do not believe there was an option for anything other than a brokerage account--there are some specialized options for trust/guardian accounts, etc. The platform seems simple enough and fairly intuitive from a newbie's perspective. I cannot comment on the content of the statements yet.

I only intend to use it to hold total stock market and total international as part of a 3-fund in tandem with the 401k accounts. Maybe add IRA accounts, too.

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Re: Vanguard: Transition to our new investment platform

Post by Oicuryy » Sat Mar 31, 2018 11:10 am

datamonkee wrote:
Fri Mar 30, 2018 9:40 am
I am happy with my current system. What are u guys choosing to do?
Vanguard has not asked me to change yet, but I am choosing to stay with a mutual fund account.

Vanguard has a brochure explaining the differences.
https://www.vanguard.com/pdf/vbafqm.pdf

This quote from the brochure is the reason I'm not changing.
Mutual fund account
Vanguard mutual fund accounts are held directly with The Vanguard Group, Inc., the funds’ transfer agent.

Brokerage account
All assets in your Vanguard Brokerage Account, including Vanguard mutual funds, will be held by Vanguard Marketing Corporation.

I like being the direct owner of my mutual fund shares. My name is on the books of the funds' transfer agent.

With a brokerage account the broker is the owner of the mutual fund shares. There is a risk that the broker will not have the shares it is supposed to have. SIPC insurance protects against that risk. But there is a dollar limit on the amount of SIPC coverage.

For me the benefits of a brokerage account are not worth the risk. But maybe for you the benefits are worth it.

Ron
Money is fungible | Abbreviations and Acronyms

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Re: Vanguard: Transition to our new investment platform

Post by Blake7 » Sat Mar 31, 2018 12:03 pm

Been with VGD for 20 yrs+, and finally did the upgrade this week. Overall, I'm happy with the move. Only our 529 stayed the same as it can't be upgraded. The move cleared out a few zero-balance accounts, which was nice (although they could be hidden in the old interface). I find the transaction history a bit cryptic (additional transactions sweeping in and out of the settlement account) compared to before. I used to have automatic exchange between funds set up, but that feature is now gone. (FWIW, the "Upgrade" button won't show on your old account until you cancel the auto exchange, if you have it set up). It appears VGD wants all existing customers on this new platform to simplify management and lower costs; I would not be surprised if at some point there will be an account fee to stay on the old platform.

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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Sat Mar 31, 2018 4:11 pm

RudyS wrote:
Sat Mar 31, 2018 9:30 am
abuss368 wrote:
Fri Mar 30, 2018 11:21 pm
My understanding is that brokerage statements do not provide one simple account statement at year end with all year to date activity noted.
My experience too.
When will this change? Any information?
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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cfs
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Re: Vanguard: Transition to our new investment platform

Post by cfs » Sat Mar 31, 2018 4:22 pm

Why is this post so confusing?

Platform?

Good luck y gracias por leer / cfs
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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Sat Mar 31, 2018 4:28 pm

Overall the change (or upgrade) does not appear to be a negative. The one area I can not get past and what would hold up an upgrade for us would be the statements. I print only the year end statement which includes all transactions for the year. I have no interest in printing twelve statements.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Sat Mar 31, 2018 4:30 pm

Blake7 wrote:
Sat Mar 31, 2018 12:03 pm
I would not be surprised if at some point there will be an account fee to stay on the old platform.
Hi Blake7 -

Now that is an interesting observation and one I did not consider. I would suspect you may be correct in time.

Best.
John C. Bogle - Two Fund Portfolio: Total Stock & Total Bond. "Simplicity is the master key to financial success."

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datamonkee
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Re: Vanguard: Transition to our new investment platform

Post by datamonkee » Sun Apr 01, 2018 10:16 am

FrugalInvestor wrote:
Sat Mar 31, 2018 9:43 am
wsj
thanks for the link.

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datamonkee
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Re: Vanguard: Transition to our new investment platform

Post by datamonkee » Sun Apr 01, 2018 10:23 am

Oicuryy wrote:
Sat Mar 31, 2018 11:10 am
Vanguard has a brochure explaining the differences.
https://www.vanguard.com/pdf/vbafqm.pdf

Thanks for the brochure. that was informative.

I think the SIPC coverage is the only benefit of the transfer to the brokerage account
https://www.bogleheads.org/wiki/SIPC_pr ... tual_funds

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Re: Vanguard: Transition to our new investment platform

Post by Huskiez » Sun Apr 01, 2018 1:50 pm

Oicuryy wrote:
Sat Mar 31, 2018 11:10 am
datamonkee wrote:
Fri Mar 30, 2018 9:40 am
I am happy with my current system. What are u guys choosing to do?
Vanguard has not asked me to change yet, but I am choosing to stay with a mutual fund account.

Vanguard has a brochure explaining the differences.
https://www.vanguard.com/pdf/vbafqm.pdf

This quote from the brochure is the reason I'm not changing.
Mutual fund account
Vanguard mutual fund accounts are held directly with The Vanguard Group, Inc., the funds’ transfer agent.

Brokerage account
All assets in your Vanguard Brokerage Account, including Vanguard mutual funds, will be held by Vanguard Marketing Corporation.

I like being the direct owner of my mutual fund shares. My name is on the books of the funds' transfer agent.

With a brokerage account the broker is the owner of the mutual fund shares. There is a risk that the broker will not have the shares it is supposed to have. SIPC insurance protects against that risk. But there is a dollar limit on the amount of SIPC coverage.

For me the benefits of a brokerage account are not worth the risk. But maybe for you the benefits are worth it.

Ron
Can someone please confirm whether this is true? I thought the whole advantage of Vanguard (regardless of brokerage or mutual fund) is that whoever owns the shares also owns part of Vanguard?

This post puts the advantage of Vanguard at risk for me, as I have a brokerage account.

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Re: Vanguard: Transition to our new investment platform

Post by sport » Sun Apr 01, 2018 2:16 pm

You still own the shares. The brokerage just holds them for you. The difference is that the shares are not titled in your name, but your ownership is through the brokerage, and the brokerage is part of Vanguard.

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Re: Vanguard: Transition to our new investment platform

Post by FlyingMoose » Sun Apr 01, 2018 4:10 pm

My big complaint is that the brokerage 1099s aren’t available until mid-February so I can’t file my taxes early.

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Re: Vanguard: Transition to our new investment platform

Post by informal guide » Sun Apr 01, 2018 4:28 pm

Overall, I find the new platform better for me (I hold individual securities and ETFs as well as Vanguard funds). However, I know a number of smart folks who work for broker dealers and have a regulatory problem with the move. Oftentimes other broker dealers will not permit their employees to hold brokerage accounts anywhere except their employer. But there are no such prohibitions to holding mutual fund accounts elsewhere.

I hope Vanguard doesn't preclude those folks from investing at Vanguard!

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Re: Vanguard: Transition to our new investment platform

Post by autolycus » Mon Apr 02, 2018 1:02 pm

FlyingMoose wrote:
Sun Apr 01, 2018 4:10 pm
My big complaint is that the brokerage 1099s aren’t available until mid-February so I can’t file my taxes early.
Agree. They should issue them earlier for accounts that have only held Vanguard MFs throughout the year.

EDIT: Weird, my response got eaten... I have added it back.

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Re: Vanguard: Transition to our new investment platform

Post by jpsfranks » Thu Sep 27, 2018 10:53 pm

Hmm, has Vanguard cranked up the pressure on account transitions?

I noticed the following for the first time when logging into my mutual fund accounts. I had received an email previously many months ago and saw discussion here but hadn't seen these notices on the website previously.

On logging in I'm presented with this modal:

Image

After clearing the modal one of the tabs is obscured by the following (you can still sort of get to everything by clicking through other tabs).

Image

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abuss368
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Re: Vanguard: Transition to our new investment platform

Post by abuss368 » Thu Sep 27, 2018 11:09 pm

jpsfranks wrote:
Thu Sep 27, 2018 10:53 pm
Hmm, has Vanguard cranked up the pressure on account transitions?

I noticed the following for the first time when logging into my mutual fund accounts. I had received an email previously many months ago and saw discussion here but hadn't seen these notices on the website previously.

On logging in I'm presented with this modal:

Image

After clearing the modal one of the tabs is obscured by the following (you can still sort of get to everything by clicking through other tabs).

Image
Is everyone getting this?
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FrugalInvestor
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Re: Vanguard: Transition to our new investment platform

Post by FrugalInvestor » Fri Sep 28, 2018 12:50 am

No message here but I do not have a brokerage account, only mutual funds.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: Vanguard: Transition to our new investment platform

Post by csm » Fri Sep 28, 2018 1:59 am

abuss368 wrote:
Thu Sep 27, 2018 11:09 pm

Is everyone getting this?
I received these messages when logging in a few months ago, after having also received several emails earlier in the year. When I saw the images jpsfranks posted, it looked to me like it was mandatory so I went through the steps. It never occurred to me to check here first to hear the wisdom of the community.

I was not happy about it but the way it was presented appeared as if I had no choice. I do not use the brokerage services at all. I only have index funds in my Vanguard account and would have preferred to stay with the old platform. I'm still considering moving out of Vanguard but haven't had the time to think through how I would like to transition since I am also in the middle of a couple of other significant changes (selling a house, moving, etc.).

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Re: Vanguard: Transition to our new investment platform

Post by csm » Fri Sep 28, 2018 2:00 am

FrugalInvestor wrote:
Fri Sep 28, 2018 12:50 am
No message here but I do not have a brokerage account, only mutual funds.
I also only had mutual funds, but I got the messages and felt forced to convert.

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Re: Vanguard: Transition to our new investment platform

Post by jpsfranks » Fri Sep 28, 2018 5:55 am

csm wrote:
Fri Sep 28, 2018 2:00 am
FrugalInvestor wrote:
Fri Sep 28, 2018 12:50 am
No message here but I do not have a brokerage account, only mutual funds.
I also only had mutual funds, but I got the messages and felt forced to convert.
I only have mutual funds. Since it still seems possible to use the account I will probably be stubborn for a bit longer.

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Re: Vanguard: Transition to our new investment platform

Post by 3-20Characters » Fri Sep 28, 2018 6:09 am

I got this notice years ago. Thinking it was the writing on the wall, I converted our SEP and Roth accounts but failed to do so for taxable—just out of laziness. Vanguard sent me several follow up notices which I ignored and I have not heard from them since. I only hold Vanguard mutual funds at Vanguard and have no need for ETFs there. OTOH, it’s no big deal if my account was converted because it doesn’t effect me one way or the other.

Sounds like they really want us to do this to streamline their platform and make it more consistent but can’t legally take the action themselves and so are imploring their customers instead. In a way, I feel like doing it just to make it easier on their systems people. :D

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Re: Vanguard: Transition to our new investment platform

Post by changingtimes » Fri Sep 28, 2018 11:07 am

I only have one account left that is on the old platform, but it's an inherited IRA, and in the past when I've clicked on the old Upgrade link (and now on a "transition account" link from the Holdings page), I get sent to a Forms and Applications page, rather than doing it immediately on-line as I did with other accounts.

I don't really have any objection to upgrading, but if they are thinking I'm going to wade through a bunch of forms to figure out what I should use, they're wrong. :) I will wait until they can't stand it anymore and make it easy for me to make the change.

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Re: Vanguard: Transition to our new investment platform

Post by FrugalInvestor » Fri Sep 28, 2018 11:17 am

I also received something similar years ago. As I recall I converted but was very unhappy with the format of the new statements. They involved much more paper and were somewhat convoluted compared to the old ones. I called, told the rep. that I disliked the new format and asked if I could change back. I told him that I hold and will only hold mutual funds and had no use for a brokerage account.

At that time I was told that I could go back with the understanding that I wouldn't be able to convert to a brokerage account in the future. I agreed, was moved back, and have had no messages since.

I wouldn't be surprised to learn that what I did is no longer possible but it would be interesting if someone would call and inquire. I'd also be interested to know if the statement formats are still substantially different between the old mutual fund only accounts and the new brokerage accounts and what others here think of the differences.

Edited for grammar
Last edited by FrugalInvestor on Sun Nov 17, 2019 3:19 pm, edited 1 time in total.
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Doom&Gloom
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Re: Vanguard: Transition to our new investment platform

Post by Doom&Gloom » Fri Sep 28, 2018 9:05 pm

I'm sure that one day VG will find a carrot or a stick to entice me to make the transition.

One day. But not today.

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Re: Vanguard: Transition to our new investment platform

Post by Dead Man Walking » Fri Sep 28, 2018 10:58 pm

Taylor Larimore wrote:
Fri Mar 30, 2018 9:48 am
I received the following email from Vanguard. What is this about?
datamonkee:

I have not been contacted.

My guess is that Vanguard is contacting its largest shareholders first.

Congratulations and best wishes.

Taylor
Taylor,

My guess is that Vanguard is contacting its younger shareholders first. My wife received this email today. She is younger than I and has fewer assets with Vanguard. Of course, they may have created an algorithm with multiple factors to determine the order in which they are contacting shareholders. In light of Vanguard's difficulties with shareholder service, we plan to be holdouts for the mutual fund platform.

Regards, DMW

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Re: Vanguard: Transition to our new investment platform

Post by Monster99 » Sat Sep 29, 2018 7:05 am

FrugalInvestor wrote:
Fri Sep 28, 2018 11:17 am
I also received something similar years ago. As I recall I converted but was very unhappy with the format of the new statements. They too much more paper and were somewhat convoluted compared to the old ones. I called, told the rep. that I disliked the new format and asked if I could change back. I told him that I hold and will only hold mutual funds and had no use for a brokerage account.

At that time I was told that I could go back with the understanding that I wouldn't be able to convert to a brokerage account in the future. I agreed, was moved back, and have had no messages since.

I wouldn't be surprised to learn that what I did is no longer possible but it would be interesting if someone would call and inquire. I'd also be interested to know if the statement formats are still substantially different between the old mutual fund only accounts and the new brokerage accounts and what others here think of the differences.
The statements are different - the one thing that I dislike is that the December statement is not a total summary of the year, as the old mutual fund format.

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Re: Vanguard: Transition to our new investment platform

Post by Atgard » Sat Sep 29, 2018 7:43 am

I converted a while back. It wasn't really a big deal to me. I haven't seen any downsides. The upside is my accounts are more consolidated, as I recall each account used to have 2 sub-accounts (one regular and one "brokerage") if you had a mix of mutual funds and stocks or ETFs or whatever. Now at least each account (taxable, Roth IRA, etc.) is consolidated. Makes it a little easier and cleaner, IMHO.

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Re: Vanguard: Transition to our new investment platform

Post by FrugalInvestor » Sat Sep 29, 2018 9:14 am

Monster99 wrote:
Sat Sep 29, 2018 7:05 am
The statements are different - the one thing that I dislike is that the December statement is not a total summary of the year, as the old mutual fund format.
That I believe was my primary objection. The year-end statement is the only statement I retain (on paper) for the long-term and in the mutual fund format it has everything I need. This reduces my quantity of paperwork substantially, especially as the years pile up.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: Vanguard: Transition to our new investment platform

Post by Amanda999 » Sat Sep 29, 2018 12:31 pm

Thanks PPs: never noticed the year end Vanguard brokerage statement didn't have the entire year's transaction history!

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Re: Vanguard: Transition to our new investment platform

Post by stan1 » Sat Sep 29, 2018 12:41 pm

I upgraded my individual taxable account years ago. This is the only account with ETFs in it. No issues.

We have five other mutual fund accounts (2x TIRA, 2x Roth IRA, 1x spouse individual taxable) that are not even eligible for an "upgrade" (no link to upgrade).

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Re: Vanguard: Transition to our new investment platform

Post by knossos » Thu Oct 04, 2018 7:50 am

I dislike being asked to help simplify things. Simplification is the tempter of the stupid. What Vanguard appears to be expressing is that they're playing the game of opening up an option to push out the service-oriented language relating to those of us who hold older accounts. The problem of the chronologically old accounts is deep (servicing them is frequently a matter of digging into paper records, an idea which today's artificial-intelligence methodologies aren't friendly with), and cannot be solved by the same old solution of making an update.

At this point Vanguard's external solution is at odds with their own recordkeeping, an inclusive set of dates that begins with the "old" paper accounts and extends to the way things are done now. Standing up and suggesting that they start to be made of sterner stuff will raise a few eyebrows, but I think that it's time to set Vanguard's message to investors in the right colors.

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Simplification?

Post by Taylor Larimore » Fri Oct 05, 2018 3:27 pm

knossos:

Welcome to the Bogleheads forum!
Simplification is the tempter of the stupid.
Your quote may be right about some things, but Simplification is not "stupid" when it comes to investing. This is what experts say:
Scott Adams, author of Dilbert: "I once tried to write a book about personal investing. After extensive research I realized I could describe everything that a young first-time investor needs to know on one page."

Antoine de Saint-Exupéry: "A designer knows he has achieved perfection not when there is nothing left to add, but when there is nothing left to take away."

Christine Benz, Morningstar Director of Personal Finance: "Simplicity is one of the greatest--but in my view, woefully underrated--virtues when managing a portfolio."

Bill Bernstein, author of Four Pillars of Investing: ""The more real people I get to know, the more I am convinced the simpler the solution, the better the solution."

Richard Bernstein, Merrill Lynch strategist: "Investors find it hard to believe that ignoring the vast majority of investment noise might actually improve their performance."

Jack Bogle: "Simplicity is the master key to financial success."

Dan Bortolotti, CFP, and author of The Money Sense Guide to the Perfect Portfolio: "The peace of mind that comes with a simple investing strategy is priceless."

Jack Brennan, former Vanguard CEO and author of Straight Talk on Investing: "It's in the interest of many financial service companies to make you think that investing is difficult.--It's really quite simple."

Warren Buffet: "To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in fact, be better off knowing nothing of these."

Scott Burns, creator of The Couch Potato Strategy: The advocates of complexity are generally people who are making their living from the complexity they create for us.”

Ben Carlson, author of A Wealth of Common Sense: ""I’ve spent my entire career working in portfolio management. This experience has taught me that less is always more when making investment decisions. Simplicity trumps complexity."

Jean Chatzky, NBC Financial Editor: "The problem with so much personal financial advice is that it's unnecessarily complicated, often with the goal of selling you something you don't need."

Andrew Clarke, author of "Wealth of Experience": "In investing, simple is usually more productive than complex."

Jonathan Clements, Wall Street Journal columnist: "Investing is simple. To be sure, you can make it ludicrously complicated."

J.L.Collins, author of The Simple Path to Wealth: The more complex an investment is, the less likely it is to be profitable. At best they are costly. At worst they are a cesspool of swindlers.

Paul Crafter, author of "Investment Guide": "After doing it all, I now feel I've come around in a complete circle, ending up with this: The more I learn, the less I really need to know."

James Dahle, Editor of The White-Coat Investor: "In my view, the simpler the financial product, the better it is for the consumer."

Edsger Dijkstra, famed physicist: “Simplicity is a great virtue but it requires hard work to achieve it and education to appreciate it. And to make matters worse: complexity sells better.”

Laura Dogu, Ambassador to Nicaragua and co-author of "The Bogleheads Guide to Retirement Planning": A simple portfolio is actually the ultimate in sophistication. It almost always lowers cost (including taxes), makes analysis easier, simplifies rebalancing, simplifies tax-preparation, reduces paper-work and record-keeping, and enables caregivers and heirs to easily take-over the portfolio when necessary. Best of all, a simple portfolio allows the investor to spend more time with family and friends."

Michael Edesess, author of The Big Invesment Lie: "As a mathematician I know when mathematical-sounding analyses are little more than elaborate sales pitches, designed to thoroughly obscure the simple fact that smart investing is non-mathematical and accessible to everyone."

Albert Einstein: "The five ascending levels of intellect are: smart, intelligent, brilliant, genius, simple."

Charles Ellis, co-author of "The Elements of Investing": "KISS investing--Keep It Simple, Sweetheart--is the best and easiest and lowest cost and worry-free way to invest for retirement security."

Javier Estrada Ph.D., Professor of finance: "Simplicity is often underrated; simple static strategies (balanced portfolios) have been shown to perform as well as—and often better than—more complex strategies in a wide variety of settings."

Paul Farrell, author of "The Lazy Person's Guide to Investing": "Perhaps the most amazing insight I got out of this review of the investment habits of Nobel laureates is the simplicity of their investing strategies."

Rick Ferri, CFA, advisor, and author of six financial books:[/i] "Don’t assume that a complex strategy is better than a simple strategy. The only thing extra complexity is likely to add is extra cost."

The Finance Buff: "Making fewer decisions usually leads to better results than making more decisions."

Future Metrics looked at the performance of 224 pension plans over about 14 years compared with the performance of 60% S&P 500 index and 40% aggregate bond index benchmark. Of those 224 plans, only 19 beat that simple benchmark.

Gensler & Baer, authors of "The Great Mutual Fund Trap": "If you simply buy and hold you don't need to read investing magazines, watch financial news networks, subscribe to newsletters, or pay a broker to execute new trades."

Benjamin Graham, author, teacher, famed investor: "If you merely try to bring just a little extra knowledge and cleverness to bear upon your investment program, instead of realizing a little better than normal results, you may well find that you have done worse. -- In the stock market, the more elaborate and abstruse the mathematics, the more uncertain and speculative are the conclusions we draw therefrom."

Alan Greenspan, former Chairman of the Federal Reserve: "This decade is strewn with examples of bright people who thought they built a better mousetrap that could consistently extract abnormal returns from financial markets. Some succeed for a time. But while there may occasionally be misconfigurations among market prices that allow abnormal returns, they do not persist."

Morgan Housel: financial columnist for Wall Street Journal and Motley Fool's "Simple almost always beats complex."

Daniel Kahneman, Nobel Laureate: "All of us would be better investors if we just made fewer decisions"

Edmund Kean: "Complexity is easy. Simplicity is hard."

Kiplinger: "The big secret to successful investing is that it's actually not all that complicated. Most of the mumbo jumbo doesn't matter."

Darrow Kirkpatrick, author of Retiring Sooner: "In financial life, you should run from complexity, and run toward simplicity."

Michael LeBoeuf, author of "The Millionaire in You": "The master key to wealth can be summed up in just one word: Simplicity."

Bruce Lee: "One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity"

Leonardo da Vinci: “Simplicity is the ultimate sophistication.”

Peter Lynch, legendary fund manager: "If you spend more than fifteen minutes a year worrying about the market, you've wasted twelve minutes."

MIT Study: "The less well-informed group did far better than the group that was given all the financial news."

Scott MacKillop, CEO First Ascent Asset Management: " People who don’t know any better equate complexity with sophistication. But truly it takes more sophistication to build elegantly simple portfolios."

Joe Maglia, CEO TD Ameritrade: "Wall Street goes out of its way to make investing incredibly sophisticated and complex because they can make a tremendous amount of money by doing so."

Burton Malkiel, author of "Random Walk Down Wall Street": "The overarching rule for achieving financial security: Keep it simple. -- The most important financial advice is stunningly simple and fits on an index card."

John Markese, CEO of American Association of Individual Investors: "If you have more than eight funds you should slap yourself."

Wm McNabb, Vanguard CEO: "If you can't understand an investment product in five minutes, walk away."

Eric McWhinnie, chief analyst, Wall Street Cheat Sheet: "Keep your investment strategy simple and steer clear of complicated vehicles that are designed to benefit the people selling them."

James Montier, author of The Little Book of Behavioral Investing : "Never underestimate the value of doing nothing."

Morningstar Guide to Mutual Funds: "Good investing doesn't have to be complicated. In fact, simplification may lead to better investment results."

Issac Newton: “Truth is ever to be found in the simplicity, and not in the multiplicity and confusion of things.”

Suze Orman: "We make investing so complicated and it really is not. -- A total market index fund is a great one-stop-shopping choice that provides you instant diversification among different types of stocks."

Mike Piper, financial author: "There's an entire industry built on convincing us that investing is complicated."

David Nadig, president of Index Universe's ETF Analytics: "Most investors—myself included—are better off the simpler we keep things."

Bob Pisani, CNBC: "Increasing complexity does not decrease risk, it increases risk."

Jane Bryant Quinn, syndicated columnist and author of "Smart and Simple Financial Strategies": "You shouldn't buy anything too complex to explain to the average 12-year old."

John Rekenthaler, Morningstar Research Director: "How many funds should you have? Four to six should do.-- A complex investment strategy, with many moving parts, means more wheels that are stuck at any given time, leading to more questions and more uncertainty."

Rodc on Bogleheads Forum: "While doing this financial engineering my wife who does no math just shook her head at my optimization games and said, 'Rod, life is uncertain, get over it.' After a lot of work, I discovered much to my surprise, she was right."

Allan Roth, CFP, CPA, author and advisor: "If you’re thinking complexities such as smart beta and the like will best simplicity, think again."

Paul Samuelson, Nobel Laureate: "Investing should be like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas."

Bill Schulthies, author of "The Coffeehouse Investor": "When you simplify your investment decisions, not only do you enrich your life by spending more time on families, friends and careers, but you enhance portfolio returns in the process."

Chandon Sengupta, author of "The Only Proven Road to Investment Success": "There is overwhelming evidence that the simplest possible investment method works much better than all the other more complex ones."

George Sisti, CFP, MarketWatch contributor: "There is no perfect portfolio — yours should emphasize simplicity and shun complexity."

Larry Swedroe, author of "The Successful Investor Today": "The more complex the investment, the faster you should run away."

David Swensen, Yale Chief Investment Officer: "As a general rule of thumb, the more complexity that exists in a Wall Street creation, the faster and farther investors should run."

Henry David Thoreau: “Our life is frittered away by detail. Simplify, simplify.”

Andrew Tobias, author of The Only Investment Guide You Will Ever Need: "I believe in selecting the most straightforward and easiest-to-implement strategy for achieving our goals."

Tweddell and Pierce, authors of "Winning with Index Mutual Funds": "Keep it simple. Investment success depends on asset allocation, diversification, and risk management, not on complexity."

Eric Tyson, author of "Mutual Funds for Dummies:" "Planners may try to make it all so complicated that you believe you can't possibly manage your finances or make major financial decisions without them."

Walter Updegrave, Editor of Money magazine: "Simpler is better. Ignore the siren song of sophisticated investments"

Richard Young, author of "The Intelligence Report": "If you can't run your portfolio taking 60 minutes a month, it's too complicated."

Karen Wallace, Morningstar senior editor: "Having fewer accounts can help you streamline your monitoring and rebalancing efforts. And having your assets in one place can allow you to better assess your overall asset mix.

Jason Zweig, Wall Street Journal columnist and author of "The Intelligent Investor": "The less you fool with your portfolio, the less often you'll play the fool."

Warren Buffett: "There seems to be some perverse human characteristic that likes to make easy things difficult."
Please let us know if you think we can help you improve your portfolio.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

User avatar
wander
Posts: 2788
Joined: Sat Oct 04, 2008 9:10 am

Re: Vanguard: Transition to our new investment platform

Post by wander » Fri Oct 19, 2018 10:08 am

I completed the transition at Vanguard. I didn't like it but did it anyway. So far, I haven't seen any disadvantage.

Woodthrush
Posts: 30
Joined: Thu Dec 28, 2017 10:44 pm

Re: Vanguard: Transition to our new investment platform

Post by Woodthrush » Thu Oct 03, 2019 5:30 pm

I just received one of these emails from Vanguard today (10-3-19), which is interesting since my husband and I have both had accounts with Vanguard for many years and I don't recall them sending us an email about this before. They didn't send one to my husband, only to me. It seems like SIPC protection would be the only reason we would want to switch. In checking into SIPC to see what would actually be protected I came across a Motley Fool article that listed some things that are NOT covered and I was surprised to read this:

"Brokerage firm failures where customer assets were not the subject of theft or unauthorized trading."

So does this mean that if Vanguard were to fail and there was no theft or unauthorized trading that SIPC wouldn't protect the client's assets? When they are referring to "theft" do they mean by the broker or by an outside party that fraudulently accesses someone's account? The latter is a bigger concern given all the security breaches at major institutions in recent years. I read that Schwabb will protect clients from any fraudulent theft from their accounts, whereas Vanguard doesn't offer any such guarantee. I would much rather stay with Vanguard, but we want our retirement savings to be protected from any fraud. I would welcome other's thoughts on this issue.

retired@50
Posts: 620
Joined: Tue Oct 01, 2019 2:36 pm

Re: Vanguard: Transition to our new investment platform

Post by retired@50 » Thu Oct 03, 2019 5:40 pm

My understanding of the situation is that old account holders who are not on the brokerage platform, but are still on the mutual fund account platform are being urged to switch to the brokerage platform. This was based on a telephone conversation with my Vanguard rep at the time. He claims that they actually have to hire / maintain more I.T. staff to keep both platforms up and running. I'm intending to switch in 2020, but not sooner. The potential upside is that on the brokerage platform, you can hold ETFs, if that appeals to you. One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.

Regards...

prd1982
Posts: 189
Joined: Sun Jan 08, 2017 4:43 pm

Re: Vanguard: Transition to our new investment platform

Post by prd1982 » Thu Oct 03, 2019 5:48 pm

retired@50 wrote:
Thu Oct 03, 2019 5:40 pm
One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.
I'm on the brokerage platform, and I downloaded my 1099-DIV on 1/29. My account only consists of Vanguard mutual funds. I remember seeing a notice from Vanguard last year saying they had moved up providing year-end statements if you account only consisted of funds not likely to have late re-characterizations of gains and loses (or something like that).

retired@50
Posts: 620
Joined: Tue Oct 01, 2019 2:36 pm

Re: Vanguard: Transition to our new investment platform

Post by retired@50 » Thu Oct 03, 2019 5:50 pm

prd1982 wrote:
Thu Oct 03, 2019 5:48 pm
retired@50 wrote:
Thu Oct 03, 2019 5:40 pm
One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.
I'm on the brokerage platform, and I downloaded my 1099-DIV on 1/29. My account only consists of Vanguard mutual funds. I remember seeing a notice from Vanguard last year saying they had moved up providing year-end statements if you account only consisted of funds not likely to have late re-characterizations of gains and loses (or something like that).
Thanks for the clarification...

HomeStretch
Posts: 2883
Joined: Thu Dec 27, 2018 3:06 pm

Re: Vanguard: Transition to our new investment platform

Post by HomeStretch » Thu Oct 03, 2019 5:55 pm

retired@50 wrote:
Thu Oct 03, 2019 5:40 pm
One downside (in my book) is that once you're on the brokerage platform, you'll get a 1099-B statement instead of a 1099-DIV. From what I understand, the 1099-B statement comes out in late Feb. or March, while the 1099-DIV statement arrives in late January. For folks who like to file taxes early, the 1099-B will slow them down by 4 to 6 weeks.
On the brokerage platform and parents’ 2018 1099-B was available on 1/28/19 (stocks, mutual fund, money market fund) and my 1099-B was available on 2/16/19 (mutual funds and money market fund).

Edited for typo
Last edited by HomeStretch on Thu Oct 03, 2019 10:01 pm, edited 1 time in total.

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