Transitioning to Vanguard Brokerage

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mbres60
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Transitioning to Vanguard Brokerage

Post by mbres60 »

Over the last couple of years I have received a rare email from Vanguard about transitioning to their brokerage platform. I am still on the old one. I think last year I got an email saying all accounts would transition January 2022. Not sure if this is still true. Currently I have mutual funds that are taxable, Roth Ira, 401k, and one stock in a brokerage account. When I login to Vanguard I see it all.

Anyone here still on the old platform?
Are they still going to transition everyone in January?
Any reason I should do it now?
Will I still be able to see everything (my 401k can't transition)?

Thanks.
AQ
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Re: Transitioning to Vanguard Brokerage

Post by AQ »

Still on the old one.

Received a secure message a few days ago, stating: IF I continue to stay on the old platform, I may start to see loss of some features. So it sounds like if one doesn't want to transit yet, he/she could for now.

But I'll watch this thread closely to see how others will react.
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retired@50
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Re: Transitioning to Vanguard Brokerage

Post by retired@50 »

I made the switch from the old platform to the brokerage platform in 2020.

I didn't think it was a big deal. I still see my Taxable, Rollover and Roth IRAs on one screen.

If you want to control the timing of the switch, you could initiate the process on your own timeline instead of just waiting for it to happen.

Regards,
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
Topic Author
mbres60
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Re: Transitioning to Vanguard Brokerage

Post by mbres60 »

I never transitioned because a few years ago people complained of problems. Also, foreign tax credits were not sent out til mid or late February and we wanted to do our taxes earlier.
AQ
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Re: Transitioning to Vanguard Brokerage

Post by AQ »

mbres60 wrote: Fri Sep 17, 2021 3:24 pm I never transitioned because a few years ago people complained of problems. Also, foreign tax credits were not sent out til mid or late February and we wanted to do our taxes earlier.
Interesting you brought out foreign tax credit as one example. This is an example the old platform started to lose the feature to provide information relative to the brokerage platform. I recall the mutual fund statement didn't provided foreign sourced income any longer for tax year 2020 but the brokerage statement did that. There were some discussions earlier in the year.

I'm contemplating to transit one IRA account first to test water since it's less likely to cause any issues...
Topic Author
mbres60
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Re: Transitioning to Vanguard Brokerage

Post by mbres60 »

The last couple of years we just found the small amount of foreign tax credits on Vanguard's website. I did read elsewhere that the mutual fund platform sends out year end statements that cover the whole year whereas the brokerage statement does not do this. I really like having the year end statements.
nalor511
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Re: Transitioning to Vanguard Brokerage

Post by nalor511 »

I switched from MF to brokerage Jan 2021, with no ill effects. Lost a few minor features I didn't miss that much.

Then in Aug 2021 I left VG for Schwab Ave Fidelity, and received thousands in transfer bonuses and live chat (which I really like) customer support. No nagging.
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asset_chaos
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Re: Transitioning to Vanguard Brokerage

Post by asset_chaos »

Over the years I've had a couple of notifications from Vanguard that my account would transition after a particular date. So far, my strategy has been to do nothing, wait and see what happens, and those dates have come and gone without any discernible change to my accounts. I've received no notification about a January 2022 transition date.

However, the only reason I stay on the mutual fund platform is that the new brokerage platform does not support dividend redirection. Dividend redirection, where dividends from one mutual fund are automatically reinvested into another mutual fund, is useful to me. In the brokerage platform dividends not reinvested in the same fund have to go into the settlement account, even if they come from a mutual fund. (You can also have dividends auto sent to your bank, but that's beside the point here.) Then you have to log on and manually move the money from the settlement account to the other mutual fund. I've told Vanguard about my reason for not transitioning several times, but they appear uninterested in transitioning the dividend redirection capability from the old platform to the new.

One day Vanguard certainly will transition me, but for me personally, as I see no particular benefit and at least one certain detriment, I'm in no hurry.
Regards, | | Guy
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beyou
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Re: Transitioning to Vanguard Brokerage

Post by beyou »

They can’t force everyone to move.
They can make it unpleasant to not move.
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anon_investor
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Re: Transitioning to Vanguard Brokerage

Post by anon_investor »

nalor511 wrote: Fri Sep 17, 2021 4:52 pm I switched from MF to brokerage Jan 2021, with no ill effects. Lost a few minor features I didn't miss that much.

Then in Aug 2021 I left VG for Schwab Ave Fidelity, and received thousands in transfer bonuses and live chat (which I really like) customer support. No nagging.
Does Fidelity still give bonuses?
Gnirk
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Re: Transitioning to Vanguard Brokerage

Post by Gnirk »

asset_chaos wrote: Fri Sep 17, 2021 7:11 pm Over the years I've had a couple of notifications from Vanguard that my account would transition after a particular date. So far, my strategy has been to do nothing, wait and see what happens, and those dates have come and gone without any discernible change to my accounts. I've received no notification about a January 2022 transition date.

However, the only reason I stay on the mutual fund platform is that the new brokerage platform does not support dividend redirection. Dividend redirection, where dividends from one mutual fund are automatically reinvested into another mutual fund, is useful to me. In the brokerage platform dividends not reinvested in the same fund have to go into the settlement account, even if they come from a mutual fund. (You can also have dividends auto sent to your bank, but that's beside the point here.) Then you have to log on and manually move the money from the settlement account to the other mutual fund. I've told Vanguard about my reason for not transitioning several times, but they appear uninterested in transitioning the dividend redirection capability from the old platform to the new.

One day Vanguard certainly will transition me, but for me personally, as I see no particular benefit and at least one certain detriment, I'm in no hurry.
One of the main reasons we are not transitioning is because we use dividend redirection. Plus, I’m the agent on three family member’s accounts and we’ll have to re-submit all the paperwork if the accounts are transitioned.
CZjc1330
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Re: Transitioning to Vanguard Brokerage

Post by CZjc1330 »

To reply: No, Fidelity does not give bonuses. I keep asking. Get a polite no. I fear their success is making them less attentive to client desires.
And cut the baloney they feed you that they don't earn commissions. Technically true but Fidelity awards a year-end bonus based on how much new money one brings in.
As Billy Shakespeare noted a rose by any other name ---

The world is changing not for the better. Telephone calls at Vang take 30 minutes or more to be answered. Very polite staff, but most woefully unprepared to help.
Try this: make two different calls, ask same questions. Odds are you will get two different answers! I tried it and that was my experience.
Fidelity is a bit better. Answer telephone more quickly. But success has dulled their effectiveness.
I have kept accounts in both, not sure tis better elsewhere. Explored Schwab but did not transfer. Not sure service or platform is much better and their former large transfer bonus has been reduced. So....
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Jerry55
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Re: Transitioning to Vanguard Brokerage

Post by Jerry55 »

I'm still on the old platform since 2011.

One Taxable and one Roth IRA. I retired in 2012 and have not added anything to either of them.
The Roth will stay put, not taking any funds.....ever, if I can help it.
I just told them to send all dividends and Cap gains from taxable to my bank. End of story. I don't need anything else from them.
Unless I decide to transfer my TSP, but I'm in no hurry either.
Retired CSRS on 12/19/2012 @ age 57 w/39 years | Good Bye Tension, Hello Pension !!!
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beyou
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Re: Transitioning to Vanguard Brokerage

Post by beyou »

beyou wrote: Fri Sep 17, 2021 10:25 pm They can’t force everyone to move.
They can make it unpleasant to not move.
iOS App just dropped support for transactions on the old “platform”. No biggie.
crefwatch
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Re: Transitioning to Vanguard Brokerage

Post by crefwatch »

Our joint account is merged (new), and it's fine for us. The dividend redirection problem is interesting, but it doesn't affect me. I go to my settlement account when I need cash for our expenses, and move it (by Vanguard) to our Bank of America account. I avoid dividend reinvestment or directed dividends because I like simplified tax reporting, when I do sell.

I believe that split (old) accounts that involve Power of Attorney or multiple beneficiary Trust type of construction may never be merged. (Impression, not Fact.)
rmdashrfsplat
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Re: Transitioning to Vanguard Brokerage

Post by rmdashrfsplat »

I'm still lazily on old platform. Are there any benefit to transitioning at a certain time (e.g., early in Q1 to avoid multiple 1099s)? Or conversely any times to potentially avoid?
AQ
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Re: Transitioning to Vanguard Brokerage

Post by AQ »

I plan to do it after I file 2021 tax. So all potential issues for 2021 will have been resolved for both me and Vanguard, and we can focus on the transition
Doctor Rhythm
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Re: Transitioning to Vanguard Brokerage

Post by Doctor Rhythm »

beyou wrote: Thu Nov 11, 2021 9:21 am
beyou wrote: Fri Sep 17, 2021 10:25 pm They can’t force everyone to move.
They can make it unpleasant to not move.
iOS App just dropped support for transactions on the old “platform”. No biggie.
You underestimate the joy that can be had from buying VTSAX while standing in line for a burrito or later sitting on the commode.
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