Worried about vanguard

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Mjd1210
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Worried about vanguard

Post by Mjd1210 »

With the recent going ons with vanguard is there cause for concern. I recently opened a brokerage account with vanguard and was going to transfer brokerage and Ira accounts from Merrill Edge to vanguard but now having second thoughts and instead transferring to Schwab. Any opinions
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mhc
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Re: Worried about vanguard

Post by mhc »

Welcome to the forum!

What specifically are you worried about?

I have been with Vanguard for 20+ years and have no worries. If one is going to stay with Vanguard and is able to use their website, then there should be no issues.
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chinchin
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Re: Worried about vanguard

Post by chinchin »

If you're going to transfer out, you may want to do it before the $100 fee goes into effect.
not financial advice
Clarky
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Re: Worried about vanguard

Post by Clarky »

You should have no more concern about Vanguard than any other brokerage. None are perfect. The recent “goings on” have been overblown.
Bama12
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Re: Worried about vanguard

Post by Bama12 »

Nothing at all to worry about.

$100 fee to close account, if you never plan to close why does it matter?

I don't like it but after really thinking about it, Vanguard makes me a lot more then a $100 each month just on a better Money Market.
Last edited by Bama12 on Sun May 05, 2024 10:59 am, edited 1 time in total.
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celia
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Re: Worried about vanguard

Post by celia »

Mjd1210 wrote: Sat May 04, 2024 12:39 pm With the recent going ons with vanguard . . .
What are you referring to? I've been with them over 40 years and something is always going on somewhere . . .

Hey, did you hear the market is "up" today? Or maybe "down"? Something must be happening . . .
classpro
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Re: Worried about vanguard

Post by classpro »

I think we're all a bit disappointed with Vanguard lately because they used to be so good at customer service and low fees, and now they are getting a bit arrogant. Fidelity has better customer service (easier to reach and generally more helpful) and much better banking services, but their funds, especially money market funds, have higher costs. Use Vanguard for what Vanguard does well (money market funds and other mutual funds), and use Fidelity for what Fidelity does well (banking services). Maybe Vanguard will listen to customers and re-think some of the less friendly policies. Vanguard has never been a particularly good place for really small accounts. But their money market funds pay about 40 basis points more than Fidelity's, which is significant for larger amounts of money. Schwab? I'm not sure what Schwab does better than Vanguard or Fidelity. Maybe someone else can say.
Johm221122
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Re: Worried about vanguard

Post by Johm221122 »

Been with Vanguard since 1999. They are okay especially for what I do with them. Literally 2 funds

My last roll over was to Fidelity. Much better and I do all my rebalancing there along with my CD ladder.

I wouldn't choose Vanguard but I also don't consider leaving
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Cheez-It Guy
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Re: Worried about vanguard

Post by Cheez-It Guy »

You're going to make a mess for yourself trying to move among multiple brokers in short succession. Then you're going to get mad and attempt to blame someone other than yourself. Take a moment and think critically about what you really want to do over the long term and what goals you want to accomplish, and then act accordingly.
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ruralavalon
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Re: Worried about vanguard

Post by ruralavalon »

Welcome to the forum :D

Mjd1210 wrote: Sat May 04, 2024 12:39 pm With the recent going ons with vanguard is there cause for concern. I recently opened a brokerage account with vanguard and was going to transfer brokerage and Ira accounts from Merrill Edge to vanguard but now having second thoughts and instead transferring to Schwab. Any opinions
What specific "goings on" are you worried about?

I have had all accounts with Vanguard for about 20 years with no problems of any kind.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
spacemanspif
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Re: Worried about vanguard

Post by spacemanspif »

The recent “goings on” have been overblown.
Agreed, I believe it must be human nature for people to complain. I have my portfolio split almost equally between Fido and Vanguard and I have not see any appreciable difference between the two after using both for 30 years. I like Vanguard's funds a bit better but I think Fido's customer service is better, at least the 2 or 3 times in 30 years I have called about something.

OP, my advice, worry more about the important things - either brokerage will very likely serve you just fine.
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Re: Worried about vanguard

Post by Doctor Rhythm »

Not every decision between reasonable choices has to be based on sound reasoning. There are several good brokerage options. If one makes you anxious or fearful, or you just hate the color of their logo, then choose another — but don’t fool yourself into thinking you made a logical decision.
Topic Author
Mjd1210
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Re: Worried about vanguard

Post by Mjd1210 »

Concerns are over CEO stepping down getting out of 401k business, new transfer out fees. I’m basically a buy and hold investor and I really like the money market fund they have, I use vanguard etfs in my Merrill account now just would like to have everything in one firm.Maybe the changes they’re making will be better for the future of the company
Last edited by Mjd1210 on Sat May 04, 2024 4:01 pm, edited 1 time in total.
rogue_economist
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Re: Worried about vanguard

Post by rogue_economist »

Although none of the news as of late is positive I have no reason to switch.
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billaster
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Re: Worried about vanguard

Post by billaster »

Mjd1210 wrote: Sat May 04, 2024 3:54 pm Concerns are over CEO stepping down getting out of 401k business, new transfer out fees. I’m basically a buy and hold investor and I really like the money market fund they have, I use vanguard etfs in my Merrill account now just would like to have everything in one firm.
CEOs retire all the time. Vanguard is not getting out of the 401(k) business. In fact they are the largest 401(k) manager in the country for company plans. They are off loading a small specialty segment of individual 401(k)s. Do you have one? If not, why do you care? As to transfer fees, are you getting in or getting out? If you are buy and hold, why do you care?

These are your "goings on"? I'm not worried.
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Cheez-It Guy
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Re: Worried about vanguard

Post by Cheez-It Guy »

Some would say the current CEO stepping down is positive news. He didn't seem to be well-liked on this forum. But they were a little kinder to him over at Buckleyheads.org
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Hacksawdave
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Re: Worried about vanguard

Post by Hacksawdave »

Mjd1210 wrote: Sat May 04, 2024 3:54 pm Concerns are over CEO stepping down getting out of 401k business, new transfer out fees. I’m basically a buy and hold investor and I really like the money market fund they have, I use vanguard etfs in my Merrill account now just would like to have everything in one firm.Maybe the changes they’re making will be better for the future of the company
I have been with them since 1996. Every once in a while, I manage to deal with an idiot, but they are further between than my 401k provider and the banks I must deal with. I do not see any concern from your items listed as CEOs change, the individual 401k business is a small niche, and a $100 is something my heirs would have to pay.
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Rocinante Rider
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Re: Worried about vanguard

Post by Rocinante Rider »

Been with Vanguard almost 40 years. Between my spouse, two adult children, and myself, we have a total of 4 tIRAs, 4 Roth IRAs, and 4 taxable brokerage accounts collectively worth 7 figures with Vanguard. We are buy and hold index mutual fund/ETF investors. Vanguard, including its CS and website, has completely satisfied all of our needs. I don't share your concerns about change in CEO, and the new fee for account transfers will benefit rather than harm Vanguard clients. On money market funds alone, Vanguard collectively saves our family a few thousand dollar per year compared to Fidelity or Schwab. I also have substantial 403b assets at Fidelity that I'll likely be at least partially rolling over to Vanguard. Go with whichever company best meets your needs, but I don't see any reason to be concerned about Vanguard. Any of these custodians could change for the better or worse in years to come (e.g., Fidelity increasingly flirting with transaction fees or hidden costs on ETF funds). On balance, I feel more confident about Vanguards' commitment to low expenses.
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Charles Joseph
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Re: Worried about vanguard

Post by Charles Joseph »

I called customer service Friday with a question. The recording asked if I wanted to have them call me back in approximately 22 - 30 minutes. I said yes. They called me back in five minutes. I got the exact answer I needed from a very knowledgeable and pleasant representative. It was a great experience. Things have definitely gotten better.
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LanceSoFast1
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Re: Worried about vanguard

Post by LanceSoFast1 »

Charles Joseph wrote: Sat May 04, 2024 4:52 pm I called customer service Friday with a question. The recording asked if I wanted to have them call me back in approximately 22 - 30 minutes. I said yes. They called me back in five minutes. I got the exact answer I needed from a very knowledgeable and pleasant representative. It was a great experience. Things have definitely gotten better.
BAM! See, a pleasant experience. All is good now folks. 😅
bondsr4me
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Re: Worried about vanguard

Post by bondsr4me »

OP…

You have nothing to worry about transferring to Vanguard.

If you are a buy and hold indexer, then you have picked the right place.

Chill out, have some pizza and beer, and have a nice weekend. :happy
bondsr4me
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Re: Worried about vanguard

Post by bondsr4me »

Clarky wrote: Sat May 04, 2024 2:35 pm You should have no more concern about Vanguard than any other brokerage. None are perfect. The recent “goings on” have been overblown.
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LanceSoFast1
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Re: Worried about vanguard

Post by LanceSoFast1 »

I have been using vanguard for the last 9 years. I am 39 years old. My Roth IRA and my taxable accounts are all at vanguard. For a simple investor, vanguard is great. Customer service is something you can get via the vanguard app most of the time. Vanguard does not want people calling in unless necessary. I was told that by a representative. If you call in too much, they will actually threaten to close your accounts. I have trust in Vanguard and stopped calling in. Still happy today. Don’t be scared of all the drama.
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Cyan
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Re: Worried about vanguard

Post by Cyan »

ruralavalon wrote: Sat May 04, 2024 3:13 pm I have had all accounts with Vanguard for about 20 years with no problems of any kind.
In at 30+ years with Vanguard and also have had no problems of any kind. All my recent interactions with Vanguard via phone, the website, or e-mails have been addressed correctly and promptly. The bulk of my investments are with Vanguard.

I have a 401(k) with Fidelity through work and have been using the Fidelity CMA as my churn account (for bill pay, checks, ATMs, etc.) I preferer to keep my churn separate from my investments.

My daughter has a Vanguard account for her long term investments. She is just starting out and her accounts are relatively small, but there are no negatives for having smaller accounts. She uses Charles Schwab as her churn account. Charles Schwab offers full Zelle support - for her, it's a good way to make rent payments. (A small quibble would be the low interest Charles Schwab offers on their sweep accounts.)

The Vanguard web site is very clear and quite functional. If you have not used it recently, you may have missed the nice improvements they have been rolling out. Transfers initiated in Vanguard (pushed or pulled) are processed quickly. With the Vanguard cell phone App, it's very easy to deposit checks into my sweep account and they quickly show as ready to trade.

When I retire, my Fidelity 401(k) funds will be rolled over to Vanguard.
Last edited by Cyan on Sat May 04, 2024 5:39 pm, edited 1 time in total.
yules
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Re: Worried about vanguard

Post by yules »

mhc wrote: Sat May 04, 2024 2:27 pm I have been with Vanguard for 20+ years and have no worries. If one is going to stay with Vanguard and is able to use their website, then there should be no issues.
Past performance does not guarantee future outcomes, lol! But seriously, OP tell us why you think Vanguard is specifically concerning...you may have legit concerns or your concerns may exist with all brokerages
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beyou
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Re: Worried about vanguard

Post by beyou »

I got a good chuckle reading this one...

"Vanguard, founded by Jeff Bogle (who invented index funds),..."

Besides the name being obviously wrong, also note he did NOT invent index funds.
He did make them available to retail investors at low cost, but others invented the concept for use by institutional investors.
Just read the book "Trillions" if you want to know the truth about the invention of index funds.

So much for an authoritative source of information.

The reviews are good to confirm hatred of Vanguard, mostly people who wanted a full service brokerage firm and found out this is not what they are. IMO the only reason Vanguard started a brokerage was so they could sell their ETFs, but many complaints posted at consumer affairs about people who belong at Robinhood, people who have no interest in index funds nor a 3 fund portfolio. If you want to day trade, Vanguard is NOT the firm for you.

I think the JD Power report was more informative.
Study Rankings
Fidelity (704) ranks highest in self-directed investor satisfaction among investors seeking guidance. E*Trade (698) ranks second and Charles Schwab (695) ranks third.

Vanguard (734) ranks highest in self-directed investor satisfaction among do-it-yourself investors. T. Rowe Price (724) ranks second and Charles Schwab (717) ranks third.
As a 100% DIY I find Vanguard is fine. I rarely need their help and when I do, they provide it politely.
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beyou
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Re: Worried about vanguard

Post by beyou »

billaster wrote: Sat May 04, 2024 4:07 pm
Mjd1210 wrote: Sat May 04, 2024 3:54 pm Concerns are over CEO stepping down getting out of 401k business, new transfer out fees. I’m basically a buy and hold investor and I really like the money market fund they have, I use vanguard etfs in my Merrill account now just would like to have everything in one firm.
CEOs retire all the time. Vanguard is not getting out of the 401(k) business. In fact they are the largest 401(k) manager in the country for company plans. They are off loading a small specialty segment of individual 401(k)s.
The CEO was a lifelong employee of Vanguard, there is no excessive turnover at the top.
If anything I would prefer if they would hire outside to bring in fresh perspectives, from competitors like Fidelity.

401k is a very specialized business and MOST fund managers are not in the 401k ADMINISTRATION business.
There is a difference between who managed the funds in the 401k and who runs the record keeping of the 401k, there is no reason they have to be the same company, and in many corporates they are not. This is because very few fund managers offer 401k record keeping services. My most recent employer used Voya for 401k recordkeeping but we had no Voya mutual funds as an option to invest (and yes Voya is a fund manager and they could have picked Voya funds). Vanguard outsourced some work to an Indian consulting firm, something most industries are doing for software and customer service. They sold off part of the business to one of the firms that specialize in plan administration, Ascensus. Ascensus also does 529 plan administration for my state where they sold Vanguard funds on the Ascensus platform. Ascensus had great service and a stable website, nothing wrong with that change.

There are pros and cons to Vanguard but should be no "concerns".

If you want one stop shopping, to do your banking and investing in one place, go elsewhere.
If you want to call and discuss things regularly, go elsewhere.
If you are self sufficient, understand what products Vanguard offers and that they meet your needs, then go ahead and use those products.
Their products meet my needs, but I moved to a simplified portfolio of mainly index funds many years ago.
When I started investing I day traded individual stocks and Vanguard was NOT the firm for me at that point in time.
Last edited by beyou on Sat May 04, 2024 11:51 pm, edited 1 time in total.
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Charles Joseph
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Re: Worried about vanguard

Post by Charles Joseph »

LanceSoFast1 wrote: Sat May 04, 2024 5:15 pm
Charles Joseph wrote: Sat May 04, 2024 4:52 pm I called customer service Friday with a question. The recording asked if I wanted to have them call me back in approximately 22 - 30 minutes. I said yes. They called me back in five minutes. I got the exact answer I needed from a very knowledgeable and pleasant representative. It was a great experience. Things have definitely gotten better.
BAM! See, a pleasant experience. All is good now folks. 😅
You must not be reading the thread. 🤣
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TheDDC
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Re: Worried about vanguard

Post by TheDDC »

chinchin wrote: Sat May 04, 2024 2:29 pm If you're going to transfer out, you may want to do it before the $100 fee goes into effect.
... Which most any other brokerage will pay out (and more) for an inbound transfer anyway.... oh yeah, except for VANGUARD!

I agree that Vanguard has the makings of a "troubled teen" with several warning signs as of late. However, as most parents of troubled teens will attest, most of the time the prodigal son/daughter comes back to reality. In rare cases sometimes not, but what can we do at that late stage?

The only account I have moved out of Vanguard and into the loving arms of Schwab as of how has been my Individual 401(k) as I have no interest in dealing with a firm I know nothing about (Ascensus) and did not consent to move accounts to in the first place.

If Vanguard shows no signs of ending the bender, I will move everything else over to Schwab who will pay the closing fees (and more). Why Schwab? Nothing wrong with Fidelity, but the Schwab office is 15 minutes away and the Fidelity office is over an hour away.

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Raspberry-503
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Re: Worried about vanguard

Post by Raspberry-503 »

Vanguard is showing signs they have no interest in being a full-service brokerage with a number of recent actions. They also have been on the bottom for customer service for a while, and it was my experience when I opened an account earlier this year. They messed up the bank transfer setup, somehow they needed my wife to approve the joint account but she couldn't do it from her account, etc ...

You will not lose money, you may be fine, but Vanguard would not be my first choice to open a new account, when they would have been 10+ years ago.
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Re: Worried about vanguard

Post by tibbitts »

ruralavalon wrote: Sat May 04, 2024 3:13 pm Welcome to the forum :D

Mjd1210 wrote: Sat May 04, 2024 12:39 pm With the recent going ons with vanguard is there cause for concern. I recently opened a brokerage account with vanguard and was going to transfer brokerage and Ira accounts from Merrill Edge to vanguard but now having second thoughts and instead transferring to Schwab. Any opinions
What specific "goings on" are you worried about?

I have had all accounts with Vanguard for about 20 years with no problems of any kind.
What we're concerned about isn't the past 20 (30+ in my case) years.
LanceSoFast1
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Re: Worried about vanguard

Post by LanceSoFast1 »

Charles Joseph wrote: Sat May 04, 2024 9:18 pm
LanceSoFast1 wrote: Sat May 04, 2024 5:15 pm
Charles Joseph wrote: Sat May 04, 2024 4:52 pm I called customer service Friday with a question. The recording asked if I wanted to have them call me back in approximately 22 - 30 minutes. I said yes. They called me back in five minutes. I got the exact answer I needed from a very knowledgeable and pleasant representative. It was a great experience. Things have definitely gotten better.
BAM! See, a pleasant experience. All is good now folks. 😅
You must not be reading the thread. 🤣
Every post my friend. Good stuff. 😅 Vanguards doing an awesome job folks. Let’s all party and be merry. 😆
ACJC
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Re: Worried about vanguard

Post by ACJC »

Has anyone compared these fees? A quick google search showed these new fees are still lower then Fidelity’s fees? So Vanguard would still have lower fees.
Carol88888
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Re: Worried about vanguard

Post by Carol88888 »

Stay away from Vanguard. You can get everything that you can get at Vanguard through Charles Schwab AND get great customer service.

Read all the posts about Vanguard's customer's service to see my point.
PersonalFinanceJam
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Re: Worried about vanguard

Post by PersonalFinanceJam »

I think there is too much emotional investment here in Vanguard the brokerage and the funds. No they are not the lowest fee source in all ways anymore. Still a fine place and funds for low cost investing. However, there are plenty of options from other providers and that's not really new thing. Trying to predict what any of these institutions will do or become in the future seems like a fools errand. Use what makes sense to you for your own reasons.
rtt22
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Re: Worried about vanguard

Post by rtt22 »

Raspberry-503 wrote: Sat May 04, 2024 9:32 pm Vanguard is showing signs they have no interest in being a full-service brokerage with a number of recent actions. They also have been on the bottom for customer service for a while, and it was my experience when I opened an account earlier this year. They messed up the bank transfer setup, somehow they needed my wife to approve the joint account but she couldn't do it from her account, etc ...

You will not lose money, you may be fine, but Vanguard would not be my first choice to open a new account, when they would have been 10+ years ago.
+1 If I were to start from scratch, I wouldn't select Vanguard. I currently put new money into Fidelity. Vanguard may have low cost ETFs (which you can buy from any other brokerage) but it's now a high fee firm, in the style of Spirit Airlines, where the flights may be cheap but with all the add-on fees. So go somewhere else and you'll still be able to buy Vanguard ETF funds, and that may be Vanguard's preferred mode of operation after all.
$100 fee per account closure may be nothing, but consider that after decades of investing, you (and your spouse) may end up with 10+ accounts of different types and for different purposes. Since you won't live forever, these accounts will have to be closed at some point. Right now, Vanguard has the highest costs compared with other brokerage firm (see https://www.brokerage-review.com/discou ... -fees.aspx) so that don't portend well into the future.
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SmileyFace
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Re: Worried about vanguard

Post by SmileyFace »

OP:
Here are my reasons for NOT choosing Vanguard as the place to consolidate my accounts (wrote this before the recently added additional fees):
viewtopic.php?p=7793160#p7793160

If you are holding a 3-fund investment portfolio - I see no reason why anyone would go with Vanguard. Some have niche needs that Vanguard may be better for. Others stick with Vanguard for nostalgic reasons or fall for their marketing that their unique structure somehow provides them with benefits.
Last edited by SmileyFace on Sun May 05, 2024 6:40 am, edited 1 time in total.
Mando19
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Re: Worried about vanguard

Post by Mando19 »

I use both Vanguard and Fidelity equally. I am closing my unsued Vanguard accounts.
Vanguard is owned by fund shareholders which I think this is a good thing.
Fidelity is primarily owned by Abigail Johnson.
Fidelity may have better service, but you are paying for it.
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SmileyFace
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Re: Worried about vanguard

Post by SmileyFace »

Mando19 wrote: Sun May 05, 2024 6:39 am I use both Vanguard and Fidelity equally. I am closing my unsued Vanguard accounts.
Vanguard is owned by fund shareholders which I think this is a good thing.
Fidelity is primarily owned by Abigail Johnson.
Fidelity may have better service, but you are paying for it.
This underlined statement is false for most of us.
I am NOT paying more at Fidelity. Less actually.
Don't fall for Vanguard's marketing gimmick about it's ownership structure- I think the lack of oversight it actually bad for customers - not good.
Last edited by SmileyFace on Sun May 05, 2024 6:42 am, edited 1 time in total.
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Re: Worried about vanguard

Post by jebmke »

Carol88888 wrote: Sat May 04, 2024 10:49 pm Stay away from Vanguard. You can get everything that you can get at Vanguard through Charles Schwab AND get great customer service.

Read all the posts about Vanguard's customer's service to see my point.
I’ve been with VG for over 35 years with only one glitch and it turned out to be the result of something I put in place 20 years ago. That said, I am not an active trader and rarely do any transactions so I don’t really need hand holding.
When you discover that you are riding a dead horse, the best strategy is to dismount.
feh
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Re: Worried about vanguard

Post by feh »

As of today, I don't know why anybody would transfer to Vanguard when Fidelity and Schwab are options.
rkhusky
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Re: Worried about vanguard

Post by rkhusky »

Raspberry-503 wrote: Sat May 04, 2024 9:32 pm Vanguard is showing signs they have no interest in being a full-service brokerage with a number of recent actions. They also have been on the bottom for customer service for a while, …
Not according to customer satisfaction surveys:
https://www.jdpower.com/business/press- ... tion-study
https://www.jdpower.com/business/press- ... tion-study
https://www.jdpower.com/business/press- ... tion-study
https://www.jdpower.com/business/press- ... tion-study
Lastrun
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Re: Worried about vanguard

Post by Lastrun »

Raspberry-503 wrote: Sat May 04, 2024 9:32 pm Vanguard is showing signs they have no interest in being a full-service brokerage with a number of recent actions. ....
This is essentially the worry....what else will Vanguard abandon and leave me, or worse my spouse, holding the bag?

Long-time VG customer, never had a bad experience with them, but what I have seen over the past 5 years or so does not exude confidence for me long-term. These things, have objectively happened:

1. Banking eliminated and replaced with inferior product
2. Dedicated Flagship Reps. eliminated for most customers
3. Flagship level review eliminated
4. Annuities moved off platform to third-party servicer
5. Check writing eliminated on certain money market funds
6. Secured messages eliminated for most customers
7. Small business retirement plans moved off platform to third-party servicer

Now, I will just mention some of the other things that have concerned me, but these are more subjective or idiosyncratic IMHO: Constant push of PAS, sense that if you are not PAS, they don't want you, move toward active funds in PAS, lack of innovation, lack of, or poor, technology upgrades, and haphazard roll out of Cash Plus.

So tall of this has me worried.

Last item: I could care less about the account closure fees, I think the response to this is overblown.
Mando19
Posts: 109
Joined: Tue Nov 20, 2018 6:38 am

Re: Worried about vanguard

Post by Mando19 »

SmileyFace wrote: Sun May 05, 2024 6:41 am
Mando19 wrote: Sun May 05, 2024 6:39 am I use both Vanguard and Fidelity equally. I am closing my unsued Vanguard accounts.
Vanguard is owned by fund shareholders which I think this is a good thing.
Fidelity is primarily owned by Abigail Johnson.
Fidelity may have better service, but you are paying for it.
This underlined statement is false for most of us.
I am NOT paying more at Fidelity. Less actually.
Don't fall for Vanguard's marketing gimmick about it's ownership structure- I think the lack of oversight it actually bad for customers - not good.
Is Abigail Johnson's net worth of $29 billion also a marketing gimmick?
The Fidelity profit goes to Fidelity owners, the Vanguard profit goes back to the shareholders.
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Tycoon
Posts: 1668
Joined: Wed Mar 28, 2012 7:06 pm

Re: Worried about vanguard

Post by Tycoon »

Mando19 wrote: Sun May 05, 2024 7:12 am
SmileyFace wrote: Sun May 05, 2024 6:41 am
Mando19 wrote: Sun May 05, 2024 6:39 am I use both Vanguard and Fidelity equally. I am closing my unsued Vanguard accounts.
Vanguard is owned by fund shareholders which I think this is a good thing.
Fidelity is primarily owned by Abigail Johnson.
Fidelity may have better service, but you are paying for it.
This underlined statement is false for most of us.
I am NOT paying more at Fidelity. Less actually.
Don't fall for Vanguard's marketing gimmick about it's ownership structure- I think the lack of oversight it actually bad for customers - not good.
Is Abigail Johnson's net worth of $29 billion also a marketing gimmick?
The Fidelity profit goes to Fidelity owners, the Vanguard profit goes back to the shareholders.
So tell me, how much do Vanguard executives get paid?
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
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TomatoTomahto
Posts: 17412
Joined: Mon Apr 11, 2011 1:48 pm

Re: Worried about vanguard

Post by TomatoTomahto »

Mjd1210 wrote: Sat May 04, 2024 3:54 pm Concerns are over CEO stepping down getting out of 401k business, new transfer out fees. I’m basically a buy and hold investor and I really like the money market fund they have, I use vanguard etfs in my Merrill account now just would like to have everything in one firm.Maybe the changes they’re making will be better for the future of the company
As a buy and hold investor myself, Vanguard is a fine place. Because of my wife’s employment change (she works in financial services), we have had to leave Vanguard, but our intention is to return when we can.
I get the FI part but not the RE part of FIRE.
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SmileyFace
Posts: 9431
Joined: Wed Feb 19, 2014 9:11 am

Re: Worried about vanguard

Post by SmileyFace »

Mando19 wrote: Sun May 05, 2024 7:12 am
SmileyFace wrote: Sun May 05, 2024 6:41 am
Mando19 wrote: Sun May 05, 2024 6:39 am I use both Vanguard and Fidelity equally. I am closing my unsued Vanguard accounts.
Vanguard is owned by fund shareholders which I think this is a good thing.
Fidelity is primarily owned by Abigail Johnson.
Fidelity may have better service, but you are paying for it.
This underlined statement is false for most of us.
I am NOT paying more at Fidelity. Less actually.
Don't fall for Vanguard's marketing gimmick about it's ownership structure- I think the lack of oversight it actually bad for customers - not good.
Is Abigail Johnson's net worth of $29 billion also a marketing gimmick?
The Fidelity profit goes to Fidelity owners, the Vanguard profit goes back to the shareholders.
Wrong again - or at least wrong in part - I never got any Vanguard profits - Vanguard profits are distributed to all salaried employees at Vanguard as part of a generous profit-sharing program.
I don't fault Abigail for running a profitable and successful business. I buy Apple products as well even though their leaders have made huge profits. Why should I care - if they both (Fidelity, Apple) provide me the best product and service for the money.

I would never suggest someone steer away from the provider of a product or service simply based upon how successful they have been providing it. I don't get this argument.
sycamore
Posts: 6561
Joined: Tue May 08, 2018 12:06 pm

Re: Worried about vanguard

Post by sycamore »

Mjd1210 wrote: Sat May 04, 2024 12:39 pm With the recent going ons with vanguard is there cause for concern. I recently opened a brokerage account with vanguard and was going to transfer brokerage and Ira accounts from Merrill Edge to vanguard but now having second thoughts and instead transferring to Schwab. Any opinions
I've had and still have brokerage accounts at numerous custodians including Vanguard, Schwab, ETrade, Fidelity, Merrill Edge, Tasty, Robinhood.

In nearly all respects they are sufficient for my needs. (The one main exception is Robinhood doesn't support holding individual bonds like Treasuries.)

I need very little customer service. I've found that every brokerage is imperfect and might make a mistake every now and then (not for me, at least not yet). I set my expectations accordingly.

When I have needed customer service I'm content to use whatever methods are offered, like chat, which not all investors are comfortable with.

As a software developer I know that a computer system (whether for finance, for health care, for manufacturing, for tax preparation, etc.) is also imperfect. I know just because a system is broken in one respect for some number of customers does not mean it's broken for all customers. I know that any imperfection does not necessarily mean the system is doomed to ultimate failure.

When I read of other people's experiences (good or bad) with brokerages I try to remember I'm only hearing part of the overall story. There are far far more experiences than what gets reported here at Bogleheads that I won't hear about.

Long story short: Vanguard is not a dumpster fire; best for you to choose a brokerage you will feel comfortable with.

Speaking of, why are you wanting to leave Edge?
slondr
Posts: 104
Joined: Sat Mar 02, 2024 2:31 pm

Re: Worried about vanguard

Post by slondr »

feh wrote: Sun May 05, 2024 6:44 am As of today, I don't know why anybody would transfer to Vanguard when Fidelity and Schwab are options.
I’m in the process of transferring my remaining assets from Schwab into Vanguard. I can’t stand Schwab’s low rate on the sweep account and higher expenses on other cash options.
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