Cost basis problem in my Vanguard a/c

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Joined: Mon Jan 09, 2012 2:02 pm

Cost basis problem in my Vanguard a/c

Post by Indexfan89 » Tue Jun 05, 2012 3:53 pm

Early this year, I have exchanged total international admiral to FTSE - All world ex-us investor shares for TLH. Few days later, I converted FTSE investor shares to admiral. The cost basis/capital losses are calculated correctly for this. I just used average cost method for this. After the conversion to FTSE admiral, I have added some more money to this fund (around $3000 or so).

Then last week, to take the oppertunity in the market decline, I executed the TLH one more time by exchanging FTSE admiral to total international admiral. This time for calculating the capital losses, Vanguard took only the $3000 that added to the fund after it is converted to admiral for cost basis. They did not considering the funds that were there prior to admiral conversion for cost basis calculation.

I called a vayoger rep and asked him about this discrepancy. He transferred me to a issue resolution rep. She undertood the problem, and opened a ticket to the cost basis calculation dept. This happened last week. Today, I called her again for a status on my ticket. She said, Vanguard is aware of the problem and said, there was some problem in the system that is calculating the cost basis. She also said, the cost basis dept told her, they are making a system update later this year to correct this problem and it will take few months to make this system update.. This sounded odd to me.. Vanguard of size and reputation going to take months to fix a calculation problem?

Does any one had this type of problem in the past? How did you get it corrected? Am i handling this correctly or am I missing any thing here? Please advise.

Thank you.

Posts: 217
Joined: Sat Mar 10, 2007 5:20 pm
Location: California

Re: Cost basis problem in my Vanguard a/c

Post by Tony » Tue Jun 05, 2012 6:27 pm

On Friday I posted about a problem with cost basis. ... =1&t=97393
I emailed Vanguard yesterday, but no reply yet.

It does make me wonder. How many more people are having the same problem?
This is the first I've heard that the cost basis department is going to fix it but that it might take several months.

I'll report back - on my thread - the response I get from Vanguard. Should be within the next 24 hours.

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