Vanguard Brokerage Account

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
cjhud32
Posts: 52
Joined: Sun Jun 10, 2012 11:52 am

Vanguard Brokerage Account

Post by cjhud32 » Wed May 10, 2017 5:06 pm

Forgive me if this has been addressed, but I could not locate any posting. Upon logging into my Vanguard account, I was prompted "transitioning my mutual fund account to a Vanguard Brokerage Account". It stated this this gives a simple, more flexible way to manage all investments while gaining access to "multiple types of investment choices, get SIPC protection for your account, and enjoy new conveniences that can help simplify your investing".

Being only five years into this game, I was curious as to whether a switch from my mutual fund account to a brokerage account makes any sense. I am unsure of these advantages.

Thank you!

User avatar
SpringMan
Posts: 5411
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: Vanguard Brokerage Account

Post by SpringMan » Wed May 10, 2017 5:24 pm

My understanding is Vanguard is gradually switching all their clients to brokerage accounts. I have mine switched over a while back. One advantage is availability of Vanguard ETFs which are free to trade. Another is the availability of Non Vanguard funds, some free to trade some not. One glitch was I lost my ability as an authorized user for my wife's account. Required a witnessed and notarized form to reestablish.
Best Wishes, SpringMan

livesoft
Posts: 68568
Joined: Thu Mar 01, 2007 8:00 pm

Re: Vanguard Brokerage Account

Post by livesoft » Wed May 10, 2017 5:28 pm

For locating other threads, please use the search term "Vanguard upgrade" and see what you get.
Wiki This signature message sponsored by sscritic: Learn to fish.

sport
Posts: 8530
Joined: Tue Feb 27, 2007 3:26 pm
Location: Cleveland, OH

Re: Vanguard Brokerage Account

Post by sport » Wed May 10, 2017 6:11 pm

I find the mutual fund type of account easier to work with. If all I want to buy are Vanguard mutual funds, I don't need a sweep account. I can also make automatic exchanges between my mutual funds. I believe you cannot do that in the brokerage account.

NibbanaBanana
Posts: 247
Joined: Sun Jan 22, 2017 10:34 pm

Re: Vanguard Brokerage Account

Post by NibbanaBanana » Wed May 10, 2017 6:52 pm

It was really confusing and I'm sure I didn't completely understand it but I think the "upgrade" had something to do with new regulations requiring the federal money market fund rather than the prime (or other non federal) money market fund.

All said, it's nicer because you don't have to wait for funds to clear to reinvest them.

gkaplan
Posts: 7034
Joined: Sat Mar 03, 2007 8:34 pm
Location: Portland, Oregon

Re: Vanguard Brokerage Account

Post by gkaplan » Wed May 10, 2017 8:29 pm

livesoft wrote:For locating other threads, please use the search term "Vanguard upgrade" and see what you get.
Or "Vanguard brokerage," or just "brokerage."
Gordon

User avatar
Doc
Posts: 9240
Joined: Sat Feb 24, 2007 1:10 pm
Location: Two left turns from Larry

Re: Vanguard Brokerage Account

Post by Doc » Thu May 11, 2017 7:43 am

NibbanaBanana wrote:It was really confusing and I'm sure I didn't completely understand it but I think the "upgrade" had something to do with new regulations requiring the federal money market fund rather than the prime (or other non federal) money market fund.

All said, it's nicer because you don't have to wait for funds to clear to reinvest them.
Two separate issues. Prime is no longer eligible as a settlement fund. That's a done deal. You have no choice. You can still keep prime you just get a second MM account for settlement.
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

Dandy
Posts: 5998
Joined: Sun Apr 25, 2010 7:42 pm

Re: Vanguard Brokerage Account

Post by Dandy » Thu May 11, 2017 8:00 am

When I had mutual fund accounts (non brokerage) VG would withhold taxes on taxable distributions. That reduced the need for paying estimated taxes. When they switched that account to a brokerage account they stopped - without notice. The brokerage system doesn't allow withholding on taxable distributions I was told.

wfrobinette
Posts: 753
Joined: Fri Feb 20, 2015 3:14 pm

Re: Vanguard Brokerage Account

Post by wfrobinette » Thu May 11, 2017 10:32 am

sport wrote:I find the mutual fund type of account easier to work with. If all I want to buy are Vanguard mutual funds, I don't need a sweep account. I can also make automatic exchanges between my mutual funds. I believe you cannot do that in the brokerage account.
It appears to allow me to do that.

User avatar
Doc
Posts: 9240
Joined: Sat Feb 24, 2007 1:10 pm
Location: Two left turns from Larry

Re: Vanguard Brokerage Account

Post by Doc » Thu May 11, 2017 11:15 am

wfrobinette wrote:
sport wrote:I find the mutual fund type of account easier to work with. If all I want to buy are Vanguard mutual funds, I don't need a sweep account. I can also make automatic exchanges between my mutual funds. I believe you cannot do that in the brokerage account.
It appears to allow me to do that.
Vangaurd wrote:Set up or change an automatic exchange
Move money automatically between Vanguard mutual funds, on the schedule you choose. Not available for brokerage accounts. (Logon required.)
You can however exchange between mutual funds from the same fund company in brokerage accounts just not via a repeating basis.

In taxable accounts you could do a workaround with an automatic withdrawal/investment pair using your bank as a "transfer agent". I have no idea why anyone would want to do this.
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.

Post Reply