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VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:44 pm
by dharma student
Dear XXX,

You'll soon receive an email from us asking you to transition your current Vanguard account to a Vanguard Brokerage Account at no additional cost.

We're transitioning most of our accounts to the new account structure to significantly streamline our operations and help us continue to lower the cost of investing.

You don't need to take any action today. We simply want to inform you of the upcoming invitation.

Thank you for your consideration.


Ok this appears to be optional right now. Just got it. ??? Any thoughts, anyone? At first glimpse I am not liking it....

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:49 pm
by oldcomputerguy
There have been many threads here regarding this. I don't believe it's optional. Some have had bad experiences, some okay, I was initially put into a brokerage account when I signed up with Vanguard a couple years ago and have no issues. YMMV.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:52 pm
by dharma student
Thanks OCG...forgive me but what is YMMV?

I will search the board for threads

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:52 pm
by jebmke
Many threads. I have converted one of our accounts. Based on how we do business with VG it has not had a material impact on us one way or another.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:53 pm
by Steelersfan
I've been getting them for months. Having only Vanguard mutual funds which I rarely trade, I keep ignoring it.

I expect some day I won't be able to put it off, they'll convert me, and that will be OK too.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:55 pm
by rob
They convinced me to convert one account to "fix" an issue (meaning their old system is coded wrong).... The "new" platform did NOT fix the old issue but did add several other issues. They are going to have to convert me with a gun over my objection until they can prove that the "new" platform at least has the same defects as the "old" :oops:

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:56 pm
by DaftInvestor
bettyboopmary wrote:
Thu Sep 21, 2017 2:52 pm
Thanks OCG...forgive me but what is YMMV?

I will search the board for threads
YMMV = Your Mileage May Vary.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 2:57 pm
by Watty
bettyboopmary wrote:
Thu Sep 21, 2017 2:44 pm
Any thoughts, anyone? At first glimpse I am not liking it....
It will happen sooner or later and for most people there will not be any problems.

I would just pick a time when you know you will not need to make any transactions for a week or so and go on and do it. They should have most of the glitches worked out now and if you do get unlucky and run into something it will likely be fixed in a few days.

After the conversion just be sure to check to make sure that everything is working like you expect it to.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 3:01 pm
by JBTX
I don't think any of my vanguard retirement accounts are in fact brokerage accounts.

However, why would this be a big deal? On the surface I have no issue with it. I do have brokerage accounts at Fidelity. For those of you fearing this, what are the potential negatives? On balance, I'd rather have the flexibility of a brokerage account vs not.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 3:04 pm
by randomguy
bettyboopmary wrote:
Thu Sep 21, 2017 2:44 pm
Ok this appears to be optional right now. Just got it. ??? Any thoughts, anyone? At first glimpse I am not liking it....
Why? I haven't noticed any meaningful change but maybe I am missing something.

Email from Vanguard (transitioning to brokerage account)

Posted: Thu Sep 21, 2017 9:38 pm
by Messy_Orchid_51
Vanguard emailed me the statement below.

Did anyone else get something like this? Any reason to keep my accounts as is vs allow them to transition?

Thanks for the infinite collective wisdom!

________________________________________________
You'll soon receive an email from us asking you to transition your current Vanguard account to a Vanguard Brokerage Account at no additional cost.

We're transitioning most of our accounts to the new account structure to significantly streamline our operations and help us continue to lower the cost of investing.

You don't need to take any action today. We simply want to inform you of the upcoming invitation.

Thank you for your consideration

Re: Email from Vanguard (transitioning to brokerage account)

Posted: Thu Sep 21, 2017 9:44 pm
by Nate79
See earlier thread:
viewtopic.php?f=1&t=228166

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 9:49 pm
by LadyGeek
^^^ I merged Messy_Orchid_51's thread into here. The combined thread is in the Investing - Theory, News & General forum (general question).

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 10:00 pm
by Messy_Orchid_51
Hmm glad to see others facing the same dilemma.

What is the fundamental difference between the retirement account I have and a brokerage account?

There must be some disparity otherwise no reason for the conversion.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Thu Sep 21, 2017 11:57 pm
by FrugalInvestor
We had a brokerage account along with our mutual fund accounts for a number of years. We had never used the brokerage account. A few years ago I received the notice you mention. I called Vanguard, explained the situation, told them I had no need for a brokerage account and asked if I could delete it and just keep the mutual funds rather than 'transfer.' The request was honored and we have had only our Vanguard mutual fund accounts since. I have never again received any brokerage account transfer requests.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 8:46 am
by rkhusky
One of our accounts is a brokerage account because it is relatively new. The other accounts are not. We'll wait until there is an incentive to move. The transactions for the brokerage account are listed differently and are not intuitive - minus signs opposite. That's the only thing that I've seen. There was some concern that tax documents for the brokerage accounts would be a month later than mutual fund accounts, but I don't recall that being the case for us.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 9:16 am
by Fclevz
bettyboopmary wrote:
Thu Sep 21, 2017 2:44 pm
Just got it.
They must be doing this really gradually. I got my first notice about it in March of 2015 :shock:

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 9:22 am
by goingup
I haven't upgraded and won't until forced.
*We only use mutual funds
*Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage
*Have dividends from one fund directed to another fund, which isn't possible in brokerage

Upgrading to a brokerage would derail the automation.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 10:24 am
by telemark
Vanguard has been gradually rolling this out since 2013 or perhaps earlier. My turn came last spring, and so far I've just been ignoring it, because if I wanted a brokerage account I would have opened one in the first place. It's optional if you don't mind the nagging. But lots of people have converted without any problems, and anyone opening a new account gets a brokerage account.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 2:32 pm
by Jazztonight
All of my VG accounts were converted to brokerage accounts over a 3-4 day period. The VG rep was great, and I've had no problems.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 2:40 pm
by Miriam2
bettyboopmary wrote: Thanks OCG...forgive me but what is YMMV?
For other abbreviations and acronyms, our wiki has the master list as well as an index where we can search and read articles on investing until the wee hours of the night :D

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 3:06 pm
by rob
JBTX wrote:
Thu Sep 21, 2017 3:01 pm
For those of you fearing this, what are the potential negatives? On balance, I'd rather have the flexibility of a brokerage account vs not.
- Some people work in a position that require any brokerage accounts to be transferred in-house so the compliance dept can see activity - usually mutual fund accounts are not affected (sometimes you can get away with duplicate statements). This is far from minor.
- In my case the auto purchase failed and had to be re-setup with signature guarantees and paper forms mailed to Vanguard.
- I still have a "minor" account situation that is unworkable.. not able to transfer from one acct to the other due to the minor restriction on acct even though they have EXACTLY the same registration.
- Tax statements are delayed vs. non-brokerage.
- Your required to provide additional information under the guise of "know your customer" but more akin to additional marketing information.
- I have a sweep fund with a penny in due to timing of the sweep and dividends I assume - which your not able to exchange. Minor but annoying seeing it and just goes to sloppy.
- I gain complexity for no additional benefit and yet have more downsides - it's simply lose/lose.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 3:39 pm
by DaftInvestor
goingup wrote:
Fri Sep 22, 2017 9:22 am
I haven't upgraded and won't until forced.
*We only use mutual funds
*Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage
*Have dividends from one fund directed to another fund, which isn't possible in brokerage

Upgrading to a brokerage would derail the automation.
I haven't been asked yet. The last automation is something I do. Do you know if they are planning on addressing these requirements in brokerage accounts?
Otherwise they are creating more manual work for us.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 3:46 pm
by Doc
DaftInvestor wrote:
Fri Sep 22, 2017 3:39 pm
goingup wrote:
Fri Sep 22, 2017 9:22 am
I haven't upgraded and won't until forced.
*We only use mutual funds
*Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage
*Have dividends from one fund directed to another fund, which isn't possible in brokerage

Upgrading to a brokerage would derail the automation.
I haven't been asked yet. The last automation is something I do. Do you know if they are planning on addressing these requirements in brokerage accounts?
Otherwise they are creating more manual work for us.
Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 3:51 pm
by DaftInvestor
Doc wrote:
Fri Sep 22, 2017 3:46 pm
DaftInvestor wrote:
Fri Sep 22, 2017 3:39 pm
goingup wrote:
Fri Sep 22, 2017 9:22 am
I haven't upgraded and won't until forced.
*We only use mutual funds
*Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage
*Have dividends from one fund directed to another fund, which isn't possible in brokerage

Upgrading to a brokerage would derail the automation.
I haven't been asked yet. The last automation is something I do. Do you know if they are planning on addressing these requirements in brokerage accounts?
Otherwise they are creating more manual work for us.
Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared.
Why do you say this? Concerned about 4 extra tax lots per year?

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 4:10 pm
by FactualFran
Doc wrote:
Fri Sep 22, 2017 3:46 pm
Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared.
In my experience, it has not been a nightmare. For each mutual fund distribution that is reinvested in the same fund, I add one row to the spreadsheet that I have for the fund account. For each mutual fund distribution that is directed to another account, I add two rows, one to the spreadsheet of each fund. The non-nightmare is doubled, not squared.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 4:11 pm
by Broken Man 1999
Wife and I had mutual funds AND ETFs, which required additional accounts. Fewer accounts after conversion, so I am a happy camper.

Everything was set up correctly, bank accounts were set up by our Flagship representative while we were on phone. Nothing but a positive experience for us.

I don't have any funds flying here and there from dividends, or periodic investments or distributions, so I'm sure our setup is much simpler than some here who have experienced frustrations with the aftermath of their conversion.

I would have ended up with only a brokerage account exclusively at some point anyway because I am migrating all mutual funds to ETFs.

I am simplifying as much as I can, I'm currently waiting for a look-see of the new Vanguard bond ETFs, which will allow me to finish the process.

I really like having a clearer look at all our portfolio, but again ours is simple and getting simpler as fast as I can complete activities to accomplish the task.

Broken Man 1999

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 4:14 pm
by DaftInvestor
FactualFran wrote:
Fri Sep 22, 2017 4:10 pm
Doc wrote:
Fri Sep 22, 2017 3:46 pm
Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared.
In my experience, it has not been a nightmare. For each mutual fund distribution that is reinvested in the same fund, I add one row to the spreadsheet that I have for the fund account. For each mutual fund distribution that is directed to another account, I add two rows, one to the spreadsheet of each fund. The non-nightmare is doubled, not squared.
I don't have a problem with it. The reason I do some cross-fund reinvesting it to avoid reinvesting in the funds that I might TLH. And by auto-reinvesting my money spends more time in the market where it belongs.
BTW - we don't need to discuss this here - there has been a thread on this almost yearly (Google "Reinvest dividends") and everytime it is discussed the same debate occurs between the reinvestors and the non-reinvestors (and there seems to be an equal number of people on either side of the debate).
The only question I had is if anyone knew if brokerage accounts would eventually allow auto reinvesting dividends from one fund into another fund.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 4:27 pm
by dbr
DaftInvestor wrote:
Fri Sep 22, 2017 4:14 pm

BTW - we don't need to discuss this here - there has been a thread on this almost yearly (Google "Reinvest dividends") and everytime it is discussed the same debate occurs between the reinvestors and the non-reinvestors (and there seems to be an equal number of people on either side of the debate).
The only question I had is if anyone knew if brokerage accounts would eventually allow auto reinvesting dividends from one fund into another fund.
It is an example of turning an option into a personal preference into a debate into a should, which is typical of a lot of questions here.

I am sorry I do not know the answer to your actual question so far as Vanguard is concerned.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 4:40 pm
by DaftInvestor
dbr wrote:
Fri Sep 22, 2017 4:27 pm
DaftInvestor wrote:
Fri Sep 22, 2017 4:14 pm

BTW - we don't need to discuss this here - there has been a thread on this almost yearly (Google "Reinvest dividends") and everytime it is discussed the same debate occurs between the reinvestors and the non-reinvestors (and there seems to be an equal number of people on either side of the debate).
The only question I had is if anyone knew if brokerage accounts would eventually allow auto reinvesting dividends from one fund into another fund.
It is an example of turning an option into a personal preference into a debate into a should, which is typical of a lot of questions here.

I am sorry I do not know the answer to your actual question so far as Vanguard is concerned.
Thanks - I will keep re-reading your first sentence until I get it...

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 5:26 pm
by dbr
DaftInvestor wrote:
Fri Sep 22, 2017 4:40 pm
dbr wrote:
Fri Sep 22, 2017 4:27 pm
DaftInvestor wrote:
Fri Sep 22, 2017 4:14 pm

BTW - we don't need to discuss this here - there has been a thread on this almost yearly (Google "Reinvest dividends") and everytime it is discussed the same debate occurs between the reinvestors and the non-reinvestors (and there seems to be an equal number of people on either side of the debate).
The only question I had is if anyone knew if brokerage accounts would eventually allow auto reinvesting dividends from one fund into another fund.
It is an example of turning an option into a personal preference into a debate into a should, which is typical of a lot of questions here.

I am sorry I do not know the answer to your actual question so far as Vanguard is concerned.
Thanks - I will keep re-reading your first sentence until I get it...
What I mean is that whether or not one reinvests one's dividends in taxable does not matter based on any significant principle of investing. It does not matter in the sense of making a big difference in outcome. So, it is just an option one can choose. So now this issue is that some people like it one way and some people like it another way. Some people don't like a lot of little tax lots and don't mind manually putting the money somewhere and other people don't want to mess with the money and don't mind the tax lots. Some people fall in the opposite combinations. So that is just what one person likes and another person doesn't, a preference, which may or may not be your preference. Then people start to describe the various features of the alternatives but start to assert their preferences as what ought to apply to other people. Now it is a debate, where options are construed to be real differences are being warned or advised or having suggestions made to them. Remember preferences don't have sides. Sides only happen when you can argue a preference into a value that applies to anyone. Finally, someone who doesn't realize he is asking about something that is just an option, and at most a matter of preference, wants someone to tell them what they "should" do.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 5:49 pm
by edge
It's probably a good thing. Maybe VG can save some costs by only focusing on one platform. And hopefully improve it....

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 5:57 pm
by TravelGeek
JBTX wrote:
Thu Sep 21, 2017 3:01 pm
However, why would this be a big deal? On the surface I have no issue with it. I do have brokerage accounts at Fidelity. For those of you fearing this, what are the potential negatives? On balance, I'd rather have the flexibility of a brokerage account vs not.
If it ain't broken, I don't need no fixin'. I have a Fidelity brokerage account, should the trading fever infect me again. I assume at some point they will probably force everyone left on the old platform to switch, but at the moment I have a todo list that has plenty of more important things on it (clean up garage, sweep deck, read 734 BH threads...) to add this to my list.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 6:06 pm
by Gnirk
I didn't accept the invitation to convert because the "new" brokerage account won't automatically invest the dividends and capital gains from one fund into another fund. I would have to direct them to the cash settlement fund, and then manually move them from the cash fund into the other fun, which means they wouldn't be reinvested the same day. My current setup eliminates those extra steps by reinvesting Fund X's dividends and cap gains into Fund Y for me. I like that option.

I understand the 1099's will arrive later. (although we received a "corrected brokerage account 1099" for 2016 in August! :x)

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 7:05 pm
by JBTX
TravelGeek wrote:
Fri Sep 22, 2017 5:57 pm
JBTX wrote:
Thu Sep 21, 2017 3:01 pm
However, why would this be a big deal? On the surface I have no issue with it. I do have brokerage accounts at Fidelity. For those of you fearing this, what are the potential negatives? On balance, I'd rather have the flexibility of a brokerage account vs not.
If it ain't broken, I don't need no fixin'. I have a Fidelity brokerage account, should the trading fever infect me again. I assume at some point they will probably force everyone left on the old platform to switch, but at the moment I have a todo list that has plenty of more important things on it (clean up garage, sweep deck, read 734 BH threads...) to add this to my list.
I rarely do any transactions but at least a brokerage account would give me etf options or options of other fund companies should I want them.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 7:10 pm
by telemark
I don't need an elephant, so I prefer to keep the nickel. :wink:

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 10:03 pm
by pascalwager
Doc wrote:
Fri Sep 22, 2017 3:46 pm
DaftInvestor wrote:
Fri Sep 22, 2017 3:39 pm
goingup wrote:
Fri Sep 22, 2017 9:22 am
I haven't upgraded and won't until forced.
*We only use mutual funds
*Have multiple auto-exchanges set up between MM fund and other funds, which isn't possible in brokerage
*Have dividends from one fund directed to another fund, which isn't possible in brokerage

Upgrading to a brokerage would derail the automation.
I haven't been asked yet. The last automation is something I do. Do you know if they are planning on addressing these requirements in brokerage accounts?
Otherwise they are creating more manual work for us.
Having dividends reinvested in a taxable account is an accounting nightmare. Having those dividends reinvested in a separate account would be a nightmare squared.
Accounting nightmare? Vanguard reinvests my dividends and sends me the necessary tax information in January or so. Then I just need to enter the simple data into my tax software.

Anyway, Vanguard has been encouraging me to convert to the brokerage, but I don't see any advantage and don't intend to change until it becomes mandatory.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Fri Sep 22, 2017 10:17 pm
by arcticpineapplecorp.
They actually called me at home a couple of months ago to invite me to convert to brokerage. I kindly declined their offer and told them to have their people go read about some of their customers experiences over at...you guessed it, bogleheads.org. :happy

Hopefully, they are looking here to learn what's working/not working from past experiences.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 7:57 am
by Doc
All the people who are completely unconcerned with reinvestment of dividends have probably never been confronted with Vg's IT method of treating wash sales which completely negates the use of specific ID cost basis.

As dbr stated reinvestment of dividends in a different fund is a personal choice. For those of you that find this is objectionable on the brokerage platform you probably have no need for the advantages of the brokeage account either.

So fight on. Make Vg support two different platforms and raise all our costs and/or lower the customer service even
more.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 8:04 am
by bayview
I got the email during the previous wave - two months ago?

The big "convert now!!!!" banners were on our accounts for maybe a month and then finally went away.

We are still non-brokerage.

--However, now I have the email again about the proxy vote, even though we voted last time. :oops:

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 12:01 pm
by pascalwager
The conversion buttons are now removed from my account screens after first showing up a few months ago. From what I understand from Vanguard statements, they're not trying to convert everybody, but do want to convert most accounts. They seem to expect to maintain two platforms--the mutual fund platform and the brokerage platform.

I don't expect to ever buy an ETF or secondary-market CD or Treasury Bill/Note so I'll probably stay with the mutual fund platform forever.

But I'm surprised they don't show an example screen for the (new?) brokerage platform.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 1:04 pm
by dbr
What is the point in asking anyone to convert if they are not just going to force over everyone. It might make sense to not have a mutual fund platform, but if they have it why do they care who chooses what?

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 1:20 pm
by MnD
Why not push everyone over and be done with the legacy mutual fund account model?
Incrementally it costs more and more per old style account to maintain the old system as it is depopulated.
It's not like someone with 5 Vanguard mutual funds now in a VG brokerage account is going to get mad and switch their assets over to a Schwab brokerage account or go bury the money in a hole in the ground. :mrgreen:

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 1:24 pm
by Good Listener
I have avoided doing it because it's been easier for me at tax time if I have individual funds; specifically I know that my New Jersey bond fund and money market can be :shock: checked in TurboTax as a hundred percent free from New Jersey. But if I won't get one gross number how do I know what is attributable to what and how much I attribute to the state?

Brokerage Accounts and Mutual Fund accounts

Posted: Sat Sep 23, 2017 1:34 pm
by EyeDee
.
Since Vanguard needs to maintain a mutual fund only platform for people whose job prevents them from having a brokerage account, they are going to need to keep two type accounts - mutual fund only and brokerage only with the associated costs. It is not two type accounts that is the problem, it is three types as they currently have a third type - those people who have a combined mutual fund and brokerage account. These accounts are obviously more complicated because they are both.

I think Vanguard would consider it successful if they can get all of the those people with hybrid accounts switched to brokerage only. Hopefully, they will get the brokerage only accounts working well enough to convince all hybrid users to convert or perhaps they will get where they can force all of them to be brokerage only since they already have consented to having a brokerage account.

So I agree with dbr I do not think Vanguard should care who chooses a brokerage only and who chooses a mutual fund only account. I would think their major concern would be who chooses to keep a hybrid account.
Doc wrote:
Sat Sep 23, 2017 7:57 am
So fight on. Make Vg support two different platforms and raise all our costs and/or lower the customer service even more.
dbr wrote:
Sat Sep 23, 2017 1:04 pm
What is the point in asking anyone to convert if they are not just going to force over everyone. It might make sense to not have a mutual fund platform, but if they have it why do they care who chooses what?

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 1:36 pm
by knowmad
Because of the Equifax hack, the IRS is encouraging everyone to file their taxes as early as possible. Brokerage accounts deliver their 1099s much later than mutual fund accounts, and thus increase the risk of fraudulent tax returns being filed in your name.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 1:44 pm
by Good Listener
Gnirk wrote:
Fri Sep 22, 2017 6:06 pm
I didn't accept the invitation to convert because the "new" brokerage account won't automatically invest the dividends and capital gains from one fund into another fund. I would have to direct them to the cash settlement fund, and then manually move them from the cash fund into the other fun, which means they wouldn't be reinvested the same day. My current setup eliminates those extra steps by reinvesting Fund X's dividends and cap gains into Fund Y for me. I like that option.

I understand the 1099's will arrive later. (although we received a "corrected brokerage account 1099" for 2016 in August! :x)
This is big. I don't want a federal money market to generate yet more taxable income and then have to transfer it to my state money market every month. Also, in this age of identity theft and Equifax, I want to file my taxes early and The Brokerage delays their statements a month more than mutual funds.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Sat Sep 23, 2017 2:39 pm
by Doc
knowmad wrote:
Sat Sep 23, 2017 1:36 pm
Because of the Equifax hack, the IRS is encouraging everyone to file their taxes as early as possible. Brokerage accounts deliver their 1099s much later than mutual fund accounts, and thus increase the risk of fraudulent tax returns being filed in your name.
It is not the type of the account that causes the delay. It's what's in the account. Mutual funds for the most part can get there data together more quickly than some other types of business structures. Getting the 1099's out by the end of February may be doable for everyone but there will then be corrections for many investors who hold these other types of securities and it doesn't make sense to issue the the 1099's early when you know there will have to be corrections later.

We got eight corrected 1099's last year even with the supposedly "late" 1099's.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Mon Sep 25, 2017 2:25 pm
by FactualFran
Doc wrote:
Sat Sep 23, 2017 7:57 am
All the people who are completely unconcerned with reinvestment of dividends have probably never been confronted with Vg's IT method of treating wash sales which completely negates the use of specific ID cost basis
I have never had a problem with Vg's IT method of anything. I have avoided making wash sales. I have not used specific share identification. With one exception, I have not tax loss harvested. I realized a tax loss years ago because of an unusually high marginal tax rate.

Some keep it simple and avoid complicated interpretations of IRS regulations.

Re: VG wants everyone to transfer to a brokerage account?

Posted: Mon Sep 25, 2017 2:58 pm
by retiredjg
I got my first invitation in the last few days. I intend to ignore it as long as I can.

I only have IRA/Roth IRA and have no need for a brokerage account. I figured they would not get to me until all the hybrid accounts were done. Darn.