Vanguard brokerage account transition

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BigJohn
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Re: Vanguard brokerage account transition

Post by BigJohn »

I take no joy in people’s angst over this but, since VG has made it clear that this is happening in the next few years, here’s a simple decision tree.

What functionality does the brokerage platform not have that I want? We’ll call it A.

Can I get A elsewhere?

If no, then you're stuck wanting something you can’t have. You don’t need to like it but you have to accept it as the reality of the financial world today.

If yes, what’s the total cost?

If it costs about the same as VG move your assets in kind and be done with all the angst.

If the costs are higher than VG you’ll have to make a judgement on whether A is worth the incremental cost.

Before VG announced an official end-of-life date, taking a wait and see attitude was OK. However, at this point there honestly aren’t any other productive choices that I see.
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SmileyFace
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Re: Vanguard brokerage account transition

Post by SmileyFace »

Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
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Nate79
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Re: Vanguard brokerage account transition

Post by Nate79 »

palanzo wrote: Thu May 21, 2020 2:35 pm
Nate79 wrote: Thu May 21, 2020 2:27 pm
palanzo wrote: Thu May 21, 2020 2:20 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Except that Vanguard cannot move mutual funds and their registration without the owners permission.
I didn't say that Vanguard will move you. But you will move one way or another or else lose all functionality such that you will want to move.
I know you didn't say that. I mean that Vanguard may not be able to close the mutual fund platform if people do not give permission to move their funds.
I really depends on what the meaning of shutting down a platform means. For example, if the only allowed activity on the mutual fund platform is complete transfer to the brokerage account or to transfer out of Vanguard that would be effectively shutting the platform down. i.e. accounts are frozen, only complete transfers allowed. It all depends on how painful Vanguard want's to make the shutdown that is coming soon.
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Re: Vanguard brokerage account transition

Post by abuss368 »

DaftInvestor wrote: Thu May 21, 2020 2:53 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
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Nate79
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Re: Vanguard brokerage account transition

Post by Nate79 »

DaftInvestor wrote: Thu May 21, 2020 2:53 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.

The other issue is that I would much rather transfer during a low activity point where if there is any issues or delay it happens on my schedule. I would not want to be transferring during the shutdown period.
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SmileyFace
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Re: Vanguard brokerage account transition

Post by SmileyFace »

Nate79 wrote: Thu May 21, 2020 2:56 pm
There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.
Okay - but right now none of this pain exists. There is more pain with switching so why would I switch. When it comes I will consider switching.

abuss368 wrote: Thu May 21, 2020 2:56 pm From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
Those folks likely did not set up all the reinvestment rules I have in place in my MF account.
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Re: Vanguard brokerage account transition

Post by palanzo »

DaftInvestor wrote: Thu May 21, 2020 2:53 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
+1 same here
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Re: Vanguard brokerage account transition

Post by palanzo »

Nate79 wrote: Thu May 21, 2020 2:54 pm
palanzo wrote: Thu May 21, 2020 2:35 pm
Nate79 wrote: Thu May 21, 2020 2:27 pm
palanzo wrote: Thu May 21, 2020 2:20 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Except that Vanguard cannot move mutual funds and their registration without the owners permission.
I didn't say that Vanguard will move you. But you will move one way or another or else lose all functionality such that you will want to move.
I know you didn't say that. I mean that Vanguard may not be able to close the mutual fund platform if people do not give permission to move their funds.
I really depends on what the meaning of shutting down a platform means. For example, if the only allowed activity on the mutual fund platform is complete transfer to the brokerage account or to transfer out of Vanguard that would be effectively shutting the platform down. i.e. accounts are frozen, only complete transfers allowed. It all depends on how painful Vanguard want's to make the shutdown that is coming soon.
Agreed. And if many customers choose not to move to the brokerage platform, Vanguard may have to revise its current plan. It would be interesting to know just what percentage of customers are on the brokerage platform.
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Re: Vanguard brokerage account transition

Post by palanzo »

DaftInvestor wrote: Thu May 21, 2020 3:01 pm
Nate79 wrote: Thu May 21, 2020 2:56 pm
There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.
Okay - but right now none of this pain exists. There is more pain with switching so why would I switch. When it comes I will consider switching.

abuss368 wrote: Thu May 21, 2020 2:56 pm From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
Those folks likely did not set up all the reinvestment rules I have in place in my MF account.
And Vanguard could make everyone happy by implementing the few features that are missing e.g. dividends reinvestment in another MF.
Last edited by palanzo on Thu May 21, 2020 5:08 pm, edited 1 time in total.
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jeffyscott
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Re: Vanguard brokerage account transition

Post by jeffyscott »

palanzo wrote: Thu May 21, 2020 3:25 pm
DaftInvestor wrote: Thu May 21, 2020 2:53 pm
Nate79 wrote: Thu May 21, 2020 2:11 pm It's one thing to complain about a transition (about 4 pages worth) but I hope everyone is now creating a plan for how to deal with the platform that will be ending. You either change now (and get used to the minor inconveniences) or hold out and make it more and more painful on yourself to where eventually you will convert or move one way or another. There are some legitimate issues for people in the financial industry who will have some issues transferring to a brokerage that is compliant with their companies monitoring rules. But for the other minor complaints I would get used to them or move somewhere else (like we did a few years ago).

Maybe people just want to vent but it doesn't change the fact that Vanguard is closing the mutual fund platform.
Why would it be more painful later rather than now? I am suffering 0 pain right now but will if I switch. Maybe they will add the missing functionality to the brokerage account I am looking for in 2022 before (or rather if) they shutdown the current MF platform I am on and it will be less painful for me later. Right now since there is no pain I will just stick with what works for me and what I have had for many years.
+1 same here
Me too, waiting will cause no pain.

What we have works, brokerage account will not be a problem either. When/if there's a reason to make a change, I'll do it then. I believe vanguard even said that they will give advance notice when/if there's going to be any reduction in functionality of the classic platform.

Not sure why anyone else should care so much that others choose to remain on the MF platform for now.
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Dead Man Walking
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Re: Vanguard brokerage account transition

Post by Dead Man Walking »

Vanguard could resolve the problem by simply providing complete year to date statements. I’d transition tomorrow if they chose to provide year to date statements at year’s end. The fact that they can’t do so with brokerage accounts leads me to believe that they have an inefficient algorithm for their accounting program. It’s the 21st century, hire some competent computer programmers.

DMW
acegolfer
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Re: Vanguard brokerage account transition

Post by acegolfer »

Just completed the transition.

If anyone downloads CSV from vanguard, note that the format for brokerage accounts is different from MF's. Notable differences are investment names and the amounts. For example, if I purchase $1000 worth of VTSAX, "Principal Amt" is now recorded as -1000 (used to be 1000).
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Toons
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Re: Vanguard brokerage account transition

Post by Toons »

jeffyscott wrote: Thu May 21, 2020 9:38 am
Toons wrote: Thu May 21, 2020 9:24 am Glad I did
Why?
Now I can readily purchase more shares of
Coca Cola and Mcdonalds.
:mrgreen: :mrgreen:
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Re: Vanguard brokerage account transition

Post by anakinskywalker »

I recently called Vanguard and spoke with a very polite professional competent and knowledgeable representative. I explained that I work in the industry and that I'm unable to transition my MF accounts into brokerage accounts because if I did I would be required to close them immediately.

I also mentioned that I've been a Vanguard customer for decades and am a big fan of their company, and would hate to be forced to stop using their excellent products and services.

The Vanguard representative assured me that I don't need to worry about being forced to stop doing business with Vanguard. He will flag this matter to higher levels of decision-makers in the firm. Based on the conversation it seems to me that there is a good chance that the excellent "old platform" may not be retired any time soon, if ever.

Others concerned on this topic might also want to call in and get clarity on the matter.

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Re: Vanguard brokerage account transition

Post by abuss368 »

anakinskywalker wrote: Thu Jul 30, 2020 7:31 pm I recently called Vanguard and spoke with a very polite professional competent and knowledgeable representative. I explained that I work in the industry and that I'm unable to transition my MF accounts into brokerage accounts because if I did I would be required to close them immediately.

I also mentioned that I've been a Vanguard customer for decades and am a big fan of their company, and would hate to be forced to stop using their excellent products and services.

The Vanguard representative assured me that I don't need to worry about being forced to stop doing business with Vanguard. He will flag this matter to higher levels of decision-makers in the firm. Based on the conversation it seems to me that there is a good chance that the excellent "old platform" may not be retired any time soon, if ever.

Others concerned on this topic might also want to call in and get clarity on the matter.

Anakin
Thank you for that informative update.
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Re: Vanguard brokerage account transition

Post by beyou »

I work in the industry and there is no need to call and discuss this if you want to leave your acct as-is. They even allowed me to open NEW fund-only accts over last few months, though I did have to ask offline. The fact your rep said he would escalate shows lack of experience. No rep has even given me the slightest indication this is anything unusual. The experienced reps know the rules and are familiar.

When I retire from the industry I will likely agree to the so called “upgrade”, mainly to get ETF capability. But you do lose other capabilities.
Last edited by beyou on Fri Jul 31, 2020 12:04 am, edited 1 time in total.
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beyou
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Re: Vanguard brokerage account transition

Post by beyou »

palanzo wrote: Thu May 21, 2020 3:29 pm
DaftInvestor wrote: Thu May 21, 2020 3:01 pm
Nate79 wrote: Thu May 21, 2020 2:56 pm
There is lots of pain Vanguard can make to insist people move. They could add fees, they could add very restricted activity such as transfer only (no buy/sell/etc). But it doesn't really matter. It's coming.
Okay - but right now none of this pain exists. There is more pain with switching so why would I switch. When it comes I will consider switching.

abuss368 wrote: Thu May 21, 2020 2:56 pm From many of the responses in this thread of folks who have done it, appears to have gone well with no issues.
Those folks likely did not set up all the reinvestment rules I have in place in my MF account.
And Vanguard could make everyone happy by implementing the few features that are missing e.g. dividends reinvestment in another MF.
I want div sent to my bank, instead of settlement fund.
Can live without but these are old features missing in the “upgrade”.
Random Poster
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Re: Vanguard brokerage account transition

Post by Random Poster »

Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?

Regardless, does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
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Re: Vanguard brokerage account transition

Post by jeffyscott »

Random Poster wrote: Fri Oct 02, 2020 9:51 am Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?
Never have had any interest in using "apps" for financial transactions. I always use the website from a PC.

Once or twice when traveling have used phone, but just use the website directly...not sure why one would want to use the app in order to navigate to the website, rather than just go directly to the website in the web browser on the phone?

The only direct use I have made of an app for a financial site is to photo deposit an occasional check, since the app was the only way to do so.
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Re: Vanguard brokerage account transition

Post by ruralavalon »

Random Poster wrote: Fri Oct 02, 2020 9:51 am Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?

Regardless, does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
I have ignored the prompts to switch to the new platform, and don't even read the prompts.

I was happy with the old platform, have no interest in using ETFs or trading, so put off changing, initially because I wanted to wait until any bugs were fixed and later because of inertia (the "why bother" factor).

Don't have much to do while at home during COVID-19, so I finally switched on 9/29/2020, after confirming that (1) our beneficiary designations would carry over, (2) my Required Minimum Distributions (RMDs) would not need to be reset (except the date), and (3) our Full Agent Authorizations could carry over (but not automatically).

I learned that (2) my RMDs could not be in the first 5 days of the month, or the last 5 days of the month, and (3) our Full Agent Authorizations could be carried over, without redoing the forms and Medallion Signature Guarantees etc, but only if requested within the 60 days after the transfer to the new platform.

I do use the app. But that was not a reason for my switching platform.

I do have the same question -- does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
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Re: Vanguard brokerage account transition

Post by rkhusky »

ruralavalon wrote: Sat Oct 03, 2020 10:08 am
I do have the same question -- does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
Just the latter three options. No reinvestment into other funds.
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Re: Vanguard brokerage account transition

Post by ruralavalon »

rkhusky wrote: Sat Oct 03, 2020 10:24 am
ruralavalon wrote: Sat Oct 03, 2020 10:08 am
I do have the same question -- does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
Just the latter three options. No reinvestment into other funds.
Rats :x, I preferred automatic reinvestment of dividends and gains in another fund in our joint taxable account.

But thanks for the information, I have now reset the preference or reinvestment of dividends and gains in that account.
Last edited by ruralavalon on Sat Oct 03, 2020 12:33 pm, edited 1 time in total.
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Re: Vanguard brokerage account transition

Post by Cheez-It Guy »

beyou wrote: Fri Jul 31, 2020 12:02 am I want div sent to my bank, instead of settlement fund.
Can live without but these are old features missing in the “upgrade”.
I know this is an old post, and this time I also know you can't switch because of working in the industry, but the new brokerage format DOES let you send dividends to an external bank account for Vanguard mutual funds. Individual stocks I believe have to go to the settlement fund, but since you only have mutual funds in the old format account, that shouldn't be an issue for you at time of retirement.

Just wanted you to be clear, the feature it sounds like you'd prefer does exist.
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Re: Vanguard brokerage account transition

Post by beyou »

Cheez-It Guy wrote: Sat Oct 03, 2020 11:22 am
beyou wrote: Fri Jul 31, 2020 12:02 am I want div sent to my bank, instead of settlement fund.
Can live without but these are old features missing in the “upgrade”.
I know this is an old post, and this time I also know you can't switch because of working in the industry, but the new brokerage format DOES let you send dividends to an external bank account for Vanguard mutual funds. Individual stocks I believe have to go to the settlement fund, but since you only have mutual funds in the old format account, that shouldn't be an issue for you at time of retirement.

Just wanted you to be clear, the feature it sounds like you'd prefer does exist.
Thanks for the update. While I can't use it now, I can help my elderly relatives who use Vanguard to make the change.
They definitely don't want to login and transfer the cash regularly, this will help. I don't think it was always there, as I had done the "upgrade"
for a parent years ago and the feature was not there at the time.

Then there is the best reason to "upgrade", to stop getting the requests to upgrade....
That alone almost makes me want to retire sooner :-)
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Re: Vanguard brokerage account transition

Post by TravelGeek »

Random Poster wrote: Fri Oct 02, 2020 9:51 am Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?

Regardless, does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
There was a footnote in the email:

*Vanguard is working towards retiring the old platform by 2022 or sooner.

Not sure if they had been explicit about a retirement date in the past.

I think I will aim to make the switch next year after the tax forms are processed.
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Re: Vanguard brokerage account transition

Post by rkhusky »

ruralavalon wrote: Sat Oct 03, 2020 10:28 am
rkhusky wrote: Sat Oct 03, 2020 10:24 am
ruralavalon wrote: Sat Oct 03, 2020 10:08 am
I do have the same question -- does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
Just the latter three options. No reinvestment into other funds.
Rats :x, I preferred automatic reinvestment of dividends and gains in another fund in our joint taxable account.

But thanks for the information, I have now reset the preference or reinvestment of dividends and gains in that account.
Are you saying that, after you switched to brokerage, some of your taxable funds still had the preference set to send dividends to a different fund, such that you had to change it to reinvest in the same fund or send to settlement fund?
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Re: Vanguard brokerage account transition

Post by abuss368 »

TravelGeek wrote: Sat Oct 03, 2020 2:49 pm
Random Poster wrote: Fri Oct 02, 2020 9:51 am Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?

Regardless, does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
There was a footnote in the email:

*Vanguard is working towards retiring the old platform by 2022 or sooner.

Not sure if they had been explicit about a retirement date in the past.

I think I will aim to make the switch next year after the tax forms are processed.
I had called Vanguard a couple months ago with a few questions. I was told this as well. Believe they had said about removing some functionality with the old mutual fund platform that will result in people changing.
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Re: Vanguard brokerage account transition

Post by UpperNwGuy »

If Vanguard was serious about pushing people to "voluntarily" change, they would do two things:
— remove features from the old mutual fund platform, such as the ability to reinvest in a different fund, and
— fix the year-end reports on the new brokerage platform.

Once they've achieved that goal, I'm sure they'll then find ways to push people into converting their mutual funds to ETFs. I think this push began a year ago with the announcement that ETFs would have lower expense ratios than their corresponding mutual funds.

I don't see the big ETF push happening soon because Vanguard has many mutual funds that don't yet have ETF share classes. A second problem is the whole 401K industry's slowness to embrace ETFs.

All these issues really only affect old people of my generation. My kids have no patience with Vanguard, especially with the $3,000 minimum investment rule. One of my kids started with USAA because of military service. Another went with Fidelity because of the local offices and Vanguard's $3,000 rule. My third kid loves Robinhood and thinks the old-style brokerages like Vanguard will ultimately go away.
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Re: Vanguard brokerage account transition

Post by Cheez-It Guy »

Vanguard going away would take absolutely massive upheaval. Unless they mean only the retail brokerage arm.
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Re: Vanguard brokerage account transition

Post by ruralavalon »

rkhusky wrote: Sat Oct 03, 2020 9:19 pm
ruralavalon wrote: Sat Oct 03, 2020 10:28 am
rkhusky wrote: Sat Oct 03, 2020 10:24 am
ruralavalon wrote: Sat Oct 03, 2020 10:08 am
I do have the same question -- does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
Just the latter three options. No reinvestment into other funds.
Rats :x, I preferred automatic reinvestment of dividends and gains in another fund in our joint taxable account.

But thanks for the information, I have now reset the preference or reinvestment of dividends and gains in that account.
Are you saying that, after you switched to brokerage, some of your taxable funds still had the preference set to send dividends to a different fund, such that you had to change it to reinvest in the same fund or send to settlement fund?
No. I had Fund A set to invest in it's dividends in fund B, in the new platform they automatically reset to reinvest dividends of fund A in Fund A. I had to reset to reinvest Fund A dividends in the the sweep fund so that I can later put the money in shares of Fund B.
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Re: Vanguard brokerage account transition

Post by TravelGeek »

ruralavalon wrote: Sun Oct 04, 2020 11:00 am No. I had Fund A set to invest in it's dividends in fund B, in the new platform they automatically reset to reinvest dividends of fund A in Fund A. I had to reset to reinvest Fund A dividends in the the sweep fund so that I can later put the money in shares of Fund B.
Sounds like a bug they ought to fix. I would be annoyed if such settings didn’t carry over correctly and lead to purchases I didn’t intend to make.

Note to self to review all the various threads about the transition on Bogleheads to make a check list for things other people encountered.
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Re: Vanguard brokerage account transition

Post by rkhusky »

TravelGeek wrote: Sun Oct 04, 2020 2:55 pm
ruralavalon wrote: Sun Oct 04, 2020 11:00 am No. I had Fund A set to invest in it's dividends in fund B, in the new platform they automatically reset to reinvest dividends of fund A in Fund A. I had to reset to reinvest Fund A dividends in the the sweep fund so that I can later put the money in shares of Fund B.
Sounds like a bug they ought to fix. I would be annoyed if such settings didn’t carry over correctly and lead to purchases I didn’t intend to make.

Note to self to review all the various threads about the transition on Bogleheads to make a check list for things other people encountered.
Not really a bug, since the brokerage account has no option for sending dividends to a different fund. Vanguard chose reinvestment rather than sending to the sweep account as the default replacement, which seems like a reasonable choice. It would be nice if they provided a list of all options/preferences/settings that were changed in the switch.
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Re: Vanguard brokerage account transition

Post by TravelGeek »

rkhusky wrote: Sun Oct 04, 2020 6:13 pm Not really a bug, since the brokerage account has no option for sending dividends to a different fund. Vanguard chose reinvestment rather than sending to the sweep account as the default replacement, which seems like a reasonable choice. It would be nice if they provided a list of all options/preferences/settings that were changed in the switch.
A notification would be good. Fixing the Limitation would be better. Investing in a fund I didn’t choose seems like the worst choice. I would argue that putting the dividends in the sweep account (if they can’t figure out how to implement the “auto-investment into B” feature that the old platform has) would be safer. I wonder how many people go through the transition, don’t realize this change in behavior and get investments they may not want (and couldn’t it mess up your plans due to wash sales?)
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Re: Vanguard brokerage account transition

Post by rkhusky »

TravelGeek wrote: Sun Oct 04, 2020 8:29 pm
rkhusky wrote: Sun Oct 04, 2020 6:13 pm Not really a bug, since the brokerage account has no option for sending dividends to a different fund. Vanguard chose reinvestment rather than sending to the sweep account as the default replacement, which seems like a reasonable choice. It would be nice if they provided a list of all options/preferences/settings that were changed in the switch.
A notification would be good. Fixing the Limitation would be better. Investing in a fund I didn’t choose seems like the worst choice. I would argue that putting the dividends in the sweep account (if they can’t figure out how to implement the “auto-investment into B” feature that the old platform has) would be safer. I wonder how many people go through the transition, don’t realize this change in behavior and get investments they may not want (and couldn’t it mess up your plans due to wash sales?)
You don’t get dividends unless you are invested in the fund, which is an indication that you chose the fund. The sweep fund is the fund you didn’t choose.

In any case, it’s a good idea to know what is going on with your funds after a major change like this.
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Re: Vanguard brokerage account transition

Post by clip651 »

abuss368 wrote: Sun Oct 04, 2020 4:21 am
I had called Vanguard a couple months ago with a few questions. I was told this as well. Believe they had said about removing some functionality with the old mutual fund platform that will result in people changing.
If true, this is an odd choice on VG's part. Some accounts aren't even eligible to be transitioned. I have agent authority on a relative's account that fits this description. So they can't force us to change (again, not eligible!) ... but they're going to start reducing functionality? If they're just talking about the app, that's no issue for us, as we use computers instead anyway. But if they're reducing general functionality, that's unreasonable when not everyone can switch even if they wanted to.
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Re: Vanguard brokerage account transition

Post by Cheez-It Guy »

I'm pretty sure Vanguard discloses all the changes associated with the account migration. I think a possible issue is that people don't read the details and then get mad when something changes that they didn't pick up on.

Here's a summary from OVER FIVE YEARS AGO:

https://www.mymoneyblog.com/vanguard-me ... -cons.html

I actually read about it there before I even knew it was an option at Vanguard. It very clearly explains the process including an acknowledgement of feature changes (which the article also conveniently summarizes).
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Re: Vanguard brokerage account transition

Post by abuss368 »

Random Poster wrote: Fri Oct 02, 2020 9:51 am Received an email from Vanguard this morning with a new “stick” for those who don’t transition:
We're reaching out to notify you about an upcoming change that could limit mobile access to your account(s).

With our new mobile app, you won't be able to do transactions on any of your accounts that are on our old investment platform

By the end of 2020, Vanguard plans to replace our current app with a brand new app for iOS and Android. The new app will make it easier to do transactions anytime, anywhere.

For accounts on our new brokerage platform, which supports Vanguard mutual funds and many other types of investments, you'll be able to both view your portfolio and do transactions.

For accounts on our old investment platform, which supports only Vanguard mutual funds, you'll only be able to view your portfolio.

Transition from the old platform to the new brokerage platform so you can take full advantage of the app
I suppose you could still log into the app, then go to the Vanguard website through the app, and do a transaction that way, but who knows?

Regardless, does the brokerage account still not allow for dividend reinvestment into a different fund (other than the settlement fund)? And can dividends only be reinvested into the same fund, sent to the settlement fund, or sent to a bank account?
And so it is starting! When I called Vanguard a few months ago and asked a variety of questions, we were told that the "old" platform would begin to have functionality removed. The result would be clients looking to move to the brokerage platform.

In some respects, I really don't think this is a big deal.
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Re: Vanguard brokerage account transition

Post by abuss368 »

UpperNwGuy wrote: Sun Oct 04, 2020 7:31 am If Vanguard was serious about pushing people to "voluntarily" change, they would do two things:
— remove features from the old mutual fund platform, such as the ability to reinvest in a different fund, and
— fix the year-end reports on the new brokerage platform.

Once they've achieved that goal, I'm sure they'll then find ways to push people into converting their mutual funds to ETFs. I think this push began a year ago with the announcement that ETFs would have lower expense ratios than their corresponding mutual funds.

I don't see the big ETF push happening soon because Vanguard has many mutual funds that don't yet have ETF share classes. A second problem is the whole 401K industry's slowness to embrace ETFs.

All these issues really only affect old people of my generation. My kids have no patience with Vanguard, especially with the $3,000 minimum investment rule. One of my kids started with USAA because of military service. Another went with Fidelity because of the local offices and Vanguard's $3,000 rule. My third kid loves Robinhood and thinks the old-style brokerages like Vanguard will ultimately go away.
Vanguard at over $6 TRILLION in assets, and second to only Blackrock is not going away. In addition, the minimum of $3,000 is not needed unless the Admiral share class of mutual funds is desired. Our kids are young but already getting into the investing game. They are playing a stock picking game on MarketWatch with friends and learning. I found it interesting that they and their friends are not even talking about the older mutual funds but only ETFs and rattle off the 3 digit ticker symbols!

Thus you could open a brokerage account and buy one share and not be bothered with any $3,000 minimums.
John C. Bogle: “Simplicity is the master key to financial success."
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