Traditional Vanguard Account Vs. Brokerage - ? Update Time

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arthurdawg
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Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by arthurdawg »

I'm now receiving emails and see an "update" notification at Vanguard to change to a brokerage account.

I'm assuming this is the future...

Anyone made the jump and care to comment on how well it works compared to staying with a non-brokerage account?

Pros? Cons?


Thanks!

The App also appears to require a brokerage account... I rarely use it, but it seems less functional with the updates.
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little_star
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by little_star »

There are numerous threads on this topic. For some people, their jobs require them to stay on the mutual-fund only platform. For others, there are features that are available only on the mutual fund platform (i.e., being able to reinvest dividends into a different fund automatically) that they believe are crucial to their financial well being. In my case, I "accidentally" moved, as one day I clicked on the prominently displayed button. I have noticed no difference in the quality of my transactions or service with Vanguard since I made the transition. I can still buy and hold easily. I can see my account balance easily. Apparently I can now buy things I could not buy before, but I am staying with the mutual funds I selected as the foundation of my investment accounts. Thus, from my perspective, I see no reason to hold out to remain on a platform that Vanguard is actively trying to get people to transition from so that they can put their (meager) IT efforts into a single platform for everyone. Ultimately, however, it is your choice.
sycamore
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by sycamore »

I made the change years ago and I'm happy with it:
- only one 1099 for all holdings in the account rather than one per mutual fund
- my mutual funds & ETFs are all "under one roof"
- I didn't use any of the special feature available only in the old mutual fund platform, so I don't miss them

As little_star mentioned, there are numerous threads on the topic. Here are a couple:
Vanguard Brokerage versus Mutual Fund Account Decision thread
Vanguard Brokerage Account Misinformation Correction Thread
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arthurdawg
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by arthurdawg »

Thanks for the references!

After investigating I made the switch without complications.
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Bmac
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by Bmac »

The change to the brokerage platform is really no big deal. For all the bashing that Vanguard gets for customer service and website issues on Bogleheads, with the exception of the crappy new mobile app, I have always found navigating the Vanguard platform, buying, selling and exchanging mutual funds and pretty much any other activity easier and more intuitive than either Fidelity or Schwab websites. I recently found that I am unable to use specific ID for mutual fund exchanges at Schwab. :annoyed
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arthurdawg
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by arthurdawg »

Bmac wrote: Fri May 13, 2022 12:24 pm The change to the brokerage platform is really no big deal. For all the bashing that Vanguard gets for customer service and website issues on Bogleheads, with the exception of the crappy new mobile app, I have always found navigating the Vanguard platform, buying, selling and exchanging mutual funds and pretty much any other activity easier and more intuitive than either Fidelity or Schwab websites. I recently found that I am unable to use specific ID for mutual fund exchanges at Schwab. :annoyed
We have Fido for our 401k accounts. I find the Vanguard site substantially better.
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student
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Re: Traditional Vanguard Account Vs. Brokerage - ? Update Time

Post by student »

arthurdawg wrote: Mon May 16, 2022 5:58 am
Bmac wrote: Fri May 13, 2022 12:24 pm The change to the brokerage platform is really no big deal. For all the bashing that Vanguard gets for customer service and website issues on Bogleheads, with the exception of the crappy new mobile app, I have always found navigating the Vanguard platform, buying, selling and exchanging mutual funds and pretty much any other activity easier and more intuitive than either Fidelity or Schwab websites. I recently found that I am unable to use specific ID for mutual fund exchanges at Schwab. :annoyed
We have Fido for our 401k accounts. I find the Vanguard site substantially better.
I also do not particularly like the Fido site for my 403b account. However, the retail version is much better.
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